Beowulf Regulatory News (BEM)

4 Sep 2007 09:14

BEOWULF MINING PLC

CHAIRMAN'S STATEMENT

FOR THE 6 MONTHS TO 30 JUNE 2007

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The Board of Beowulf Mining PLC ("Beowulf") are pleased to report the interimresults to 30 June 2007. In this period maximum effort has been focussed on theCompany's Ruoutevare iron titanium deposit, the Grundtrƒ¤sk gold deposit and theBallek copper, gold and uranium prospect all in Northern Sweden.The results show that Beowulf made a loss of ‚£192,170 in the first 6 months of2007 as compared to a loss of ‚£134,616 in the first six months of 2006. Thiswas due to increased expenditure on drilling at the Grundtrƒ¤sk gold deposit.

Since 30 June 2007 the Company's cash reserves have been increased by the following developments;

i) On 30 July 2007 Beowulf signed a convertible loan agreement with StarvestPlc. The loan is for ‚£250,000 bears interest at 4% per annum and is convertiblein to new ordinary shares of Beowulf at 4p per share at any time prior to 31July 2012 at the option of Starvest Plc.ii) On 16 August 2007 Beowulf placed 8,000,000 new ordinary shares at a priceof 4.25p each raising the gross sum of ‚£340,000, arranged by Loeb Aron &Company Ltd. The issue was together with 400,000 warrants exercisable for twoyears at 6p per warrant.Beowulf's Ruoutevare project translates to mean "iron mountain" and has anon-JORC compliant resource, as verified by Snowden Mining Industry Consultants(Snowden), of 116 million tonnes, grading 38.2% iron, 5.6% titanium dioxide and0.17% vanadium oxide. Detailed geological mapping has been completed over theexploration concession and indicates that there are two mineralised lensoverlying each other. The Directors believe that the mapping suggests that themineral resource can be increased by further diamond drilling. This drilling isdue to start in September 2007 and the intention is to make the mineralresource JORC compliant as recommended by Snowden. The drilling will beextended to include ten to twelve extra holes laid out in a cruciform mannerwith strict geological control and the drilling will continue thereafter in2008. Beowulf commissioned the Swedish Raw Material Group (RMG) to conduct ascoping study of the economics of development of the Ruoutevare deposit. RMGbased its study on the approximate current iron ore and titanium dioxide pricesand concluded that at a throughput of 10 million tonnes per year, with truckingthe concentrates to the rail head, would yield positive results. The extradrilling to extend the resource estimate, addressing transport issues andsubsequent discussions with state bodies/off take clients will be factored intothe scoping study in 2007 and 2008.In June 2007 Beowulf reported the signing of an option and earn-in agreement onthe Ballek 2, 3, 4 and 5 exploration permits that cover 110 square kilometersof Arjeplog County of Northern Sweden. Agricola Resources PLC ("Agricola") hasbeen granted an option to acquire a 51% interest in the licences by undertakingmagnetotelluric, induced polarisation and resistivity surveys, followed by3,000 meters of diamond drilling. Agricola has agreed to conduct the programmeby 31 December 2008. The surveys are intended to identify targets associatedwith the gravity anomaly under the claim block, and to identify any iron oxidecopper gold (IOCG) deposits that may be present in the Ballek area. It isintended that Beowulf will incorporate a new subsidiary company to hold theBallek exploration permits and that, following completion of the agreed workprogramme, Agricola will be given a 51% shareholding in this company. Byspending an additional US$500,000 Agricola can increase its interest in theBallek licences to 70%. Subsequent expenditure on the Ballek explorationpermits will be made pro rata to Beowulf and Agricola's respective interests,subject to adjustment in the event that one party chooses not to fund theirproportion of such expenditure. Agricola Resources PLC(www.agricolaresources.com) is a company engaged in uranium exploration anddevelopment. Agricola Resources PLC is a public company whose shares are tradedon the PLUS Market. It recently raised ‚£467,800 in exploration finance throughan investment in Agricolas equity made by Energy Ventures Limited , aPerth based company listed on the ASX Australian Stock Exchange. EVE will alsogive valuable technical backing on the Ballek project to Agricola. This willenables Beowulf to advance its projects whilst maintaining its existing cashresources.In August 2007 Beowulf reported on a program of 3D modelling of regionalgravity and aeromagnetic data has been completed over the Ballek JV. Resultsfrom this modelling have identified several high-ranked targets for follow-upground geophysical surveys and generally confirmed the prospectivity of theproject for copper-gold-uranium mineralization. Geophysical surveys havecommenced in September 2007.In June 2007 Beowulf reported on the latest diamond drilling programme on thecompany's 100% owned Grundtrƒ¤sk gold project in the Skellefte Mining District,N. Sweden. The drill programme tested the southern extension where higher goldgrades were noted from previous drilling in 2005 by Beowulf. During 2006 andearly 2007 an additional 10 diamond drill holes were completed on theGrundtrƒ¤sk project. The holes were all targeted on the structure, now calledthe Southern Gold Structure that was identified by DDH 05004. Drilling hasoutlined a sigmoidal shaped mineralised zone consisting of dense sheet-veiningover a strike length of greater than 160m with widths of up to 20 meters. Goldgrades of up to 5.2m at 4.28g/t have been returned from the Southern GoldStructure. Geological interpretation of drill core from Grundtrƒ¤sk hasdemonstrated the existence of a mineralised corridor in which sigmoidal goldbearing structures, of which the Southern Gold Structure is just one example,occur over a strike length in excess of 800m. The mineralised structures arecharacterised by intense micro-veining of quartz, arsenopyrite and chalcopyritein a host of silicified intermediate lavas of the Vargfors Formation.Conspicuous molybdenite (the major ore mineral of molybdenum) also occurs inveins in some of the drill holes. The gold is believed to be carried in thechalcopyrite. Highlights of the recent drill campaign include 5.2m at 4.28g/tAu from 5.8m and 16.9m at 1.86g/t Au from 15.5m in DDH 06002, 18m at 1.77g/t Aufrom 41m in DDH 06005. Beowulf is seeking a joint venture partner to continuethe exploration and development of the Grundtrƒ¤sk Gold Project.

With diamond drilling on Ruoutevare and geophysics and diamond drilling on Ballek planned for the last four months of 2007, the Directors look forward to releasing regular newsflow over the coming months.

Dr. Robert YoungChairman, Beowulf Mining Plc5 September 2007BEOWULF MINING PLCPROFIT AND LOSS ACCOUNT

UNAUDITED RESULTS FOR THE 6 MONTHS TO 30 JUNE 2007

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(Unaudited) (Unaudited) (Audited) 6 months to 6 months to Year Ended 30 June 2007 30 June 2006 31 December 2006 ‚£ ‚£ ‚£ Turnover Nil Nil NilAdministrative expenses (198,662) (144,267) (338,286)Other operating income 150 - 250 _______ _______ _______

Loss on ordinary activities before

interest (198,512) (144,267)

(338,036)

Other interest receivable and similar

income 6,342 9,651 19,760 _______ _______ _______

Loss on ordinary activities before

taxation (192,170) (134,616)

(318,276)

Tax on loss on ordinary activities - -

- _______ _______ _______

Loss on ordinary activities after

taxation (192,170) (134,616) (318,276)_______ _______ _______Basic loss per share (0.28p) (0.22p) (0.50p)Diluted loss per share (0.23p) (0.15p) (0.35p)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

There are no recognised gains and losses other than those passing through the profit and loss account.

BEOWULF MINING PLCBALANCE SHEET

UNAUDITED RESULTS AS AT 30 JUNE 2007

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(Unaudited) (Unaudited) (Audited) at 30 June at 30 June at 31 December 2007 2006 2006 ‚£ ‚£ ‚£Fixed assetsIntangible assets 258,586 187,438 232,894Tangible assets 1,837 2,413 2,100Investments 265,398 222,250 227,405 _______ _______ _______ 525,821 412,101 462,399Current assetsDebtors 48,338 21,371 17,348Cash at bank and in hand 236,067 735,083 495,653 _______ _______ _______ 284,405 756,454 513,001

Creditors: amounts falling due

within one year (13,987) (8,134) (24,984) _______ _______ _______ Net current assets 270,418 748,320 488,017 _______ _______ _______

Total assets less current liabilities 796,239 1,160,421

950,416 _______ _______ _______Capital and reservesCalled up share capital 663,982 663,982 663,982Share premium account 2,361,482 2,362,982 2,361,482Capital Contribution 46,451 46,451 46,451Revaluation reserve 160,398 147,250 122,405Profit and loss account (2,436,074) (2,060,244) (2,243,904) _______ _______ _______

Shareholders' funds - equity interests 796,239 1,160,421

950,416 _______ _______ _______BEOWULF MINING PLCCASH FLOW STATEMENT

UNAUDITED RESULTS FOR THE 6 MONTHS TO 30 JUNE 2007

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(Unaudited) (Unaudited) (Audited) 6 months to 6 months to Year Ended 30 June 2007 30 June 2006 31 December 2006 ‚£ ‚£ ‚£

Net cash outflow from operating activities (191,690) (128,486) (267,006)

Returns on investments and servicing

of financeInterest received 6,342 9,651 19,760_______ _______ _______

Net cash inflow for returns on investments

and servicing of finance 6,342 9,651 19,760Capital expenditurePayments to acquire intangible assets (74,238)

(61,848) (141,367)

Payments to acquire tangible assets -

(2,216) (2,216)

Payments to acquire investments -

- (30,000) _______ _______ _______ Net cash outflow for capital expenditure (74,238) (64,064) (173,583) _______ _______ _______

Net cash outflow before management of

liquid resources and financing (259,586)

(182,899) (420,829)

Financing

Issue of ordinary share capital - 503,000 503,000Cost of share issue - (25,000) (26,500) _______ _______ _______Issue of shares - 478,000 476,500 _______ _______ _______ Net cash inflow from financing - 478,000 476,500 _______ _______ _______Decrease/(Increase) in cash in the period (259,586) 295,101 55,671 _______ _______ _______BEOWULF MINING PLC

NOTES TO THE CASH FLOW STATEMENT

UNAUDITED RESULTS FOR THE 6 MONTHS TO 30 JUNE 2007

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(Unaudited) (Unaudited) (Audited)1 Reconciliation of operating loss to net 6 months to 6 months to Year Endedcash outflow from operating activities 30 June 2007 30

June 2006 31 December 2006 ‚£ ‚£ ‚£Operating loss (198,512) (144,267) (338,036)

Depreciation of tangible assets 263 205 518Amortisation of intangible assets 48,547

20,042 54,105Increase in debtors (30,990) (5,014) (991)

(Decrease)/Increase in creditors within one year (10,998)

548 17,398 _______ _______ _______Net cash outflow from operating activities (191,690) (128,486) (267,006) _______ _______ _______ (Unaudited) (Unaudited) (Audited) 6 months to 6 months to Year Ended2 Analysis of net funds 30 June 2007 30 June 2006 31 December 2006 ‚£ ‚£ ‚£Net cash at start of period 495,653 439,982 439,982

(Decrease)/Increase in net funds from cash flows (259,586)

295,101 55,671 _______ _______ _______Net cash at end of period 236,067 735,083 495,653 _______ _______ _______ (Unaudited) (Unaudited) (Audited)

3 Reconciliation of net cash flow to 6 months to 6 months to Year Endedmovement in net funds 30 June 2007 30

June 2006 31 December 2006 ‚£ ‚£ ‚£

(Decrease)/Increase in cash in the year (259,586)

295,101 55,671 _______ _______ _______

Movement in net funds in the period (259,586)

295,101 55,671Opening net funds 495,653 439,982 439,982 _______ _______ _______Closing net funds 236,067 735,083 495,653 _______ _______ _______BEOWULF MINING PLC

NOTES TO THE FINANCIAL STATEMENTS

UNAUDITED RESULTS FOR THE 6 MONTHS TO 30 JUNE 2007

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1 Basis of preparation of interim accounts

The accounts for the company for the six months ended 30 June 2007, which areunaudited, have been prepared on the basis of the accounting policies used inthe audited financial statements for the year end 31 December 2006 as set outin note 2 below.

The financial information does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985.

2 Accounting policies

2.1 Accounting convention

The financial statements are prepared under the historical cost convention modified to include the revaluation of investments.

2.2 Compliance with accounting standards

The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).

2.3 Intangible fixed assets - exploration costs

Expenditure on the acquisition costs, exploration and evaluation of interestsin licences including related overheads are capitalised. Such costs are carriedforward in the balance sheet under intangible assets and amortised over themaximum period of the licences in respect of each area of interest where:

a) such costs are expected to be recouped through successful development and exploration of the area of interest or alternatively by its sale.

b) exploration activities have not yet reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active operations in relation to the areas are continuing.

An annual impairment review is carried out by the directors to consider whetherany exploration or development costs have suffered impairment in value and ifnecessary provisions are made accordingly.Accumulated costs in respect of areas of interest, which have been abandonedare written off to the profit and loss account in the year in which the area isabandoned.

Exploration costs are carried at the lower of cost and net realisable value.

2.4 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation.Depreciation is provided at rates calculated to write off the cost or valuationless estimated residual value of each asset over its expected useful life, asfollows:

Plant and equipment 25% on reducing balance

BEOWULF MINING PLC

NOTES TO THE FINANCIAL STATEMENTS

UNAUDITED RESULTS FOR THE 6 MONTHS TO 30 JUNE 2007

2.5 Investments

Fixed asset investments are stated at open market value. The revaluation adjustment is taken to the revaluation reserve.

2.6 Deferred taxation

The accounting policy in respect of deferred tax has been changed to reflectthe requirements of FRS19 - Deferred tax. Deferred tax is provided in full inrespect of taxation deferred by timing differences between the treatment ofcertain items for taxation and accounting purposes. The deferred tax balancehas not been discounted. A deferred tax asset is not recognised unless recoveryis expected in the foreseeable future.

2.7 Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies aretranslated into sterling at the rates of exchange ruling at the balance sheetdate. Transactions in foreign currencies are recorded at the rate ruling at thedate of the transaction. All differences are taken to profit and loss account.

3 Earnings per share

Basic loss per share has been calculated using the weighted number of shares of69,398,247 (30 June 2006 - 61,089,297 and 31 December 2006 - 63,570,576).Diluted loss per share has been calculated using the weighted average number ofshares of 83,098,247 (30 June 2006 - 91,658,246 and 31 December 2006 -91,209,358).

BEOWULF MINING PLC

INDEPENDENT REVIEW REPORT

UNAUDITED RESULTS FOR THE 6 MONTHS TO 30 JUNE 2007

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Introduction

We have been instructed by the company to review the financial information forthe six months ended 30 June 2007 which comprises the profit and loss account,balance sheet, cash flow statement and related notes. We have read the otherinformation contained in the interim report and considered whether it containsany apparent misstatements or material inconsistencies with the financialinformation.

Directors Responsibilities

The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directorsare responsible for preparing the interim report which require that theaccounting policies and presentation applied to the interim report should beconsistent with those applied in preparing the preceding annual accounts exceptwhere any changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom. Areview consists principally of making enquiries of management and applyinganalytical procedures to the financial information and underlying financialdata and based thereon, assessing whether the accounting policies andpresentation have been consistently applied unless otherwise disclosed. Areview excludes audit procedures such as tests of controls and verification ofassets, liabilities and transactions. It is substantially less in scope than anaudit performed in accordance with United Kingdom Auditing Standards andtherefore provides a lower level of assurance than an audit. Accordingly, we donot express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modification that should be made to the financial information as presented for the six months ended 30 June 2007.

Price Bailey LLPChartered AccountantsRichmond HouseBroad StreetEly, Cambs.