Beowulf Mining PLC Regulatory News (BEM)

14 Aug 2007 08:05

TECHNICAL UPDATE ON AGRICOLA RESOURCES PLC'S AND BEOWULF MINING PLC'S BALLEK JOINT VENTURE, SWEDEN AS ANNOUNCED BY AGRICOLA RESOURCES PLC

All diagrams can be viewed at the website of Energy Ventures Limited: www.energyventures.com.au

SUMMARY:

* A program of 3D modelling of regional gravity and aeromagnetic data has been completed over the Ballek JV. Results from this modelling have identified several high-ranked targets for follow-up ground geophysical surveys and generally confirmed the prospectivity of the project for copper-gold-uranium mineralisation. * Agricola Resources plc has recently signed a joint venture with Beowulf Mining plc under which Agricola may earn an equity interest of up to 70% in the Ballek copper-gold-uranium project in Northern Sweden. * Energy Ventures has a beneficial interest of 29.9% of Agricola's issued share capital, acquired through a recently completed off-market placement. Energy Ventures has also been issued 46.78 million options in Agricola Resources plc, exercisable at ‚£0.01 each. If exercised, Energy Ventures interest in Agricola will rise to approximately 46%. * The proceeds of Energy Venture's placement in Agricola will be used to fast-track exploration on the Ballek JV and on Agricola's wholly owned uranium projects in Sweden.

THE BALLEK COPPER-GOLD-URANIUM JOINT VENTURE (Agricola can earn up to 70%)

Technical Summary of the Ballek Project

The Ballek Project comprises four granted Exploration Permits covering 109.9 square kilometres in the municipality of Arjeplog in northern Sweden. The project occurs at the intersection of two major fault systems, a WNW trending continental-scale lineament corridor which contains the Skellefte Mineral Field, and a NNE trending major fault which extends through the giant Kiruna iron-ore district (see Diagram 1). The project is adjacent to Agricola's wholly owned Geddaur uranium project.

Diagram 1 Gravity image of northern Sweden showing prominent lineaments, major iron-ore districts and the location of the Ballek Project.

Diagram 2 Image of magnetic data at the Ballek Project showing the relationship between the gravity anomaly, magnetic rocks and copper-gold mineralisation

A prominent gravity anomaly occurs in the Ballek Project, and there is a known uranium occurrence, Rebraur Vƒ¤stra, in the NW tenement. Previous drilling by the Geological Survey of Sweden (SGU) has identified a trend of copper and copper-gold mineralisation along the western part of the project, including a small (non-JORC compliant) mineral resource at the Lulepotten copper-gold deposit (Diagram 2). On the basis of the presence of this large gravity anomaly, known copper, gold and uranium mineralisation, it is considered that this project exhibits significant potential for iron-oxide, copper-gold-uranium mineralisation (IOCG).

3D Gravity and Magnetic Modelling

IOCG systems are highly prized exploration targets due to their potential for large, high-grade deposits containing multiple commodities (usually iron-ore, copper, gold and uranium in varying amounts). Most of the known IOCG deposits are characterised by a few common criteria, including their location along fundamental crustal lineaments (refer to Diagram 1) and the presence of co-incident gravity and magnetic anomalies. Recent industry experience has shown that this co-incidence of gravity and magnetic anomalies is required in a three-dimensional sense, and that conventional analysis of 2D images of gravity and magnetic data may not be insufficient to identify the best targets.

Agricola has recently completed a program of 3D modelling of the gravity and magnetic data for the district which contains the Ballek Project. The results of this modelling can be viewed in 3D computer software where it is possible to assess the relationship between three-dimensional magnetic bodies and three-dimensional gravity anomalies (representing bodies which are denser than the surrounding rocks). Analysis of the data for the Ballek Project show that complex magnetic bodies are spatially co-incident with large dense bodies reflected by anomalous gravity readings (Diagram 3).

Diagram 3 Perspective view of the three-dimensional gravity (orange) and magnetic (grey) inversion models for the Ballek Project showing complex relationships between magnetic bodies and dense bodies. Co-incident 3D anomalies are considered to represent the best targets for iron-oxide copper-gold-uranium mineralisation.

Comparison of the location of the known copper and copper-gold deposits in the Ballek Project shows a very good correlation with co-incident gravity and magnetic anomalies (see Diagram 4). The copper mineralised trend that included the Lulepotten deposit extends along the edge of a co-incident magnetic and gravity anomaly and joins a smaller co-incident pair of anomalies at its southern extent. The mineralisation in the Lulepotten trend was drilled between 1960 and 1971 and does not appear to have been analysed for its uranium content. It comprises disseminated chalcopyrite with abundant bornite, pyrite, chalcocite and iron oxides hosted in potassically altered volcanic rocks adjacent to granitic intrusions. This description in entirely consistent with the IOCG style of copper-gold-uranium mineralisation, lending further support to the Ballek Project.

Four priority targets have been identified through the analysis of the 3D model, each characterised by anomalous magnetism, anomalously high gravity readings and in most cases by the presence of known copper-gold mineralisation. Each of these targets will be explored in the coming months through a series of ground geophysical surveys, to include induced polarisation surveys (IP), resistivity surveys and magneto-telluric (MT surveys). Similar surveys have been extensively used in previous IOCG exploration campaigns and have proved to be effective in defining drilling targets.

Diagram 4 Top-down view of the Ballek 3D model showing outlines of targets

areas derived from the analysis of the 3D gravity (red) and magnetic (grey) anomalies. Follow-up induced polarisation (IP) and magneto-telluric (MT) ground

geophysical surveys are planned for these targets.

Background Information: Ballek Joint Venture Terms

Under the terms of the recently signed joint venture Agreement between Agricola Resources plc and Beowulf Mining plc, Agricola may earn a 51% interest in the Ballek Project by completing a program of ground geophysics (to include induced polarisation, resistivity and magneto-telluric surveys over at least 12 square kilometres) and 3,000m of diamond drilling on the Ballek tenements prior to 31st December 2008. Agricola can increase its equity to 70% through sole funding a further exploration program totalling USD $500,000.

FORWARD EXPLORATION PROGRAMS

The proceeds of Energy Ventures recent placement in Agricola will be used to fast-track exploration at the Ballek JV project. The following exploration program has been implemented:

* Refinement of the preliminary targets generated from the 3D magnetic and gravity inversion modelling. * Induced polarisation (IP), resistivity and magneto-telluric (MT) geophysical surveys over the targets selected from the 3D magnetic and gravity inversion modelling. These programs are scheduled to commence prior to the final quarter of 2007. * Preliminary diamond drill testing of geophysical targets generated from the IP and MT surveys at Ballek, as noted above. Initial drilling will commence in the final quarter of 2007 and may extend into 2008.

Information in this report relating to Exploration results, Mineral Resources or Ore Reserves is based on information compiled by Dr Frazer Tabeart (an employee of Energy Ventures Ltd) who is a member of The Australian Institute of Geoscientists. Dr Tabeart has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Tabeart consents to the inclusion of the data in the form and context in which it appears.

Contact:

Dr. Robert Young, Chairman

Beowulf Mining plc Tel: +44-(0)1353 649 701

Gavin Burnell

Ruegg & Co. Limited Tel: +44-(0)207 584 3663

Nick Bealer

King & Shaxson Capital Limited Tel: +44-(0)207 426 5986

Gary Middleton

St Swithin's Public Relations Tel : +44-(0) 207 929 4391

Charles Dampney

City Capital Tel: +44-(0) 207 842 5867

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