Beowulf Regulatory News (BEM)

24 February 2017

Beowulf Mining plc

("Beowulf" or the "Company")

Kallak North Exploitation Concession Update

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Beowulf (AIM: BEM; AktieTorget: BEO), the mineral exploration and development company, focused on the Kallak magnetite iron ore project and the Åtvidaberg polymetallic exploration licence in Sweden, and its graphite portfolio in Finland, announces that further to the Company's announcement on 22 February 2017, the Company has written to the Mining Inspectorate of Sweden.

The Company has stated that it does not agree with the Mining Inspectorate on consulting with the Swedish National Heritage Board (Riksantikvarieämbetet, "RÅA") and the Swedish Environmental Protection Agency (Naturvårdsverket, "NV"), as both these agencies have already reviewed the Company's application for an Exploitation Concession for Kallak North and provided comments.

The Company has stated that it is for the County Administrative Board ("CAB") for the County of Norrbotten to answer the Mining Inspectorate's questions and to give an opinion on the Company's application. The CAB has stated on more than one occasion that the Company's Environmental Impact Assessment ("EIA") is sufficient for an assessment, and in July 2015, the CAB detailed a robust economic case for Kallak.

The Company has summarised arguments that support its case for the award of a Concession, but will not be making any further detailed submission before the Mining Inspectorate consults with RÅA and NV.

The Company believes that it is not reasonable to presume that a mining operation at Kallak will have an adverse impact on the World Heritage Status of Laponia; with Laponia almost 1 million hectares, and Kallak approximately one thousandth of its size. The assessment by third parties has been erroneous, at a very basic level, with the ICOMOS and IUCN Technical Review, dated February 2016, claiming Kallak to be 80 km2. This is not the case. The entire area for Kallak is approximately 13.6 km2, one sixth of what ICOMOS and IUCN stated in their report. The Company maintains that its EIA is comprehensive and that the 'zone of influence' of any mining operation at Kallak does not extend 33.8 kilometres to the closest point of Laponia.

On 2 December 2016, the Company provided the CAB with a paper on the interaction of Kallak and Laponia, matters regarding Laponia's World Heritage Status and Heritage Impact Assessments. The purpose of the paper was to address matters raised by interested parties with respect to the Company's application, since the CAB's statement in October 2014. The paper directed the CAB to where matters raised are addressed in the Company's EIA, where the Company believes matters should be addressed under environmental permitting, and where the Company believes matters fall outside of the prescribed process for being awarded an Exploitation Concession.

With regards to the interaction between mining and reindeer herding, in November 2014 the Company eliminated the Jelka-Rimakåbbå transport route from future plans, responding to the CAB's concerns, and the Company's EIA contains established preventative, precautionary and compensatory frameworks that could be developed into management plans, in consultation with the reindeer herding communities affected by mining operations. The Company is committed to the responsible development of Kallak, and partnering with the local community, including the Sami reindeer herding communities.

While the Company remains hopeful of an award of the Exploitation Concession, there can be no guarantee if, or when, the Concession might be awarded.

Kurt Budge, CEO, commented:

"It's reassuring that the Mining Inspectorate is demonstrating some urgency with regards to handling our application, but the level of frustration now felt, after submitting the application nearly four years ago, and with all the twists and turns since I became involved, is palpable.

"In 2015, we gained the support of the CAB for our application and the recommendation of the Mining Inspectorate to the Government of Sweden that the Exploitation Concession be awarded. Since 2015, there have been no material changes to the application which the CAB supported. The Mining Act and the Environment Code are unchanged, and so is the prescribed review process. Yet, we are still trying to get an Exploitation Concession, after investing SEK72 million in the project and creating real value.

"In December 2016, we presented a reasoned case to the CAB, demonstrating that Kallak is not a threat to Laponia's World Heritage Status, considering the distance between them, relative size of both, and the evidence that shows industry and reindeer herding can exist side by side.

"We continue to place great emphasis on gaining local support. My trip to Jokkmokk this week, presenting the Company's vision for Kallak, a modern and sustainable mining operation, a centre for innovation, that has the potential to transform the economy and future of Jokkmokk, was well received by local entrepreneurs, business people, the Kommun and landowners' association. I will be back in Jokkmokk in a just over a week to present to more groups, and now feel that significant support is building behind Kallak, because of its importance to the community."

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Cautionary Statement

Statements and assumptions made in this document with respect to the Company's current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of Beowulf. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where Beowulf operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) Beowulf's continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) metal prices, particularly as regards iron ore. In the light of the many risks and uncertainties surrounding any mineral project at an early stage of its development, the actual results could differ materially from those presented and forecast in this document. Beowulf assumes no unconditional obligation to immediately update any such statements and/or forecasts.