Beowulf Regulatory News (BEM)

4 October 2019

Beowulf Mining plc

("Beowulf" or the "Company")

Management Update on Kallak North

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, provides an update on its application for an Exploitation Concession for the Kallak North iron ore project ("Kallak").

CEO's Letter to the Minister of Enterprise and Innovation

The Company has received a response to the letter sent by the CEO to Mr Ibrahim Baylan, Minister for Enterprise and Innovation, The Government of Sweden. The Minister has explained that since the CEO's request for a meeting "concerns a forthcoming Government decision - a dossier that is currently under preparation", the Government is unable to meet or comment with regard to its "ongoing review".

Expert Legal Review of Kallak Application

In September, the Company engaged a highly respected Stockholm law firm to review its Kallak application. Specifically, statements by the County Administrative Board ("CAB") for the County of Norrbotten, including the CAB's statement made in November 2017, and the Company's comments to the Government criticising that statement. The legal analysis is unequivocal, that the Company has robustly argued its case for a Concession to be awarded.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"It is positive that Mr Baylan writes about a 'forthcoming decision'.

"It's six and a half years since the Kallak application was first submitted and it's widely recognised in Sweden that the Company's application has been completely mishandled, and the case is rightly a focus for investors considering the feasibility of Swedish mining projects.

"I was in Jokkmokk between 26-27 September and met with Robert Bernhardsson the Mayor, and this week he has made strong comments in an interview in Dagens Industri, about the inaction of Government in taking a decision on Kallak. Jokkmokk's economic challenges are acute and while Kallak presents a transformative opportunity for the town, and the town's resurgence, the Government's job has not been made easier, because of the CAB's flawed statement made in November 2017.

"However, the Company is not looking backwards, and, as we appear to be moving towards a decision by the Government, our discussions in Jokkmokk are about the future of Kallak and the town, working in partnership with the municipality, the community and the Sami reindeer herding community.

"Beowulf's Swedish and UK shareholders are justifiably exasperated by the Kallak saga. Their investment of approximately SEK 80 million in Kallak over a decade deserves more. The legal analysis of our case is unequivocal and there should be no impediment to the Concession for Kallak being granted. I look forward to keeping the market updated."

Swedish Translation:

"Det är positivt att minister Baylan skriver om ett 'kommande beslut'.

"Det är 6,5 år sedan Kallak-ansökan först lämnades in och det är allmänt erkänt i Sverige att hanteringen av ansökan fullständigt misskötts. Fallet har därmed hamnat i fokus för internationella investerare, som bedömer hur attraktivt det är att investera i Sverige.

"Jag besökte Jokkmokk 26-27 september och träffade bl.a. kommunalrådet Robert Bernhardsson. Robert Bernhardsson har under den här veckan uttryckt kraftfull kritik i en intervju i Dagens Industri, om regeringens passivitet när det gäller beslutsfattande om Kallak. Jokkmokks ekonomiska utmaningar är akuta. Kallak skulle ge kommunen en möjlighet att utvecklas, men regeringens jobb har inte underlättats på grund av länsstyrelsens diskutabla uttalande i november 2017.

"Företaget ser ändå inte bakåt. Eftersom vi verkar gå mot ett beslut av regeringen, så handlar våra diskussioner i Jokkmokk om framtiden för Kallak och kommunen, samt samarbete med kommunen, samhället och rennäringen..

"Beowulfs svenska och brittiska aktieägare har all rätt att vara upprörda över Kallakhistorien. Deras investering på cirka 80 miljoner svenska kronor i Kallak under ett decennium förtjänar mer. Den rättsliga analysen av vårt ärende är entydig och det borde inte förekomma något hinder för att koncessionen för Kallak beviljas. Jag ser fram emot att hålla marknaden uppdaterad. "

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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.