Beowulf Regulatory News (BEM)

22 October 2018

Beowulf Mining plc

("Beowulf" or the "Company")

Study of Kallak's Potential Economic Benefits

Beowulf (AIM: BEM; Spotlight: 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, is pleased to announce that it has published in Swedish the Copenhagen Economics study that was completed in September 2017, and titled 'Kallak - A real asset, and a real opportunity to transform Jokkmokk' (the "Project").

Highlights of the Project:

· A mining operation at Kallak has the potential to create 250 direct jobs and over 300 indirect jobs in Jokkmokk, over the period that a mine is in operation.

· These jobs could be sustained over a period of 25 years or more, if the Kallak South deposit is mined after the Kallak North deposit, and further deposits at Parkijaure can be defined.

· The Company will seek to establish a 'Task Force' with Jokkmokks Kommun and local employment agencies, so that between now and the start of operations, plans are developed and implemented to make sure as many as possible jobs are available to people living in Jokkmokk.

· Kallak has the potential to generate SEK 1 billion in tax revenues, considering the case where 70 per cent of the mine's workforce are based locally, with annual tax revenues of SEK 40 million over a 25 years mine life.

· These tax revenues would help to develop and sustain public services and infrastructure in Jokkmokk, which are at risk due to a lack of new investment and job creation in the community, a declining population, and an ageing population.

A presentation by Copenhagen Economics on the Project can be found on the Company's website:

https://beowulfmining.com/wp-content/uploads/2018/10/Copenhagen-Economics_Presentation_SEP17_Swedish.pdf

Kurt Budge, CEO, commented:

"We have published the Copenhagen Economics Study in Swedish, to help the widest possible audience recognise the transformational economic opportunity that Kallak means for Jokkmokk.

"Last week, I was in Jokkmokk and Stockholm. We continue to have strong support from Jokkmokk municipality, the Mayor and the Social Democrat party. I met with other political parties and discussed with them our SEK 77 million investment in Kallak, and, despite the unacceptable delays to a decision on our application, our unwavering commitment to the project, to playing a constructive role in Jokkmokk, and to reaching out to all groups in the community in the spirit of cooperation and partnership.

"There is recognition that the Kallak project offers a new future to Jokkmokk, and that there is no other sector of the economy that could deliver similar transformational economic benefits. A mine could be producing high quality iron ore concentrate for decades, bringing much needed jobs and tax revenues to the municipality and region; all described in detail in the Copenhagen Economics study.

"Considering the positive economic and social effects of mining, it is great to see Kaunis Iron restart operations at the Kaunisvaara mine, bringing back much needed investment and jobs to the Pajala community. We read that the company is already dispatching ships from Narvik, loaded with high quality iron ore concentrate, to European customers.

"Ironically, we have just had the third anniversary since October 2015, of the Mining Inspectorate recommending to the Government that the Exploitation Concession for Kallak be granted. As acknowledged by the Swedish authorities, the Company's application has met all the requirements of the prescribed process for being granted an Exploitation Concession, the Swedish Minerals Act, the Environmental Code, and is compliant with Swedish law.

"I have met many Swedish Members of Parliament, who respond with incredulity and embarrassment when I describe the handling of our application by the Swedish authorities. The Company remains positive that a new Government in Sweden will approve the Concession.

"Kallak can showcase Sweden's capabilities for developing modern, sustainable and innovative mining projects. It is an opportunity that Jokkmokk cannot afford to lose."

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