Beowulf Regulatory News (BEM)

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

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of Kurt Budge, Chief Executive Officer.

16 May 2018

Beowulf Mining plc

("Beowulf" or the "Company")

Subscription to raise £1.5 million

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, is pleased to announce a subscription for new ordinary shares to raise £1.5 million before expenses (the "Subscription").

Background to the Subscription and Use of Proceeds

The funds will be used for general working capital purposes and to support activities across Beowulf's three main business areas, which are graphite exploration, the Åtvidaberg exploration licence, and Kallak. More specifically:

· a Scoping Study on the Aitolampi project;

· exploration and development activities across the graphite portfolio;

· drilling at Åtvidaberg, following drill target identification; and

· exploration and development work at Kallak, and the surrounding exploration licences, including application of passive seismic technology to define mineralisation at the Parkijaure licence and drilling, and landscape analysis of potential strategic partners/investors for the Kallak project.

Details of the Subscription, Issue of Equity, and Total Voting Rights

Pursuant to the Subscription, the Company will issue 30,000,000 new ordinary shares (the "Subscription Shares") to raise approximately £1.5 million (before expenses) at a price of 5.0 pence per new ordinary share.

Application has been made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM on or around 18 May 2018 ("Admission"). The Subscription Shares will rank pari passu with existing ordinary shares.

Following Admission, and in accordance with the Financial Conduct Authority's Disclosure ("FCA") and Transparency Rules, the Company hereby announces that it will have 566,307,254 ordinary shares of £0.01 each in issue, each share carrying the right to one vote. The Company does not hold any ordinary shares in treasury.

Following Admission, the above figure of 566,307,254 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA and Transparency Rules.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"It is disappointing to raise funds at a lower price than one year ago, a result of further delays in the Kallak permitting process, but we are very pleased to have completed this fundraising, which maintains our strong cash position, and enables us to keep investing and developing projects across Beowulf's three main business areas.

"We are busy with our Aitolampi graphite project, the Mineral Resource Estimate is progressing, and we have plans for a Scoping Study thereafter. We are also active across our graphite portfolio in Finland, as we seek to leverage the enthusiasm and supportive environment for battery minerals and metals in the Nordic region.

"In the coming weeks, we are bringing together our exploration team and external experts, to review our Åtvidaberg licence, with a view to defining drill targets there.

"The upcoming General Election in Sweden may delay a decision on the Exploitation Concession, as in my experience, political elections in any country affect a permitting process, often causing delays.

"At Kallak, our application has met the requirements of the prescribed process, in accordance with the Minerals Act and the Environmental Code, and in compliance with Swedish law. We have gone further, providing additional studies, including the Copenhagen Economics "Big Picture" Study, and a Heritage Impact Assessment.

"We have invested SEK77 million in Kallak, a project that has the potential to positively transform Jokkmokk, and our commitment is firm to the responsible development of a modern, sustainable, and innovative mining operation in partnership with the local community. 

"While we wait for the Government to decide on our application, we are not sitting idle. I am excited with the progress we are making with both our graphite portfolio and with our Åtvidaberg licence, and we continue to look outside the Company for merger and acquisition opportunities.

"We look forward to keeping shareholders updated on our progress across all areas of our business."

Enquiries:

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.