Beowulf Mining PLC Regulatory News (BEM)

13 July 2012

Beowulf Mining Plc

("Beowulf" or the "Company")

Update re Kallak Iron Ore Project

Highlights:

·; Approval received from the County Administrative Board of Norrbotten, Sweden for the second part of the ongoing initial phase of drilling at Kallak North

·; 1,522m drilled to date on the 2012 drill programme

·; Application submitted for test mining at Kallak North with an accompanying Environmental Impact Assessment

Beowulf (AIM: BEM; Aktietorget: BEO), the AIM and Aktietorget traded mineral exploration company which owns several exploration projects in Sweden, is pleased to announce an update on progress at its wholly wned Kallak North iron ore project in Northern Sweden. 

County Administrative Board Approval

Jokkmokk Iron Mines AB ("JIMAB"), Beowulf's wholly owned Swedish subsidiary, has recently received approval from the County Administrative Board of Norrbotten in respect of the second part of the initial phase of its ongoing drill programme at Kallak North, following filing of an application for large drilling programmes, as required under the Swedish Environmental Code. 

Although such approval is only compulsory for the drilling of 30 holes or more, JIMAB's management elected to make an application in respect of its planned, more limited, initial 18 hole programme as a precautionary measure, with a positive response being received within a short time period. 

The second part of the ongoing initial phase of the 2012 drill programme on Kallak North is currently intended to comprise of 5,400m of drilling utilising the same two rigs that are already on site. The 5,400m of drilling will primarily be aimed at determining the width and depth of the southern extension of the Kallak North deposit, as well as seeking to more precisely define the deposit's eastern and western limits.

Ongoing drilling operations

A total of 1,522m has been drilled at Kallak North in 2012 to date, using the "Big Bertha" and "Agnetha" rigs, at locations within Beowulf's previously defined grid system. The drilling comprises extensions to deepen the Company's pre-existing inclined holes. The extended drill holes have all encountered strong iron mineralisation at substantial depth, with indications of similar mineralised characteristics to those encountered in the earlier shallower zones of the Kallak North deposit on which the maiden JORC Code compliant resource estimate was reported in 2011.

Two holes (KAL 10 001 and KAL 10 010) have been drilled to lengths of more than 440m and a further two holes (KAL 10 019 and KAL 10 026) have achieved lengths of 374.5m and 389.70m respectively. As drillhole KAL 10 001 is inclined at 60 degrees and the rest at 45 degrees this corresponds to approximately 375m, 310m and 275m vertical depth from ground surface respectively. These four extended holes represent the deepest drill holes completed on the Kallak North deposit to date and contain indications of strong iron mineralisation which, alongside results from our historic 2010 drill campaign, can now be interpreted to be continuous from the surface outcrops.

The two rigs have now commenced the second part of the initial phase of the 2012 drill programme following the abovementioned approval received from the County Administrative Board of Norrbotten. 

As previously announced, all drill cores are being scanned in the field at the drill site by a highly sensitive hand held magnetic susceptibility meter, with automatic average registrations over the core lengths, before being transported to the ALS laboratory at Öjebyn, Sweden, for logging and analytical preparation. Iron content will be determined at the ALS laboratory in Perth through the use of XRF techniques (total iron) and Ferrous iron by H2SO4/HF acid digestion and titrimetric finish. 

MINPRO AB's laboratories at Stråssa, Sweden are currently undertaking metallurgical tests, including Davis Tube Recovery ("DTR") analysis, on six drill core samples from the Kallak North deposit, the results of which will guide the selection of planned trenches for test mining in due course.

It is currently anticipated that approximately 85 per cent. of the total drill cores from the ongoing initial phase of the 2012 drill programme will be analysed, with the first assay results expected to be received in August 2012.

Application for test mining at Kallak North

The Company also announces that JIMAB has recently filed an application for test mining at the Kallak North deposit with the County Administrative Board of Norrbotten, in accordance with the requirements of the Swedish Minerals Act and Environmental Code. 

The purpose of the test mining is to collect representative samples for metallurgical test work off site, allowing design parameters for mineral processing to be developed, as well as generating final product samples for metallurgical testing by potential future customers. The application includes a comprehensive Environmental Impact Assessment ("EIA"), which has been prepared following due consultation with stakeholders. The EIA prepared for the purposes of this application also forms part of the Company's ongoing environmental studies. 

The planned test mining will include up to 2,000m3 of mineralised material from up to six trenches crossing the Kallak North mineralisation in a West-East direction. The length of the trenches will be up  to 50m each. Arrangements for coarse crushing of the samples on site will be provided if required. 

Following receipt of approval for this application in due course, detailed work plans will then be prepared and disseminated to the relevant land owners and users in the affected area prior to any field work commencing.

Logistics and community meetings

As previously announced, JIMAB is being advised by Kent Ahlefors, an expert consultant on logistics, with consultations progressing with the Swedish Transport Administration and the Municipality of Jokkmokk in order to identify potential options for the transportation of iron ore concentrates from the proposed mine site to the Swedish port of Lulea near the Baltic sea and the Norwegian port of Narvik near the Atlantic sea. 

In early July 2012, JIMAB's management arranged local information meetings for the communities of Randijaur and Bjorkholmen, the nearest villages to the intended mine site, to enable it to outline Beowulf's development plans for the Kallak project to an initial mining stage and address any concerns arising. As previously announced, JIMAB is seeking to work more closely with the local communities and Saami villages going forwards and will be organising further meetings in due course.

Dr Jan Ola Larsson (Fil. Kand, PhD, DIC), has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM rules. Dr Larsson is Technical Director of the Company and has over 30 years relevant experience within the natural resources sector.

Clive Sinclair-Poulton, Executive Chairman of Beowulf, commented:

"We are pleased to confirm further progress on our Kallak project and were delighted with the swift approval received from the County Administrative Board of Norrbotten for the ongoing initial phase of our Kallak North drilling programme.

The submission of our test mining application with the associated EIA marks a further important step and we continue with our communications programme seeking to engender support from the local communities for our exciting development plans."

Enquiries:

Notes to Editors:

Kallak North currently has an independent JORC Code compliant Inferred Resource estimate of 131.6Mt grading at 28% iron (Fe) completed by GeoVista AB. Considerably more in-fill drilling is required in order to increase the existing estimated tonnage and JORC classification.