Beowulf Regulatory News (BEM)

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.

24 September 2019

Beowulf Mining plc

("Beowulf" or the "Company")

Extensive Lead-Zinc-Silver Mineralisation at Wolf Mountain Target with Significant Potential for High-grade Feeder Structures

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, provides an update on its investment in Vardar Minerals Limited ("Vardar") and exploration results for the Wolf Mountain lead-zinc-silver target ("WM"), situated in the central part of the Mitrovica Project in northern Kosovo.

Highlights:

·; Drilling and trenching results have confirmed extensive lead("Pb")-zinc("Zn")-silver("Ag") mineralisation over an area of 800 metres ("m") in length and 400m in width in the northern part of WM, with significant potential for high-grade feeder structures.

·; Over a three-month period, 278.5m of trenching and 1,609m of drilling were completed and 755 samples were sent for assay.

·; Trenching - highlights:

o Trench WM-T01 returned 1.43 per cent Pb, 1.87 per cent Zn and 11 grammes per tonne ("g/t") Ag over 51.0m, including 2.01 per cent Pb, 3.17 per cent Zn and 18 g/t Ag over 12.5m; and

o Trench WM-T02 returned 2.7 per cent Pb, 0.55 per cent Zn and 10 g/t Ag over 18.0 m and 3.6 per cent Pb, 0.64 per cent Zn and 14 g/t Ag over 8m.

o WM-T01, T02 and T03 all returned anomalously high Pb-Zn-Ag concentrations for intersected zones.

·; Drilling - highlights (All intercepts are 'down the hole' thicknesses and not 'estimated true' thickness):

o Hole WM001 returned 1.2 per cent Pb, 0.36 per cent Zn and 10 g/t Ag over 14.1m;

o Hole WM003 returned 1.4 per cent Zn over 4.15m;

o Hole WM004 returned 1.27 per cent Pb, 0.91 per cent Zn and 8 g/t Ag over 8.9m; and 1.4 per cent Zn over 20.9m;

o Hole WM006 returned 1.38 per cent Zn over 19.3m;

o Hole WM007 returned 2.69 per cent Pb, 0.4 per cent Zn and 16 g/t Ag, over 4.3m;

o Hole WM009 returned 1.29 per cent Pb over 3.0m;

o Hole WM010 returned 2.45 per cent Zn over 2.0m; and

o Hole WM014 returned 2.14 per cent Zn over 1.0m.

·; The results have added significant value in understanding the geometry of the target which shares many similarities to the Crnac Pb-Zn deposit (non-JORC compliant 3.5 million tonnes ("Mt") containing 8.1 per cent Pb, 3.2 per cent Zn, 120 g/t Ag) and the Zijaca Pb-Zn deposit (non-JORC compliant 5.2 Mt containing 2.83 per cent Pb, 2.83 per cent Zn and 16 g/t Ag). Zijaca is 3.3 kilometres ("km") southeast of WM North along trend.

·; Vardar is planning to conduct Direct Current - Induced Polarisation ("DC-IP") surveys, the results of which, when combined with detailed magnetic data, will be used for targeting high-grade sulphide-dominant Pb-Zn-Ag mineralisation associated with both mineralised breccia and feeder structures.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"We are excited about the results of Vardar's 2019 exploration programme, which demonstrate that the Wolf Mountain target has potential for economic mineralisation within an extensive lead-zinc mineralised system.

"Drilling and trenching results have confirmed extensive mineralisation over an area of 800 metres in length and 400 metres in width in the northern part of Wolf Mountain, with significant potential for high-grade feeder structures.

"Wolf Mountain is adjacent to the Zijaca lead-zinc deposit, which is situated approximately three kilometres to the southeast, and both have similar geological settings to the nearby Stan Terg lead-zinc-silver mine, which is situated approximately six kilometres to the southeast of Wolf Mountain, which dates back to the 1930s and which is estimated to have produced 34 million tonnes at 3.45 per cent lead, 2.3 per cent zinc and 80 g/t silver.

"The Wolf Mountain target is expressed on surface as a four kilometres long gossan, together with extensive hydrothermal alteration and breccia zones, which expands laterally at its northern extremity under a cap of volcanoclastic rocks.

"Vardar is planning DC-IP geophysical surveys to detect the presence of sub-surface conductive zones, which will be targeted by further drilling, aimed at intersecting potential high-grade feeder structures found in similar lead-zinc-silver deposits in Kosovo.

"Beowulf is also expecting to receive soil sampling results for the southern part of the Mitrovica licence, covering the Majdan Peak epithermal gold target and porphyry targets, and I look forward to keeping the market updated on further progress."

Swedish Translation:

"Vi är glada över resultaten från Vardar`s prospekteringsarbete. Resultaten demonstrerar att Wolf Mountain prospektet har potential för ekonomisk mineralisering över ett extensivt bly-zink mineraliserat system.

"Resultat från borrningar och dikesgrävningar har bekräftat omfattande mineraliseringar över ett område som mäter 800 meter i längd och 400 meter i bredd i denna norra delen av Wolf Mountain. området har stor potential för höghaltiga "feeder" strukturer.

"Wolf Mountain ligger i närheten av Zijaca bly-zink fyndighet, som ligger ca. tre kilometer mot sydost. Både Wolf Mountain och Zijaca har liknande geologisk miljö som närliggande Stan Terg bly-zink-silver gruva, som ligger ca. sex kilometer sydost om Wolf Mountain. Stan Terg har varit i produktion sedan 1930-talet med en beräknad produktion av 34 miljoner ton med 3,45 procent bly, 2,3% zink och 80 g/t silver.

"Wolf Mountain prospektet kan ses vid ytan som en fyra kilometer lång "gossan" tillsammans med extensiv hydrotermal omvandling och breccia zoner som expanderar lateralt i norr under ett lock av vulkanoklastiska bergarter.

"Vardar planerar DC-IP geofysiska mätningar för att detektera närvaro av konduktiva zoner under markytan och vidare testa dessa med fortsatta borrningar i syfte att genomskära potentiella höghaltiga "feeder" strukturer hittade i liknande bly-zink-silver fyndigheter i Kosovo.

"Beowulf väntar även på resultat från jordprovtagningen i södra delen av Mitrovica licensen, vilken täcker Majdan Peak epitermala guld prospekt och porfyriska prospekt. Jag ser fram emot hålla marknaden uppdaterad med fortsatta framsteg."

Work Summary:

The WM drill programme included 14 diamond drill holes targeting Pb-Zn-Ag mineralisation associated with the extensive gossan situated in the central part of the Mitrovica licence area. Prior to drilling, a series of trenches were mapped and sampled across thicker portions of the gossan in the northern and southern extensions of the target. The objective of drilling was to prove vertical continuity of the mineralisation and to identify high-grade feeder structures.

The gossan outcrops along a four kilometre zone closely following a major shear which bounds the eastern extent of Jurassic ultramafic rocks. On the northernmost extent, the gossan outcrop follows the contact between the ultramafic and overlying Oligo-Miocene volcanoclastic rocks. The northern area ("WM-North") is of interest due to the laterally extensive outcrop of Pb-Zn-Ag bearing gossan and apparent intersection of the north northeast trending gossan with a distinct north west oriented mineralised trend which includes the Zijaca deposit, approximately three kilometres southeast of the target.

Drilling and trenching work focussed on the northern and southern extensions of WM (WM-North and South respectively). Mineralisation differs in the two areas:

·; Mineralisation at WM-North includes an extensive relatively flat lying mineralised breccia zone at the contact between Jurassic ultramafic and overlying Oligo-Miocene volcaniclastic rocks, as well as potential for steeper high-grade feeder structures. Drilling in this area focused on demonstrating the continuity of mineralised breccia under the cap of volcanoclastic rocks.

·; The WM South target is characterised by outcropping mineralised iron-oxides which outcrop on hilltops and ridges over several hundred metres. Drilling in this area focused on intersecting the associated sulphide mineralisation of these gossanous ridges at depth.

Drilling

A total of 14 diamond holes were drilled into the WM target totalling 1,609m. All holes were piloted with PQ and telescoped to HQ core size when stable ground was intersected. Drill holes were surveyed at 30m intervals downhole using a Reflex EZ-TRAC survey tool and core was oriented using a Reflex ACT II kit. All drill collars were surveyed using a Leica Viva RTK DGPS unit. Selected drill core intersections were cut and sampled according to appropriate geological characteristics for laboratory analysis. A total of 268 composite samples were taken from cut drill core. Samples were collected at approximately 0.5, 1.0 and 2.0m intervals dependant on intersected zone of interest.

A total of 278.5m of trenching was carried out using a combination of excavator and manual digging. Trenches were mapped and composite samples collected on the trench base using rock saw and chisels. A total of 509 composite samples were collected over 0.5m to 2.0m intervals based on geological interest.

All samples were double bagged and packed in batches of gravel oversize bags prior to transporting to ALS Bor for processing. Appropriate blanks and CRMs were inserted at 30 and 50 sample intervals for QA/QC. Sample processing including crushing, splitting and pulverising was carried out at ALS Bor. Multi-element ICP-AES analysis (ALS code ME-ICPORE) for base metal ores following a strong oxidising acid digestion was carried out on all samples at ALS Galway. Selected samples were also fire-assayed for gold.

Drill holes WM001 to WM004 focussed on anticipated sulphide feeder structures below the mineralisation mapped in trenches WM-T01, T02 and T03. Drill holes WM005 to WM011 were then designed to intersect the extensive relatively flat lying mineralised breccia below the ultramafic-volcanoclastic unit contact.

Intersection highlights for drill and trench results are provided in Table 1 and 2.

Table 1. Drill intersection highlights

Trenching

Table 2. Trenching highlights

Conclusions and Next Steps

Drilling has demonstrated that mineralisation is more complex than initially assumed, frequently displaying a distinctive association with the Oligo-Miocene contact under which laterally extensive mineralised breccias have developed.

The geometry of the target orebody suggests a mineralisation model more analogous to the Crnac and Zijaca deposits. In both deposits, relatively flat mineralised breccias occur at a stratigraphic boundary with several underlying steeply dipping high-grade feeder zones. Both mineralised breccia and feeder zones are targets at WM.

Drill intersections correlate well with outcropping gossans on the hillslopes of the WM-North target. A first pass model of the ultramafic-volcanoclastic unit contact has been created by implicitly modelling the mapped geology and drill intersections. Results from this exercise illustrate the lateral extent of the mineralisation below the contact which extends approximately 800m in length and 400m in width.

Based on geological models at Crnac and Zijaca, and drill intersections in WM004, a number of mineralised feeder zones are anticipated below the contact. Follow-up DC-IP surveys are planned to identify these zones prior to further drill testing.

Beowulf's Investment in Vardar

·; On 6 November 2018, Beowulf announced that it had acquired a 14.1 per cent interest in Vardar for the consideration of £250,000, satisfied in cash. The Company's investment enabled Vardar to complete its 2018 exploration programme.

·; On 15 April 2019, the Company announced that it had exercised its option to increase its ownership in Vardar to approximately 37.55 per cent for the consideration of £750,000, satisfied in cash, fully funding Vardar's 2019 Kosovan exploration programme at the Mitrovica and Viti projects. The Company has an option to invest a further £115,000, which would increase its ownership to 40.1 per cent.

References:

·; Stan Terg - Strmić Palinkaš S, Palinkaš LA, Renac C, Spangenberg JE, Lüders V, Molnar F, Maliqi G (2013) Metallogenic model of the Trepča Pb-Zn-Ag skarn deposit, Kosovo: evidence from fluid inclusions, rare earth elements, and stable isotope data. Economic Geology 108:135-162…"With current reserves of 29 Mt of ore at 3.45 per cent Pb, 2.30 per cent Zn, and 80 g/t Ag (ITT/UNMIK 2001 report), together with the past production of approximately 34 Mt of ore, the deposit represents an important source of metals in the southeastern part of Europe."

·; Crnac - Resource estimate from the Mineral Deposits of Serbia - Ore deposit database… "In 1981, the Crnac mine produced 60,000 tonnes at 7 per cent Pb and 2 per cent Zn, by sub-level open stoping. Output should reach 150,000 tonnes/year by 1983. ITT/UNMIK Mission (12/2000): Past production (1967-2000): 2,060,000 tonnes at 4.3 per cent Pb, 2.2 per cent Zn and 53 g/t Ag. Resources: 1,415,000t at 8.1 per cent Pb, 3.2 per cent Zn and 120 g/t Ag."

·; Zijaca (or Zijaçë or Zijača) - 1999 PhD thesis in Albanian translated as "Geological and Structural Setting in the Trepča Region".

Glossary:

Induced Polarisation (IP) - Variations in chargeability can be diagnostic, for example, when aiming to characterize a mineral deposit (e.g. Mt. Isa), where the chargeability of the mineralized zone is often higher than the host rock. Often an induced polarization (IP) experiment is performed with the Direct Current Resistivity (DCR) hence they are often called DC-IP survey. Both conductivity and chargeability distribution can be recovered from a DC-IP survey.

Competent Person Review

The information in this announcement has been reviewed by Mr. Chris Davies, a Competent Person ("CP"), who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Davies has conducted a desktop review of source documents and data which underpin the technical statements disclosed herein and approves the disclosure of technical information in the form and context in which it appears in this announcement, in his capacity as a CP as required under the AIM rules. Mr. Davies has visited Vardar's Mitrovica and Viti projects in Kosovo.

Mr. Davies has sufficient experience, that is relevant to the content of this announcement, to qualify as a CP as defined in the 2012 Edition of the "Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves".

Mr. Davies BSc (Hons) Geology, MSc DIC Mineral Exploration, FAusIMM, is a Non-executive Director of Beowulf and is an exploration/economic geologist with more than 35 years' experience in the mining sector.

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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.