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2020-02-03

Beowulf: Correction - Management Update on Kallak

The following amendments have been made to the 'Management Update on
Kallak' announcement released on 03.02.20 at 07:00 under RNS No
6578B.

The stated year of the Board's meeting in Stockholm and the year in
which Kurt Budge, CEO, sent the last letter to Mr, Baylan, have been
amended.

All other details remain unchanged.

The full amended text is shown below.

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.

3 February 2020

Beowulf Mining plc

("Beowulf" or the "Company")

Management Update on Kallak

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, provides a management update on the Company's
business areas.

Kallak Iron Ore Project ("Kallak")

The Beowulf Board will meet in Stockholm on 12 February 2020 to
discuss the continuing and unacceptable delays in getting a decision
from The Government of Sweden (the "Government") on the Company's
application for an Exploitation Concession (the "Concession") for
Kallak. The Board is already in receipt of a paper detailing options,
prepared by the Company's lawyers, and actively considering
ring-fencing funds for legal action.

The CEO has not received a response to his letter, sent on 19 December
2019, written again to Minister Ibrahim Baylan, the Minister for
Business, Industry and Innovation.

In response to the CEO's previous letter, sent last September,
Minister Baylan explained that the CEO's request for a meeting at the
time "concerns a forthcoming Government decision - a dossier that is
currently under preparation", and that the Government is unable to
meet or comment with regard to its "ongoing review".

At the recent 'Roundtable on mining in northern Sweden' hosted by
Länsstyrelsen Norrbotten, Länsstyrelsen Västerbotten, Boliden and
LKAB, the Government's representative, the State Secretary to the
Minister for Business, Industry and Innovation, was also unable to
shed any light on the handling of the Company's application by the
Government, nor the timing of a decision.

The Company understands that the Government has received and
registered the concluding statement (the "Statement") for Kallak sent
to the Government on 8 November 2019, prepared by the law firms
Mannheimer Swartling and Fröberg & Lundholm. No further communication
has taken place. The Statement did not include any new facts in the
Kallak case, as all necessary and relevant facts have already been
established as part of the application process. Rather, the Statement
summarises the circumstances relevant to a judicial review of whether
Beowulf should be awarded the Concession for Kallak. The Statement
concludes that Beowulf should be awarded the Concession.

Kallak Exploration in 2020

As announced previously, Beowulf is a partner in the European Union ("EU") funded PACIFIC Project ("PACIFIC"), launched in June 2018. The project has received EUR 3.2 million from the EU's Horizon 2020 research and innovation programme and has a 36-month programme of activities being coordinated by Université Grenoble Alpes.

The aim of PACIFIC is to develop a new, low-cost and environmentally
friendly tool for exploring for sub-surface mineral deposits. The
PACIFIC consortium is conducting fundamental and applied research to
develop two radically new and complementary mineral exploration
techniques, both based on passive seismic imagery. See project
website for more information: https://www.pacific-h2020.eu/

Kallak, including Kallak North, Kallak South and the Parkijaure
licence, has been chosen as one of two PACIFIC test sites.

In September 2019, Phase 1 work took place at Kallak, which included
testing the multi-array method, using an array of receivers at
surface, over the known magnetite ore at Kallak South to provide
background data, the seismic properties for the iron ore and to
correlate findings with the geological model for Kallak.

In Autumn 2020, Phase 2 work will commence testing the multi-array
method in parallel with drilling at Kallak South, with noise from
drilling providing a passive seismic source. Testwork will determine
if a 3D seismic model can be constructed, using the established
seismic characteristics of the Kallak deposit, and whether the 3D
model can be used to identify previously undiscovered magnetite
mineralisation for the Kallak South Exploration Target areas and for
Parkijaure.

In anticipation of the Concession being awarded for Kallak North, the
Company would then consider a follow-up programme of drilling at
Kallak South and Parkijaure. The Company was awarded an Exploration
Licence for Parkijaure nr 6, covering almost 1,000 hectares
immediately to the south of the Kallak deposits, and similarly
prospective for magnetite iron ore, on 24 October 2019.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"Last year, the Board noted Aura Energy's ("Aura") written
notification to the Swedish Government under the Energy Charter
Treaty seeking compensation over the uranium ban introduced in Sweden
on 1 August 2018 and the financial loss to Aura resulting from this
decision. An example of the goalposts being moved after a company has
made a significant investment in a mining project in Sweden.

"It has never been the Company's preferred option to `go legal', but
the Government's handling of the Kallak application is seemingly
inept, and for all the talk of the current Minister and his
predecessor, words have shown to mean very little. The absence of a
transparent and predictable process is forcing the Company to
consider legal options in moving the application forward.

"At the event I recently attended in Luleå, convened by the Governors
of Norrbotten and Västerbotten, Beowulf played its part in the debate
on the permitting of mines in Sweden, a shared vision of a fossil
free, modern, sustainable and transparent mining industry - a world
leader. To have a sustainable mining industry you need to permit new
mine developments to supply the raw materials that society needs.
Iron ore is part of Sweden's mining heritage, a core business
activity of the State, and security of a sustainable source of future
supply, such as defined at Kallak, should be permitted.

"In Jokkmokk, during my time as CEO, Beowulf has shown respect for its
stakeholders and sought to develop Kallak in partnership with the
community, safeguarding all interests, including reindeer herding.
Our ambition remains to develop the most modern and sustainable
mining operation to showcase the best of Swedish design, engineering
and innovation, and give Jokkmokk the thriving, diversified and
sustainable economic future that realistically only Kallak would
deliver.

"Every job counts in Jokkmokk. Kallak could create 250 direct jobs at
the mine, and 300 indirect jobs, over a mine life of 25 years or
more, with sequential mining of Kallak North and South, and the
prospect of discovering more iron ore at Parkijaure."

"The first exploration licence at Kallak was granted in 2006 and
Beowulf has invested over SEK 80 million to date. We have even been
granted an Exploration Licence for Parkijaure in October last year,
so obviously, we are not operating in a `no go' area.

"Over the last five years, the Company has sought to address any
outstanding matters with our application, of which there have been
none since late 2014. Last November, we submitted a concluding
statement for Kallak to the Government. The Statement summarises the
circumstances relevant to a judicial review of whether the Concession
should be awarded and concludes that the Concession should be
awarded.

"Beowulf has voluntarily provided more information than required to be
awarded an Exploitation Concession, and yet, the scant regard given
to the Company and its shareholders by the Government, the apparent
disregard for our investment, and the absence of any communication
that informs on how our application is being handled and the timeline
to a decision, continue to shock me, and to question whether any
junior explorer/developer should consider Sweden as a country to
invest in.

"The mishandling of the Kallak application has constrained the Company
delivering on its ambitions, putting pressure on the Company's share
price and the efficiency with which we can raise capital. The
`opportunity cost' of the last five years for the Company, its
shareholders and the community of Jokkmokk is significant.

"Whatever happens with Kallak this year, the Company will stay
committed to the project.

"I look forward to keeping the market updated on further developments
with Kallak, with Fennoscandian Resources and Vardar Minerals."

Enquiries:

Beowulf Mining plc
Kurt Budge, Chief Executive Officer Tel: +44 (0) 20 3771 6993
SP Angel (Nominated Adviser & Broker)
Ewan Leggat / Soltan Tagiev Tel: +44 (0) 20 3470 0470
Blytheweigh
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204

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...

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