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2020-05-29

Beowulf: Unaudited Financial Results for the Period Ended 31 March 2020

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.

29 May 2020

Beowulf Mining plc

("Beowulf" or the "Company")

Unaudited Financial Results for the Period Ended 31 March 2020

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, announces its unaudited financial results for
the three months ended 31 March 2020.

Overview of Activities in the Quarter

· The Company announced, on 3 February 2020, a management update on
its application for an Exploitation Concession (the "Concession") for
the Kallak Iron Ore Project ("Kallak") and the Company's other
business areas, Vardar Minerals ("Vardar") and Fennoscandian
Resources ("Fennoscandian").

· On 4 February 2020, the Company announced that in response to the
CEO's letter sent to Minister Ibrahim Baylan in December 2019, the
Government stated it was not able to comment on when a decision, in
respect of the Concession for Kallak, is expected to be taken,
however, the Government had taken careful note of the information
provided by the Company.

· The Company stated, on 13 February 2020, that contrary to media
reports, no legal action had been taken against the Government, but
that all options with regard to taking legal action remain under
active consideration.

· On 17 February 2020, the Company announced that Vardar had
identified a copper-zinc exploration target at Mitrovica and that the
Company had invested a further £50,000 in Vardar, increasing the
Company's ownership from 41.5 per cent to 42.2 per cent.

· On 25 March 2020, the Company invested a further £30,000 in
Vardar, alongside founders and existing shareholders in Vardar, to
fund a soil sampling programme across the Madjan Peak gold target,
part of the Mitrovica licence. The resulting investment maintained
the Company's ownership interest in Vardar at 42.2 per cent.

Post Period

· On 18 May 2020, the Company provided an update on Fennoscandian's
activities in Finland. Fennoscandian continues to develop a
'resource footprint' of natural flake graphite to provide 'security
of supply' to Finland's emerging battery sector and to benefit from
Business Finland funding, as the Company seeks to move downstream and
develop its knowledge in processing and manufacturing battery grade
and value-added graphite products.

· On 26 May 2020, the Company announced that a Parliamentary
Question regarding Kallak had been put to Mr Ibrahim Baylan, Minister
for Business, Industry and Innovation, which the Minister is
scheduled to answer on 3 June 2020. The question was posed by Lars
Hjälmered, a Moderate Party Member in the Swedish Parliament.

· On 27 May 2020, the Company announced that it had a awarded a
drilling contract for Kallak to Kati Oy. The work programme,
scheduled for Autumn 2020, 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
additional iron ore mineralisation for the Exploration Target of
90-100 million tonnes ("Mt") at 22-30 per cent iron ("Fe") at Kallak.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"Over the quarter, we continued to see progress being made by Vardar
in Kosovo, with the addition of a copper-zinc exploration target at
Mitrovica and a soils sampling programme being carried out over the
prospective Madjan Peak gold target, the results of which should be
announced shortly.

"Post period, we updated the market on developments in Finland, with
positive early signs for a new graphite prospect, Karhunmäki, and
Fennoscandian playing an important role in studies into the Lithium
Ion Battery supply chain in Finland and improving the traceability of
battery raw material supply. In recent months, Fennoscandian has
completed spheroidization testwork and battery tests on Aitolampi
graphite, the results of which will be announced in the coming weeks.

"Since my attendance at the Nordic Mining Day in Toronto in early
March, the Company has acted to face the ongoing threat posed by
COVID-19, as best we can, including 30 percent salary cuts for the
CEO and Board, and sought to maintain a 'business as usual' attitude.

"This week, the Company updated the market on a Parliamentary Question
to Minister Baylan, which he is due to answer on 3 June 2020.
Minister Baylan has responded to questions in the past highlighting
the complexity of the Kallak case.

"The Kallak case is not complex. During my time as CEO, no authority
has presented me with a long list of problems that needed fixing.
This is why the Board has consistently stated that the Kallak
application is comprehensive and satisfies the requirements of the
prescribed process for being granted an Exploitation Concession in
accordance with Swedish law.

"Last year, the Company went further, engaging lawyers to prepare a
Concluding Statement, submitted to the Government in November 2019,
which demonstrated that, under judicial review, Beowulf's application
has satisfied all requirements.

"Bergsstaten (the "Mining Inspectorate"), part of the Geological
Survey of Sweden ("SGU"), a Government Office, has granted
Exploration Permits for Kallak, the first in 2006, and seen the
Company drill almost 28,000 metres, 131 holes, to define a
significant iron ore resource.

"The SGU first discovered Kallak in the 1940s, designated it an Area
of National Interest ("ANI") in 2013 and produced its latest study,
headlined `New light on iron ore at Kallak', this month. Kallak has
been on the SGU's radar for 80 years!

"Bergsstaten recommended to the Government in October 2015, that the
Concession for Kallak should be awarded, and last October awarded an
Exploration Permit for Parkijaure nr 6, which covers approximately
1,000 hectares and lies immediately to the south of the Kallak
deposits. On the evidence, the authorities are happy for companies
to spend on exploration, in the case of Kallak over SEK 80 million to
date, but it is another story when it is time to consider granting
an Exploitation Concession.

"In Toronto, Minister Baylan saved his biggest welcome for investors.
Beowulf has been invested in Sweden and working on Kallak for 14
years. Minister Baylan said that I was welcome to do business in
Sweden. The fact of the matter is, Beowulf is unable to do business,
because we cannot get a decision from the Swedish Government and take
Kallak forward in partnership with the community in Jokkmokk.

"In May 2019, the State Secretary said, to the Chairman and me, in a
face to face meeting, that the Government understood the importance
of Kallak to Jokkmokk. Now more than ever, with COVID-19, it would
be logical to assume that a project such as Kallak, which has the
potential to bring billions of SEK in investment and hundreds of jobs
to northern Sweden, should finally gain approval.

"Beowulf has several thousand Swedish shareholders, who own nearly 68
per cent of the Company. They, and the Company's non-Swedish
shareholders, have a right to know now what is happening with the
Kallak application and when a Government decision will be
forthcoming. At this time, the Government needs to be transparent
and remove the uncertainty as to when a decision will be taken.

"We look forward to keeping the market updated on further
developments."

Financials

· The consolidated loss remaining largely unchanged in quarter ended
at £217,342 (Q1 2019: £223,096). This decrease is partly attributable
to no share-based payment charge relating to employees and Directors
options for the quarter compared to £40,022 incurred in the previous
quarter. This decrease is offset by the consolidation of
administration costs of £44,034 associated with Vardar Minerals which
became a subsidiary on 1 April 2019.

· Consolidated basic and diluted loss per share for the quarter
ended 31 March 2020 was 0.03 pence (Q1 2019: loss of 0.04 pence).

· £789,310 in cash held at the period end (Q1 2019: £1,229,606).
· The cumulative translation losses held in equity decreased by
£120,819 in the quarter ended 31 March 2020 to £1,166,859 (31
December 2019: loss of £1,291,068). Much of the Company's exploration
costs are in Swedish Krona and Euro which has strengthened against
the pound since 31 December 2019.

· At 30 April 2020 there were 402,150,037 Swedish Depository
Receipts representing 66.78 per cent of the issued share capital of
the Company. The remaining issued share capital of the Company is
held in the UK.

Operational

Vardar Minerals, Kosovo

· On 17 February 2020, the Company announced that Vardar, has
identified an additional copper-zinc exploration target at Mitrovica.
Mineralised gossans have been identified through field mapping and
sampling to the north and east of drill tested mineralisation at Wolf
Mountain. The mineralised gossans identified appear to be the surface
expression of hydrothermal breccias and stockworks.

Significant anomalies have been returned from rock grab sampling and
soil sampling grids over the area, with several rock samples showing
greater than 1 per cent copper and up to 3 per cent lead and soil
samples routinely over 500ppm copper and up to 1 per cent lead and
zinc.

· At the same time, Beowulf announced that it had invested £50,000
in Vardar, increasing the Company's ownership from 41.5 per cent to
42.2 per cent. Funds to be used for testing of an automated
terrain-following drone which will be used to collect magnetic IP
("MIP") and magnetometric resistivity ("MMR") data over priority
areas at Viti and Mitrovica. Results from the drone surveys will be
combined with 3D Induced Polarisation surveys to generate drill
targets.

· On 25 March 2020, Beowulf invested a further £30,000 in Vardar,
alongside founders and existing shareholders in Vardar who themselves
invested £40,000, to fund an infill soil sampling programme over
approximately one square kilometre across the Madjan Peak gold target
at Mitrovica. The total proceeds from the fundraising amounted to
£70,000. The Company's ownership interest remained at 42.2 per cent.

Madjan Peak has returned anomalous gold and silver assays along the
eastern margin of the license, corresponding with previously mapped
advanced argillic alteration, identified historic...

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