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2019-05-31

Beowulf: Unaudited Interim Statement and Management Update for the Period Ended 31 March 2019

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.

31 May 2019

Beowulf Mining plc

("Beowulf" or the "Company")

Unaudited Interim Statement and Management Update for the Period Ended
31 March 2019

Beowulf (AIM: BEM; Spotlight: BEO), the Nordic focused mineral
exploration and development company, announces its unaudited
preliminary financial results for the three months ended 31 March
2019 and provides a quarterly management update.

Overview of Activities in the Quarter

· The Company announced, on 14 January 2019, that options were
granted to Directors and a senior manager over a total of 8,000,000
ordinary shares of £0.01 each in the capital of the Company,
representing approximately 1.41 per cent of the issued share capital
of the Company.

· On 1 February 2019, Beowulf informed the market that it attended
the Future Mine and Mineral 2019 Conference, where Kurt Budge, CEO,
delivered a presentation titled 'Sustainability in the heart -
partnership, the lifecycle of mining projects, balancing the interest
of stakeholders'.

· On 7 March 2019, the Company announced that Beowulf's wholly
owned subsidiary, Oy Fennoscandian Resources AB ("Fennoscandian"),
received additional funding from Business Finland, a 50 per cent
contribution to a budget of Euros 224,900.

· Beowulf announced, on 27 March 2019, that drilling, targeting
both higher-grade mineralisation and high-priority geophysical
anomalies, had started at its Aitolampi graphite project in Finland
("Aitolampi").

Post Period

· On 1 April 2019, the Company announced a subscription for new
ordinary shares of £0.01 each to raise £750,000 before expenses.
Principally, the funds have been used for a follow-on investment in
Vardar Minerals Limited ("Vardar").

· On 2 April 2019, Beowulf informed the market that the Company's
Chairman, Mr. Göran Färm had written to Mr. Ibrahim Baylan, the
Minister of Enterprise and Innovation for The Government of Sweden,
regarding the Company's application for an Exploitation Concession
for the Kallak Iron Ore Project ("Kallak").

· The Company provided, on 15 April 2019, a management update on
its application for an Exploitation Concession for the Kallak and its
investment in Vardar.

· On 16 April 2019, the Company announced a subscription for new
ordinary shares of £0.01 each to raise £500,000 before expenses.

· On 30 April 2019, there were 367,090,942 Swedish Depository
Receipts representing 62.36 per cent of the issued share capital of
the Company. The remaining issued share capital of the Company is
held in the UK.

· On 22 May 2019, the CEO attended a Quoted Companies Alliance
("QCA") Corporate Governance Workshop. The Company has adopted the
QCA Code (the "Code") for Corporate Governance, and the Board is
actively looking at the application of Code's 10 principles,
addressing areas of delivering growth, maintaining a dynamic
management framework and building trust with shareholders.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"While we continue to wait for a decision on Kallak in 2019, the
Company has completed a third drilling programme at Aitolampi, with
plans now to upgrade the resource for the project and to initiate a
Scoping Study later in the year.

"We have also increased our investment in Vardar, which, in recent
weeks, has got its 2019 exploration programme underway at Mitrovica,
including geological mapping, soil sampling and drilling. I will be
visiting Kosovo next week with Rasmus Blomqvist our Exploration
Manager to see first-hand the progress being made.

"In challenging market conditions, we have successfully raised £1.25
million this year and received further funding from Business Finland
for our graphite business. The Company remains financially strong and
is tightly managed to ensure that we efficiently put these funds to
work.

"I was in Jokkmokk two weeks ago, meeting with the Mayor, landowners
and local entrepreneurs, who, since my visit, have collectively sent
a letter to Mr. Baylan, the Minister of Enterprise and Innovation,
stressing the importance of Kallak to Jokkmokk's economic future and
highlighting the failure of the County Administrative Board for the
County of Norrbotten to consider the municipality's financial health
when assessing the Company's application.

"On 19 May, I was back in Stockholm with Göran Färm to meet with Emil
Högberg, the Secretary of State in the Ministry of Enterprise and
Innovation, to again make our case for the award of the Concession.
This was the first official meeting between the Company and the
Government during my time as CEO. While we have no firm commitment
from the Government on the timing of a decision, we were reassured to
hear that the Government understands the importance of Kallak to
Jokkmokk.

"On 11 June, I will be back in Sweden to attend the 3rd OECD Meeting
of Mining Regions and Cities - `Delivering Green Economies and Skills
for the Future' being held in Skellefteå. As demonstrated by the
Company's involvement in the OECD's Rural Policy Review 'Linking the
Indigenous Sami People with Regional Development in Sweden', the
Company is an active supporter of such initiatives, which look to
promote effective partnerships with communities and to maximise the
benefits that mining can generate for society.

"We continue to share the Company's vision for a modern and
sustainable mine at Kallak, that has the potential to positively
transform Jokkmokk, and showcases the best of Swedish innovation,
design and engineering.

"In the year to date, we have made good progress in Finland and with
Vardar. The Kallak process is moving forward, slower than our
shareholders and the Company would like, but there are positive
developments, visible and strong local support, and we have met `face
to face' with the Government.

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

Financials

· Loss before and after taxation attributable to the owners of the
parent of £223,055 (2018: loss of £199,333). The loss in the period
was higher comparable to the prior year due to an increase in
director's remuneration, offset against a reversal of an accrual for
professional fees.

· Basic/diluted loss per share was 0.04 pence (2018: loss of 0.04
pence).

· £1,229,606 in cash held at the period end.

· The translation reserve losses attributable to the owners of the
parent increased from £397,060 at 31 December 2018 to £826,122 at 31
March 2019. Much of the Company's exploration costs are in Swedish
Krona which has weakened against the pound by approximately seven per
cent since 31 December 2018.

· For the purposes of the FCA's Disclosure and Transparency Rules,
the Company advises that the total number of shares in issue and
total voting rights as at the date of this announcement is
588,639,270 ordinary shares of 1 pence each.

The Company does not hold any shares in treasury. The above figure of
588,639,270 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 in their
interest in, the share capital of the Company under the FCA's
Disclosure and Transparency Rules.

Operational

Sweden

· On 1 February 2019, Beowulf informed the market that it attended
the Future Mine and Mineral 2019 Conference, where the CEO delivered
a presentation titled 'Sustainability in the heart - partnership, the
lifecycle of mining projects, balancing the interest of
stakeholders'.

Future Mine and Mineral is one of the key events in the Nordic mining
sector's calendar, showcasing the achievements and ambitions of
mining companies in the region as well as providing a platform for
raising the profile of issues affecting the industry, such as the
lack of transparency and the uncertainty in the permitting of new
mines.

The CEO showed the impact that Kallak and other cases are having on
Sweden's reputation, highlighted the country's decline in the Fraser
Institute Rankings from 8th in 2016 to 16th in 2017, compared to
Finland's top rating that year, and drew attention to the 40 per cent
decrease in applications for exploration permits in Sweden in 2018.

The presentation reminded the audience that the Swedish Geological
Unit ("SGU") discovered Kallak in the 1940s and designated it an Area
of National Interest ("ANI") for its valuable minerals in February
2013, that the Company has invested over SEK 77 million and drilled
circa 28,000 metres, defining a significant iron ore resource, with
an exploration target that could add further tonnage.

The presentation also included Beowulf's approach to sustainable
mining and outlined how the Company can play its part in ensuring
Sweden continues to lead in this area, by developing a modern and
sustainable mining operation at Kallak in partnership with the
community in Jokkmokk.

Representatives from the Government both attended the Conference to
listen to presentations and panel debates and spoke of the Swedish
mining sector as a key sector in the Swedish economy.

· On 2 April 2019, Beowulf informed the market that the Company's
Chairman, Mr Göran Färm had written to Mr. Ibrahim Baylan, the
Minister of Enterprise and Innovation for The Government of Sweden,
regarding the Company's application for an Exploitation Concession
for the Kallak.

The letter highlighted the fact that the Company first submitted its
application in 2013. Since then, the case has been sent back and
forth between Swedish authorities and the Government, finding
themselves unable to award an Exploitation Concession for Europe's
largest drill defined iron ore deposit, having issued exploration
permits and watched the Company invest SEK 77 million, drill circa
28,000 metres, define a significant resource, and develop the Kallak
project to where it is today.

All this is against a backdrop of LKAB's warning, in October 2018,
that the ore in the Kiruna mine will be depleted earlier than
expected. The media spotlight put on the future of LKAB's operations,
and with this the attention paid to the importance of iron ore to
Sweden, further highlighted the absurdity of the Kallak situation.

· The Company informed the market, on 15 April 2019, that it is
actively communicating with the Government with regards to its Kallak
North application. It has been confirmed that the ...

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