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Beowulf: Kallak North Exploitation Concession Update

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.

For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on behalf
of Kurt Budge, Chief Executive Officer.

6 March 2018

Beowulf (AIM: BEM; AktieTorget: BEO), the mineral exploration and
development company, focused on the Kallak magnetite iron ore project
and the Åtvidaberg polymetallic exploration licence in Sweden, and
its graphite portfolio in Finland, understands the letter written by
Kurt Budge, Chief Executive Officer, in response to the Government's
request for final comments in respect of the Company's application
for an Exploitation Concession for the Kallak North Iron Ore Project
has been made public. The letter is now attached to this


Beowulf Mining plc
Kurt Budge, Chief Executive Officer Tel: +44 (0) 20 3771 6993
Cantor Fitzgerald Europe(Nominated Adviser & Broker)
David Porter Tel: +44 (0) 20 7894 7000
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204


Beowulf Mining plc

201 Temple Chambers

3-7 Temple Avenue







2 March 2018

Dear Ms. Adlercreutz,

Subject: Bearbetningskoncession Kallak Nr 1 N2017-04553

Thank you for giving Jokkmokk Iron Mines AB, a 100% owned subsidiary
of Beowulf Mining plc ("Beowulf" or "the Company"), the opportunity
to make final comments to the Government in respect of our
application for an Exploitation Concession for the Kallak North Iron
Ore Project.

I joined Beowulf in September 2014, having worked in the mining sector
for over 20 years, in business development with the multi-national
company Rio Tinto, in operations in the UK coal industry, and in
banking and private equity. My values are centred around working in
partnership with stakeholders and delivering sustainable development.
This is what I have done in my career, when managing operations,
permitting, and developing new mines.

Since I joined Beowulf, the company has done everything it can to
build and strengthen relationships with the community in Jokkmokk,
and with regulators and decision makers in Norrbotten and Stockholm.
During this time, the mayors of Jokkmokk and Luleå, and entrepreneurs
and landowners in Jokkmokk, have voiced their support for the Kallak
project. They want companies to come to Jokkmokk and Norrbotten, to
invest, to create opportunities for job creation and economic growth;
Beowulf has done just that, and I have made it clear that the
Company's approach is to develop Kallak in partnership with local and
regional stakeholders, in a responsible and sustainable way, and in
harmony with the environment.

The delays and constant waiting for an authority to give an opinion or
take a decision on our application have significantly impeded
discussions with the Saami. We share the Minister's view that mining
and reindeer herding can coexist, and the Kallak project is no
exception, as the evidence shows for existing mines in Sweden. We see
many examples in Sweden where agreements have been reached between
companies and the Saami, and positive working relationships have been
developed; this is the Beowulf's intention. Despite perceived threats
to reindeer herding, studies show that reindeer herding in Sweden is
on the increase, and we have found no examples of a cooperative being
forced to close because of a new industrial development, not just

Before October 2014, there was good exchange between Länsstyrelsen in Norrbotten and the Company, with questions being asked and answers given on our application. By the autumn of 2014, the Company had drilled almost 28,000 metres at Kallak, and on 28 November 2014 updated its mineral resource statement, including the deposits of Kallak North and Kallak South, indicating the potential for a global tonnage of iron ore mineralisation of circa 250 million tonnes. To date, Beowulf has invested SEK 77 million in Kallak.

It is widely acknowledged that Länsstyrelsen has consistently failed to follow the prescribed process for assessing an Exploitation Concession application. Now it writes about the need for State investment in infrastructure to support Kallak; this has never been proposed or suggested by the Company.

In Norrbotten, Inlandsbanan, the Port of Luleå, and LKAB and
Trafikverket are all looking at expanding infrastructure capacity. As
we tried to demonstrate with the Copenhagen Economics' project study,
titled 'Kallak - A real asset, and a real opportunity to transform
Jokkmokk', there is a 'Bigger Picture' positive impact that Kallak
can deliver, both in Jokkmokk and Norrbotten, as major projects in
the region are interlinked and interdependent.

Mining the Kallak North deposit has the potential to provide around
250 direct jobs and SEK600 million in additional tax revenues to the
Municipality of Jokkmokk over 14 years. If the mine life is extended
with the Kallak South deposit, then SEK1 billion in additional tax
revenues could be generated over 25 years.

A well-engineered plan is essential, so that the local community reaps
the benefits of Kallak's potential, and Beowulf believes that the
full potential benefits will only materialise through partnership and
collaboration with local and regional stakeholders.

Länsstyrelsen's latest statement contradicts its July 2015 position,
when it supported the economic case for Kallak, then verbally
confirmed its support to Bergsstaten for the Company's application,
and Bergsstaten, in October 2015, recommended to the Government that
the Concession be awarded. It is based on statements such as this,
that Beowulf has continued to invest in Kallak.

Also, in July 2015, Länsstyrelsen acknowledged that there were no
conflicting national interests for the Concession Area. This was also
the case for those areas taken up by operational facilities necessary
to support mining. In February 2013, the SGU designated Kallak an
Area of National Interest for its mining potential. Four years later,
in February 2017, Sametinget placed national interest for reindeer
herding directly on top of the Kallak Concession Area.

Now, Länsstyrelsen gives no consideration for the period when there
were no conflicts, and it watched the Company continue to invest in
Kallak. It now chooses to build a case around reindeer herding being
the most important national interest, but this is based on false
arguments. I would suggest that to most observers, the fact that
Sametinget asserted national interest for reindeer herding directly
on top of the Kallak Concession Area four years after the SGU
designation, and late in the application process, would appear
nothing but an attempt to obstruct and frustrate our application.

With respect to Laponia, Kallak is 34 kilometres away at its closest
point. Existing mines operate in closer proximity and have not
threatened Laponia's World Heritage Status. Naturvårdsverket and
Riksantvarieämbetet have confirmed that Kallak will have no direct
impact on Laponia.

Laponia's boundary has been established to protect what lies within
the boundary, and not to restrict development, such as Kallak, which
is located far beyond any conceivable 'buffer zone'.

It is the Company's view that suggesting Kallak could have such an
impact on Laponia as to threaten Laponia's World Heritage Status is
not a reasonable argument. The Company's ambition, to develop a
modern and sustainable mining operation, in partnership with local
stakeholders, protecting all interests, will further ensure that
Laponia is unaffected.

The Kallak application and the Company's Heritage Impact Assessment
have comprehensively assessed the direct and indirect effects of
Kallak on Laponia. The Company maintains that mining and reindeer
herding can prosper side by side, and there should be no material
impact on reindeer herding in Laponia, and when it comes to
transport, environmental permitting will safeguard the interests of

I have never during my previous career, in any country, been involved
in a permitting process where the authorities have shown such a lack
of willingness to engage with a company on a major application. The
permitting process we have experienced has been inefficient, slow and
unpredictable. Our application has been passed back and forth, from
one authority to another, with no questions put to the Company, nor
feedback given on additional documentation we have provided, nothing.
No authorities have made any attempt to reconcile the differences
between the Saami villages and the Company, or to facilitate the
discussion that could lead to an understanding between the parties.
Instead decision makers choose to sit in isolation, and determine the
fate of our application, evidently misrepresenting the facts, and
biased in their analysis.

Länsstyrelsen's actions have so far hindered Beowulf, the Kallak
project, and, as commented by industry participants in Sweden and
mining analysts in London, are damaging Sweden's reputation as a
place to invest and do business.

On 22 February 2018, the Fraser Institute in Canada, published it
latest rankings on Investment Attractiveness of mining jurisdictions
globally, and Sweden has fallen eight places to 16th. Beowulf did not
take part in the survey, but comments from another exploration
company included, "Sweden is a stable system; however, there is still
room for improvement. Investors have concerns over permit delays,
lengthy legal disputes, and inconsistent environmental regulations".

In January 2017, I spoke in Stockholm on the comparative advantage of
doing business in Sweden. What should be a real advantage to Sweden,
is being damaged by uncertain application processes, a distinct lack
of respect shown by Swedish authorities for mining companies and

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