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2019-09-19

Beowulf: Management Update

19 September 2019

Beowulf Mining plc

("Beowulf" or the "Company")

Management Update

Beowulf (AIM: BEM; Spotlight: BEO), the Nordic focused mineral
exploration and development company, provides a management update on
the CEO's recent visit to Stockholm and subsequent letter to Mr.
Ibrahim Baylan, the Minister of Enterprise and Innovation of the
Government of Sweden.

Kallak North ("Kallak")

Last week, the CEO met with advisors, including legal advisors, and
the new CEO at SveMin (the Swedish mining industry association). The
Company understands that the Government and its ministers have
discussed Kallak in recent weeks. The CEO has now written to Mr.
Baylan requesting a meeting.

In the letter to Mr. Baylan, the CEO made the following points:

· In 2015, the Government asked the County Administrative Board for
the County of Norrbotten ("CAB") about the economic case for Kallak
and, in its response, it said that mining was economically relevant
and that Kallak would have a positive economic impact locally,
regionally and nationally. Following this statement, in October 2015,
the Mining Inspectorate recommended to the Government that the
Exploitation Concession ("Concession") for Kallak should be awarded.

· It is the Company's belief that, in the absence of the Norra Kärr
case, the Concession should have been awarded in 2016 and Beowulf
would now be three years into the development of Kallak. As confirmed
by the Mining Inspectorate to the Government in July 2017, the
Company's Environmental Impact Assessment is entirely consistent, in
the detail provided, in meeting the Supreme Administrative Court's
requirements in the Norra Kärr judgement.

· In the CAB's most recent statement, dated 30 November 2017, it
contradicted its earlier position in July 2015, and the statement
was, in the Company's opinion, flawed and invalid. Fundamentally, the
CAB's analysis ignored the financial health of Jokkmokks Kommun, and
the critical need for safeguarding investment and job creation.

· This year, the Company has seen the Government's "January
Agreement", and a commitment to regional development across Sweden.
Also, Jokkmokks Kommun has announced financial cuts of SEK 28 million
to balance its budget over the next two years, with resultant job
losses and reduced public services in Jokkmokk.

· 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.

· In the Prime Minister's opening address to the Swedish
Parliament, he spoke of Sweden's natural resources being used
efficiently and sustainably. Kallak has the potential to showcase the
best of Swedish innovation and demonstrate Sweden's leadership in
modern and sustainable mining. The Company has been consistent in its
approach to responsibly developing Kallak in partnership with the
community in Jokkmokk, and it has significant local support from the
Mayor, local entrepreneurs and the forestry owners' association, and
regional support from the Mayor of Luleå, Region Norrbotten and CEOs
of infrastructure companies.

The letter to Mr. Baylan will be published by the Company once it has
been made public by the Government of Sweden.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"It is good to know that the Government is discussing Kallak, yet the
Company and its shareholders remain in the dark on the process and
timeline to a decision, and therefore I have written to the Minister
to seek clarity on these matters.

"We have respectfully reminded all ministries in the Government that
in 2015 the CAB supported the economic case for Kallak, and the
Mining Inspectorate recommended to the Government that the Concession
be awarded.

"I am concerned that weight may be being given to the CAB's statement
from November 2017, and this is a matter I am discussing with
advisers in Stockholm. The CAB's failure to consider the financial
health of Jokkmokk Municipality starkly contrasts with the announced
budget cuts from the Mayor of Jokkmokk earlier this year and the
Government's regional development agenda, as stated in its "January
Agreement".

"Jokkmokk needs investment and jobs, and deserves to have a thriving,
diversified and sustainable economy, that includes reindeer herding,
tourism, forestry, mining, and the many enterprises that display the
town's entrepreneurial spirit. The endgame is not about building a
mine, it is about delivering an integrated plan for Jokkmokk's
economic future, with Kallak as the foundation.

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

Background to the Norra Kärr Case:

See Company announcement dated 18 April 2016:

https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/...

Tasman Metal's Norra Kärr rare earths project (Case 2047-14):

On 23 February 2016, Tasman Metals ("Tasman"), now known as Leading
Edge Materials, announced that it had been notified of a decision by
the Supreme Administrative Court ("SAC") to cancel its Norra Kärr
Mining Lease ("ML"). The ML was granted to Tasman in May 2013 by the
Mining Inspectorate and remained in force since that time.

Based on a review of the process of granting the ML, the SAC
determined that the decision by the Mining Inspectorate was
incorrect, as the decision to grant the ML was not adequately
supported by environmental studies into a future mining operation.
As a result, the Norra Kärr ML was cancelled, and the project
reverted to an Exploration Licence. The SAC decision to cancel the ML
could not be appealed, but Tasman was left free to re-apply for a ML.

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 no unconditional obligation to
immediately update any such statements and/or forecasts.

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https://news.cision.com/se/beowulf/r/management-update,c2908186
https://mb.cision.com/Main/11673/2908186/1108125.pdf

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