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Beowulf: Management Update

19 December 2019

Beowulf Mining plc

("Beowulf" or the "Company")

Management Update

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, provides a management update on the Company's
application for an Exploitation Concession for the Kallak Iron Ore
Project ("Kallak"). The CEO has written again to Mr. Ibrahim Baylan,
the Minister of Enterprise and Innovation.

In the letter to the Minister, the CEO made the following points:

· Two and half months have passed without any new information on
what is happening, since the Minister wrote in his letter, dated 30
September 2019, that a decision by the Government on Beowulf's
application was `forthcoming'. The CEO has requested that the
Government provide Beowulf with details on when the Company can
expect the decision on Kallak to be taken.

· It seems evident that the coalition Government has been struggling
to reach consensus on Kallak and that politics are standing in the
way of a decision being taken. Yet, we have heard before, from the
Government, that Swedish law is sufficient for assessing the Kallak
application and that any assessment of Kallak should be 'by the

· To ensure that the Government has been provided with all relevant
facts, the Company submitted a concluding statement for Kallak to the
Government on 8 November 2019, prepared by the law firms Mannheimer
Swartling and Fröberg & Lundholm. The statement summarised all
circumstances relevant to a judicial review of whether the Company
should be awarded the Exploitation Concession for Kallak. The
statement demonstrates that the Government has sufficient facts for
an Exploitation Concession to be awarded.

· Sweden's attractiveness as a destination for investments in mining
has been decreasing over several years. Mining analysts and
journalists continue to comment on the inability of its authorities
to decide on mining applications, while having allowed companies to
explore for minerals and make significant investments.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"The Minister's comments at the recent SveMin Höstmöte look to a
future when permitting procedures in Sweden are predictable, but they
provide no comfort to already committed mining investors and
specifically Beowulf's shareholders.

"I read yesterday that the Minister, in response to a question from a
fellow politician, has stated that the starting point for the
Government's handling of an application `is always that it should be
done quickly, efficiently and without compromising legal certainty'.

"The Government's handling of the Kallak application, since the summer
of 2017, has been neither quick nor efficient, and is a `black cloud'
over Beowulf's share price. It makes equity fund raising more costly
and is damaging the value of the 64.76 per cent of Beowulf owned by
Swedish shareholders and the remainder of the Company owned by UK

"The legal certainty that the Government seeks is contained within the
concluding statement sent by Beowulf to the Government in early

"The Board has 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 developing a mineral project.

"In the Kallak case, the Minister has commented on there being
`several different national interests.'

"In the County Administrative Board's ("CAB") assessment in July 2015,
it stated that there are no conflicts within the Kallak Concession
area where national interests are considered, as the Concession area
is designated as an Area of National Interest for minerals. No other
national interests were identified.

"This remained the case until Sametinget placed national interest for
reindeer herding directly on top of Kallak in February 2017, 11 years
after Beowulf acquired its first exploration licence and had invested
the majority of the SEK 80 million spent on Kallak.

"As we have repeatedly stated, it is not a case of mining or reindeer
herding, as both can prosper, as they already do across Sweden where
industry and reindeer herding interact. Kallak will be no different.
That is Beowulf's commitment.

"If the Government sticks to the facts then the Concession should be
awarded. The Kallak application has been assessed to the absolute
limit and there should be no need for further deliberation.

"I look forward to keeping the market updated on further


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
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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