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2020-02-13

Beowulf: Management Update on Kallak

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.

13 February 2020

Beowulf Mining plc

("Beowulf" or the "Company")

Management Update on Kallak

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, provides a management update on its Kallak Iron
Ore Project ("Kallak").

The Board met in Stockholm on 12 February 2020 and was updated by the
Company's legal advisers. At this time, no decision on legal action
against The Government of Sweden (the "Government") has been taken.
Media reporting in Sweden last week, following the Company's
announcement on 3 February 2020, was incorrect and premature. All
options to take legal action remain under active consideration. The
Board is satisfied that the Company's application for an Exploitation
Concession (the "Concession") for Kallak fully meets the requirements
of Swedish mining and environmental legislation.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"Beowulf is in the business of exploring for and developing mining
projects. We are not in the business of fighting legal battles, but
if forced to do so, to get just resolution, then we will act
accordingly.

"Sweden's reputation as a low risk mining jurisdiction is being
damaged. Investor confidence can only be restored if the Government
honours the investments and work done by companies applying for
licences and concessions, in accordance with the laws of the Country.

"If there is one thing that the coalition partners in Government
appear to agree on when it comes to mining applications, it is that
Swedish law should determine whether an application is successful or
not. The Government needs to decide on Kallak. Politics and emotion
have no place in such a decision, if Sweden's laws are to be `worth
the paper they are written on'.

"A response to the letter I sent on 19 December 2019 to Minister
Ibrahim Baylan arrived several hours after the Company's announcement
last week. The State Secretary wrote that the "decision regarding
the application is currently in preparation and I am afraid that we
are not able to comment on when a decision is expected to be taken".

"How can any mining company consider Sweden a low risk jurisdiction
for investment, when looking at the Kallak process? Beowulf has been
allowed to invest SEK 80 million over almost thirteen years and the
Government sits on the application since July 2017, offering nothing
in terms of transparency and predictability of process and timeline
to a decision.

"On Tuesday morning in Stockholm, I participated in a meeting
discussing the `Mining industry and indigenous peoples: regulations,
best practice and social innovation', a research project under the
strategic innovation programme SIP STRIM (Strategic innovation
programme for the Swedish mining and metal producing industry).

"On this subject, the inclusion of Sami in regional development in
Sweden, permitting, sustainable mining, supply chain transparency,
the Green Economy and the Fossil Free Economy, Beowulf is an active
participant and contributor to the debate. We are in Sweden for the
long-run, to work in partnership with the communities in which we
operate and to make a positive difference in society.

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

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-on-kallak,c3034243
https://mb.cision.com/Main/11673/3034243/1193060.pdf

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