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Beowulf: Study of Kallak's Potential Economic Benefits

21 September 2017

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, is pleased to publish a study
completed by Copenhagen Economics titled `Kallak - A real asset, and
a real opportunity to transform Jokkmokk' (the "Project").

The Project builds on the work carried out to date, by the Company and
others, including the 2015 independent socio-economic study initiated
by Jokkmokks Kommun, completed by consultants, Ramböll. and the 2010
study by the Economics Unit of Luleå University of Technology,
`Mining Investment and Regional Development: A Scenario-based
Assessment for Northern Sweden'. The socio-economic study initiated
by Jokkmokks Kommun concluded that, a mining development at Kallak
would create direct and indirect jobs, increase tax revenues and slow
down population decline.

A presentation by Copenhagen Economics on the Project can be found on
the Company's website:


Highlights of the Project:

· A mining operation at Kallak has the potential to create 250
direct jobs and over 300 indirect jobs in Jokkmokk, over the period
that a mine is in operation.

· These jobs could be sustained over a period of 25 years or more,
if the Kallak South deposit is mined after the Kallak North deposit,
and further deposits at Parkijaure can be defined.

· The Company will seek to establish a `Task Force' with Jokkmokks
Kommun and local employment agencies, so that between now and the
start of operations, plans are developed and implemented to make sure
as many as possible jobs are available to people living in Jokkmokk.

· Kallak has the potential to generate SEK 1 billion in tax
revenues, considering the case where 70 per cent of the mine's
workforce are based locally, with annual tax revenues of SEK 40
million over a 25 years mine life.

· These tax revenues would help to develop and sustain public
services and infrastructure in Jokkmokk, which are at risk due to a
lack of new investment and job creation in the community, a declining
population, and an ageing population.

Kurt Budge, CEO, commented:

"I am very pleased to have completed this Project with the support of
Copenhagen Economics.

"The north of Sweden is looking for investors and economic development
opportunities. Beowulf has invested over SEK72 million in Kallak to
date, and we have created a real opportunity, that has the potential
to transform Jokkmokk, giving it the thriving, diversified and
sustainable economy it seeks.

"As I heard a senior Government minister say at Almedalen this year,
"you only get development in rural areas, where you get investment".
Our SEK72 million investment in developing Kallak, the potential of
550 long-term jobs in Jokkmokk and SEK 1 billion in tax revenues, are
aligned with that minister's statement, and are numbers that should
not be ignored.

"With this Project, we have tried to better articulate the economic
benefits, to Jokkmokk and Norrbotten, of a modern and sustainable
mining operation at Kallak - the `Big Picture' - and how it fits in
with the objectives and ambitions of Swedish policy and decision

"We have explained our development philosophy of partnership and
collaboration, and extended an invitation to potential partners.
With this Project, and our forthcoming Scoping Study, we are
demonstrating our commitment to investing in, and taking Kallak
forward, in partnership with our stakeholders."

The Project

As well as revisiting the work done by Ramböll and LTU and reminding
stakeholders of Kallak's economic potential locally, regionally, and
nationally, the Project also details the Company's philosophy on what
needs to happen to ensure Kallak is a success, and Jokkmokk maximises
the benefits it receives.

The Project is an invitation to potential partners to join and
collaborate with the Company, such that synergies can be achieved,
strategic alliances formed, and Kallak's full potential can be
realised. Such commercial partners could include Vattenfall, as we
seek to electrify the mine and make it zero diesel/zero carbon,
Inlandsbanan (the inland railway operator) and the Port of Luleå,
both of whom have their own growth ambitions, require customers, and
a project like Kallak to support them.

Locally, we will be seeking to formalise a partnership with Jokkmokks
Kommun, local businesses, and representatives from all interested
parts of the community. A partnership organisation will provide an
effective forum through which the Company can share and exchange its
ideas and plans for the development of Kallak. The organisation
should develop terms of reference, objectives and workplans that can
be shared between partners, leading to the eventual development of a
modern and sustainable mining operation at Kallak, which will sit in
harmony with the environment and community, and a revitalised

Given Copenhagen Economics' relevant expertise in the regional mining
sector, and previous work for the Swedish Agency for Growth Policy
Analysis, part of The Government of Sweden, it was an ideal partner
to work with the Company on this Project.

About Copenhagen Economics

Copenhagen Economics was established in 2000 and has offices in
Copenhagen, Stockholm, and Brussels. Its single expertise is

The partnership has 75 employees, who either hold a Ph.D. or M.Sc. in
Economics, and who represent multiple nationalities: Danish, Swedish,
German, Finnish, Italian, Lithuanian, Romanian and American.

Copenhagen Economics' areas of work include: Economic modelling of
local value creation, mapping and benchmarking of national
strongholds, Value Chain Analysis, impact evaluation of tax and
royalty Schemes, Policy and regulatory advisory, and transformation
of stakeholder engagement models.


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


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