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2016-02-29

Beowulf: Unaudited Financial Results for year ended 31 December 2015

Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration and
development Company focused on the Kallak magnetite iron ore project
in northern Sweden and its graphite portfolio in Finland, announces
its unaudited financial results for the year ended 31 December 2015
(see Appendix 1).

Highlights for the Year:

Financial

· Loss before and after taxation attributable to the owners of the
parent at £1.48m is significantly down on the loss recorded in 2014
of £3.06m while basic loss per share of 0.38p also improved over last
year (2014: loss per share of 1.00p).

· Approximately £0.35m in cash was held at the year end.
· Approximately £0.18m cash was held at the end of February 2016,
before proceeds of the subscription of shares announced 25 February
2016 are received.

Operational

· On 13 February 2015, the Company announced it had received
notification that the Mining Inspectorate of Sweden had referred the
decision regarding the Exploitation Concession for Kallak North to
the Swedish Government.

· On 8 June 2015, the Company announced outstanding testwork results
on ore samples from Kallak North which showed a 'super' high grade
magnetite concentrate, with over 71 per cent iron content and low
levels of deleterious materials.

· On 7 July 2015, the County Administrative Board ("CAB") announced
that Kallak North could deliver significant economic benefits for
Jokkmokk, the County of Norrbotten, and for Sweden.

· On 12 October 2015, the Mining Inspectorate of Sweden wrote to the
Government of Sweden and recommended that the Exploitation Concession
for Kallak North be granted.

Corporate

· Received £150,000 in January 2015 by accelerating all settlements
under the Equity Swap Agreements with Lanstead Capital L.P.

· Raised £350,000 on 10 March 2015 and £650,000 on 9 July 2015.
· The Board's Salary Sacrifice programme undertaken when cash was
low amounted to £45,798 which was taken is shares.

· Increase in the number of Swedish shareholders from 12% a year ago
to approximately 40% of the issued share capital of the Company at
the year end.

· The Company's share price, for the year, has risen approximately
276% between 1 January 2015 and 31 December 2015.

Post Period Highlights:

· Acquisition of Fennoscandian Resources, a privately owned Finnish
company with a portfolio of four early-stage graphite exploration
projects located in Finland.

· Published an Open Letter to Sami Chairmen showing our willingness
to work together.

· Subscription to raise £1.25 million with an option for an
additional raise up to £250,000.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"2015 has been a significant year for Beowulf with excellent progress
achieved on the Kallak North Exploitation Concession - with both the
CAB and the Mining Inspectorate giving their support to the project.

"Beowulf is leaving no stone unturned and continues to work hard
towards a positive decision by the Swedish Government on the
Exploitation Concession. In addition to this we were delighted to
announce the excellent testwork results earlier in the year on ore
samples from Kallak North showing a `super' high grade magnetite
concentrate can be produced.

"2016 has so far been very busy with the acquisition of the Finnish
graphite company and the completion of the subscription for £1.25
million which will provide funding for approximately the next 12
months.

"The Company has an exciting work programme planned for 2016,
including fieldwork around Kallak and drilling the Exploration Target
at Kallak South, once the Exploitation Concession has been awarded,
conducting exploration on our graphite portfolio in Finland, and
developing further exploration ideas in Sweden.

"With our work programmes fully funded we can now focus on creating
value with the assets we have. We will also continue to evaluate more
M&A opportunities in the Nordic region, targeting deals where we can
unlock value for shareholders.

"We would like to take the opportunity to thank our shareholders in
both Sweden and UK for their support during the year."

Summary of 2015

Financials

· Loss before and after taxation attributable to the owners of the
parent at £1.48m is significantly down on the loss recorded in 2014
of £3.06m while basic loss per share of 0.38p also improved over last
year (2014: loss per share of 1.00p).

· The lower loss in the year was due to reduced administrative
overheads (£0.38m below 2014) especially directors' remuneration and
professional fees. There was also an allocation in the year of
executive director salaries and fees to Kallak exploration costs of
approximately £68k (2014: Nil). There were nil losses on derivative
financial assets (2014: £2.03m) following the accelerated settlement
of Equity Swap Agreements in January 2015. However, these reductions
were partly offset by higher impairment charges of £1.12m (£3k in
2014).

· The main projects impaired were Ballek (£0.84m) and Grundträsk
(£0.27m). The decision to fully impair these projects followed a
detailed review of all available data by independent consultants. The
review confirmed that further exploration work could be undertaken,
but given neither project has demonstrated sufficient scale to
support a standalone mine, no funds have been allocated to these
projects in 2016. The Company still maintains the licences and will
look at ways of monetising the work done to-date.

· Approximately £0.35m in cash was held at the year end.
· Total assets at £6.1m are £0.9m below 2014. This is principally
due to the reduction in intangible assets to £5.59m following the
impairment of projects mentioned above.

Operational

· On 8 June 2015, Beowulf announced outstanding testwork results on
ore samples from Kallak North which showed a `super' high grade
magnetite concentrate, with over 71 per cent iron content and low
levels of deleterious elements. The 'super' high grade and purity of
the magnetite concentrate produced are valuable attributes for key
target markets and support the case for a significant price premium
for 'Kallak super concentrate.'

· On 8 July 2015, the Company announced that the CAB commented on
the national economic assessment of Kallak North. They found that
mining is economically relevant and that the Kallak North project
generates economic benefits at local, regional and national levels.
In addition, they stated that the Concession area applied for by the
Company creates no conflicts where national interests are considered.

· In a letter dated 9 October 2015, the Mining Inspectorate of
Sweden wrote to the Government of Sweden and recommended that the
Exploitation Concession for Kallak North be granted. The
recommendation was delivered in response to the Department of
Enterprise and Innovation's invitation for the Mining Inspectorate to
give its views on the findings made by the CAB when commenting on the
national economic assessment for Kallak North.

Corporate

· On 7 January 2015, Beowulf and Lanstead mutually agreed to
accelerate all settlements under the Equity Swap Agreements. Under
the terms of the Accelerated Settlement, the Company received a final
settlement payment of £150,000 from Lanstead. The Company confirms
that Lanstead are no longer a shareholder.

· On 10 March 2015, the Company placed 29,166,666 ordinary shares to
raise approximately £350,000 (before expenses) at a price of 1.2
pence per share.

· On 9 June 2015, the Company announced that the total amount of the
Salary Sacrifice between 1 October 2014 and 31 May 2015 was £45,798.
The share price used to calculate the number of shares is the
mid-market closing price on 8 June 2015 of 2.25 pence. The Company
made an application for 2,035,457 shares to be admitted to trading on
AIM.

· On 9 July 2015, the Company placed 49,600,000 ordinary shares and
directors subscribed for 2,400,000 ordinary shares to raise
approximately £650,000 (before expenses) at a price of 1.25 pence per
ordinary share. The Placing was oversubscribed.

· The Company announced that options were granted on 17 July 2015
over a total of 17,000,000 ordinary shares of 1 pence. The exercise
price of 1.66 pence per share, was a 32.8% premium over the closing
mid-market share price on 17 July 2015. The options vest over a
two-year period with one third vesting immediately on grant, one
third on the first anniversary of grant and one third on the second
anniversary of grant. The options are valid for five years from the
date of grant.

· 1,234,568 Performance Warrants were exercised by the Company's
joint broker in the year pursuant to their engagement letter. The
first 617,284 Performance Warrants were exercised on or around 14
October 2015 after Beowulf's mid-market share price exceeded 3.04p
over a 14-day Volume Weighted Average Price ("VWAP") within 6 months
of their appointment at an exercise price of 2.025p. Our joint broker
exercised a second 617,284 Performance Warrants on or around the 10
December 2015 when Beowulf's mid-market share price exceeded 4.05p
over a 14-day VWAP within 12 months of their appointment at an
exercise price of 2.025p. The Company received a total of £25,000 on
the exercise of both sets of Performance Warrants. There are no
further Performance Warrants outstanding.

· At 31 December 2015 Swedish investors held approximately
173,672,737 SDRs (2014: 47,985,114), representing approximately 40
per cent of the Company's issued share capital.

Post period summary

Acquisition of Fennoscandian Resources

· On 11 January 2016, the Company announced the acquisition of Oy
Fennoscandian Resources AB ("Fennoscandian"), a privately owned
Finnish company with a portfolio of four early-stage graphite
exploration projects located in Finland; all projects being held by
Fennoscandian are under 100 per cent owned Claim Reservations.

· Beowulf acquired 100 per cent of the share capital of
Fennoscandian in consideration for a total of 2.55 million ordinary
shares in the capital of the Company. The transaction consideration
consisted of an initial payment of 2.1 million shares with a deferred
payment of 450,000 shares. In addition, two equal tranches of shares
will be issued on achievement of certain performance milestones. The
total number of ordinary shares that may be issued, if all
performance milestones are achieved, is 6.75 million ordinary shares.

· Workplans for 2016 include desktop studies and fieldwork across
all four projects. Geophysical surveys have already begun on
Pippumäki and Haapamäki, with the purpose of defining targets for
drilling to be un...

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