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2019-02-28

Beowulf: Unaudited Preliminary Financial Results for the year ended 31 December 2018

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.

28 February 2019

Beowulf Mining plc

("Beowulf" or the "Company")

Unaudited Preliminary Financial Results for the year ended 31 December
2018

Beowulf (AIM: BEM; Spotlight: BEO), the Nordic focused mineral
exploration and development company, announces its unaudited
preliminary financial results for the year ended 31 December 2018
(see Appendix 1).

Overview

· During the year Beowulf continued to navigate Swedish bureaucracy
as it sought a decision on its application for an Exploitation
Concession for Kallak North.

· The CEO met with key stakeholders in Jokkmokk, Luleå and
Stockholm, including local, regional and national politicians, and
attended Almedalen (an important Swedish political forum). During
these interactions the CEO made it clear, that a Company which
invests SEK 77 million in a project and satisfies permitting
requirements, should be granted its permit in a reasonable timeframe.
Even more so, when in October 2015 the competent authority, the
Mining Inspectorate, has recommended that an Exploitation Concession
for Kallak North be awarded.

The CEO reiterated the Company's vision for Kallak, to develop the
most modern and sustainable mining operation, with the potential to
transform Jokkmokk's economic future to one that is thriving,
diversified and sustainable. In addition, to reaching out to all
groups in the community in the spirit of cooperation and partnership,
including the Sami reindeer herding community.

· On 1 February 2018, the Company provided comments to the
Government on the County Administrative Board ("CAB") for the County
of Norrbotten's statement dated 30 November 2017. The Company made
the case that the CAB's statement reads as though it has tried to
justify its latest position, that an Exploitation Concession for
Kallak North should not be awarded, through flawed analysis and
biased conclusions.

· On 6 March 2018, the Company published a letter written by the CEO
and sent to the Swedish Government, providing final comments on the
Kallak application process. In the letter the CEO reminded the
Government that in October 2015, the Mining Inspectorate recommended
to the Government that an Exploitation Concession for Kallak North be
awarded. That since then, the prescribed process in Sweden for being
granted an Exploitation Concession has not changed, the Company has
addressed specific concerns raised by the CAB regarding transport,
provided supplementary information to demonstrate that mining and
reindeer herding can prosper together, and a Heritage Impact
Assessment to dispel any concerns about the interaction of Kallak and
the Laponia World Heritage Site.

· On 16 May 2018, the Company learnt that the Administrative Court
in Luleå had rejected the Jokkmokk Iron Mine's AB ("JIMAB") appeal of
the Mining Inspectorate's decision not to extend Kallak nr 2 and
Parkijaure nr 3 exploration licences. JIMAB has applied to the
Administrative Court of Appeal in Sundsvall for its case to be heard,
arguing that the court judgement is wrong. Proceedings are ongoing.

· During the year, the Company made significant progress at its
graphite projects in Finland.

· A successful drilling programme was completed at the Aitolampi
graphite project, with results published in March and May 2018.
Following the drilling programme, on 13 August 2018, the Company
announced a Mineral Resource Estimate ("MRE") for Aitolampi which was
undertaken by CSA Global Pty Ltd ("CSA Global"). A global Indicated
and Inferred Resource (JORC Code, 2012 edition) of 19.3 million
tonnes ("Mt") at 4.5% Total Graphitic Carbon ("TGC") for 878,000
tonnes ("t") of contained graphite, comprising eastern and western
lenses above a 3.0% TGC cut-off grade.

· In April 2018, Beowulf signed a Graphite Collaboration Agreement
between the Company's Finnish subsidiary, Fennoscandian, and Åbo
Akademi University ("Åbo"), located in Turku, Finland and joined a
Cooperation Network of existing and new entrant raw materials
suppliers to the emerging battery manufacturing industry in Finland.
Additionally, Fennoscandian was granted Euros 161,000 by Business
Finland for a research project entitled "Green Minerals - Graphite,
Exploration to Products".

· On 6 November 2018, the Company announced the acquisition of an
initial 14% interest in Vardar Minerals Limited ("Vardar"), a private
exploration company with interests in Kosovo, for consideration of
£250,000 satisfied in cash. The Company has an option to make a
further investment which will increase its ownership interest.

The investment in Vardar provides the Company with exposure to a
number of porphyry related copper, gold and base metal targets in the
prospective Tethys Arc. The region is rapidly becoming a focus for
major exploration investment following significant discoveries in the
last decade.

Vardar has four wholly owned exploration licences in Kosovo and two
more under a purchase agreement whereby Vardar will own 85% of the
licences. The combined coverage is a total of 333.2 square kilometres
("km²").

For ease of reference the licences are split into three projects
Mitrovica, Viti, and Drazna.

· On 16 May 2018, Beowulf completed a subscription for new ordinary
shares to raise £1.5 million before expenses.

· The Company, on 1 October 2018, announced the appointment of SP
Angel as Nominated Adviser and Broker.

· Loss before and after taxation attributable to the owners of the
parent was £1.37 million (2017: £1.04 million).

· Basic loss per share was 0.25 pence (2017: 0.20 pence).
· The Company had £1.53 million in cash at 31 December 2018 (2017:
£1.59 million)

Post Period Overview

· On 31 January 2019, there were 344,157,507 Swedish Depository
Receipts representing 60.77% of the issued share capital of the
Company. The remaining issued share capital of the Company is held in
the UK.

· In addition, the Company announced, on 14 January 2019, that
options were granted to directors and a senior manager over a total
8,000,000 ordinary shares of 1 pence each in the capital of the
Company ("Share Options"), representing approximately 1.41% of the
issued share capital of the Company.

· On 1 February 2019, Beowulf informed the market of its attendance
to the Future Mine and Mineral 2019 Conference, where Kurt Budge,
delivered a presentation titled 'Sustainability in the heart -
partnership, the lifecycle of mining projects, balancing the interest
of stakeholders'.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"It is good news that Sweden finally has a Government, and that new
Ministers are getting back to business. In recent months, the mining
industry in Sweden has been in focus, with other mining companies,
SveMin and IF Metall, one of the main unions, raising the issues of
uncertain permitting processes for mining projects, and unacceptable
delays in decision making by authorities.

"In October 2018, we saw a spotlight put on the future of LKAB's
operations at Kiruna, and with this attention paid to the importance
of iron ore to Sweden. It highlighted the absurdity of the Kallak
North application process, when authorities are unable to permit
Europe's largest drill defined iron ore deposit.

"At the Future Mine and Mineral Conference last month in Stockholm,
the CEO of Boliden made the comment in respect of exploration, that
`if you find something, then you should be able to utilise the
asset'. It begs the question `why would anyone invest in Sweden, if
this wasn't the case'. For our own part, the authorities in Sweden
have watched the Company invest SEK 77 million, drill over 28,000
metres, define a significant resource, and develop the Kallak project
to where it is today.

"Taking all this into consideration, new Ministers, a debate on the
importance of mining and iron ore to Sweden, and Sweden wishing to
portray itself as an attractive destination for mining investors, we
have renewed optimism that a Concession for Kallak North will be
forthcoming, without further delay.

"Over the last year, China's moves to restructure its steel industry
and tighten environmental controls have positively impacted the iron
ore market. This means that premium products, such as the ones Kallak
could produce, continue to be in demand and attract premium prices,
making Sweden's iron ore sector and Kallak attractive. With an
Exploitation Concession, the Company remains committed to taking the
Kallak project forward in partnership with stakeholders in Jokkmokk,
while having its hand strengthened in finding a strategic partner and
investor.

"While Kallak is the foundation of Beowulf, we have made substantial
progress in other areas of our business during 2018. Most
importantly, delivering a JORC compliant mineral resource estimate
("MRE") for Aitolampi, and overall strengthening our position as a
future raw material supplier to the battery sector. The focus for
2019 is to develop a `resource footprint' of graphite in Finland,
that can provide `security of raw material supply' and enable the
country to achieve its ambition of self-sufficiency in battery
manufacturing. This will mean increasing our knowledge across our
portfolio of graphite prospects, rather than advancing any one
project at this stage, so that we can optimise capital allocation to
the best projects.

"In addition, we widened the Company's geographical and commodity
reach with an investment in Vardar. We believe this to be an exciting
opportunity for Beowulf that allows exposure to highly prospective
exploration licences in Kosovo, and the chance to work with a
well-regarded management team.

"2019 is looking like a busy year for the Company, as we push forward
with Kallak, our graphite business, and see what Vardar can deliver.
We look forward to keeping shareholders updated as, and when,
appropriate."

Financial

· Loss before and after taxation attributable to the owners of the
parent at £1.37 million was higher than the loss recorded in 2017 of
£1.04 million. The increased loss is attributable to an increased
impairment charge of £0.57 million, arising from the impairment of
Viistola (£0.16 million), Kolari 1 (£0.16 million) and Haapamäki
(£0.25 million), as opposed to the £0.18 million impairment charge
incurred in the year to 31 December 2017 relating to Nautijaur (£0.02
million) and Piippumäki (£0.15 million).

· The underlying admi...

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