The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation ("MAR") (EU) No. 596/2014, as incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

29 March 2022

Beowulf Mining plc

("Beowulf" or the "Company")

Kallak North Exploitation Concession

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, is pleased to provide further comments on the Swedish Government's decision to award an Exploitation Concession for the Kallak North Iron Ore Project ("Kallak") to the Company's 100 per cent owned subsidiary Jokkmokk Iron Mines AB ("JIMAB").

The Company's legal advisers have reviewed the Government's decision and the conditions attached to it and are satisfied that, with respect to the conditions, they include matters the Company would naturally expect to address in project development and the Environmental Court process.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"During a very busy last week where I was focusing on Grafintec's exciting prospects in Finland, our partnership with Epsilon Advanced Materials and joint plans for an anode materials production facility in the GigaVaasa area, it was difficult to take time out and fully appreciate the significance of finally being awarded an Exploitation Concession for Kallak.

"The positive decision is testament to the work of the Swedish technical team that prepared a comprehensive application, and the support of the Company's advisers, stakeholders and shareholders.  

"The Company will now embark on the next stages of Kallak's development, which include the completion of a Scoping Study, before the year end, the creation of a roadmap for environmental permitting and updating options for investment and partnering, following-up on interest shown previously. I also intend to develop ideas for possible collaboration, and build the local partnerships critical to maximising benefits for Jokkmokk. In doing so, I hope that we can harness the energy and spirit of collaboration that I experienced with institutions and authorities in Finland last week and replicate it in our work in Jokkmokk and Norrbotten. 

"Achieving this important milestone, I reflect on where the Company has come from since 2014, we now have an Exploitation Concession for Kallak, we are planning the development of an anode materials production facility in Finland, and drilling should start in Kosovo in the coming days. 

"We are making solid progress in all areas of the business and I look forward to providing further updates to the market in due course."

About Kallak

Kallak is located approximately 40 kilometres ("km") west of Jokkmokk in the County of Norrbotten, Northern Sweden, 80 km southwest of the major iron ore mining centre of Malmberget, and approximately 120 km to the southwest of LKAB's Kiruna iron ore mine. 

Testwork on Kallak ore has produced a concentrate of 71.5 per cent iron content, which is 'market leading' among known and current future producers.  In the Kallak area, 389 million tonnes of iron mineralisation have been estimated, a potential source of high-quality iron ore for fossil-free steel making in Norrbotten for decades to come.

Kallak Iron Ore Project - Mineral Resource Estimate ("MRE") and Exploration Target Upgrade

RNS dated 25 May 2021

https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/x8q5k9x  

·      An additional 19 million tonnes ("Mt") of iron mineralisation equating to a 12.5 per cent increase in the resource.

·      Measured and Indicated Mineral Resource of 132 Mt grading 27.8 per cent iron ("Fe").

·      Inferred Mineral Resource of 39 Mt grading 27.1 per cent Fe.

The definitions of Measured, Indicated and Inferred Resources, as well as Reserves, as used in this MRE, conform to the definitions and guidelines of the PERC Reporting Standard, 2017.

Market Leading Potential

RNS dated 17 September 2020

https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/x8l7kjr 

·      Testwork on Kallak ore has produced an exceptionally high-grade magnetite concentrate at 71.5 per cent Fe with minimal detrimental components.

·      This would make Kallak the market leading high-grade product among known current and planned future producers.

·      The next best magnetite product is LKAB's (the state-owned Swedish iron ore company), which produces magnetite fines ("MAF") with a target specification of  70.7 per cent Fe and is regarded as unique, until now, due to its exceptionally high iron content.

·      Kallak magnetite concentrate would reduce the carbon footprint of traditional steel manufacturing, improve energy efficiency in any downstream process and reduce waste.  Magnetite has inherent energy content, which ultimately results in lower energy demand for steel manufacturing when compared to current common practice.

·      Globally, the feedstock for steelmaking is 80 per cent hematite and 20 per cent magnetite.  The demand for high-quality feedstock and therefore magnetite should increase as producers look to protect the environment by improving energy efficiency, minimizing waste and the impact of waste disposal.

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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 forecast.