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.

08  September 2022

Beowulf Mining plc

("Beowulf" or the "Company")

Majdan Peak analysis generates additional compelling exploration targets and increase the significant 'district' potential

Beowulf (AIM: BEM; Spotlight: BEO), is pleased to announce the positive conclusions from additional analysis of drilling and exploration activities in and around the Majdan Peak South ("MPS") target within the Mitrovica licence in Kosovo, which has produced new exploration targets each of which could represent an economic deposit.

The MPS target is one of several base and precious metal targets on the periphery of the large polymetallic epithermal system at Majdan Peak ("MP"), the discovery of which was announced by the Company on 22 August 2022.  Moving south from MP, we now have the drill tested target of MPS, and anomalous IP, rock chip and soil assays presenting at Gold Ridge and Red Lead.

Vardar's exploration results, from fieldwork, geophysical surveys and drilling, continue to support the case for further investment and work.  The main objective is to discover an economic deposit, and recent drilling shows the potential of MPS and other targets to host economic concentrations of base and precious metal.  Each phase of exploration is adding data and building the picture.

Highlights from additional analysis:

·    All three drillholes into the MPS target intersected abundant base and precious metal mineralisation, including silver ("Ag"), lead ("Pb"), zinc ("Zn") and copper ("Cu"), demonstrating the potential for a deposit in the right geological conditions, chemical and/or structural, known as a trap-site, which literally traps metal in a specific location, and which we hope to intersect with a further drilling.

·    In addition, several noteworthy precious metal intersections, silver ("Ag") and gold ("Au") were also returned, including:

o  Drillhole MP002: 8.8 metres ("m") at 0.34 grammes per tonne ("g/t") Au, including 0.9m at 1.52 g/t Au and 20 g/t Ag; and

o  Drillhole MP003: 36.4m at 19 g/t Ag, 0.5 per cent Pb and 0.2 per cent Zn, including:

§ 1.5m at 128 g/t Ag, 0.35 per cent Cu, 1.5 per cent Pb and 0.3 per cent Zn;

§ 1.1m at 71 g/t Ag, 0.1 per cent Cu, 0.7 per cent Pb and 0.3 per cent Zn;

§ 1.0m at 50 g/t Ag, 0.2 per cent Cu, 0.5 per cent Pb and 0.3 per cent Zn;

§ 4.8m at 44 g/t Ag and 0.7 per cent Pb; and

§ 1.1m at 46 g/t Ag, 2.7 per cent Pb and 0.6 per cent Zn.

·    The MPS target remains open ended to the west and east with geophysical and surface mapping data indicating a strike length of over 600m.

·    In addition to MPS, other drill-ready targets on the periphery of the prime target, the Majdan Peak hydrothermal system, reinforce the significant potential in the licence area and include:

o  Gold Ridge - defined by a 300m long induced polarisation ("IP") anomaly where rock chip grab samples have returned Au results of up to 7.2 g/t.

o  Red Lead - defined by significant Zn and Au rock sample anomalies along a broad one kilometre long multi-element soil sample anomaly. Associated IP anomalies further support the soil and rock sample anomalies.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"It's very exciting to follow the recent announcement of the discovery of a large polymetallic epithermal system (RNS dated 22 August 2022) with today's announcement of new base and precious metal targets around the prime Majdan Peak target.  Each of these peripheral targets has the potential to contain economic mineralisation and justifies further drill testing.

"The highlighted MPS intersections demonstrate the significant exploration potential of this district. At this stage in the programme, the amount of metal being seen in the system is extraordinary and is providing us with numerous exploration targets on the doorstep of the adjacent Stan Terg deposit.

"The Vardar team continues to make excellent progress and, while exploration is often thought to be speculative in nature, we are building a significant knowledge bank, which supports further investment and drilling.

"We are now working with the Vardar team on plans for more drilling this year, aimed at the new targets to maximise our chances of making a new discovery, and I look forward to providing further updates on progress."

MPS and Gold Ridge Targets

The Majdan Peak prospect is situated in the central portion of the Mitrovica licence area, defined by a zone of intense argillic and advanced argillic alteration which forms a prominent hilltop. Distinct ridges to the south of the main prospect define the MPS target and Gold Ridge target, both of which are related to the same significant hydrothermal system which is also responsible for mineralisation at the neighbouring skarn/carbonate-replacement Stan Terg deposit.

A 3D induced polarisation and resistivity (IP/DC) survey carried out over the entire prospect in 2020/21 identified prominent chargeability anomalies associated with both MPS and Gold Ridge targets. Both targets have highly anomalous rock grab gold results with Gold Ridge, in particular, returning several samples with over 1 g/t Au including a sample with 7.2 g/t Au.

As part of its 3,479m Kosovo drilling programme, 3 holes totalling 644m were drilled into the MPS target using the prominent chargeability anomaly to site the hole positions.  All three holes intersected intense argillic alteration with several zones of advanced argillic alteration, along with abundant sulphides including base metal mineralisation (galena, sphalerite and chalcocite). The logged pyrite content correlates well with the position of the IP anomaly confirming the causative source.

All drill core was cut along the orientation line before selecting half-core samples for analysis. Samples were prepared and analysed at ALS laboratories along with appropriate reference material and duplicates using multielement ICP-MS, gold fire assay and SWIR spectrometry.

MPS Results

All three holes intersected abundant base metal mineralisation with a background average of more than 0.2 per cent Pb-Zn for the 644m drilled, demonstrating the potential for a significant base metal deposit in the right trap-site.

Within the broad zones of Pb-Zn mineralisation, intersections of highly anomalous Ag, Cu and Pb-Zn in drillhole MP003 provide encouragement for potential economic concentrations of mineralisation along the 600m strike length.

Intersections of anomalous shallow Au-Ag mineralisation in MP001 associated with the mapped advanced argillic ridge, highlight the additional precious metal component of this target. Of interest is the fact that the mineralisation typically occurs on the margins of the pyrite zone which forms the main IP anomaly rather than having a direct association.

MPS and Gold Ridge represent compelling targets immediately surrounding the main Majdan  hydrothermal system which add to the scale of the exciting prime Majdan Peak target.

Red Lead and Wolf Mountain Targets

The Red Lead target is located three kilometres south of Majdan Peak and is notable for its Zn, Cu and Pb anomalies in soil and rock grab samples associated with outcropping trachyte dyke/sills. A weak to moderate chargeability anomaly has been identified associated with anomalous soil sampling results.

The Wolf Mountain target forms part of an extensive mineralised set of satellite deposits to, and along trend from the world-class Stan Terg deposit mine (estimated 63 million tonnes at 3.5 per cent Pb, 2.3 per cent Zn and 80 g/t Ag - based on past production and estimated remaining reserves at the same grade).

The Wolf Mountain target is expressed on surface as an extensive four kilometre gossan which expands laterally on its northern margin under a cap of volcanoclastic rocks.  Drill and trench programmes carried out in 2019 were able to confirm the lateral extension of mapped Pb-Zn-Ag mineralisation over an area of 800 x 400 metres under a hilltop on the northern part of the target.

Trench results include 12.5m at 2.01 per cent Pb, 3.17 per cent Zn and 18 g/t Ag, and drill results include 6.6m at 1.27 per cent Pb, 0.91 per cent Zn and 8 g/t Ag and 4.3m at 2.69 per cent Pb, 0.4 per cent Zn & 16 g/t Ag. 3D IP surveys undertaken in 2020 identified significant chargeable anomalies below the main hilltop which may represent higher grade feeder structures providing future drill targets.

The Wolf Mountain and Red Lead Targets both represent compelling drill-ready base and precious metal targets in proximity to the prime Majdan Peak target.

Tables of significant intersections (2022)

Table 1. Au drillhole intersections

Table 2. Ag (+- Pb and Zn) drillhole intersections

Tables of significant intersections (2019)

Table 3. Trench sample results from Wolf Mountain

Table 4. Drill intersection results from Wolf Mountain

Figure 1. Locality map illustrating the extent of the alteration system (grey) from field mapping with high-chargeability IP anomalies overlain (pink). Drill collars are illustrated as green circles. Note the position of the Stan Terg skarn/carbonate-replacement deposit to the east.

Figure 2. Plan (top) and 3D view (bottom) illustrating intersections into the MPS target. Note the extension of mineralisation to the east with distinct gold and silver - base metal trends.

Figure 3. Locality map illustrating the position of the Wolf Mountain target relative to Majdan Peak. 2019 drill and trench results are highlighted in (black and blue respectively).

Glossary

g/t - grammes per tonne

Gossan - is an intensely oxidised, weathered or decomposed rock, usually the upper and exposed part of an ore deposit or mineral vein.

Hydrothermal Alteration - also referred to as wallrock alteration, is a general term that encompasses many processes by which rock-forming minerals are altered due to reactions accompanying the flow of heated aqueous fluids along fractures and grain boundaries.

Induced Polarisation (IP) - Variations in chargeability can be diagnostic, for example, when aiming to characterise a mineral deposit, where the chargeability of the mineralised zone is often higher than the host rock. Often an Induced Polarisation (IP) experiment is performed with the Direct Current Resistivity (DCR) hence they are often called IP-DC survey. Both conductivity and chargeability distribution can be recovered from an IP-DC survey.

Inductively coupled plasma mass spectrometry (ICP-MS) is a type of mass spectrometry that uses an inductively coupled plasma to ionize a sample.

Shortwave infrared (SWIR) spectroscopy is a non-destructive and rapid technique used to identify alteration minerals and approximate their composition, detecting minerals such as phyllosilicates, clays, carbonates, and selected sulphates. 

Qualified Person Review

The information in this announcement has been reviewed by Mr. Chris Davies, a Qualified Person ("QP"), who is a Fellow of the Australasian Institute of Mining and Metallurgy.  Mr. Davies has conducted a desktop review of source documents and data which underpin the technical statements disclosed herein and approves the disclosure of technical information in the form and context in which it appears in this announcement, in his capacity as a QP as required under the AIM rules.  Mr. Davies has visited Vardar's Mitrovica and Viti projects in Kosovo.

Mr. Davies has sufficient experience, that is relevant to the content of this announcement, to qualify as a Competent Person ("CP") as defined in the 2012 Edition of the "Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves".

Mr. Davies BSc (Hons) Geology, MSc DIC Mineral Exploration, FAusIMM, is a Non-executive Director of Beowulf and is an exploration/economic geologist with more than 35 years' experience in the mining sector.

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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 forecasts.