22 February 2023

Beowulf Mining plc

("Beowulf" or the "Company")

Jokkmokk Iron - Kallak Update

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, publishes an update from its wholly owned subsidiary Jokkmokk Iron Mines AB ("Jokkmokk Iron") on the progress at the Kallak Iron Ore Project ("Kallak").

Regarding Beowulf's Capital Raising the subscription period for both the SDR Rights Issue in Sweden and the UK Retail Offer via PrimaryBid to raise approximately SEK 115 million (£9.1 million) remains open until 23 February 2023. The funds will be used to progress at pace the development of Kallak, mainly environmental permitting and the Pre-feasibility Study.

Progress Report

Since the positive economic results from the Scoping Study for the Kallak North 'Only' Base Case, Jokkmokk Iron continues to make rapid progress with workstreams supporting the Environmental Permit application for Kallak North.

Ulla Sandborgh, CEO of Jokkmokk Iron, has been building the expertise within the Jokkmokk Iron team. When the Capital Raise has been completed, plans and budgets will be finalised that will support the application of the Environmental Permit in Q4 2023 and the start of the Pre-feasibility Study.

Environmental/Cultural Investigations and Community Engagement

Jokkmokk Iron has already re-initiated the stakeholder engagement process with local Sámi communities and held meetings in Jokkmokk with both the Sámi communities and other local stakeholders. 

On the 17 November 2022, a first meeting regarding consultations on reindeer husbandry took place with the next meeting scheduled for March 2023.

On 11 December 2022, an information meeting was held for the public in Jokkmokk.  Jokkmokk Iron presented the basis for an open pit mining operation at Kallak, provided information about ongoing and planned investigations in the area, and answered the audiences questions.

More meetings will be planned, ensuring transparency with respect to the Company's activities, and to formally consult on the draft Environmental Permit. 

A programme of environmental and cultural investigations has already started, in support of Jokkmokk Iron's Environmental Permit application for Kallak North.  Ongoing activities include:

·    Hydrogeological investigations, starting with well drilling, a programme of measurement of ground water levels, sampling and testing groundwater quality.

·    Water surveys, sampling, testing, chemical and biological analysis.

·    Noise surveys, measuring background noise levels.

·    Inventory of nature values on land, in lakes and water courses, a programme to observe, record and collate all biological background data over the Kallak area.

·    Air quality surveys, measuring background air quality using the Nilu method (Norwegian Institute for Air Research).

·    Field surveys to further investigate the cultural environment.

Transport/Logistics

Several meetings with different suppliers of logistical solutions, mine production transport, rail and port, and important authorities have taken place.  Beowulf's Chairman,  Johan Röstin, has made a positive contribution to these ongoing discussions, given his background in transportation, networks and sustainability.

Kurt Budge, CEO Beowulf Mining commented:

"Jokkmokk Iron, under the leadership of Ulla Sandborgh, continues to make significant progress, not least in terms of the initiatives to engage with the community in Jokkmokk as well as other important stakeholders.

"Ulla and Johan have had, and continue to hold, interesting discussions with companies that want to be involved in helping us achieve our sustainability goals - the excitement for what the Company can achieve at Kallak, in partnership with the community in Jokkmokk and important stakeholders is only building."

Ulla Sandborgh, CEO Jokkmokk Iron commented:

"Jokkmokk Iron wants to, by cooperation, innovation and technical development offer the market a sustainable product that makes the world a little greener, Jokkmokk a little bigger and Sweden a bit more interesting.

"Jokkmokk Iron has an excellent team that is driving the development forwards. The application for the exploitation concession was of a high quality and much of that work can be used again, and which can be supplemented.

"We look forward to continuing our work on the application for an Environmental Permit and the planning of the area and all activities with a huge respect for the environment, the nature, the culture and reindeer husbandry."

Relevant RNS Announcements

24 January 2023 - Kallak North Scoping Study Delivers Positive Economics

https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/x5z928x

About the Kallak Iron Ore Project and Jokkmokk Iron https://www.jokkmokkiron.se/

The Kallak deposit is located west of Jokkmokk in the County of Norrbotten. Kallak was discovered by The Swedish Geological Survey ("SGU") in the 1940s. The first exploration licence for Kallak was awarded by the Mining Inspectorate of Sweden in 2006. Drilling was conducted at Kallak North and South between 2010-2014, a total of 131 holes and 27,895 metres ("m"). An Exploitation Concession for Kallak North was awarded in March 2022.

At Kallak, the iron mineralisation in the ground, that is to be mined, contains approximately 28 per cent iron content ("Fe") which, through enrichment, can be upgraded to a 'market leading' concentrate containing 71.5 per cent Fe. The high-grade concentrate makes Kallak production attractive to downstream markets, such as fossil-free steelmakers.

It is the Company's ambition for the operation at Kallak to be Sweden's most sustainable mining operation, where the start of fossil-free steel production begins with primary raw material from Kallak.  Kallak is excellently positioned as a potential secure and sustainable supplier of high-quality iron concentrate to Sweden's growing fossil-free steel making sector.

In the Kallak area, 389 million tonnes of iron mineralisation have been estimated and when it comes to sustainable mining in the north of Sweden, mines can be powered by renewable electricity, with the goal of being 'Net Zero' mining operations. Kallak magnetite concentrate would reduce the carbon footprint of traditional steel manufacturing, improve energy efficiency in any downstream process and reduce waste; magnetite's inherent energy content, ultimately results in lower energy demand for steel manufacturing when compared to current common practice.

The development of Kallak will also bring opportunities for the local community in Jokkmokk. Investment and the creation of much needed jobs at Jokkmokk Iron will indirectly create further jobs locally, encouraging the establishment of new companies and a reversal of the depopulation that has afflicted Jokkmokk over recent years. This will contribute to a strong and vibrant Jokkmokk community.

The Kallak deposit is being developed by Jokkmokk Iron, a 100 per cent owned subsidiary of Beowulf Mining plc. The Jokkmokk Iron CEO is Ulla Sandborgh, who is a civil engineer and has held senior positions in the private sector as well as in public administration, in the infrastructure, electricity and water sectors. Ulla has extensive experience from managing application procedures and, as part of this, experience in collaborating with various stakeholders and ensuring that mutual interests and benefits are shared and secured.

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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.