Beowulf Counter-claim for Remediation Costs

Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration and development company focused on the Kallak iron ore project (“Kallak”) in northern Sweden, announces that it has received notification that a claim, from a drilling contractor employed on Kallak during 2014, has been filed against the Company with a small claims court in Sweden. The claim is for unpaid invoices amounting to approximately SEK350,000 (approximately £27,000).

In late 2014, the Company withheld payment of invoices to cover remediation costs which exceed the sum being claimed by the driller. The remediation work was undertaken by the Company to clean-up oil spillages caused by drill rigs employed on site during 2014 and to make good the drill sites used. An independent report from environmental consultants, Hifab AB (www.hifab.se), has concluded that no further remediation work was necessary at the drill sites.   To date, the costs for this work have been borne by Beowulf.  

The Company intends to defend itself against the claim, and confirms that there is no material impact on its activities.

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