Additional Graphite Claim Reservation Granted and Geophysics Fieldwork Completed

Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration and development company focused on the Kallak magnetite iron ore project in northern Sweden and its graphite projects in Finland, is pleased to announce that it has been awarded an additional Claim Reservation, Saarenpudas, within the Kolari graphite district. In addition, preliminary geophysics fieldwork has been completed on the Haapamäki and Piippumäki graphite projects.

Highlights:

• Fennoscandian Resources (“Fennoscandian”), Beowulf`s 100 per cent owned Finnish subsidiary has been granted additional ground, Saarenpudas, within the prospective Kolari graphite district, immediately to the west of the Kolari Claim Reservation already held by the Company.

• The Kolari area is believed to be prospective for high-grade very fine to fine microcrystalline graphite. Previous exploration work at Saarenpudas by Rautaruukki Corporation (“Rautaruukki”) in the 1970s identified an electromagnetic (“EM”) conductor over 1.5 kilometres in length, associated with graphitic schist. Based on a combination of drilling and ground EM data, Mattila (1978) estimated an exploration target of three million tonnes ranging 15-30 per cent graphitic carbon (“Cg”) within the Saarenpudas Claim Reservation.

• Slingram EM (“Slingram”) surveys have been completed at the Haapamäki and Piippumäki projects and the data is now being analysed by Beowulf’s geophysics consultants GeoVista AB. Their findings will be used to visibly check conductors, when the Fennoscandian team continues its fieldwork on the projects, to better define targets for drilling.

Kurt Budge, CEO, commented:

“I am very pleased to announce the award of an additional Claim Reservation in Finland, increasing the area that we are investigating in the prospective Kolari graphite district, and the completion of low cost geophysics programmes at Haapamäki and Pippumäki; the data collected is now being analysed and we expect results in the coming weeks.

“We are actively looking at opportunities to generate value from our assets and give Beowulf exposure to the graphite value chain, from mine to market. With this in mind, Beowulf is assessing various public funding options that are available in the UK and EU to support research and development into market applications for our natural graphite. We have also initiated discussions with a downstream graphite company, exploring ways in which we might collaborate.

“We are very excited to be moving on multiple fronts with our graphite business and I look forward to updating the market on our progress in due course.”

Saarenpudas

Saarenpudas is located in north western Finland immediately to the west of the Company’s Kolari project and approximately 50 kilometres and 100 kilometres east of Talga Resources’ (ASX:TLG) Vittangi and Jalkunen graphite projects respectively, both of which are situated in Sweden.

Fennoscandian has been granted a 100 per cent owned Claim Reservation over an area of 19.94 square kilometres, which includes an EM conductor over 1.5 kilometres in length. The graphite is hosted in a massive graphitic schist associated with mafic volcanics and hornblende-chlorite-olivine skarn metamorphic country rocks.

Historic exploration work at Saarenpudas includes rock chip/till drilling, diamond drilling and ground geophysics, as follows:

• 1977: Rautaruukki identified a number of EM conductors, with one single EM conductor having a continuous strike length of 1.5 kilometres. Based on 5 surface rock chip/till profiles and 4 diamond drillholes, Rautaruukki identified the conductors to be associated with a graphite-bearing horizon (Mattila,1978).

• Diamond drillhole R1, drilled to test the 1.5 kilometres long conductor, intersected 18.7 metres of mineralisation starting from 11.5 metres, with an average grade of 30.7 per cent Cg (Mattila, 1978). It should be noted that mineralisation intercepts are the down-hole width and may not be the true width.

• Based on a combination of drilling and ground EM data, Mattila (1978) estimated an exploration target of three million tonnes ranging 15-30 per cent Cg to a vertical depth of 50 metres. It should be noted that this historical estimate does not comply with any modern international reporting codes, such as JORC, and has not been the subject of technical evaluation at this stage. In addition, insufficient verification studies have been undertaken to date, by either Beowulf or the Competent Person, to assign confidence to this estimate and therefore this information is disclosed as reflecting project potential only.

Fieldwork

A Slingram survey has recently been completed at the Company’s Haapamäki and Piippumäki projects. Graphite bearing rocks are highly conductive and this exploration method enables potential graphitic rocks to be detected, and their conductive dimensions estimated: length; width; and dip. Previous work by Fennoscandian and its Fennoflake Project partner, Åbo Akademi University, in June and July 2015 observed outcropping graphite bearing schists, which are associated with EM conductors in the surveyed areas. 

A summary of the work completed at each site is provided below:

• Haapamäki

  • Two Slingram surveys have now been completed in June 2015 and March 2016
  • Total number of survey lines: 90 (two separate areas surveyed measuring approximately 310 hectares and 278 hectares)
  • Approximately 100 metres spacing between survey lines
  • Generally 20 metres between measurements, with measurements every 10 metres across conductors

• Piippumäki

• Two Slingram surveys have now been completed in July 2015 and March 2016
• Total number of survey lines: 65 (single area surveyed measuring approximately 85 hectares)
• 25-50 metres spacing between survey lines
• Generally 20 metres between measurements, with measurements every 10 metres across conductors

The data from the Slingram surveys is now being analysed by geophysicists at GeoVista AB, based in Luleå, Sweden. Their findings will be used to visibly check conductors, when the Fennoscandian team continues its fieldwork on the projects, enabling the Company to better define targets for drilling in late Spring/Summer 2016.

References

• Mattila, H. 1978. Saarenputaan ja Juurakkajärven grafiitti-Cu-kriittisten sähköanimaloiden tutkimukset v. 1977. Rautaruukki Oy. This report summarizes work at Saarenpudas and Juurakkajärvi. Saarenpudas prospect is described on pages 4-6. Saarenpudas drill profile on pages 15-17.

Competent Person Review

• The information in this report is based on Exploration Results compiled by Mr. Rasmus Blomqvist, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy.

• Mr. Rasmus Blomqvist is a full-time employee of Fennoscandian.

• Mr. Rasmus Blomqvist has sufficient experience, that is relevant to the style of mineralisation and type of deposit taken into consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”

• Mr. Rasmus Blomqvist has conducted a desktop review of source documents and data which underpins 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 Competent Person, as required under the AIM rules. It should be noted that the technical disclosure herein, for which the Competent Person takes responsibility, is based on desk-top review of historical documents only, and no data verification works or project inspections have been carried out by the Competent Person at this time.

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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.