Finnish Cooperation Network and Project Funding

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations ("MAR") (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. 

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of Kurt Budge, Chief Executive Officer. 

25 April 2018

Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration and development company, focused on the Kallak magnetite iron ore project and the Åtvidaberg polymetallic exploration licence in Sweden, and its graphite portfolio in Finland, is pleased to announce its involvement in a Cooperation Network of existing and new entrant raw materials suppliers to the emerging battery manufacturing industry in Finland.

The Cooperation Network includes the cities of Vaasa and Kokkola; Freeport Cobalt, the world's largest cobalt refinery and producer of battery chemicals; Nornickel, the producer of world-class nickel metals and nickel chemicals in Harjavalta; Terrafame Group, the parent company of Terrafame, producing nickel, zinc, cobalt and copper in Sotkamo; Keliber, which is preparing to start lithium production in Kaustinen and Kokkola; as well as Beowulf, the 100 per cent owner of the Aitolampi graphite deposit.

The official announcement regarding the Cooperation Network, dated 24 April 2018, and titled “The battery industry has enormous potential to become Finland's new success story. The Vaasa battery factory project has brought together a large nationwide network of cooperation partners.” can be viewed at:

https://www.gigafactory.fi/press-20180424-en

In addition, the Company’s 100 per cent owned subsidiary Oy Fennoscandian Resources AB ("Fennoscandian") has been granted Euros 161,000 by Business Finland for a research project entitled "Green Minerals - Graphite, Exploration to Products". The project runs from 1 January 2018 to 31 December 2019 and has a total budget of Euros 323,750. The Company will contribute the balance of the funding.

Also, Fennoscandian is part of a consortium project entitled "Green Minerals - Graphite and Lithium, Exploration to Products". Other participants in the consortium are Keliber Oy ("Keliber") and Geological Survey of Finland ("GTK").

The project consortium’s key objectives are;

•  Develop new exploration methods for natural flake graphite (Fennoscandian/GTK);
•  Optimisation of beneficiation methods and the purification process for natural flake graphite (Fennoscandian/GTK);
•  Testing Finnish natural flake graphite for different applications (Fennoscandian/GTK); and
•  Develop exploration methods for lithium combining soil geochemistry and lithogeochemical methods (Keliber/GTK).

Kurt Budge, Chief Executive Officer of Beowulf, commented: 

“As I have mentioned before, there's a growing buzz in Finland regarding battery minerals and metals, which is materialising into new networks, partnerships, projects, and funding opportunities.

“These two developments, the Cooperation Network of raw materials suppliers, and the Euros 161,000 of grant funding from Business Finland, put our Finnish graphite business centre stage in Finland as a potential graphite producer, as the country seeks to develop a vertically integrated battery manufacturing industry.

“In the coming weeks, we will be reporting on the assay results of our recent drilling campaign at Aitolampi, as we progress towards defining a maiden resource.

“I look forward to updating our shareholders in due course.”

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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.