First Quarter Unaudited Interim Statement and Management Update

Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration and development company focused on the Kallak iron ore project in northern Sweden and its Swedish exploration portfolio, announces its unaudited interim statement for the three months ended 31 March 2015 (see Appendix 1) and provides a management update.

The next interim statement for the six months ending 30 June 2015 will be released on Monday 31 August 2015.

Exploitation Concession

• Since the Company received notification on 13 February 2015 that the Mining Inspectorate of Sweden had referred the decision regarding the Exploitation Concession for Kallak North to the Swedish Government, the Chief Executive Officer (“CEO”) has visited Sweden regularly and on each occasion met with officials at the County Administrative Board (“CAB”), the municipality (Jokkmokks Kommun) and other key stakeholders, including the landowners’ association in Jokkmokk and the Mining Inspectorate.
• During these meetings the CEO has explained the changes that have taken place within Beowulf and its subsidiary Jokkmokk Iron Mines AB since October 2014, in terms of leadership and approach to stakeholders. He also provided an update on the Company’s understanding of the process being followed by the Swedish Government, and provided supporting arguments for the award of the Exploitation Concession, including:
• Kallak’s designation, in February 2013, by the Swedish Geological Society as an Area of National Interest for minerals, affording it protection against competing land use and measures that may hinder future potential mineral extraction.
• The Chief Mining Inspectorate finding, in February 2015, that the prerequisites for an Exploitation Concession have been fulfilled.
• The definition of a high quality resource at Kallak, including an Indicated Resource of 118.5 million tonnes (“Mt”) at 27.5 per cent iron and an Inferred Resource of 33.8Mt at 26.2 per cent iron (JORC, 2012 edition), plus an exploration target of 90-100Mt at 22-30 per cent iron.
• Jokkmokk Kommun’s independent socio-economic study on Kallak shows that a mining development will create direct and indirect jobs, increase tax revenues and slow down population decline, demonstrating that mining at Kallak can provide a much needed economic stimulus for the region.
• The Company has demonstrated its commitment to Jokkmokk’s economic future as a direct investor in the mining project, with £5.4 million having been spent to date and through its partnership with the landowners’ association, Jokkmokks Allmänning, to support the development of small and medium enterprises in the wider community.  
• The Company is confident its application for an Exploitation Concession has met the requirements of the Swedish regulations, and despite the CAB raising concerns in October 2014 regarding transport routes, which are typically assessed during environmental permitting, the Company went further and made significant concessions to address the CAB’s concerns, with a written submission to the Mining Inspectorate in November 2014 (RNS 28 November 2014 Third Quarter Update).

Financials

• Loss before and after taxation of £154,000 (2014: £264,000) and basic loss per share of 0.044p (2014: 0.093p). The 42 per cent reduction in the loss is down to lower corporate overheads, especially director fees and nil loss on financial derivatives (£78,000 in 2014) due to the accelerated settlement of the Lanstead Capital L.P. (“Lanstead”) equity swap agreements.
• £388,000 in cash held at the period end.
• The Company announced on 7 January 2015 that it had mutually agreed to accelerate all settlements under the equity swap agreements with Lanstead, receiving a final settlement of £150,000.
• £350,000 (gross) raised in March 2015 with the issue of 29.2 million shares.

Corporate

• Bevan Metcalf became Non-Executive Chairman on 8 May 2015.
• Liam O’Donoghue was appointed Company Secretary on 8 May 2015.
• The new Board and Executive team has maintained its reduced size to optimize the use of cash resources. The Board has continued to voluntarily elect to take a third of its salary in equity rather than cash, aligning itself to shareholder interests; shares have not been acquired to-date as the Company remains in a close period.
• The closing number of ordinary shares in circulation as at 31 March 2015 and at the date of this announcement is 374,426,515.
• The Company launched a new, cost effective, website on 31 March 2015 - www.beowulfmining.com.
• The Company changed its Registered Office to 201 Temple Chambers, 3-7 Temple Avenue, London EC4Y 0DT on 8 May 2015.

Kurt Budge, Chief Executive Officer of Beowulf, commented: “While respecting the process that the Swedish Government is conducting on the Exploitation Concession for Kallak North, we continue to press for an early and positive decision. There are indications from the Swedish Government that some form of notification will be given before the summer.

“Iron ore markets remain challenging, but with the funds raised in March we have initiated further testwork on Kallak North samples, which we are confident will further demonstrate the high quality of the Kallak North orebody and the premium priced concentrates it can generate, and we look forward to updating the market further in due course.

The award of an Exploitation Concession and our advanced understanding of Kallak North, and its market attractiveness, are important foundations for bringing in a strategic partner and investor. While shareholders are clearly focused on the Kallak North decision, we continue to work at creating value with our other exploration assets, and to look beyond for other opportunities within Scandinavia.”

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