Kallak North Exploitation Concession 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, provides an update on its application for an Exploitation Concession for Kallak North.

Highlights:                                                                                                                                                        

• The Mining Inspectorate of Sweden has written to the Government of Sweden and recommended that the Exploitation Concession for Kallak North be granted, letter dated 9 October 2015.
• The recommendation is delivered in response to the Department of Enterprise and Innovation’s invitation for the Mining Inspectorate to give its views on the findings made by the County Administrative Board (“CAB”) for the County of Norrbotten on Kallak North, as published in the CAB’s announcement dated 7 July 2015.

Kurt Budge, Chief Executive Officer (“CEO”), commented:

“We welcome the Mining Inspectorate’s recommendation that the Exploitation Concession be granted. It follows the announcement by the CAB in July, which stated that a mining project at Kallak can deliver significant economic benefits for Jokkmokk, the County of Norrbotten, and for Sweden.

“We have always maintained that our application for an Exploitation Concession met all the requirements of the Swedish regulations, with comprehensive studies being undertaken and reports complied by an experienced team of Swedish consultants, to produce an Environmental Impact Assessment sufficient for this stage of permitting.

“We are hopeful that a final decision by the Government will now be forthcoming, and we are excited at the prospect of achieving this significant milestone, moving forward with the project and building stronger relationships and partnerships with all our key stakeholders in the communities in and around Jokkmokk, and throughout the County of Norrbotten. We will focus our attention on the points raised by the Mining Inspectorate and the CAB in their responses to the Government, most importantly the interactions between mining and reindeer herding.”

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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.

About Us

The Kallak North iron ore project is located about 40km west of the Jokkmokk municipality centre in the Norrbotten County in Northern Sweden.

Local infrastructure is excellent with all-weather gravel roads passing through the project area and all parts are easily reached by well used forestry tracks. A major hydroelectric power station with associated electric power-lines is located only a few kilometres to the south east. The nearest railway (the ‘Inland Railway Line’) passes approximately 40km to the east. This railway line is connected at Gällivare with the ‘Ore Railway Line’, which is used by LKAB for delivery of their iron ore material to the Atlantic harbour at Narvik (Norway) or to the Botnian Sea harbour at Luleå (Sweden).

The total Kallak project area is approximately 80km2, and includes the Parkijaure licence granted in 2010 and the Ågåsjiegge nr2 licence granted in 2014.

The Kallak North and Kallak South orebodies are centrally located and cover an area approximately 3,700m in length and 350m in width, as defined by drilling. The mineral resource estimate for Kallak North and South is based on drilling conducted between 2010-2014, a total 27,895m drilled, including 131 drillholes.

The latest resource statement for the Kallak project was finalised on 28 November 2014, following the guidelines of the JORC Code 2012 edition, summary as follows:

The Ballek Joint Venture project comprises two exploration permits over a total area of approximately 8.7km2, located in the Norrbotten County in Northern Sweden. In September 2008 Beowulf reported a maiden JORC Code compliant Inferred Resource estimate for the Lulepotten copper-gold deposit of 5.4Mt, grading 0.8% Cu and 0.3g/t Au.

Other attractive portfolio assets include the Nautijaure licence with potential for IOCG and Grundträsk gold project.

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