Kallak Update

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation ("MAR") (EU) No. 596/2014, as incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

27 April 2022

Beowulf Mining plc

("Beowulf" or the "Company")

Kallak Update

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, provides an update on its plans for the development of the Kallak Iron Ore Project (“Kallak”).

In the weeks since the Swedish Government granted the Exploitation Concession for Kallak, the Company has been reviewing workstreams and timelines for the next stage of Kallak’s development.  Previously the Company has suggested that Kallak could be in production in a 4-5 year timeframe, but it is now considering how this can be shortened through local partnerships, greater collaboration, and efficient development, application and permitting processes.

Beowulf has listened closely to the viewpoints of stakeholders on the impact of a mine at Kallak, which were communicated during the latter stages of the Government’s decision-making process. With the decision now made, meaningful dialogue can restart with regards to how the Company proposes to engage with the local community in Jokkmokk, including Sami reindeer herders.

When it comes to project development, over the last few weeks, the Company has communicated with engineering consultants, who will support the completion of a Scoping Study and roadmap to Pre-feasibility, infrastructure operators (rail and power), technical experts, regarding the Kallak resource and ore processing, potential customers, strategic partners and investors.  The award of the Concession has been a catalyst for initiating more substantive discussions across all areas of the Kallak project and the Company looks forward to making further announcements as and when agreements are reached.   

Kurt Budge, Chief Executive Officer of Beowulf, commented:

“It was a long road to get to a positive decision on the Exploitation Concession. The time since 22 March has been spent on how we can make the road ahead, towards building a mine, much shorter.

“While the immediate steps, in terms of Kallak’s development, can be managed effectively by Beowulf, the Company believes in partnership and collaboration, and with the Exploitation Concession granted, potential partners and investors, who recognise the potential in both the 389 million tonnes iron mineralisation defined in the Kallak area to date, and the demonstrated market-leading quality of Kallak’s potential products, even more so given a future mine’s proximity to fossil-free steel manufacturers in Norrbotten, are more willing to engage with the Company.

“There is activity across Beowulf, with Kallak in Sweden, the development of the anode materials production project, GVA10/50, in Finland, and drilling taking place on the Majdan Peak gold target at Mitrovica in Kosovo.

“I look forward to providing regular updates on the Company’s progress over the coming months.”

About Kallak

Kallak is located approximately 40 kilometres (“km”) west of Jokkmokk in the County of Norrbotten, Northern Sweden, 80 km southwest of the major iron ore mining centre of Malmberget, and approximately 120 km to the southwest of LKAB's Kiruna iron ore mine. 

Testwork on Kallak ore has produced a concentrate of 71.5 per cent iron content, which is 'market leading' among known and current future producers.  In the Kallak area, 389 million tonnes of iron mineralisation have been estimated, a potential source of high-quality iron ore for fossil-free steel making in Norrbotten for decades to come.

Kallak Iron Ore Project - Mineral Resource Estimate ("MRE") and Exploration Target Upgrade

RNS dated 25 May 2021

https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/x8q5k9x  

• An additional 19 million tonnes ("Mt") of iron mineralisation equating to a 12.5 per cent increase in the resource.
• Measured and Indicated Mineral Resource of 132 Mt grading 27.8 per cent iron ("Fe").
• Inferred Mineral Resource of 39 Mt grading 27.1 per cent Fe.

The definitions of Measured, Indicated and Inferred Resources, as well as Reserves, as used in this MRE, conform to the definitions and guidelines of the PERC Reporting Standard, 2017.

Market Leading Potential

RNS dated 17 September 2020

https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/x8l7kjr

• Testwork on Kallak ore has produced an exceptionally high-grade magnetite concentrate at 71.5 per cent Fe with minimal detrimental components.
• This would make Kallak the market leading high-grade product among known current and planned future producers.
• The next best magnetite product is LKAB's (the state-owned Swedish iron ore company), which produces magnetite fines ("MAF") with a target specification of  70.7 per cent Fe and is regarded as unique, until now, due to its exceptionally high iron content.
• Kallak magnetite concentrate would reduce the carbon footprint of traditional steel manufacturing, improve energy efficiency in any downstream process and reduce waste.  Magnetite has inherent energy content, which ultimately results in lower energy demand for steel manufacturing when compared to current common practice.
• Globally, the feedstock for steelmaking is 80 per cent hematite and 20 per cent magnetite.  The demand for high-quality feedstock and therefore magnetite should increase as producers look to protect the environment by improving energy efficiency, minimizing waste and the impact of waste disposal.

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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 forecast.