Swedish Media Speculation

17 March 2022

Beowulf Mining plc

("Beowulf" or the "Company")

Swedish Media Speculation 

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, provides clarification following an article published today in Aftonbladet, Swedish newspaper.

The article did not provide any new information but sought to query the Company’s corporate structure and financing.

Emailed responses dated 1 March 2022 to the journalist who authored the article:

Journalist’s question: Now I have some last questions. These are about the subsidiary Vardar Geoscience, which at least on the last of december 2020 was registered on the BVI. Why have you invested in a holding company on British Virgin Islands?

CEO answer: The BVI entity was formed when the founders of Vardar established the company prior to Beowulf’s initial investment. All Beowulf’s investment funds to date have been used for exploration in Kosovo.

Journalist’s question: Now that Beowulf owns about half of Vardar, have you terminated the holding company in BVI?

CEO answer: Now Beowulf is the majority shareholder, the process of restructuring Vardar and removing the BVI company has already started. The BVI company has never served any purpose.•

Journalist’s question: You say that you will work with the civil society in Kallak, Jokkmokk. How do you think that a holding company on BVI works with that saying? Since Vardar is active in a war struck region, that maybe needs international investments.

CEO answer: Kallak is owned by Jokkmokk Iron Mines AB (JIMAB) and JIMAB is the operating company developing the Kallak project. JIMAB will comply with Sweden’s fiscal regime.

Journalist’s question: The bureau that helped set up Vardar Geosciences on BVI is a part of the Pandora Leak. Why is this good for Beowulf?

CEO answer: See my previous answer*

Kurt Budge, CEO commented:

“The journalist who authored the article has misrepresented facts and, as I write, has caused a fall of over 27 per cent in Beowulf’s share price in Sweden, for no reason, equating to a loss of approximately SEK 366 million in the market value of the Company.

“Media coverage such as today’s article shows a poor understanding of the facts, presents a false image of our business and damages stakeholder and investor confidence. 

“The journalist suggests that the Company does not have the finance in place to fund the future development of Kallak. This again demonstrates ignorance of the impact of no decision being made on the Company’s application for an Exploitation Concession for Kallak, and the timing of capital raising in the development process for a mining project.

“Clearly where an approval process has run on so long, it becomes challenging to arrange finance in advance of the Concession being granted. That should surprise no one.

“Given the current state of geopolitics, the need for secure and sustainable supply chains, the demands for high-quality iron ore for fossil-free steel making, and the desperate need for investment and job creation in rural municipalities such as Jokkmokk, the case for a project like Kallak is further strengthened and should rightly attract investor interest when the Company seeks further funds for the mining development. 

“Today’s article may have unnerved the markets, but it is non-story, and should have no bearing on the Kallak decision, which the Company assumes is being prepared by the Government.  The journalist has attempted to present an untoward picture, which could not be further from the truth.

“As explained to the journalist, the BVI company in Vardar’s corporate structure serves no purpose, and since Beowulf assumed majority ownership of Vardar, announced on 1 March 2022, the process of corporate restructuring and removing the BVI company has already started.”

Enquiries:

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.