Beowulf Mining : Exploration Update – Graphite Assays from “Grab” Samples

30 September 2016

Beowulf Mining plc

('Beowulf' or the 'Company')

Exploration Update - Graphite Assays from 'Grab' Samples

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 assay results from reconnaissance 'grab' sampling at its Haapamäki and Pitkäjärvi graphite projects located in eastern Finland, approximately 40 kilometres ('km') southwest of the well-established mining town of Outokumpu.

Highlights

• Sampling and geological mapping have been undertaken at Haapamäki, and at two newly discovered prospective areas, Pitkäjärvi and Aitolampi.
• The previously identified airborne electromagnetic ('EM') anomaly from Pitkӓjӓrvi to Aitolampi extends more than 16km in length and up to 0.6 km in width, with the EM conductive zone being associated with outcrops of graphite schist, together with numerous graphitic boulders in glacially transported till.
• For the 13 'grab' samples taken at Pitkäjärvi, assays ranged between 1.61% and 13.4% graphitic carbon ('Cg').
• Two assays for 'grab' samples taken from the Käärmerinne area of Haapamӓki, yielded 44.8% and 45.2% Cg.

Summary of the work

• Sampling and geological mapping have been undertaken over an area that has several historic workings, which correspond to ground and airborne EM anomalies, identified by Company's geophysical survey with Slingram horizontal loop electromagnetic ('HLEM'), completed in March 2016, and by historic airborne survey work undertaken by Geological Survey of Finland ('GTK').
• Identified conductive zones were located on the ground, in most cases glacial till obscured possible graphite mineralisation, but in some locations graphite mineralisation was located, mapped and sampled; these included road cuttings, old quarries and pits, outcrops and mineralised boulders.
• 28 samples were assayed at Activation Laboratories ('Actlabs') in Canada. 15 samples taken at Haapamӓki and 13 samples taken at Pitkӓjӓrvi.
• The results shown in this announcement are from reconnaissance 'grab' samples (of approximately 1.5 to 2kg each in weight) collected from mineralised outcrops and boulders.
• The samples were collected in isolation and therefore cannot be considered representative of the grade of the mineralisation over a deposit, but nevertheless give a range of values, some with high Cg content, that are indicative of the potential at Haapamäki and Pitkäjärvi, and which have assisted the field teams to determine areas for further investigation.
• Four composite samples for different areas have also been prepared from the 'grab' samples collected for those areas, and despatched to SGS Minerals Services in Canada for preliminary metallurgical test-work, to evaluate graphite flake size and distribution, and provide an indication of graphite concentrate Cg grade.
• The Company will wait for these results before finalising the next stage of exploration work, which will likely include trenching, and potentially, drilling.

Kurt Budge, CEO, commented:

'We continue to make good progress with our graphite assets in Finland and, having recently identified two new prospects, we have now completed reconnaissance 'grab' sampling which has delivered encouraging results.

'It is pleasing that where we can inspect rock outcrops, located within areas of medium to strong EM conductors, we find medium to high grade flake graphite.

'We are keen to push forward with our exploration work, especially as the EM anomaly for our new prospects, Pitkӓjӓrvi and Aitolampi, extends more than 16km in length and up to 0.6 km in width.

'I look forward to providing shareholders with further updates of our progress.'

Table showing assays from 2015 (3 results) and 2016 (25 results) testwork:

Competent Person Review

The information in this announcement has been reviewed by Mr. Rasmus Blomqvist, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Rasmus Blomqvist has sufficient experience, that is relevant to the style of mineralisation and type of deposit taken into consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves'.

Mr. Rasmus Blomqvist is a full-time employee of Oy Fennoscandian Resources, a 100% subsidiary of the Company.

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

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 forecasts.