HIGH GRADE GOLD OVER SUBSTANTIAL WIDTHS FROM
LATEST DRILLING AT GRUNDTRASK GOLD PROSPECT, NORTHERN SWEDEN

MINERALISATION PRESENT OVER 750 METRES OF
STRIKE LENGTH AND OPEN AT BOTH ENDS AND AT DEPTH

London: 13th September 2006: Beowulf Mining PLC (AIM:BEM), the AIM quoted mineral exploration company is pleased to announce that analytical results have been received from the latest diamond drilling programme on the company's 100% owned Grundtrask gold project in the Skellefte Mining District, N. Sweden. The drill programme tested the southern extension of the "Central Gold Zone" where higher gold grades were noted from previous drilling in 2005 by Beowulf.

Four inclined drill holes for a total of 265 metres were drilled.

The latest drilling has revealed higher gold assays than previous intersections obtained from 2003-2005. Several meter-sections displaying gold grades of more than four grams per tonne ("g/t") were obtained, and the highest gold assay of 12.67 g/t over 1.20 m is recorded in a magnetite rich section of drill hole 06-002. This high-grade sample occurs within a 27.50m section of continuous gold mineralisation for 27.50 m (between 5.80-33.30m) with an average grade of 2.05 g/t.

Similar high grade gold grades are noted in drill hole 06-003 with 2.06 g/t obtained over 27.10 metres (from 10.10 to 37.20m).

Combined with results of earlier drilling by Beowulf the mineralised structure defined as "The Central Gold Zone" can now be traced over a strike length of 750 metres, with an average width of 25 metres. The mineralisation is open at both ends and at depth.

In order to verify the extent of the gold mineralisation both in length and width, the company is planning to carry out further drilling on the indicated extensions at both ends of the Central Zone Gold Mineralisation.

Details of all drill holes are given in table 1 below. The drill core samples have been assayed for gold by Fire Assay techniques and additional metal elements by ICP at the ALS/Chemex Laboratory in Vancouver. Analysis of the samples involved analysis of blank, duplicate and random duplicate samples.

Commenting on the results Dr. Jan-Ola Larsson, Beowulf's Technical Director, stated that "The drilling has encountered, gold bearing sulphide mineralisation at shallow depths starting at 12 metres or less and extending to 37.20 metres, making the deposit amenable to open pit mining. The latest results show that this mineralised structure carries higher gold grades. This is of great importance and enhances the economic potential of the project. The extension of these high grade gold bearing zones will be the focus of our forthcoming drilling programme at Grundtrask".

Table 1

Gold assay results and technical details of drillholes DDH 06-001, 06-002, 06-003 and 06-004 of the Grundtrask Gold Project area, N. Sweden.

Total amount of drilling: 265m

Technical background

The Beowulf exploration permits of the Grundtrask area cover 43 square kilometres. Within the permits anomalous gold anomalies in basal till samples extend over large areas. Detailed ground geophysical surveys (IP) have outlined a number of bedrock structures possibly being associated with these gold anomalies. Drill testing by Beowulf has now confirmed that only one of these bedrock structures defined as "The Central Zone Gold Mineralisation" has a potentially gold bearing extension of over 750 metres with an average width of more than 25 metres. At the most southerly intersection the average gold grade is more than 2 g/t where also the highest gold grade so far recorded is 12.7 g/t over 1.2 m of length of drillcore. The gold bearing zone remains wide open at both ends. However, this mineralised structure alone cannot explain the high levels of gold encountered in most of the basal till samples and the Directors believe, that further gold bearing bedrock structures remain to be discovered within the Grundtrask property.

A number of favourable factors are of importance in consideration for a mining peration to start up in the Grundtrask area. The terrain consists of gently rolling hills extending parallel with the Central Zone mineralisation. The well drained area of relatively thin cover of glacial deposits is extensively covered by pine and spruce forests. The road network is excellent with good forestry roads crosscutting the area. A major, high standard road runs only 500 m away from the Central Zone mineralisation. This road is used by the Lundin and Boliden mining companies for transporting ore, between the Storliden mine located nearby to a concentrator plant at Boliden. The nearest major hydroelectric power station is located at the Skellefte River only two kilometres away.

All four drill holes, in 2006, have cut through sulphide mineralisation over substantial widths. Arsenopyrite is abundant in all drill cores and occurs as massive veins and as disseminated smaller grains. Although gold is encountered in all sulphide sections higher gold grades are found in narrow magnetite bands mainly associated with pyrite or pyrrhotite. Black tourmaline is observed being associated with the mineralisation. Some holes display wide fracture zones within the mineralised sections, which caused some difficulty in drilling and core retrieving. The sulphide mineralisation is hosted by mafic metavolcanics within the Vargfors formation of the Skellefte vaolcanic belt..

For further information contact:-