NEWS RELEASE 21st MARCH 2006

The Company wishes to announce a private placing raising £500,000 before expenses via the issue of 10,000,000 shares at 5p per share to City Equities Limited who will, following the allotment and issue of the shares on 31 March 2006, be interested in 10,000,000 ordinary shares in the capital of the Company or 15.25%.

Funds raised will be applied towards advancing the Company's exploration projects in Sweden and general working capital purposes.

Application will be made for the new ordinary shares to be admitted to trading on AIM and it's expected that admission will take place on 3rd April 2006.

Following the placing there will be 66,098,247 shares in issue.

For further information contact:-

• Dr. Robert Young, Chairman - Beowulf Mining Plc - Tel: +44 (0)1353 649 701
• Gavin Burnell, Ruegg & Co. Limited - Tel: +44 (0)207 584 3663
• Nick Bealer, King & Shaxson Capital Limited - Tel: +44 (0)207 426 5986
• Gary Middleton, St Swithins PR Ltd - Tel. +44 (0)207 929 4391