PRESS RELEASE 21st MAY 2007

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006

CHAIRMAN'S STATEMENT

The directors are pleased to present the Company's final results extracted from the audited report and accounts for Beowulf Mining plc for the year ending 31 December 2006. It has been a year of steady progress. Beowulf now has six projects in northern Sweden and has added iron, titanium and uranium targets to its portfolio.

Sweden has an attractive operating environment with a long exploration and mining history a favourable fiscal regime, including an effective 28 per cent tax rate, no royalties and significant government grants. It is experiencing a major exploration boom, largely created by the demand for commodities from China and India.

On the 31 March 2006 Beowulf raised £500,000 before expenses by the issue of 10,000,000 shares at 5p per share to City Equities Limited.

On the 29 June 2006 Beowulf appointed City Capital Securities Limited as joint broker to the Company. King & Shaxson Capital Limited also remains as a broker to the Company.

In March 2006 the Swedish state mining authority, Bergsstaten, granted an exploration permit to Beowulf for a new area within the Jokkmokk County, called Ruoutevare. The permit covers a large deposit of iron and titanium. The resource reported in the latest study in 1975 by the Geological Survey of Sweden (SGU) are estimated at 116 million tonnes with an average 38.2% Fe (iron), 5.6% Ti (titanium) and 0.17% V (vanadium). A richer section of 20 million tonnes is registered with a grade of 47% Fe, 11% TiO2 and 0.15% V2O5. These figures are based on analytical results of 32 drill holes and do not follow present JORC or NI43-101 standards. The resource, was verified by Snowden Mining Industry Consultants Limited, after a study for Beowulf released in July 2006. Conceptual studies by Raw Material Group (RMG) for Beowulf generated positive results suggesting an extraction rate of 10 million tonnes per year could be economic. Studies relating to concentrate transportation are ongoing.

In May 2006 an exploration permit of 500 hectares covering the Kallak iron deposit located in the Norrbotten county of northern Sweden was granted to Beowulf. The deposit which is up to 100 m wide, consists of magnetite and some hematite extending in north-south direction for about 1,000 m. The Kallak Iron deposit was discovered by the SGU in 1947-48. Only scattered drilling has been carried out and no mining activity has been registered. SGU calculations based on geophysical data (gravimetry) have indicated mineralization of 92 million tonnes with 35-42 % Fe, 0.004% P (phosphorus), 0.6% S (sulphur) and 0.4% Mn (manganese).

During 2006 10 diamond drill holes were completed on the Grundträsk gold project , with encouraging gold grades. The directors now believe the area has potential for a significant, shallow depth, gold resource. The prospect is now known to be over 800 metres in strike length and is open at depth and along strike, and is located in an area of good access and infrastructure. Whilst exploration risk is still significant, geophysics indicate a strike length of two kilometres and other significant geophysical anomalies lead the directors to believe the gold mineralised zone is larger than presently defined.

In January 2007, Beowulf announced that a new exploration licence, defined as 'Ballek 5' and located in the municipality of Arjeplog in northern Sweden, had been registered with the Swedish state mining authority, Bergsstaten. It was issued as a licence on 27 March 2007, and covers 1,200 hectares and directly borders the Company's Ballek 2 licence. With the new licence the total Ballek project area now covers 10,600 hectares. In the early 1970's the SGU made a discovery of uranium mineralisation called W. Rebraur in the Ballek 5 licence area. 15 drill holes were completed and uranium mineralisation was confirmed over a distance of 150 metres.

The mineralised zone ranges in width between 1 metre and 8 metres with grades reaching 700 ppm (0.07%) uranium. Surface boulders with between 0.1% and 0.5% uranium were found by the SGU. At the 2006 annual prize ceremony of the 'Mineraljakten' ('The mineral hunt'), a competition organized by the Geological Survey of Sweden and open to private prospectors to find new mineral prospects of economic interest in northern Sweden, a top prize was awarded to a local prospector for the discovery of a boulder with unusually high grades of copper (14.9%), gold (4.52 grams/tonne) and silver (196 grams/tonne). The boulder was found within the Ballek licence area.

Beowulf has previously reported on uranium finds on the Ballek licence and we are hoping to locate an IOCG (iron oxide-copper-gold deposit) at Ballek as these types of deposits are often accompanied by uranium.

Other exploration assets include Jokkmokk and Ussalahti. Beowulf believes that geological evidence suggest that Jokkmokk has potential for an IOCG deposit and Ussalahti has potential for a massive sulphide copper gold deposit. Little work has been conducted over these two areas in 2006 and Beowulf is evaluating its options for further testing of these projects.

Beowulf holds 7.5 million shares in Agricola Resources PLC and 5 million shares in All Star Minerals PLC both of which are Plus-quoted securities. Beowulf purchased 67,000 shares in the ASX Listed Sunvest Corporation Ltd during 2006.

I would again like to thank our shareholders for their continuing support and my fellow directors for their efforts during 2006. I am very optimistic about the opportunities for 2007. Beowulf has received a lot of interest from other companies about joint ventures on most of its properties.

Dr. Robert Young
Chairman
Beowulf Mining PLC
15 May 2007

• The profit and loss account has been prepared on the basis that all operations are continuing operations.

NOTES TO THE FINANCIAL STATEMENTS UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006

1) Accounting policies

1.1) Accounting convention

The financial statements are prepared under the historical cost convention modified to include the revaluation of investments.

1.2) Compliance with accounting standards

The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).

1.3) Intangible fixed assets - exploration costs

Expenditure on the acquisition costs, exploration and evaluation of interests in licences including related overheads are capitalised. Such costs are carried forward in the balance sheet under intangible assets and amortised over the maximum period of the licences in respect of each area of interest where:

a) such costs are expected to be recouped through successful development and exploration of the area of interest or alternatively by its sale.

b) exploration activities have not yet reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active operations in relation to the areas are continuing.

An annual impairment review is carried out by the directors to consider whether any exploration or development costs have suffered impairment in value and if necessary provisions are made accordingly.

Accumulated costs in respect of areas of interest, which have been abandoned are written off to the profit and loss account in the year in which the area is abandoned.

Exploration costs are carried at the lower of cost and net realisable value.

1.4 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Plant and equipment 25% on reducing balance

1.5 Investments

Fixed asset investments are stated at open market value. The revaluation adjustment is taken to the revaluation reserve.

1.6 Deferred taxation

The accounting policy in respect of deferred tax has been changed to reflect the requirements of FRS19 - Deferred tax. Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted. A deferred tax asset is not recognised unless recovery is expected in the foreseeable future.

1.7 Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.