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Accelerated Settlement of Equity Swap Arrangements

7 January 2015

Beowulf Mining Plc

(“Beowulf” or the “Company”)

Accelerated Settlement of Equity Swap Arrangements

with Lanstead Capital L.P.

Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration and development company focused on the Kallak iron ore project in northern Sweden and its Swedish exploration portfolio, announces that it has mutually agreed to accelerate all settlements under the Equity Swap Agreements between Lanstead Capital L.P. (“Lanstead”) and the Company (the “Accelerated Settlement”).

Under the terms of the Accelerated Settlement, the Company will receive a final settlement of £150,000 from Lanstead. No further financial obligations will exist between the parties.

Lanstead will retain a shareholding of 87,290,926 Ordinary Shares representing 25.3 per cent. of the Company’s existing issued share capital. Accordingly, Lanstead is therefore considered a related party of the Company and the Accelerated Settlement is considered a related party transaction under the AIM Rules. The Directors consider, having consulted with Cantor Fitzgerald Europe, the Company’s nominated adviser, that the terms of the Accelerated Settlement are fair and reasonable insofar as Shareholders are concerned.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

“We are grateful for the support and flexibility Lanstead has given the Company over time, but poor share price performance prior to the recent appointment of the new management team has meant that the expected amounts receivable under the Equity Swap Agreements have fallen, and we have taken the decision to mutually agree with Lanstead the Accelerated Settlement. The Accelerated Settlement is a real catalyst for the Company and will enable us to start 2015 on a firm footing and focus our energies on value creation opportunities, including the advancement of Kallak and our Swedish exploration assets”.

Enquiries:

Beowulf Mining Plc
Kurt Budge, Chief Executive Officer Tel: +44 (0) 7984 402794
Cantor Fitzgerald Europe
Stewart Dickson / Jeremy Stephenson Tel: +44 (0) 20 7894 7000
Blytheweigh
Tim Blythe / Halimah Hussain / Eleanor Parry Tel: +44 (0) 20 7138 3204
http.//www.beowulfmining.net

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.

About Us

The Kallak North iron ore deposit is located about 40km west of the Jokkmokk municipality centre in the Norrbotten County in Northern Sweden.

Local infrastructure is excellent with all-weather gravel roads passing through the project area and all parts easily reached by well used forestry tracks. A major hydroelectric power station with associated electric power-lines is located only a few kilometres to the south east. The nearest railway (the ‘Inland Railway Line’) passes approximately 40km to the east. This railway line is connected at Gällivare with the ‘Ore Railway Line’, which is used by LKAB for delivery of their iron ore material to the Atlantic harbour at Narvik (Norway) or to the Botnian Sea harbour at Luleå (Sweden).

The total Kallak project area is approximately 243km2 in size, with the Kallak North and Kallak South orebodies being centrally located, as defined by drilling covering an area approximately 3,700m in length and 350m in width. The mineral resource estimate for Kallak North and South is based on drilling conducted between 2010-2014, a total 27,895m drilled, including 131 drillholes.

The latest resource statement for the Kallak project was finalised on the 28 November 2014, following the guidelines of the JORC Code 2012 edition, summary as follows:

Category Tonnage

[Mt]

Fe

[%]

P

[%]

S

[%]

Kallak North Indicated 105.9 27.9 0.035 0.001
Inferred 17.0 28.1 0.037 0.001
Kallak South Indicated 12.5 24.3 0.041 0.003
Inferred 16.8 24.3 0.044 0.005
Global Indicated 118.5 27.5 0.036 0.001
Inferred 33.8 26.2 0.040 0.003

The Ballek Joint Venture project comprises four exploration permits over a total area of 109.9km2, located in the Norrbotten County in Northern Sweden. In September 2008 Beowulf reported a maiden JORC Code compliant Inferred Resource estimate for the Lulepotten copper-gold deposit of 5.4Mt, grading 0.8% Cu and 0.3g/t Au.

Other attractive portfolio assets include the Nautijaure licence with potential for IOCG, Grundträsk gold project and the Munka licence area, which covers approximately 800 hectares and hosts Sweden’s largest, drill confirmed deposit of molybdenum.