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Graphite Metallurgical Testwork Results

25 January 2017

Beowulf Mining plc

(“Beowulf” or the “Company”)

Graphite Metallurgical Testwork Results

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 testwork results for composite samples taken from its Haapamäki, Pitkäjärvi and Aitolampi graphite prospects located in eastern Finland, approximately 40 kilometres (“km”) southwest of the well-established mining town of Outokumpu.

Highlights:

  • Both Pitkäjärvi and Aitolampi prospects were new discoveries in 2016, and are eastern extensions to the Haapamäki prospect.
  • Testwork on composite samples for Pitkäjärvi and Aitolampi has produced concentrate grades of 94.5% Total Carbon (“Ct”) and 94.7% Ct, respectively.
  • A secondary cleaning circuit produced grades of at least 95.7% Ct in all size fractions between 65 mesh and 200 mesh (210-75 micron), with the highest grade of 97.4% Ct obtained from the -80/+100 mesh (180-150 micron) size fraction for Pitkäjärvi (test MET-03-3). Most of the carbon in the samples was associated with graphite, with only small amounts of organic carbon and carbonate carbon.
  • Flake size analysis for Pitkäjärvi concentrate showed 83% fine (<150 micron), 5.6% medium (150-180 micron) and 11.4% large/jumbo (+180 micron) flakes.
  • Flake size analysis for Aitolampi concentrate showed 78.3% fine, 8.8% medium and 12.9% large/jumbo flakes.
  • Inductively Coupled Plasma Optical Emission Spectrometry (“ICP-OES”) scans and whole-rock analysis showed no elevated concentrations of typical deleterious elements.
  • All testwork was performed by SGS Mineral Services in Canada.

Kurt Budge, CEO, commented:

“It’s good to get some positive testwork results for the composite samples taken from Pitkäjärvi and Aitolampi. We are now finalising plans to drill up to 2,000 metres on the most promising electromagnetic (“EM”) targets at these two prospects, with a start date timed in early March.

“The drilling programme is expected to significantly enhance our geological understanding of these two prospects, provide representative sample material for further testwork and an assessment of commercial prospects, for example in battery, micronised and expandable graphite applications.

“We look forward to providing shareholders with further updates on our progress and findings.”

 

Composite Samples

  • Four composite samples were prepared from 28 reconnaissance “grab” samples taken from mineralised outcrops and boulders associated with strike-extensive EM anomalies at both Haapamäki and Pitkäjärvi, and from a single trench at Aitolampi, at the eastern most extent of Pitkäjärvi.
  • A single sample from the Piippumäki prospect was also prepared.
  • The “grab” 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 that may be indicative of potential mineralisation.
  • Each composite sample was 10-20 kilogrammes (“kg”) and was subjected to flotation tests by SGS Minerals Services in Canada.

Testwork

  • Each of the prospects being evaluated is at an early stage, in terms of exploration and metallurgical understanding.
  • The objective of the testwork was to determine the metallurgical response of the different samples and characterise the graphite concentrates produced, in terms of total carbon grades for different size fractions and flake size distribution.

Head grades for each of the composite samples prepared are shown in the table below:

Sample Number

Location

Target

Head Grade

% Ct

MET-16-01

Aitolampi

Trench

6.68

MET-16-02

Aitolampi

EM anomaly

6.64

MET-16-03

Pitkäjärvi

EM anomaly

6.02

MET-16-04

Haapamäki

Mine Workings

22.6

MET-16-05

Piippumäki

EM anomaly

10.2

  • A total of eight cleaner flotation tests were carried out on the five composite samples.
  • Each sample was subjected to an exploratory cleaning test, including flash and rougher flotation, followed by a polishing grind and cleaner flotation.

Upgrading

  • Additional cleaner flotation tests were performed on two samples, MET-16-02 and MET-16-03, to upgrade the concentrate.
  • Each size fraction was subjected to secondary grinding and cleaner flotation.
  • The intermediate concentrate after the primary cleaning circuit was classified into different size fractions and each size fraction was subjected to secondary grinding and cleaner flotation.
  • The additional process steps produced higher concentrate grade with only marginal flake degradation, and it may be possible to further improve concentrate grade, without incurring significant incremental flake degradation.

Individual and summary results for MET-16-02 and MET-16-03 are presented in the tables below:

Sample MET-16-02, test No: MET-02-2

 

Sample MET-16-03, test No: MET-03-3

Sieve fraction

Mass

Cum. Mass

Ct

 

Sieve fraction

Mass

Cum. Mass

Ct

 

g

%

%

%

   

g

%

%

%

+48 mesh

0.4

0.5

0.5

93.6

 

+48 mesh

0.4

0.8

0.8

93.6

+65 mesh

4.1

5.5

6.0

96.5

 

+65 mesh

2.7

5.4

6.2

96.4

+80 mesh

5.2

6.9

12.9

96.9

 

+80 mesh

2.6

5.2

11.4

97.0

+100 mesh

6.6

8.8

21.7

96.2

 

+100 mesh

2.8

5.6

17.0

97.4

+150 mesh

14.0

18.7

40.4

97.0

 

+150 mesh

7.1

14.2

31.2

96.9

+200 mesh

16.1

21.5

61.9

95.7

 

+200 mesh

10.8

21.6

52.8

95.7

+325 mesh

14.6

19.5

81.3

87.8

 

+325 mesh

11.9

23.8

76.6

94.2

+400 mesh

4.0

5.3

86.7

93.0

 

+400 mesh

4.2

8.4

85.0

92.7

-400 mesh

10.0

13.3

100.0

87.5

 

-400 mesh

7.5

15.0

100.0

90.3

Head (calc)

75.0

100.0

 

93.3

 

Head (calc)

50.0

100.0

 

94.6

Head (direct)

     

94.7

 

Head (direct)

     

94.5

                     

Flake Size

Size in Microns

Size in Mesh

% Mass Distribution

MET-16-02

MET-16-03

Large & Jumbo

>180

>80

12.9

11.4

Medium

150 to 180

100 to 80

8.8

5.6

Fine

-150

-100

78.3

83

Criteria

 

C(t) Combined Concentrate

94.7

94.5

% Open Circuit Graphite Recovery

83.4

70.9

Competent Person Review

Dr. Andrew Scogings PhD Geology, MAIG, MAusIMM, RPGeo (Industrial Minerals) has conducted a desktop review of source documents and data which underpins the technical statements disclosed herein and approves the disclosure of technical information in the form and context in which it appears in this announcement, in his capacity as a Competent Person (“CP”), as required under the AIM rules. The source information, including that referenced in this announcement held by Fennoscandian has been presented by Mr. Rasmus Blomqvist and reviewed by the CP. It should be noted that the technical disclosure herein, for which the CP takes responsibility, is based on desk-top review of documents only, and no data verification works or project inspections have been carried out by the CP at this time.

Dr. Scogings is a Principal Consultant with CSA Global Pty Ltd and is a highly experienced geologist with expert knowledge of industrial minerals exploration, mining and processing, product development, market applications and commercialisation processes. Dr. Scogings has expertise in industrial minerals exploration management, technical evaluation of exploration and acquisition targets, geological modelling and industrial minerals resource estimation. Dr. Scogings is a regular contributor to Industrial Minerals Magazine and has published several papers on the requirements of JORC 2012 Clause 49. He has also written articles ranking global graphite exploration projects and was recently senior author of the Natural Graphite Report – strategic outlook to 2020 published recently by Industrial Minerals Research (UK). Dr. Scogings is a Registered Professional Geoscientist (Industrial Minerals) with the Australian Institute of Geoscientists (“AIG”).

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:

Beowulf Mining plc

 

Kurt Budge, Chief Executive Officer

Tel: +44 (0) 20 3771 6993

Cantor Fitzgerald Europe

(Nominated Advisor & Broker)

 

Phil Davies / David Porter / Craig Francis

Tel: +44 (0) 20 7894 7000

Blytheweigh

 

Tim Blythe / Megan Ray

Tel: +44 (0) 20 7138 3204

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.

Glossary:

Micron – a unit of length equal to one millionth of a metre.

Mesh size – the number of openings in a one US inch of screen is the mesh size e.g. a 4-mesh screen means there are four squares across one linear inch of screen. A 100-mesh screen has 100 openings, and so on. As the number describing the mesh size increases, the size of the particles passing through the mesh decreases. Higher numbers equal finer material. Mesh size is not a precise measurement of particle size. If minus (-) and plus (+) plus signs are shown when describing mesh sizes, this is best explained with an example: –200-mesh would mean that all particles smaller than 200-mesh would pass through. +200 mesh means that all the particles 200-mesh or larger are retained.