Kallak North Exploitation Concession Update

15 February 2017

Beowulf Mining plc

(“Beowulf” or the “Company”)

Kallak North Exploitation Concession Update

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.

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, has written to the Mining Inspectorate of Sweden, and provided comments on the statement made on 1 February 2017 by the County Administrative Board (“CAB”) for the County of Norrbotten.

In the Company’s letter to the Mining Inspectorate, we have stated that:

– the Company’s application for an Exploitation Concession for Kallak North includes a technical description, covering the Concession Area, the actual deposit to be mined, and the operational facilities necessary to support mining. It also includes a comprehensive Environmental Impact Assessment (“EIA”), where all activities and their potential effects have been described;

– the EIA and other relevant documents have already been reviewed by the CAB, and other stakeholders, during the period from April 2013 to October 2014, and the Company has responded to all comments made;

– on 1 October 2014, the CAB confirmed that the Company’s EIA was sufficient with respect to Chapters 3, 4 and 6 of the Environmental Code and, on 7 July 2015, the CAB wrote to the Government of Sweden indicating that the Company’s EIA application could be permissible with respect to Chapters 3 and 4 of the Environmental Code;

– the CAB’s statements must be interpreted as if the CAB has no objections to the granting of an Exploitation Concession, given that the assessment of the application, under the prescribed process, should only include the Concession Area, the actual deposit to be mined;

– we do not understand the legal basis for any process involving United Nations Educational, Scientific and Cultural Organisation (“UNESCO”), when considering the Company’s application for an Exploitation Concession. The interaction between Kallak and Laponia, which is 33 kilometres away at its closest point, is something that should be assessed under environmental permitting; and

– within the Concession Area, there are no conflicts where national interests are considered, a fact stated by the CAB in July 2015, and for the areas taken by operational facilities necessary to support mining, there are also no conflicts where national interests are considered. Since February 2013, Kallak has been designated an Area of National Interest (“ANI”) for its minerals and metals, affording it protection against competing land use, and measures that may hinder future potential mineral extraction.

Kurt Budge, CEO, commented:

“The last two weeks have introduced more uncertainty into the application process, which we feel is unwarranted.

“We have followed the requirements set out by The Mining Act and Environment Code and, by fulfilling those requirements, we believe we should be awarded an Exploitation Concession.

“It is now almost four years since we submitted our application, and in the absence of the Norra Kärr judgement, we believe, because our application has met the requirements of the prescribed process, and can deliver jobs and economic benefits to Jokkmokk and the County of Norrbotten, we should have been awarded the Concession in early 2016.

“In July 2015, we received the support of the CAB for our application, and in October 2015 the recommendation of the Mining Inspectorate, to the Government of Sweden, that the Concession be awarded.

“We trust the Mining Inspectorate, as adjudicators of the review process, to ensure that our application is dealt with fairly and in accordance with the prescribed process.

“Two weeks ago, I was in Jokkmokk for the Winter Market and met with people who recognise Kallak’s potential to give the town the thriving, diversified and sustainable economy it seeks.

“Next week I will be back in Jokkmokk to meet with key stakeholders, to discuss our immediate plans should Beowulf be awarded the Concession, which would include undertaking a Scoping Review, discussing the partnerships that will need to be forged to deliver a successful project and sharing, in more detail, the vision we have for Kallak.

“While the Company remains hopeful of an award of the Exploitation Concession, there can be no guarantee if, or when, the Concession might be awarded. We continue to press for an expedient decision.”


Beowulf Mining plc


Kurt Budge, Chief Executive Officer

Tel: +44 (0) 20 3771 6993

Cantor Fitzgerald Europe

(Nominated Advisor & Broker)


David Porter/Craig Francis

Tel: +44 (0) 20 7894 7000



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.