25

Subscription to raise £1,250,000

25 February 2016

Beowulf Mining plc

(“Beowulf” or the “Company”)

Subscription to raise £1,250,000

Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration and development company focused on the Kallak magnetite iron ore project in northern Sweden and its graphite portfolio in Finland, is pleased to announce a subscription for new ordinary shares to raise £1,250,000 before expenses.

Background to the Subscription and Use of Proceeds

The mining industry continues to face a range of challenging conditions. Low metal prices and a broad lack of confidence has led to an unfavourable environment for exploration and development companies to raise capital and advance with project development.

Despite this, Beowulf’s strategy to optimize and to develop a high-impact exploration and development portfolio while minimising its commitments and fixed costs has continued.

The Company has also sought to extend that strategy in response to market conditions by seeking to acquire lower risk and potentially high return mineral assets across the Nordic region. Whilst we expect market conditions to remain difficult for the mining sector, the Directors believe that the Subscription allows the Company to continue to progress and develop its mineral asset portfolio for approximately the next twelve months. The net proceeds of the Subscription are expected to be allocated as set out below.

     

GBP(£)

       

Corporate

   

415,000

       

Sweden – Kallak

   

564,000

 

Kallak – Drilling, assays

   
 

Kallak – Resource upgrade

   

Finland – Graphite

   

271,000

 

Viistola – Drilling, assays, resource statement

   
 

Haapamäki – Geophysics, drilling, assays

   
 

Pippumäki – Geophysics, drilling, assays

   
 

Kolari – Desktop study

   

Total

   

1,250,000

Corporate Presentation

An updated corporate presentation is now available in the Investor section of the Company’s website: http://beowulfmining.com/

Details of the Subscription, Issue of Equity and Total Voting Rights

Pursuant to the Subscription, the Company will issue 38,461,538 new ordinary shares (the “Subscription Shares”) to raise approximately £1,250,000 (before expenses) at a price of 3.25 pence per new ordinary share (the “Issue Price”).

In addition, an over-allotment option has been granted by the Company in respect of 7,692,307 new ordinary shares in the Company (the “Over-allotment Shares”), representing 20 per cent of the Subscription Shares.

Application will be made to the London Stock Exchange for the new ordinary shares to be admitted to trading on AIM on or around 1 March 2016 (“Admission”). The Subscription Shares will rank pari passu with the existing ordinary shares.

Following Admission and in accordance with the Financial Conduct Authority’s Disclosure and Transparency Rules, the Company hereby announces that it will have 471,604,691 ordinary shares of £0.01 each in issue, each share carrying the right to one vote. The Company does not hold any ordinary shares in treasury.

Following Admission, the above figure of 471,604,691 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

“In very challenging market conditions and having carefully evaluated a range of financing options available to the Company, seeking secure financing for taking the Company forward, I am pleased to have completed this fund raise.

“This funding will enable the Company to progress its current planned work streams, which include targeted drilling of the Exploration Target at Kallak South, applying for new exploration ground in Sweden and exploration activities at our graphite projects in Finland, which has already started. We will also continue to seek opportunistic M&A situations, focused on the Nordic region, low sovereign risk jurisdictions with established infrastructure and high skill levels.

“We are hopeful that a positive decision by the Swedish Government on the Kallak North Exploitation Concession will be made soon. The Company strongly believes its application has satisfied the Swedish regulations. We have listened and responded to concerns, and we have demonstrated a responsible approach to taking the Kallak project forward in our meetings with stakeholders and authorities in Jokkmokk and Luleå, and more recently in Stockholm.

2016 has already been a busy year, and we are looking forward now to continuing our investment in Kallak following the award of an Exploitation Concession, and adding value to Beowulf with our graphite, and other exciting exploration ideas on which we will provide updates to the market in due course.”

Enquiries:

Beowulf Mining plc

 

Kurt Budge, Chief Executive Officer

Tel: +44 (0) 20 3771 6993

Cantor Fitzgerald Europe

(Nominated Adviser & Joint Broker)

 

Stewart Dickson / Phil Davies / Carrie Drummond

Tel: +44 (0) 20 7894 7000

Beaufort Securities Limited

(Joint Broker)

 

Jon Belliss

Tel: +44 (0) 20 7382 8300

Blytheweigh

 

Tim Blythe / Megan Ray

Tel: +44 (0) 20 7138 3204