Exploration Update – Graphite

2 August 2016

Beowulf Mining plc

('Beowulf' or the 'Company')

Exploration Update - Graphite

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 an exploration update on its Haapamäki and Piippumäki graphite projects in Finland.

Haapamäki

Beowulf has completed an initial geological appraisal of its Haapamäki graphite project located in eastern Finland, approximately 40 kilometres ('km') southwest of the well-established mining town of Outokumpu.

The findings to date are very positive, and the project is considered a priority target for continuing exploration activities.

Highlights include:

• A newly discovered prospective area at Haapamäki East (Pitkäjärvi) in the eastern part of the project, where graphitic schists on a fold limb are coincidental with an extensive electromagnetic ('EM') anomaly defined by an earlier airborne survey undertaken by Geological Survey of Finland ('GTK')
• 5 km in length and up to 0.4 km in width, the EM conductive zone is associated with outcrops of graphite schist, together with numerous graphitic boulders in glacially transported till, with potentially high grades of graphite, suggesting the strike extensive zone of conductance is the result of graphite mineralisation
• The presence of black schistose units, sometimes extending up to 3 km in length, corresponding to the EM conductors, but usually poorly exposed and confined to topographic lows (valleys), with variable graphite content at a few exposed locations
• Visual observation of coarse flake graphite mineralisation (up to 1-2 millimetre ('mm') flakes) associated with pegmatitic selvages at several locations, and shear zone hosted massive coarse graphite situated near to EM conductors, observed from historic quarries where graphite was previously extracted
• Strongly foliated graphite bearing mica gneiss, with graphite flake sizes up to 2 mm (visual estimate), and variable graphite content in mica layers

The area has several historic graphite workings which correspond to ground and airborne EM anomalies defined from previous geophysical surveys. The Company completed additional geophysical surveying in March 2016, utilising Slingram horizontal loop electromagnetic ('HLEM') geophysical methods, in order to provide a rapid and initial assessment of the project for potential sub-surface graphite mineralisation.

As graphite is a good conductor of electricity, electromagnetic geophysical techniques are a highly effective exploration tool in defining conductive zones that may indicate the presence of graphite. The results of the survey (interpreted by GeoVista AB Consultants in Sweden 'GeoVista') were very encouraging, whereby 46 conductive bodies were defined on 28 profiles, the strongest occurring with widths of up to 68 metres.

Beowulf's geologists subsequently carried out reconnaissance geological mapping and sampling at Haapamäki, to investigate the conductive zones in the field. Although many of the EM anomalies are obscured by glacial till, it was still possible to determine at several locations (including road cuttings and old quarries) that areas of graphite mineralisation occur at or in close proximity to the EM conductive zones. This suggests that 'blind' anomalies buried underneath glacial till (which generally have a weaker conductance) could also be related to graphite mineralisation.

Over the next few months, the Company plans a programme of trenching, detailed geological mapping, rock-chip channel sampling and metallurgical testwork to further investigate the prospect, which will be followed by drilling to provide additional samples for metallurgical testwork and preliminary grade assessment.

Piippumäki

Piippumäki is located in south-eastern Finland, approximately 45 km south-west of the town of Mikkeli. Slingram EM surveys conducted by Oy Fennoscandian Resources AB ('Fennoscandian'), a 100% owned subsidiary of Beowulf and Åbo Akademi during 2013 and 2015 defined two conductive zones of possible graphite schist along a strike extent of up to 2 km in length. Outcrop grab samples collected in 2013 and 2015, associated with the anomaly, indicated grades of 5-10 per cent carbon graphite ('Cg'). Fieldwork also visually identified occurrences of coarse flake graphite, hosted in quartz, feldspar and mica schists.

Beowulf completed additional HLEM geophysical surveys in March 2016. Results of this work (interpreted by GeoVista) are also encouraging and include:

• 22 conductors defined on 13 profiles, including one EM conductor defined over a strike length of up to 1.6 km
• The anomalies show strong conductance indicating widths of up to 60 metres in the western part of the survey area
• The anomalies showing the strongest conductance and maximum width in the western part of the survey area, are possibly associated with a fold hinge

Thirty samples collected from graphite bearing outcrops and boulders at Piippumäki, Haapamäki and Haapamäki East, have been despatched to Activation Laboratories Ltd ('Actlabs') in Ontario, Canada for Cg, total carbon, total sulphur and multi-element analyses.

Kurt Budge, CEO, commented:

'I am very pleased to announce these exciting findings from our graphite exploration activities in Finland, namely a newly discovered prospective zone, with significant strike length and width.

'Over the coming months, we will continue with our graphite work programme, including sampling, metallurgical testwork and drilling.

'I look forward to providing shareholders with further updates of our progress and results from the programme.'

Competent Person Review

The information in this announcement has been reviewed by Mr. Rasmus Blomqvist, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Rasmus Blomqvist has sufficient experience, that is relevant to the style of mineralisation and type of deposit taken into consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves'.

Mr. Rasmus Blomqvist is a full-time employee of Fennoscandian.

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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.