Unaudited Financial Results

596/2014, as incorporated into UK law by the European Union (Withdrawal) Act 2018.

Beowulf Mining plc

("Beowulf" or the "Company")

Unaudited Financial Results for the Period Ended 30 September 2023

Beowulf Mining (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, announces its unaudited financial results for the nine months ended 30 September 2023 (the "Period").

Activities in the Period

Sweden

• Following the announcement of the Scoping Study for Kallak North in January 2023, the Company, through its 100% owned subsidiary Jokkmokk Iron Mines AB ("Jokkmokk Iron"), continued to engage with key stakeholders and advance a number of work streams. The strategic review was advanced during the Period focusing on options to optimise the development and ultimate value of the asset.
• Environmental baseline studies progressed in preparation for the completion of the Environmental Impact Assessment ("EIA"). These studies included monitoring and assessment of nature values, sound and vibration, hydrology and cultural heritage.
• A formal recruitment process was initiated for a high-calibre individual to lead the further development of the project, including stakeholder engagement.
• A number of public meetings with the communities of Jokkmokk, including residents of the villages closest to the project, were held.

Finland

• During the Period, Beowulf, through its wholly owned Finnish subsidiary Grafintec Oy, completed the Pre-Feasibility Study ("PFS") for the establishment of a Graphite Anode Materials Plant ("GAMP") located in the GigaVaasa area, in the municipality of Korsholm on the west coast of Finland.
• The PFS demonstrated very positive initial economics with a post-tax net present value (using an 8% discount rate) of US$242 million and an internal rate of return of 39%.
• The study, prepared by the engineering consultancy RB Plant Construction Ltd ("RB Plant"), is based on an industrial plant with a total production capacity of 20,000 tonnes per annum of Coated Spherical Graphite ("CSPG") over an initial 10-year period and with initial capital expenditure of US$117 million.
• The Environmental Impact Assessment ("EIA") was progressed during the Period and is expected to be completed in Q1 2024, after which, the Company will initiate work on the Environmental Permit process.
• Following the conclusion of the PFS, bench-scale test work has been initiated and will be followed by pilot-scale test work with the Definitive Feasibility Study ("DFS") scheduled to begin in mid-2024.

Kosovo

• Vardar Minerals, which is 61.1 per cent owned by Beowulf, undertook further low-cost field work including mapping, soil and grab sampling and reconnaissance work across its tenement package during the three months ended 30 September 2023.
• The focus of the activity was on the Shala Central area where the Company undertook mapping, surface sampling and a drone magnetic survey.
• Further reconnaissance work was undertaken on the Shala East and Shala West licences in preparation for a systematic mapping and sampling programme.

Corporate

• On 10 July 2023, Mikael Schauman was appointed as Non-Executive Director.
• On 21 July 2023, the settlement in relation to Kurt Budge's resignation was agreed and subsequently paid on 27 July 2023.
• On 7 August 2023, Ed Bowie joined the Company as Chief Executive Officer and Director.
• On 16 August 2023, Ulla Sandborgh stepped down as Chief Executive Officer of Jokkmokk Iron.

Financial

• The underlying administration expenses of £580,203 in Q3 2023 exceeded Q3 2022 of £465,869. This increase is primarily due to professional fees of £191,394 (Q3 2022: £130,675), P.R. services of £30,704 (Q3 2022: £11,403) and legal fees of £52,452 (Q3 2022: £4,643). Professional and legal fees increased primarily due to non-recurring advisor fees in relation to the group directorship changes within the period.
• The consolidated loss before tax for Q3 2023 of £586,127 was in line with Q3 2022 of £593,178, due to a decrease in finance charge to £166 (Q3 2022: £146,120), as a result of the bridging loan being repaid in Q1 2023, being offset by the increase in administration costs mentioned above.
• The consolidated loss before tax for the nine months to 30 September 2023 increased to £2,385,743 (30 September 2022: £1,276,785). This increase is primarily due to share-based payment expenses of £363,354 (30 September 2022: £127,491), professional fees of £596,590 (30 September 2022: £270,144), directors and staff costs of £545,257 (30 September 2022: £278,476), and a foreign currency loss of £172,563 (30 September 2022: £20,777) combined with finance costs in relation to the bridging loan of £195,304 (30 September 2022: £146,080), which was fully repaid in the period.
• Consolidated basic and diluted loss per share for the quarter ended 30 September 2023 was 0.05 pence (Q3 2022: loss of 0.07 pence).
• The Company raised SEK 80.8 million (approximately £6.4 million) before expenses as part of the Capital Raise which closed on 7 March 2023, of which, the net proceeds have been used to repay the bridging loan principal and interest of SEK 24.8 million (approximately £2.04 million).
• £1,719,066 in cash was held at 30 September 2023 (30 September 2022: £2,758,152).
• Exploration assets increased to £14,331,830 at 30 September 2023 compared to £12,355,983 at 30 September 2022.
• The cumulative translation losses held in equity increased by £514,032 in the nine months ended 30 September 2023 to £1,803,447 (31 December 2022: loss of £1,289,415). Much of the Company's exploration costs are in Swedish Krona which has weakened against the pound since 31 December 2022.
• At 30 September 2023, there were 911,545,973 Swedish Depository Receipts representing 78.77% per cent of the issued share capital of the Company. The remaining issued share capital of the Company is held in the UK.

Post Period Activities

Sweden

• Following the end of the Period, the PFS for the Kallak Project was initiated with the appointment of SLR Consultant Limited ("SLR") as lead consultant. In addition, samples were selected for metallurgical test work and the preliminary roadmap for next phase of the project's development was defined.
• Jokkmokk Iron was awarded exploration license Kallak nr 101. The licence is a renewal of the previous exploration licence, Kallak nr 1, held by the Company, and surrounds the Kallak exploitation concession, Kallak K nr 1, awarded in March 2022.

Ed Bowie, Chief Executive Officer of Beowulf, commented:

"The Company has made significant progress on a number of fronts. The strategic review of Kallak was initiated to identify key value drivers for the project. As a result of the review, a metallurgical test-work programme has been defined and initiated at the front-end of the PFS, to demonstrate that Kallak has the potential to produce a market leading iron ore concentrate which has the potential to enhance the project returns. We continue to engage with local stakeholders as we advance our technical and environmental studies for the project.

"The PFS at Grafintec's GAMP project has demonstrated very robust economics. Since the end of the Period, China announced export controls on graphite products, highlighting the current dependence of the global lithium-ion battery industry on China. At the same time, the EU has voted in support of the Critical Raw Materials Act ("CRM Act"), focused on ensuring secure supply of graphite and other commodities essential for the green transition. Grafintec's business strategy, to become an independent and secure supplier of anode materials to battery manufacturers, is fully aligned with the CRM Act.

"In Kosovo, Vardar Minerals has been completing low-cost but critical baseline mapping and sampling on our extensive Shala licences. The area contains kilometre-scale hydrothermal alteration systems with significant base and precious metal content identified in soils and grab samples. Follow-up work including detailed mapping, infill sampling and drone magnetic surveys, are helping to better define future drill targets."

BEOWULF MINING PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

FOR THE NINE MONTHS TO 30 SEPTEMBER 2023

Loss per share attributable to the owners of the parent:

Other comprehensive income /(loss)

Items that may be reclassified subsequently to profit or loss:

Loss per share attributable to the owners of the parent:

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS TO 30 SEPTEMBER 2023

• Nature of Operations
• Basis of preparation

The condensed consolidated financial information has been prepared on the basis of the recognition and measurement requirements of UK-adopted International Accounting Standards (IFRS). The accounting policies, methods of computation and presentation used in the preparation of the interim financial information are the same as those used in the Group's audited financial statements for the year ended 31 December 2022.

The financial information in this statement does not constitute full statutory accounts within the meaning of Section 434 of the UK Companies Act 2006. The financial information for the period ended 30 September 2023 is unaudited and has not been reviewed by the auditors. The financial information for the twelve months ended 31 December 2022 is an extract from the audited financial statements of the Group and Company. The auditor's report on the statutory financial statements for the year ended 31 December 2022 was unqualified but did include a material uncertainty relating to going concern.

The Directors are confident they are taking all necessary steps to ensure that the required finance will be available, and they have successfully raised equity finance in the past. They have therefore concluded that it is appropriate to prepare the financial statements on a going concern basis. However, while they are confident of being able to raise the new funds as they are required, there are currently no agreements in place, and there can be no certainty that they will be successful in raising the required funds within the appropriate timeframe.

Loss per share

Share based payments

During the period ended 30 September 2023, 12,250,000 options were granted (2022: 23,250,000). The options outstanding as at 30 September 2023 have an exercise price in the range of 1 pence to 7.35 pence (2022: 1.00 pence to 7.35 pence) and a weighted average remaining contractual life of 6 years, 21 days (2022: 7 years, 199 days).

The share-based payments expense for the options for the period ended 30 September 2023 was £363,354 (2022: £127,491).

The net book value of exploration costs is comprised of expenditure on the following projects:

Total Group exploration costs of £14,332,665 are currently carried at cost in the financial statements. Impairment of £8,232 has been recognised during the period in Ågåsjiegge (2022: £Nil).

Accounting estimates and judgements are continually evaluated and are based on a number of factors, including expectations of future events that are believed to be reasonable under the circumstances. Management are required to consider whether there are events or changes in circumstances that indicate that the carrying value of this asset may not be recoverable.

Kallak is included in the condensed financial statements as at 30 September 2023 as an intangible exploration licence with a carrying value of £8.79m. Given the Exploitation Concession was awarded, Management have considered that there is no current risk associated with Kallak and thus have not impaired the project.

On 3 July 2022, the Company secured a Bridging loan from Nordic investors of SEK 22 million (approximately £1.76 million). The Loan had a fixed interest rate of 1.5 percent per stated 30-day period during the duration. Accrued interest was compounding. The Loan had a commitment fee of 5 per cent and a Maturity Date of 28 February 2023.

The Loan was accounted for using an amortised cost using an effective rate of interest.

It became apparent that due to the timing of the receipt of the funds from the Rights Issue the Company was not in a position to pay back the bridging loan facility at its maturity. The outcome of this was that the holder of the loan enforced the penalty interest for entering another 30-day period, which was circa 1 million SEK (approx. £82k). The loan principal and interest totalling £2.04m was repaid via a deduction to the gross proceeds from the Capital Raise in March 2023.

Prior period correction

The correction of £59,209 between non-controlling interest and accumulated losses is required to remedy an error in the step acquisition movement from 49.4 per cent to 51.4 per cent. There is no impact to the statement of comprehensive income or any other statement as a result of this correction.

Consolidated statement of Financial Position

Post balance sheet events

There have been no significant events since the end of the reporting period

• Availability of interim report