29 November 2023

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

• 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.

• 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.

• 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.

• 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.

• 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

• 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."

Enquiries:

Beowulf Mining plc
Ed Bowie, Chief Executive Officer Tel: +44 (0) 20 7583 8304
SP Angel(Nominated Adviser & Broker)
Ewan Leggat / Stuart Gledhill / Adam Cowl Tel: +44 (0) 20 3470 0470
BlytheRay
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 forecast.

About Beowulf Mining plc

Beowulf Mining plc ("Beowulf" or the "Company") is an exploration and development company, listed on the AIM market of the London Stock Exchange and the Spotlight Exchange in Sweden. The Company listed in Sweden in 2008 and, at 30 September 2023, was 78.77 per cent owned by Swedish shareholders.

Beowulf's purpose is to be a responsible and innovative company that creates value for our shareholders, wider society and the environment, through sustainably producing critical raw materials, which includes iron ore, graphite and base metals, needed for the transition to a Green Economy.

The Company has an attractive portfolio of assets, including commodities such as iron ore, graphite, gold and base metals, with activities in exploration, the development of mines and downstream production in Sweden, Finland and Kosovo.

The Company's most advanced project is the Kallak iron ore asset in northern Sweden from which testwork has produced a 'market leading' magnetite concentrate of 71.5 per cent iron content.  In the Kallak area, the Mineral Resources of the deposits have been classified according to the PERC Standards 2017, as was reported by the Company via RNS on 25 May 2021, based on a revised resource estimation by Baker Geological Services. The total Measured and Indicated resource reports at 132 million tonnes ("Mt") grading 28.3 per cent iron ("Fe"), with an Inferred Mineral Resource of 39 Mt grading 27.1 per cent Fe.

In Finland, Grafintec, a wholly-owned subsidiary, is developing a resource footprint of natural flake graphite and the capability to serve the anode manufacturing. Grafintec is working towards creating a sustainable value chain in Finland from high quality natural flake graphite resources to anode material production, leveraging renewable power, targeting Net Zero CO\2\ emissions across the supply chain.

In Kosovo, the Company owns approximately 61.1 per cent of Vardar Minerals ("Vardar"), which is focused on exploration in the Tethyan Belt, a major orogenic metallogenic province for gold and base metals.  Vardar is delivering exciting results for its Mitrovica licence which has several exploration targets, including lead, zinc, copper and gold. It also has the Viti licence which is showing potential for copper-gold porphyry mineralisation. With Beowulf's support, Vardar is focused on making a discovery.

Kallak is the foundation asset of the Company, and, with Grafintec and Vardar, each business area displays strong prospects, presents opportunities to grow, with near-term and longer-term value-inflection points.

Beowulf wants to be recognised for living its values of Respect, Partnership and Responsibility. The Company's ESG Policy is available on the website following the link below:

https://beowulfmining.com/about-us/esg-policy/  

BEOWULF MINING PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

FOR THE NINE MONTHS TO 30 SEPTEMBER 2023

Notes (Unaudited) 3 (Unaudited) 3 (Unaudited) 9 (Unaudited) 9 (Audited)   
months months months months 12 months
ended 30 ended 30 ended 30 ended 30 ended 31
September 2023£ September 2022£ September 2023£ September 2022£ December
2022£
Continuing
operations

Administrative (580,203) (465,869) (2,270,959) (1,200,815) (1,843,570)
expenses
Impairment of (8,232) - (8,232) - -
exploration
assets

Operating loss  (588,435)  (465,869) (2,279,191) (1,200,815) (1,843,570)

Gain on - - - - 21,951
disposal of
investment
Finance costs (166) (146,120) (195,901) (146,237) (304,806)
Finance income 2,474 19 6,111 49 176
Grant income - 18,792 83,238 70,218 84,797
Loss before  (586,127)  (593,178)  (2,385,743)  (1,276,785)  (2,041,452)
and after
taxation

Loss
attributable
to:
Owners of the (567,924) (579,997) (2,328,669) (1,224,658) (1,948,459)
parent
Non (18,203) (13,181) (57,074) (52,127) (92,993)
-controlling
interests

 (586,127)  (593,178)  (2,385,743)  (1,276,785)  (2,041,452)

Loss per share
attributable
to the owners
of the parent:
Basic and 3 (0.05) (0.07) (0.22) (0.15) (0.23)
diluted
(pence)

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

FOR THE NINE MONTHS TO 30 SEPTEMBER 2023

(Unaudited) 3 (Unaudited) 3 (Unaudited) 9 (Unaudited) 9 (Audited)    12 months ended 31 December 2022£
months months months months
ended 30 ended 30 ended 30 ended 30
September 2023£ September 2022£ September 2023£ September 2022£

 Loss for the (586,127) (593,178) (2,385,743) (1,276,785) (2,041,452)
period/year
Other
comprehensive
income/(loss)
Items that
may
be
reclassified
subsequently
to
profit or
loss:

Exchange 242,667 118,105 (541,940) 63,197 (32,945)
gain/(losses)
arising on
translation
of
foreign
operations
Total  (343,460)  (475,073)  (2,927,683) (1,213,588)  (2,074,397)
comprehensive
loss

Total
comprehensive
loss
attributable
to:
Owners of the (330,220) (477,478) (2,841,861) (1,193,404)                                                                                             
parent (2,020,889)
Non (13,240) 2,405 (85,822) (20,184) (53,508)
-controlling
interests
(343,460)  (475,073)  (2,927,683)  (1,213,588)  (2,074,397)

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF COMPREHENSIVE INCOME

FOR THE NINE MONTHS TO 30 SEPTEMBER 2023

Notes (Unaudited) 3 (Unaudited) 3 (Unaudited) 9 (Unaudited) 9 (Audited)   
months months months months 12 months
ended 30 ended 30 ended 30 ended 30 ended 31
September2023£ September 2022£ September 2023£ September 2022£ December
2022£
Continuing operations

Administrative expenses (584,303) (337,723) (2,207,759) (836,429) (1,090,254)

Operating loss (584,303) (337,723) (2,207,759) (836,429) (1,090,254)

Gain on disposal of investment - - - - 21,951
Finance cost - (146,080) (195,304) (146,080) (304,529)
Finance income 2,362 18 5,849 48 170

Loss before and after taxation and  (581,941) (483,785)  (2,397,214)  (982,461)  (1,372,662)
total comprehensive loss

Loss per share attributable to the
owners of the parent:
Basic and diluted 3 (0.05) (0.06) (0.23) (0.12) (0.17)
(pence)                           

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2023

(Unaudited)As (Unaudited)As (Audited)As at
at30 at30 31 December
September 2023£ September2022£ 2022£
ASSETS Notes
Non-current
assets
Intangible 6 14,356,876 12,355,983 13,002,465
assets
Property, plant 98,206 118,269 129,715
and equipment
Loans and other 5,122 5,218 5,181
financial asset
Right of use 10,324 3,386 19,279
asset

14,470,528 12,482,856 13,156,640
Current assets
Trade and other 149,713 150,101 220,427
receivables
Cash and cash 1,719,066 2,758,152 1,776,556
equivalents

1,868,779 2,908,253 1,996,983
TOTAL ASSETS 16,339,307 15,391,109 15,153,623

EQUITY
Shareholders'
equity
Share capital 4 11,571,875 8,317,106 8,317,106
Share premium 27,141,444 24,689,311 24,689,311
Merger reserve 137,700 137,700 137,700
Capital 46,451 46,451 46,451
contribution
reserve
Share-based 5 879,452 403,052 516,098
payment reserve
Translation (1,802,607) (1,185,731) (1,289,415)
reserve
Accumulated (22,700,224) (19,599,613) (20,323,414)
losses

15,274,091 12,808,276 12,093,837

Non-controlling 531,051 602,056 568,732
interests
TOTAL EQUITY 15,805,142 13,410,332 12,662,569

LIABILITIES
Current
liabilities
Trade and other 523,602 260,497 625,730
payables
Lease liability 9,012 3,475 10,840
Borrowings 7 - 1,716,805 1,845,947
532,614 1,980,777 2,482,517
NON-CURRENT
LIABILITIES
Lease liability 1,551 - 8,537

TOTAL 534,165 1,980,777 2,491,054
LIABILITIES
TOTAL EQUITY 16,339,307 15,391,109 15,153,623
AND LIABILITIES

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2023

(Unaudited)As at (Unaudited)As at (Audited)As at
30 30 September2022£ 31December
September 2023£ 2022£
ASSETS Notes
Non-current
assets
Investments 3,944,781 3,594,786 3,645,181
Loans and other 12,611,534 10,502,521 11,084,289
financial assets
Property, plant 678 904 834
and equipment

16,556,993 14,098,211 14,730,304

Current assets
Trade and other 58,512 24,664 53,284
receivables
Cash and cash 1,572,690 2,395,871 1,667,840
equivalents

1,631,202 2,420,535 1,721,124
TOTAL ASSETS 18,188,195 16,518,746 16,451,428

EQUITY
Shareholders'
equity
Share capital 4 11,571,875 8,317,106 8,317,106
Share premium 27,141,444 24,689,311 24,689,311
Merger reserve 137,700 137,700 137,700
Capital 46,451 46,451 46,451
contribution
reserve
Share-based 5 879,452 403,052 516,098
payment reserve
Accumulated (21,714,669) (18,927,254) (19,317,455)
losses

TOTAL EQUITY 18,062,253 14,666,366 14,389,211
LIABILITIES
Current
liabilities
Trade and other 125,942 135,575 216,270
payables
Borrowings 7 - 1,716,805 1,845,947

TOTAL 125,942 1,852,380 2,062,217
LIABILITIES
TOTAL EQUITY AND 18,188,195 16,518,746 16,451,428
LIABILITIES

BEOWULF MINING PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE NINE MONTHS TO 30 SEPTEMBER 2023

Share Share Merger Capital Share Translation Accumulated Total Non Total equity
capital premium reserve contribution -based reserve losses -controllinginterest
reserve payment
reserve

£ £ £ £ £ £ £ £ £ £
At 1 January 8,317,106 24,689,311 137,700 46,451 668,482 (1,216,985) (18,470,675)  14,171,390 325,039 14,496,429
2022

Loss for the - - - - - - (1,224,658)  (1,224,658) (52,127) (1,276,785)
period
Foreign - - - - - 31,254 - 31,254 31,943  63,197
exchange
translation
Total - - - - - 31,254 (1,224,658)  (1,193,404) (20,184)  (1,213,588)
comprehensive
loss

Transactions
with
owners
Equity - - - - 127,491 - - 127,491 - 127,491
-settled
share
-based
payment
transactions
Step up - - - - - - (297,201) (297,201) 297,201 -
interest in
subsidiary
Transfer on - - - - (392,921) - 392,921 - -
lapse of
options
At 30 8,317,106 24,689,311 137,700 46,451 403,052 (1,185,731) (19,599,613)  12,808,276 602,056  13,410,332
September
2022
(Unaudited
and
Restated)

Loss for the - - - - - - (723,801)  (723,801) (40,866)  (764,667)
period
Foreign - - - - - (103,684) -  (103,684) 7,542 (96,142)
exchange
translation
Total - - - - - (103,684) (723,801)  (827,485) (33,324)  (860,809)
comprehensive
loss
Transactions
with
owners
Equity - - - - 113,046 - - 113,046 - 113,046
-settled
share
-based
payment
transactions

At 31 8,317,106 24,689,311 137,700 46,451 516,098 (1,289,415) (20,323,414) 12,093,837 568,732 12,662,569
December 2022
(Audited)

Loss for the - - - - - - (2,328,669)  (2,328,669) (57,074) (2,385,743)
period
Foreign - - - - - (513,192) - (513,192) (28,748)  (541,940)
exchange
translation
Total - - - - - (513,192) (2,328,669) (2,841,861) (85,822)  (2,927,683)
comprehensive
loss

Transactions
with
owners
Issue of 3,254,769 3,654,829 - - - - - 6,909,598 - 6,909,598
share capital
Cost of issue - (1,202,696) - - - - - (1,202,696) - (1,202,696)
Equity - - - - 363,354 - - 363,354 - 363,354
-settled
share
-based
payment
transactions
Step - - - - - - (48,141) (48,141) 48,141 -
acquisition
of
Subsidiary
At 30  11,571,875 27,141,444  137,700  46,451  879,452  (1,802,607)  (22,700,224)  15,274,091 531,051   15,805,142
September
2023
(Unaudited)

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE NINE MONTHS TO 30 SEPTEMBER 2022

Share capital Share Merger Capital Share Accumulated Total
premium reserve contribution -based losses
reserve payment
reserve
£ £ £ £ £ £ £
At 1 January          24,689,311 137,700 46,451 668,482 (18,337,714) 15,521,336
2022          8,317,106

Loss for the - - - - - (982,461)  (982,461)
period
Total - - - - - (982,461) (982,461)
comprehensive
loss

Transactions
with
owners
Equity - - - - 127,491 - 127,491
-settled
share
-based
payment
transactions
Transfer on - - - - (392,921) 392,921 -
lapse of
options
At 30 8,317,106 24,689,311 137,700 46,451 403,052 (18,927,254) 14,666,366
September
2022
(Unaudited)

Loss for the - - - - - (390,201) (390,201)
period
Total - - - - - (390,201) (390,201)
comprehensive
loss

Transactions
with
owners
Equity - - - - 113,046 - 113,046
-settled
share
-based
payment
transactions
At 31 8,317,106 24,689,311 137,700 46,451 516,098 (19,317,455) 14,389,211
December 2022
(Audited)

Loss for the - - - - - (2,397,214) (2,397,214)
period
Total - - - - - (2,397,214) (2,397,214)
comprehensive
loss

Transactions
with
owners
Issue of 3,254,769 3,654,829 - - - - 6,909,598
share capital
Cost of issue - (1,202,696) - - - - (1,202,696)
Equity - - - - 363,354 - 363,354
-settled
share
-based
payment
transactions
At 30 11,571,875  27,141,444 137,700  46,451  879,452  (21,714,669)  18,062,253
September
2023
(Unaudited)

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

1. Nature of Operations

Beowulf Mining plc (the "Company") is domiciled in England and Wales. The Company's registered office is 201 Temple Chambers, 3-7 Temple Avenue, London, EC4Y 0DT. This consolidated financial information comprises that of the Company and its subsidiaries (collectively the `Group' and individually `Group companies'). The Group is engaged in the acquisition, exploration and evaluation of natural resources assets and has not yet generated revenues.

2. 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 financial statements are presented in GB Pounds Sterling. They are prepared on the historical cost basis or the fair value basis where the fair valuing of relevant assets and liabilities has been applied.

Management have prepared cash flow forecasts which indicate that the Group will need to raise further funds within the next 12 months for corporate overheads and to advance its key projects and investments.

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.

These conditions indicate the existence of a material uncertainty which may cast significant doubt over the Group's and the Company's ability to continue as a going concern and that it may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include any adjustments that would result if the Company was unable to continue as a going concern. 

3. Loss per share

(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 9 months 9 months 12 months
ended ended ended ended ended
Group 30 September 30 30 September 30 31 December
2023 September 2023 September 2022
2022 2022
Loss for the (567,924) (579,997) (2,328,669) (1,224,658) (1,948,459)
period/year  
attributable
to
shareholders
of
the Company
(£'s)
Weighted 1,157,187,463 831,710,636 1,061,458,984 831,710,636 831,710,636
average
number of
ordinary
shares
Loss per (0.05) (0.07) (0.22) (0.15) (0.23)
share (p)
Parent
Loss for the (581,941) (483,785) (2,397,214) (982,461) (1,372,662)
period/year
attributable
to
shareholders
of
the Company
(£'s)
Weighted 1,157,187,463 831,710,636 1,061,458,984 831,710,636 831,710,636
average
number of
ordinary
shares
Loss per (0.05) (0.06) (0.23) (0.12) (0.17)
share (p)

4. Share capital

(Unaudited) (Unaudited) (Audited)
30 September 2023 30 September 2022 31 December 2022
£ £ £
Allotted,
issued and
fully paid
Ordinary shares 11,571,875 8,317,106 8,317,106
of 1p each

The number of shares in issue was as follows:

Number
of shares
Balance at 1 January 2022 831,710,636
Issued during the period -
Balance at 30 September 2022 831,710,636
Issued during the period -
Balance at 31 December 2022 831,710,636
Issued during the period 325,476,827
Balance at 30 September 2023 1,157,187,463

5. 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 fair value of share options granted and outstanding were measured using the Black-Scholes model, with the following inputs:

2023            2022 2019
Number of      12,250,000 20,750,000 2,500,000 9,250,000
options
Fair value          0.52p        3.12p       3.59p 1.15p
at grant
date
Share price                1.68p        4.00p       4.00p 5.65p
Exercise                2.06p        5.25p       1.00p 7.35p
price
Expected             55.20%    100.00%       100% 51.89%
volatility
Option life             5 years    10 years   10 years 5 years
Risk free             4.800%      4.480%    4.520% 0.718%
interest
rate

The options issued will be settled in the equity of the Company when exercised and have a vesting period of one year from date of grant.

Reconciliation of Number Weighted average exercise price(£'s)
options in issue

Outstanding at 1 32,500,000 0.055
January 2023
Granted during 12,250,000 0.021
the period
Outstanding at 30 44,750,000 0.046
September 2023
Exercisable at 30 37,250,000 0.042
September 2023

6. Intangible Assets: Group

Exploration Other intangible assets Total
assets
Net book value £ £ £
As at 31 December 13,002,465 - 13,002,465
2022 (Audited)
As at 30 14,332,665 24,211  14,356,876
September 2023
(Unaudited)

Exploration As at 30 September   2023 As at 31 December2022
costs
(Unaudited) (Audited)
£ £
Cost
At 1 January  13,002,465 11,235,656
Additions for 1,652,163 1,536,674
the year - cash
Additions for 215,122 314,272
the year - non
-cash
Foreign exchange (528,853) (47,149)
movements
Impairment   (8,232) (36,988)
Total 14,332,665 13,002,465

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

As at 30 September   2023 As at 31 December 2022
(Unaudited) (Audited)
£ £
Project Country
Kallak Sweden 8,786,492 7,666,563
Ågåsjiegge Sweden - 7,718
Åtvidaberg Sweden 340,491 358,694
Pitkäjärvi Finland 1,659,714 1,641,836
Rääpysjärvi Finland 55,560 148,430
Karhunmäki Finland 170,268 56,089
Luopioinen Finland 4,523 4,257
Emas Finland 27,074 1,663
Shala Kosovo 105,281 -
Mitrovica Kosovo 1,757,837 2,430,150
Viti Kosovo 1,425,425 687,065
14,332,665  13,002,465

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.

The most significant exploration asset within the Group is Kallak. The Company applied for an Exploitation Concession for Kallak North in April 2013 and this was finally awarded in March 2022.

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.

Other intangible assets As at 30 September   2023 As at 31 December2022
(Unaudited) (Audited)
£ £
Cost
At 1 January  - -
Additions in the period 24,316 -
Foreign exchange movements (105) -
Total 24,211 -

Other intangible assets capitalised are development costs incurred following the feasibility of GAMP project. This development has attained a stage that it satisfies the requirements of IAS 38 to be recognised as intangible asset in that it has the potential to completed and used, provide future economic benefits, its costs can be measured reliably and there is the intention and ability to complete. The development costs will be held at cost less impairment until the completion of the GAMP project at which stage they will be transferred to the value of the Plant.

7. Borrowings

(Unaudited) (Unaudited)
As at 30 September2023 As at 31 December2022
£ £

Opening balance 1,845,947 -
Funds advanced - 1,554,381
Finance costs 195,304 304,529
Effect of FX (2,818) (12,963)
Funds repaid (2,038,433) -
 -  1,845,947

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.

8. 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

(Unaudited)As Correction of (Unaudited and
at30 prior period Restated)As at30
September 2022£ error£ September2022£

TOTAL ASSETS 15,391,109 - 15,391,109

EQUITY
Shareholders'
equity
Share capital 5 8,317,106 - 8,317,106
Share premium 24,689,311 - 24,689,311
Capital 46,451 - 46,451
contribution
reserve
Share-based 6 403,052 - 403,052
payment
reserve
Merger reserve 137,700 - 137,700
Translation (1,185,731) (1,185,731)
reserve
Accumulated (19,658,822) 59,209 (19,599,613)
losses
Total equity 12,749,067  59,209 12,808,276

Non 661,265 (59,209) 602,056
-controlling
interests
TOTAL EQUITY  13,410,332 -  13,410,332

TOTAL  1,980,777 -  1,980,777
LIABILITIES

TOTAL EQUITY  15,391,109 - 15,391,109
AND
LIABILITIES

9. Post balance sheet events

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

10. Availability of interim report

A copy of these results will be made available for inspection at the Company's registered office during normal business hours on any weekday. The Company's registered office is at 207 Temple Chambers, 3-7 Temple Avenue, London, EC4Y 0DT. A copy can also be downloaded from the Company's website at www.beowulfmining.com. Beowulf Mining plc is registered in England and Wales with registered number 02330496.

** Ends **