29 February 2024

Beowulf Mining plc

("Beowulf" or the "Company")

Unaudited Preliminary Financial Results for the year ended 31 December 2023

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, announces its unaudited preliminary financial results for the year ended 31 December 2023 (the "Period").

Activities in the Period

• Following the announcement of the Scoping Study for Kallak North, part of the Kallak Iron Ore Project ("Kallak"), in January 2023, the Company, through its 100 per cent owned subsidiary Jokkmokk Iron Mines AB ("Jokkmokk Iron"), continued to engage with key stakeholders and advance numerous work streams. A strategic review for the project, focused on optimising the development and ultimate value of the asset, was advanced during the Period.
• 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.
• The Pre-feasibility Study ("PFS") for Kallak was initiated with the appointment of SLR Consultant Limited ("SLR") as lead consultant in October 2023. In addition, samples were selected for metallurgical test work and the preliminary roadmap for the next phase of the project's development was defined.
• A formal recruitment process was initiated for a high-calibre individual to lead the further development of the project.
• Various public meetings with local stakeholders, including four meetings with the Sami villages and meetings with residents of the villages closest to the project, were held.
• On the 19 and 20 September 2023, the Supreme Administrative Court held an oral hearing at which the appeal by two Sami villages, Jåhkågasska tjiellde and Sirges, and Naturskyddsföreningen, the associations for the protection of the environment, at municipality, county, and country level (together the "Applicant"), against the awarding of the Exploitation Concession by the Government of Sweden (the "Government"), was heard.  Following the oral hearing, the Applicant filed a further submission to the Court to which the Court invited the Government to respond in January 2024. The Government responded post Period (highlighted below).

• During the year, Beowulf, through its wholly-owned Finnish subsidiary Grafintec Oy ("Grafintec"), completed the PFS for the establishment of the final Coating stage of a Graphite Anode Materials Plant ("GAMP") located in the GigaVaasa area, in the municipality of Korsholm on the west coast of Finland. This initial PFS demonstrated very positive initial economics with a post-tax net present value (using an 8 per cent discount rate) of US$242 million and an internal rate of return of 39 per cent.
• The study, prepared by the engineering consultancy RB Plant Construction Ltd ("RB Plant"), is based on an industrial plant importing spherical graphite, coating this to produce a total 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 EIA for the GAMP was progressed during the year.
• Following the conclusion of the PFS, bench-scale test work was initiated.

• On 12 January 2023, Beowulf invested £250,000 in Vardar Minerals. The investment increased the Company's ownership in Vardar from 59.5 per cent to approximately 61.1 per cent. In addition, Beowulf provided loans amounting to €75,000 between October and December 2023 to Vardar Minerals to support ongoing exploration activity.
• Vardar Minerals undertook further low-cost field work including mapping, soil and grab sampling and reconnaissance work across its tenement package during the three months ended 31 December 2023.
• The focus of the activity during the first half of the year was on the Shala Central area where the Company undertook mapping, surface sampling and a drone magnetic survey.
• Reconnaissance work was undertaken in the second half of the year on the Shala East and Shala West licences which was followed up with a systematic mapping and sampling programme.

• On 28 February 2023, Beowulf announced the outcome of the Company's capital raise. In total, Beowulf received approximately SEK 80.8 million (approximately £6.4 million) (gross). Net proceeds from the capital raise were used to repay bridge loan financing.
• On 10 July 2023, Mikael Schauman was appointed as Non-Executive Director.
• On 27 July 2023, the settlement in relation to Kurt Budge's resignation was agreed and paid.
• 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.
• On 28 December 2023, Alternative Resource Capital was appointed as Joint UK Broker to the Company. Alternative Resource Capital is a trading name of Shard Capital Partners LLP, which is authorised and regulated by the Financial Conduct Authority in the UK.

• The consolidated loss for 2023 of £2,931,295 was higher than 2022 of £2,041,452. This increase is due to increased administrative expenses of £2,494,650 compared to £1,806,582 for 2022. The increase in administrative expenses was due to the following: share-based payment expenses of £387,668 (2022: £240,537); professional fees of £696,247 (2022: £433,157); foreign currency loss of £150,224 (2022: £36,321); salary costs of £483,221 (2022: £317,717); audit and accountancy fees of £122,174 (2022: £86,240).
• The administration expenses of the company of £2,778,142 in 2023 exceeded 2022 of £1,090,254. This increase is primarily due to the expected credit loss on the intercompany loans of £1,001,537 (2022: £5,336), share-based payment expenses of £321,534 (2022: £173,345), salary costs of £481,903 (2022: £250,406), professional fees of £420,536 (2022: £290,760), P.R. services of £97,515 (2022: £46,493) and legal fees of £83,226 (2022: £24,238). Professional and legal fees increased primarily due to non-recurring advisor fees in relation to the group directorship changes within the Period. The expected credit loss increased due to the impairment of Ågåsjiegge and Åtvidaberg in the year and a reassessment of expected recoverability of the loans to the subsidiaries.
• Consolidated basic and diluted loss per share for the quarter ended 31 December 2023 was 0.05 pence (Q4 2022: loss of 0.09 pence).
• £905,555 in cash was held at 31 December 2023 (31 December 2022: £1,776,556).
• Exploration assets increased to £14,797,833 at 31 December 2023 compared to £13,002,465 at 31 December 2022.
• The cumulative foreign exchange translation losses held in equity increased year ended 31 December 2023 to £1,464,486 (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 31 December 2023, there were 922,337,110 Swedish Depository Receipts in issue representing 79.71 per cent of the issued share capital of the Company. The remaining issued share capital of the Company is held in the UK as AIM securities.

Post Period Activities

• On 16 February 2024, Beowulf announced its intention to conduct a preferential rights issue of SDRs in Sweden (the "Rights Issue") and a UK retail offer of ordinary shares and partially secured capital raise (the "Capital Raise") up to approximately SEK 100 million (approximately £7.5 million). The Rights Issue is underwritten to a maximum value of SEK 50 million, subject to customary adjustments. The main purpose of the Rights Issue will be to finance the continued development of Kallak, including completion of the ongoing PFS and environmental studies in preparation for the EIA and subsequent application for the environmental permit for Kallak, and the completion of the ongoing PFS and EIA for the GAMP.
• In conjunction with the Rights Issue, the Company has entered into a short-term loan agreement with the Underwriters to provide SEK 10 million (approximately £0.75 million) to ensure the Company has sufficient financial resources to continue advancing its projects over the coming weeks. The loan carries an interest charge of 1.5 per cent per month and has a commitment fee of 5.0 per cent. The loan and accrued interest is repayable at any time prior to the maturity date, being 31 May 2024. If the loan and accrued interest is not repaid by the maturity date, at the latest, the creditors have the right to offset a minimum of SEK 1 million at the time of the loan and accrued interest into SDRs at a price per SDR calculated with a 15 per cent discount on the volume weighted average price of the SDR during the preceding 5 trading days to the conversion decision. In case of default, the loan will accrue additional default interest of 2.5 per cent per month.

• On 18 January 2024, the Government formally responded to the submission. In a comprehensive response the Government endorsed the original decision to award the Exploitation Concession. The Government further emphasised their support for the project, stating that the Kallak Project is of national interest (Beowulf announcement dated 22 January 2024).
• On 5 February 2024, the Company announced that a Project Director had been appointed to oversee the ongoing studies and development of Kallak.

• On 17 January 2024, the Company announced an updated strategy to fast-track the full GAMP process, capturing more of the anode material production value-chain and providing greater supply-chain security following the export controls imposed by China on graphite materials in December 2023. The full GAMP process consists of Spheronisation, Purification and Coating to produce CSPG for sale to anode manufacturers. The PFS completed on the Coating stage of the process in July 2023 will be enhanced to incorporate the full process and is expected to be completed during 2024.

• In January and February 2024, the Company provided additional loans to Vardar Minerals amounting to €40,000 to support ongoing exploration activity.
• The original Mitrovica, Viti North and Viti East licences expired on 24 January 2024. Following dialogue with Independent Commission for Mines and Minerals ("ICMM"), applications for new licences were submitted and formal confirmation of receipt was provided by the ICMM in Kosovo on 22 February 2024. Exploration licence applications are reviewed by the ICMM in Kosovo and ultimately granted by the Board of ICMM. The Government disbanded the Board of ICMM in October 2023, thus the licence applications remain pending until the new Board is appointed. As these applications are for new licences rather than extensions to the original licence, they will be valid for an initial three-year period from the date of granting, after which they may be extended twice for two-year periods with a reduction in the land holding of 50% on each occasion.

Ed Bowie, Chief Executive Officer of Beowulf, commented:

"The Company is making excellent progress across its three business units.

"At Kallak, we have initiated the PFS and are completing metallurgical test-work to confirm that the project will produce a market leading iron ore concentrate. Stakeholder consultations and environmental studies are continuing in preparation for the EIA and Environmental Permit application. The Company remains focused on developing a world-class sustainable mining operation at Kallak and the appointment of the Project Director is a key step in delivering this.

"In Finland, we delivered the PFS for the Coating phase of the GAMP demonstrating very robust economics. Following the Chinese export controls introduced in December 2023, the Company has modified its strategy and is now focused on developing the full process route. Test-work is ongoing and the PFS will be completed during 2024. This fast-track development will not only capture more of the value-chain for the production of anode material but also offers greater supply-chain security.

"In Kosovo, the detailed mapping and sampling undertaken by Vadar Minerals has highlighted a number of high-priority targets across the Shala licence package. Further analysis and interpretation is ongoing as assay results are beginning to be returned. In addition, assay results from a lithium target on the Viti North licence are pending.

          "The Company's portfolio is well-placed in tier-one jurisdictions, with strategic commodities that support the Green Transition and will benefit from the increasing emphasis on resource and supply chain security. We continue to review opportunities to optimise each project, enhancing the value and de-risking the future development, whilst reviewing funding opportunities and strategic partnerships both at the project and corporate level."   

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

Alternative Resource Capital(Joint Broker)
Alex Wood Tel: +44 (0) 20 7186 9004
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 forecasts.

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, as at 31 December 2023, was 79.71 per cent owned by Swedish shareholders.

Beowulf's purpose is to be a responsible and innovative company that creates value for its shareholders, wider society and the environment, through sustainably producing critical raw materials needed for the transition to a Green Economy.

The Company has an attractive portfolio of assets, including commodities such as iron ore, graphite, base and precious 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 test work has produced a `market leading' magnetite concentrate of 71.5 per cent iron content.  In the Kallak area, 389 million tonnes of iron mineralisation has been estimated, a potential source of high quality iron ore for fossil-free steel making in the Nordic region for decades to come.

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.

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 TWELVE MONTHS TO 31 DECEMBER 2023 AND THE THREE MONTHS TO 31 DECEMBER 2023

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

Administrative (222,974) (605,777) (2,494,650) (1,806,582)
expenses
Impairment of 7 (341,926) (36,988) (350,158) (36,988)
exploration
assets

Operating loss (564,900) (642,765) (2,844,808) (1,843,570)

Gain on - 21,951 - 21,951
disposal of
investment
Finance costs 3  (1,823) (158,559) (197,724) (304,806)
Finance income 1,813 127 7,924 176
Grant income 12,795 14,579 96,750 84,797
Fair value 6,563 - 6,563 -
gain on
investment
Loss before (545,552) (764,667) (2,931,295) (2,041,452)
and after
taxation

Loss
attributable
to:
Owners of the (528,676) (723,801) (2,857,345) (1,948,459)
parent
Non (16,876) (40,866) (73,950) (92,993)
-controlling
interests
(545,552) (764,667) (2,931,295) (2,041,452)

Loss per share
attributable
to the owners
of the parent:
Basic and 4 (0.05) (0.09) (0.26) (0.23)
diluted
(pence)

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

FOR THE TWELVE MONTHS TO 31 DECEMBER 2023 AND THE THREE MONTHS TO 31 DECEMBER 2023

(Unaudited) 3 (Unaudited) (Unaudited) (Audited)   
months 3 months 12 months 12 months
ended 31 ended 31 ended 31 ended 31
December 2023£ December December2023£ December
2022£ 2022£

Loss for the (545,552) (764,667) (2,931,295) (2,041,452)
period / year
Other
comprehensive
income
Items that may
be reclassified
subsequently to
profit or loss:

Exchange gain / 338,376 (96,142) (203,564) (32,945)
(loss) arising
on
translation of
foreign
operations
Total (207,176) (860,809) (3,134,859) (2,074,397)
comprehensive
loss

Total
comprehensive
loss
attributable to:
Owners of the (190,554) (827,485) (3,032,415) (2,020,889)
parent
Non-controlling (16,622) (33,324) (102,444) (53,508)
interests
(207,176)   (860,809) (3,134,859)   (2,074,397)

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF COMPREHENSIVE LOSS

FOR THE TWELVE MONTHS TO 31 DECEMBER 2023 AND THE THREE MONTHS TO 31 DECEMBER 2023

Notes (Unaudited) 3 (Unaudited) (Unaudited) (Audited)   
months 3 months 12 months 12 months
ended 31 ended 31 ended31 ended 31
December 2023£ December December December
2022£ 2023£ 2022£
Continuing
operations

Administrative (570,383) (253,825) (2,778,142) (1,090,254)
expenses

Operating loss (570,383) (253,825) (2,778,142) (1,090,254)

Gain on - 21,951 - 21,951
disposal of
investments
Finance costs 3 - (158,449) (195,304) (304,529)
Finance income 1,806 122 7,655 170
Fair value 6,563 - 6,563 -
gain on
investment
Loss before (562,014) (390,201) (2,959,228) (1,372,662)
and after
taxation and
total
comprehensive
loss

Loss per share
attributable
to the owners
of the parent:
Basic and 4 (0.05) (0.05) (0.27) (0.17)
diluted
(pence)

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

(Unaudited)As (Audited)As at
at31 31 December
December 2023£ 2022£
ASSETS Notes
Non-current
assets
Intangible 7 14,873,326 13,002,465
assets
Property, plant 87,755 129,715
and equipment
Investments 6,563 -
Loans and other 5,209 5,181
financial assets
Right of use 63,158 19,279
asset
15,036,011 13,156,640

Current assets
Trade and other 152,004 220,427
receivables
Cash and cash 905,555 1,776,556
equivalents
1,057,559 1,996,983

TOTAL ASSETS 16,093,570 15,153,623

EQUITY
Shareholders'
equity
Share capital 5 11,571,875 8,317,106
Share premium 27,141,444 24,689,311
Capital 46,451 46,451
contribution
reserve
Share based 903,766 516,098
payment reserve
Merger reserve 137,700 137,700
Translation (1,464,486) (1,289,415)
reserve
Accumulated (23,228,900) (20,323,414)
losses
Total equity 15,107,850 12,093,837

Non-controlling 514,430 568,732
interests
TOTAL EQUITY 15,622,280 12,662,569

LIABILITIES
Current
liabilities
Trade and other 433,662 625,730
payables
Lease liability 22,575 10,840
Borrowings 8 - 1,845,947
456,237 2,482,517

Non-Current
liabilities
Lease Liability 15,053 8,537

TOTAL 471,290 2,491,054
LIABILITIES

TOTAL EQUITY AND 16,093,570 15,153,623
LIABILITIES

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

Notes (Unaudited)As (Audited)As at
at31 31 December
December 2023£ 2022£
ASSETS
Non-current
assets
Investments 3,967,878 3,645,181
Loans and other 12,839,865 11,084,289
financial assets
Property, plant 964 834
and equipment
16,808,707 14,730,304

Current assets
Trade and other 49,155 53,284
receivables
Cash and cash 794,909 1,667,840
equivalents
844,064 1,721,124

TOTAL ASSETS 17,652,771 16,451,428

EQUITY
Shareholders'
equity
Share capital 5 11,571,875 8,317,106
Share premium 27,141,444 24,689,311
Capital 46,451 46,451
contribution
reserve
Share Based 903,766 516,098
Payment Reserve
Merger reserve 137,700 137,700
Accumulated (22,276,683) (19,317,455)
losses

TOTAL EQUITY 17,524,553 14,389,211

LIABILITIES
Current
liabilities
Trade and other 128,218 216,270
payables
Borrowings 8 - 1,845,947
TOTAL 128,218 2,062,217
LIABILITIES

TOTAL EQUITY AND 17,652,771 16,451,428
LIABILITIES

BEOWULF MINING PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE TWELVE MONTHS TO 31 DECEMBER 2023

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

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

Loss for the - - - - - - (1,948,459) (1,948,459) (92,993) (2,041,452)
year
Foreign - - - - - (72,430) - (72,430) 39,485 (32,945)
exchange
translation
Total - - - - - (72,430) (1,948,459) (2,020,889) (53,508) (2,074,397)
comprehensive
loss

Transactions
with
owners
Equity - - - 240,537 - - - 240,537 - 240,537
-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 31 8,317,106 24,689,311 46,451 516,098 137,700 (1,289,415) (20,323,414) 12,093,837 568,732 12,662,569
December 2022
(Audited)

Loss for the - - - - - - (2,857,345) (2,857,345) (73,950) (2,931,295)
year
Foreign - - - - - (175,071) - (175,071) (28,493) (203,564)
exchange
translation
Total - - - - - (175,071) (2,857,345) (3,032,416) (102,443) (3,134,859)
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 - - - 387,668 - - - 387,668 - 387,668
-settled
share
-based
payment
transactions
Step - - - - - - (48,141) (48,141) 48,141 -
acquisition
of
subsidiary
At 31 11,571,875 27,141,444 46,451 903,766 137,700 (1,464,486) (23,228,900) 15,107,850 514,430 15,622,280
December 2023
(Unaudited)

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE TWELVE MONTHS TO 31 DECEMBER 2023

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

Loss for the - - - - - (1,372,662) (1,372,662)
year
Total - - - - - (1,372,662) (1,372,662)
comprehensive   
loss

Transactions
with
owners
Equity - - - - 240,537 - 240,537
-settled
share
-based
payment
transactions
Transfer on - - - - (392,921) 392,921 -
lapse of
options
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 - - - - - (2,959,228) (2,959,228)
year
Total - - - - - (2,959,228) (2,959,228)
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 - - - - 387,668 - 387,668
-settled
share
-based
payment
transactions
At 31 11,571,875 27,141,444 137,700 46,451 903,766 (22,276,683) 17,524,553
December 2023
(Unaudited)

BEOWULF MINING PLC

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

AS AT 31 DECEMBER 2023

(Unaudited)31 (Audited)31 December2022
December 2023
£ £
Cash flows from operating
activities
Loss before income tax (2,931,295) (2,041,452)
Depreciation charges 43,276 45,133
Amortisation of right-of 29,478 6,384
-use asset
Loss on disposal of PPE 643 -
Equity-settled share 387,668 240,537
-based payment
Impairment of exploration 350,158 36,988
costs
Finance income (7,924) (176)
Finance cost 197,724 304,806
Grant income (96,750) (84,797)
Gain on sale of - (21,951)
investment
Unrealised foreign 86,637 55,337
exchange
Fair value gain on (6,563) -
investment
(1,946,948) (1,459,191)

Decrease/(increase) in 61,395 (36,535)
trade and other
receivables
Decrease in trade and (277,400) (43,827)
other payables
Net cash used in (2,162,953) (1,539,553)
operating activities

Cash flows from investing
activities
Purchase of intangible (2,308,473) (1,536,674)
assets
Purchase of property, (4,851) (34,397)
plant and equipment
Payments for improvements (33,121) -
of right-of-use assets
Proceeds from disposal of - 21,951
investments
Interest received 7,923 176
Grant receipt 96,750 84,797
Grant repaid - (39,849)
Net cash used in (2,241,772) (1,503,996)
investing activities

Cash flows from financing
activities
Proceeds from issue of 4,373,056 -
shares
Payment of share issue (704,587) -
costs
Lease principal paid (23,201) (6,347)
Lease interest paid (2,420) (264)
Proceeds from borrowings - 1,554,381
Interest paid - (10)
Net cash generated from 3,642,848 1,547,760
financing activities

Decrease in cash and cash (761,877) (1,495,789)
equivalents
Cash and cash equivalents 1,776,556 3,336,134
at beginning of year
Effect of foreign (109,124) (63,789)
exchange rate changes

Cash and cash equivalents 905,555 1,776,556
at end of year

BEOWULF MINING PLC

CONDENSED COMPANY CASH FLOW STATEMENT

AS AT 31 DECEMBER 2023

(Unaudited)31 (Audited)31 December2022
December 2023
£ £
Cash flows from operating
activities
Loss before income tax (2,959,228) (1,372,662)
Expected credit losses 1,001,537 5,336
Equity-settled share 321,534 173,344
-based payments
Depreciation 233 278
Loss on disposal of PPE 643 -
Finance income (7,655) (170)
Finance cost 195,304 304,529
Gain on disposal of - (21,951)
investment
Unrealised foreign 86,636 55,337
exchange
Fair value gain on (6,563) -
investment
(1,367,559) (855,959)

Decrease/(increase) in 4,129 (12,099)
trade and other
receivables
(Decrease)/increase in (88,052) 101,779
trade and other payables
Net cash used in (1,451,482) (766,279)
operating activities

Cash flows from investing
activities
Loans to subsidiaries (2,757,112) (909,975)
Financing of subsidiary (250,000) (1,200,000)
Interest received 7,655 170
Grant repaid - (39,849)
Purchase of fixed assets (1,006) -
Proceeds from disposal of - 21,951
investments
Net cash used in (3,000,463) (2,127,703)
investing activities

Cash flows from financing
activities
Proceeds from issue of 4,373,056 -
shares
Payment of share issue (704,587) -
costs
Proceeds from borrowings - 1,554,381
Net cash generated from 3,668,469 1,554,381
financing activities

Decrease in cash and cash (783,476) (1,339,601)
equivalents
Cash and cash equivalents 1,667,840 3,075,741
at beginning of year
Effect of foreign (89,455) (68,300)
exchange rate changes

Cash and cash equivalents 794,909 1,667,840
at end of year

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM

FOR THE TWELVE MONTHS TO 31 DECEMBER 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 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 twelve months ended 31 December 2022 is audited. The audit of the financial information for the year ended 31 December 2023 is currently being completed.  The auditor's report on the statutory financial statements for the year ended 31 December 2022 was unqualified but it 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.

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. 

On 16 February 2024, the Company announced its intention to conduct a preferential rights issue of SDRs in Sweden and a UK retail offer of ordinary shares and partially secured capital raise up to approximately SEK 100 million (approximately £7.5million).  The rights issue is underwritten to maximum value of SEK 50 million, subject to customary adjustments.

Therefore, at the date of this report, the Directors were confident that the Group would be able to raise sufficient capital to fund the Group's key projects and investments.

3. Finance cost

(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 12 months 12 months
ended ended ended ended
Group 31 December 31 31 December 31 December 2022
2023 December2022 2023

Bridging loan - 158,499 195,304 304,529
amortised
interest
Lease liability 1,823 60 2,420 267
interest
Other interest - - - 10
paid
1,823 158,559 197,724 304,806

(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 12 months 12 months
ended ended ended Ended
Parent 31 December 31 31 December 31 December 2022
2023 December2022 2023

Bridging loan - 158,499 195,304 304,529
amortised
interest
- 158,499 195,304 304,529

4. Loss per share

Basic and diluted loss per share

The calculation of basic and diluted loss per share is based on the loss attributable to equity holders divided by the weighted average number of shares in issue during the period.

The loss incurred by the Group and the Parent means that the effect of any outstanding warrants and options would be considered anti-dilutive and is ignored for the purposes of the loss per share calculation.

(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 12 months 12 months
ended ended ended ended
Group 31 December 31 31 December 31 December
2023 December2022 2023 2022
Loss for the (528,676) (723,801) (2,857,345) (1,948,459)
Period/year
attributable
to shareholders of
the Company (£'s)
Weighted average 1,157,187,463 831,710,636 1,084,958,359 831,710,636
number of ordinary
shares
Loss per share (p) (0.05) (0.09) (0.26) (0.23)
Parent
Loss for the (562,014) (390,201) (2,959,228) (1,372,662)
Period/year
attributable
to shareholders of
the Company (£'s)
Weighted average 1,157,187,463 831,710,636 1,084,958,359 831,710,636
number of ordinary
shares
Loss per share (p) (0.05) (0.05) (0.27) (0.17)

5. Share capital

(Unaudited)31 December 2023 (Audited)
31 December 2022
£ £
Allotted,
issued and
fully paid
Ordinary shares 11,571,875 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 year -
Balance at 31 December 2022 831,710,636
Issued during the year 325,476,827
Balance at 31 December 2023 1,157,187,463

During the year, the Company raised £6,909,598 (approx. SEK 80 million) before expenses. Net proceeds were used to repay bridge loan financing of £2,038,433. Shares were issued in lieu of cash for issue costs totalling £498,109. Therefore, the Company received net proceeds of £4,373,056.

6. Share based payments

During the year ended 31 December 2023, 12,250,000 options were granted (2022: 23,250,000). The options outstanding as at 31 December 2023 have an exercise price in the range of 1.00 pence to 7.35 pence (2022: 1.00 pence to 5.25 pence) and a weighted average remaining contractual life of five years, 294 days (2022: 7 years, 98 days).

The share-based payments expense for the options for the year ended 31 December 2023 was £387,668 (2022: £240,537).

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 options 12,250,000 20,750,000 2,500,000 9,250,000
Fair value at grant date 0.52p 3.12p 3.59p 1.15p
Share price 1.68p 4.00p 4.00p 5.65p
Exercise price 2.06p 5.25p 1.00p 7.35p
Expected volatility 55.2% 100% 100% 51.89%
Expected option life 2.5 years 6 years 6 years 2 years
Risk free interest rate 4.800% 4.480% 4.520% 0.718%

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 Number Weighted Number Weighted average
of average exercise
options in exercise price(£'s)
issue price(£'s)
2023 2023 2022 2022

Outstanding at 32,500,000 0.055 13,750,000 0.089
1
January
Granted during 12,250,000 0.021 23,250,000 0.048
the year
Lapsed during - - (4,500,000) 0.120
the
year
Outstanding at 44,750,000 0.046 32,500,000 0.055
31
December
Exercisable at 37,250,000 0.042 11,750,000 0.060
31
December

7. Intangible assets: Group

Exploration assets Other intangibleassets Total
Net book value £ £ £
As at 31 December 13,002,465 - 13,002,465
2022 (Audited)
As at 31 December 14,797,833 75,493 14,873,326
2023 (Unaudited)

Exploration (Unaudited)As at (Audited)As at 31 December2022
costs 31 December  
2023
£ £
Cost
At 1 January  13,002,465 11,235,656
Additions for 2,232,694 1,536,674
the year - cash
Additions for 98,208 314,272
the year - non
-cash
Foreign exchange (185,376) (47,149)
movements
Impairment (350,158) (36,988)
Total 14,797,833 13,002,465

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

(Unaudited)As at (Audited)As at 31 December 2022
31 December2023
£ £
Project Country
Kallak Sweden 9,481,130 7,666,563
Ågåsjiegge Sweden - 7,718
Åtvidaberg Sweden - 358,694
Pitkäjärvi Finland 1,667,854 1,641,836
Rääpysjärvi Finland 174,060 148,430
Karhunmäki Finland 55,935 56,089
Luopioinen Finland 4,812 4,257
Emas Finland 41,693 1,663
Shala Kosovo 164,779 -
Mitrovica Kosovo 2,527,239 2,430,150
Viti Kosovo 680,331 687,065
14,797,833 13,002,465

Total Group exploration costs of £14,797,833 are currently carried at cost in the financial statements. Impairment of £350,158 has been recognised during the Period for the projects relating to Ågåsjiegge Åtvidaberg (2022: £36,988 in project Merivaara).

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 is 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 31 December 2023 as an intangible exploration licence with a carrying value of £9,481,130. 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 (Unaudited)As at (Audited)As at 31 December2022
intangible 31 December  
assets 2023
 £ £
Cost
At 1 January  - -
Additions in 75,779 -
the year
Foreign (286) -
exchange
movements
Total 75,493 -

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.

8. Borrowings

(Unaudited) (Audited)
As at 31 December2023 As at 31 December2022
£ £

Opening balance 1,845,947 -
Funds advanced - 1,554,381
Finance costs 195,304 304,529
Effect of foreign exchange (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"). 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 £2.04 million was repaid via a deduction to the gross proceeds from the Capital Raise in March 2023.

9. Post balance sheet events

On 16 February 2024, in conjunction with the Rights Issue, the Company has entered into a short-term loan agreement with the Underwriters to provide SEK 10 million to ensure the Company has sufficient financial resources to continue advancing its projects over the coming weeks. The loan carries an interest charge of 1.5 per cent per month and has a commitment fee of 5 per cent. If the loan and accrued interest is not repaid by maturity date, at the latest, the creditors have the right to offset a minimum of SEK 1 million at a time of the loan and accrued interest into SDRs at a price per SDR calculated with a 15 per cent discount on the volume weighted average price of the SDR during the preceding 5 trading days to the conversion decision. In case of default, the loan will accrue additional default interest of 2.5 per cent per month.

10. Availability of announcement

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 201 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 **