Final Results

BEOWULF MINING PLC CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2007 The Board of Beowulf Mining PLC ("Beowulf") is pleased to present the report and accounts for the year ending 31 December 2007. Beowulf has six projects in Northern Sweden prospective for copper, gold, uranium and iron. Drilling has taken place, since the last Annual Report, on the GrundtrÃ¤sk gold project and the Ballek iron oxide copper gold uranium deposit. The results show that Beowulf made a loss of GBP362,638 in 2007 as compared to a loss of GBP318,276 in 2006. This was due to increased expenditure on drilling. Since 31 December 2006 the Company's cash reserves have been increased by the following developments: i) On 24 July 2007 Beowulf signed a convertible loan agreement with Starvest Plc. The loan is for GBP250,000 and bears interest at 4% per annum and is convertible in to new ordinary shares of Beowulf at 4p per share at any time prior to 31 July 2012 at the option of Starvest Plc. ii) On 16 August 2007 Beowulf placed 8,000,000 new ordinary shares at a price of 4.25p each raising the gross sum of GBP 340,000, arranged by Loeb Aron & Company Ltd. The issue was together with 400,000 warrants exercisable for two years at 6p per warrant. iii) On 31 March 2008 Mrs Carole Rowan exercised 4,100,000 warrants at 1p per share, Mr. Edward Taylor exercised 250,000 warrants at 1p per share, and Miss Eleanor Poulton exercised 2,000,000 warrants at 1p per share, raising GBP63,500. On 31 May 2007 Beowulf signed a joint venture with Agricola Resources Plc ("Agricola") under which Agricola may earn a 51% interest in the Ballek copper-gold-uranium exploration permits that cover 110 square kilometres in the Arjeplog municipality, Northern Sweden. To earn this interest Agricola must complete ground geophysics and 3,000m of diamond drilling on the Ballek tenements prior to 31 December 2008. Agricola can increase its equity share to 70% through sole funding a further exploration program totaling USD500,000. On the 22 February 2008 Alexander David Securities Limited was appointed as sole broker to the Company. On the 31 March 2008 Beowulf announced that it had signed a connection agreement with AktieTorget AB (www.aktietorget.se).The agreement offers a facility for Beowulf's shares to be traded in Sweden as Depository Notes. It is intended that shareholders in Beowulf will be able to deposit their shares with Skandinaviska Enavilda Banken AB, via a London Bank, against the issue of depository notes which will be traded on the Swedish AktieTorget Market. Future Swedish investor demand for Beowulf shares could lead to new issues of shares through this facility. During 2007 diamond drilling was undertaken on the GrundtrÃ¤sk area, in the Skellefte Mining District, where the Company has three licences. Drilling by Beowulf has defined gold mineralization over a "Central Mineralised Zone" of 800 meters with grades of about 1 gram per tonne of gold. Mathematical modelling, geophysical surveys and uranium prospecting was undertaken by Agricola Resources PLC under terms of the Joint Venture Agreement with Beowulf on the four Ballek licences. In early 2008 a diamond drilling programme was started on these Ballek licences. We were unable to find a suitable drilling rig in 2007 for the titanium iron Ruoutevare project, but it is anticipated that the drilling campaign will begin in 2008. The dramatic increase in the price of iron ore fines in 2008 has focussed attention on all the iron ore projects in Sweden and the economic case for the exploitation of the Ruoutevare project has become stronger. Developments are expected during 2008 which shall be reported to shareholders in due course. The share price of Beowulf has under-performed in 2007 and the early part of 2008 and the Directors will work hard during the remainder of 2008 to increase the value of its exploration and development assets and will report regularly on the very active exploration programmes currently in progress. REVIEW OF OPERATIONS Sweden Beowulf currently holds 14 exploration permits in Northern Sweden as tabulated below. Name of licence Size Valid Valid (km2) from until Arjeplog Region: Ballek 2 38.0 2005-04-21 2009-04-21 Ballek 3 37.9 2005-05-24 2009-05-24 Ballek 4 22.0 2005-09-29 2009-09-29 Ballek 5 12.0 2007-03-27 2010-03-27 Jokkmokk Region: Majves 1 5.0 2003-04-03 2009-04-03 Majves 2 2.5 2003-06-06 2009-06-06 Kallak 1 5.0 2006-06-28 2009-06-28 Ruoutevare 8.5 2006-03-21 2009-03-21 Skellefte Mining District: GrundtrÃ¤sk 4 20.6 2008-11-12 2011-11-12 GrundtrÃ¤sk 2 15.9 2004-02-13 2009-02-13 GrundtrÃ¤sk 3 6.4 2004-02-13 2009-02-13 Kiruna region: Ussalahti 1 4.6 2005-01-26 2009-01-17 Ussalahti 2 2.6 2005-01-26 2009-01-26 Ussalahti 3 2.0 2005-02-17 2009-02-17 Total 183.0 The exploration permits are governed by the Swedish Minerals Act (1991:45), which was subject to amendments in 1993 and 1998. The Act accords that an exploration permit is granted for an initial period of 3 years, and can be subsequently renewed for a further 3 years. A final extension of the permits can be granted for an additional 3 years, after which an application for a mining licence must be made. Further information on the permits can be obtained from the Mining Inspector in LuleÃ¤ (Bergsstaten, Varvsgaten, SE 972 32, LuleÃ¤, Sweden (www.bergsstaten.se). Ballek Joint Venture On 31 May 2007 Beowulf signed a joint venture with Agricola Resources PLC ("Agricola") under which Agricola may earn a 51% interest in the Ballek copper-gold-uranium exploration permits that cover 110 square kilometers in the Arjeplog municipality, northern Sweden. To earn this interest Agricola must complete ground geophysics and 3,000m of diamond drilling on the Ballek tenements prior to 31 December 2008. Agricola can increase its equity interest to 70% through sole funding a further exploration program of USD500,000. The Ballek Project occurs at the intersection of two major fault systems, a WNW trending continental-scale lineament corridor which contains the Skellefte Mineral Field, and a NNE trending major fault which extends through the giant Kiruna iron-ore district. A prominent gravity anomaly and co-incident magnetic anomaly occurs in the Ballek Project, and there is a known uranium occurrence, Rebraur VÃ¤stra, in the NW tenement. Previous drilling by the Geological Survey of Sweden (SGU) has identified a trend of copper and copper-gold mineralisation along the western part of the project, including a small (non-JORC compliant) mineral resource at the Lulepotten copper-gold deposit. On the basis of the presence of this large co-incident gravity and magnetic anomaly, and known copper, gold and uranium mineralisation, it is considered that the project exhibits significant potential for iron-oxide, copper-gold-uranium mineralisation (IOCG). IOCG systems are highly prized exploration targets due to their potential for large, high-grade deposits containing multiple commodities (usually iron-ore, copper, gold and uranium in varying amounts). Most of the known IOCG deposits are characterised by a few common criteria, including their location along fundamental crustal lineaments and the presence of co-incident gravity and magnetic anomalies. Recent industry experience has shown that this co-incidence of gravity and magnetic anomalies is required in a three-dimensional sense, and that conventional analysis of 2D images of gravity and magnetic data may not be sufficient to identify the best targets. In August 2007, the Joint Venture completed a programme of 3D modelling of the gravity and magnetic data for the district which contains the Ballek Project. The results of this modelling can be viewed in 3D computer software where it is possible to assess the relationship between three-dimensional magnetic bodies and three-dimensional gravity anomalies (representing bodies which are denser than the surrounding rocks). Analysis of the data for the Ballek Project shows that complex magnetic bodies are spatially co-incident with large dense bodies reflected by anomalous gravity readings. Comparison of the location of the known copper and copper-gold deposits in the Ballek Project shows a very good correlation with co-incident gravity and magnetic anomalies. The copper mineralised trend that included the Lulepotten deposit extends along the edge of a co-incident magnetic and gravity anomaly and joins a smaller co-incident pair of anomalies at its southern extent. The mineralisation in the Lulepotten trend was drilled between 1960 and 1971 and does not appear to have been analysed for its uranium content. It comprises disseminated chalcopyrite with abundant bornite, pyrite, chalcocite and iron oxides hosted in potassically altered volcanic rocks adjacent to granitic intrusions. This description is entirely consistent with the IOCG style of copper-gold-uranium mineralisation, lending further support to the Ballek Project. In October 2007, a geophysical program was completed, with a total of 28.75 line-km of ground magnetic data and 20.30 line-km of IP and resistivity data collected by Swedish company GeoVista AB. Interpretation of the IP and ground magnetic survey data by GeoVista AB and by Agricola's geophysical consultants has identified a number of IP anomalies where resistivity highs are also marked by increased IP effect and the presence of magnetic anomalism. A number of such anomalies are also co-incident with the gravity and magnetic anomalies derived from the 3-D inversion modelling, and nine of these have been prioritised for testing by diamond drilling. In January 2008 Agricola commenced a 3,300m diamond drilling programme to test the nine geophysical targets. To date 4 of the holes (1600m) have been completed. Uranium exploration took place focused on the Ballek licences in the 2007 field season, with scintillometer measurements and sampling of boulders and outcrop, over the Rebraur West uranium prospect. Drill holes and refilled trenches from 1980s' exploration were studied and highly radioactive boulders that are proximal to one of the trenches were sampled. The analytical results received show that the uranium content varied from 0.19% to 1.75 % in the boulders that gave the highest scintollometer readings. The boulders are considered remnants of the local bedrock within or close to the trench, which is now refilled. The uranium grade is much higher than original reported levels from bedrock (max 0.07 % of uranium) from the area in 1984. Only background levels of thorium were noted, but high contents of lead are accompanying high levels of uranium. Future studies will include detailed soil grid radon cup surveys in order to define drill targets in the area outside the previously drill-tested zone. The Rebraur West uranium prospect was originally discovered by the Geological Survey of Sweden (SGU) in the early1970s. Limited drilling and trenching outlined a uranium mineralisation at outcrop between 1-8 m wide and extending along several parallel fractures at 150 m but open in both directions along strike. Grades of up to 700 ppm of uranium were reported. The fine-grained uranium minerals occur in an albite-quartz-chlorite host rock, (Gustafsson, B, "Uranium report 1981-8", SGU, Mala, IRAP 84005). Analytical results of these samples are presented below. Uranium Sample No Assay % Thorium % Lead % REB 07 001 0.264 0.004 0.08 REB 07 001b 0.394 0.004 0.10 REB 07 002 1.540 0.004 0.25 REB 07 003 0.192 0.005 0.37 REB 07 003b 0.953 0.005 1.02 REB 07 004 1.75 0.006 0.24 All samples were analysed by ALS Chemex laboratories at Vancouver, Canada. Thirty six elements including uranium, thorium, base metals and gold and silver were determined by ICP- analysis. Samples with high uranium were re-analysed by XRF. The results suggest that a commercial uranium deposit can be located in the Rebraur West area. GrundtrÃ¤sk Gold Project The GrundtrÃ¤sk project is focused solely on gold. It covers 45 square kilometers in the Skellefte Mining District of Northern Sweden. There is little outcrop and the land is currently used for forestry. There is good infrastructure in place, with the area being served by a network of forest roads and benefiting from the main road from Skellefte to MalÃ¤ passing through the licence area. There are no problems with water and electricity with both being available locally. GrundtrÃ¤sk has the potential for a shallow depth gold resource with gold bearing sulphide mineralisation starting at shallow depths of less than 12 metres, ensuring that any deposit will likely be amenable to open pit mining. As a result of recent drilling, which targeted the Southern Gold Structure, the known mineralised corridor has been increased in length by 50 metres to stretch over 800 metres in length. Recent drilling completed in early 2007 and released to the market on 6 June 2007, supports the belief that GrundtrÃ¤sk has the potential to host an economic gold deposit. The most recent drilling programme, completed in 2007, saw 10 diamond drill holes completed on the South Gold Structure. The results indicate the presence of sigmoidal gold bearing structures in the mineralised corridor over a strike length of 800 metres. The drilling returned gold grades of up to 5.2 metres at 4.28 grams per tonne, 4.62 metres at 2.8 grams per tonne, 5.7 metres at 2.53 grams per tonne and 16.9 metres at 1.86 grams per tonne. The results achieved at GrundtrÃ¤sk to date justify further work either by Beowulf solely or in joint venture. Geophysical surveys and diamond drilling are planned for 2008. With gold currently trading close to USD900 per ounce, the directors believe that with further positive drilling results it could take GrundtrÃ¤sk forward to a mineable stage. Ruoutevare Beowulf's Ruoutevare project translates to mean 'iron mountain' and has a non-JORC compliant resource, as verified by Snowden Mining Industry Consultants (Snowden), of 116 million tonnes, grading 38.2% iron, 5.6% titanium dioxide and 0.17% vanadium oxide. Detailed geological mapping has been completed over the exploration concession and indicates that there are two mineralised lens overlying each other. The Directors believe that the mapping suggests that the mineral resource can be increased by further diamond drilling. This drilling is due to start in 2008 and the intention is to make the mineral resource JORC compliant as recommended by Snowden. The drilling will be extended to include ten to twelve extra holes laid out in a cruciform manner with strict geological control and the drilling will continue thereafter in 2008. Beowulf commissioned the Swedish Raw Material Group (RMG) to conduct a scoping study of the economics of development of the Ruoutevare deposit. RMG based its study on the approximate current iron ore and titanium dioxide prices and concluded that at a throughput of 10 million tonnes per year, with trucking the concentrates to the rail head, would yield positive results. The extra drilling to extend the resource estimate, addressing transport issues and subsequent discussions with state bodies off take clients will be factored into the scoping study in 2008, as will the rising cost of iron ore. Jokkmokk The target of the Jokkmokk area is that of an iron oxide copper gold deposit (IOCG). Beowulf has been exploring in the area since 2003 and still retains the Majves 1 and Majves 2 claims. The area was previously the subject of a joint venture with the copper major, Phelps Dodge. Drilling in 2004 intersected 110 metres of 0.42% copper and 0.52 grammes per tonne of gold. Follow up drilling in 2005 was not so successful and Phelps Dodge withdrew from the Joint Venture The exploration logic is that the area is associated with large north-east south-west fracture zones, and similar structures are associated with Boliden's Aitik copper mine. Beowulf is exploring the possibility of conducting further work in the area with another copper major. Other Projects Beowulf has two other projects Ussalahti Copper-Gold and Kallak - Iron Ore. During 2007 only small amounts of work were conducted on the projects. It is intended to carry out additional work in these areas in 2008, especially on the Kallak iron ore project because of the rising price of iron ore. Dr Robert Young Chairman INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2007 2007 2006 GBP GBP CONTINUING OPERATIONS Revenue - - Other operating income 150 250 Administrative expenses (378,775) (338,286) OPERATING LOSS (378,625) (338,036) Finance costs (4,167) - Finance income 20,154 19,760 LOSS BEFORE TAX (362,638) (318,276) Tax - - LOSS FOR THE YEAR (362,638) (318,276) Earnings per share expressed in pence per share: Basic -0.52 -0.50 Diluted -0.42 -0.35 STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE YEAR ENDED 31 DECEMBER 2007 2007 2006 GBP GBP Revaluation of investments 68,319 (204,158) NET INCOME/(EXPENSE) RECOGNISED DIRECTLY IN EQUITY 68,319 (204,158) LOSS FOR THE FINANCIAL YEAR (362,638) (318,276) TOTAL RECOGNISED INCOME AND EXPENSE FOR THE YEAR (294,319) (522,434) BALANCE SHEET 31 DECEMBER 2007 2007 2006 GBP GBP ASSETS NON-CURRENT ASSETS Intangible assets 240,943 232,894 Property, plant and equipment 1,920 2,100 Investments 295,724 227,405 538,587 462,399 CURRENT ASSETS Trade and other receivables 34,426 17,348 Cash and cash equivalents 671,231 495,653 705,657 513,001 LIABILITIES CURRENT LIABILITIES Trade and other payables 20,410 24,984 NET CURRENT ASSETS 685,247 488,017 NON-CURRENT LIABILITIES Financial liabilities - borrowings Interest bearing loans and borrowings 250,000 - NET ASSETS 973,834 950,416 SHAREHOLDERS' EQUITY Called up share capital 745,482 663,982 Share premium 2,597,719 2,361,482 Revaluation reserve 190,724 122,405 Capital contribution reserve 46,451 46,451 Retained earnings (2,606,542) (2,243,904) TOTAL EQUITY 973,834 950,416 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2007 2007 2006 GBP GBP Cash flows from operating activities Cash generated from operations (318,319) (267,006) Net cash from operating activities (318,319) (267,006) Cash flows from investing activities Purchase of intangible fixed assets (93,534) (141,367) Purchase of tangible fixed assets (460) (2,216) Purchase of fixed asset investments - (30,000) Interest received 20,154 19,760 Net cash from investing activities (73,840) (153,823) Cash flows from financing activities New loans in year 250,000 - Share issue 341,500 503,000 Cost of shares issued (23,763) (26,500) Net cash from financing activities 567,737 476,500 Increase in cash and cash equivalents 175,578 55,671 Cash and cash equivalents at beginning of year 495,653 439,982 Cash and cash equivalents at end of year 671,231 495,653 NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2007 1. RECONCILIATION OF LOSS BEFORE TAX TO CASH GENERATED FROM OPERATIONS 2007 2006 GBP GBP Loss before tax (362,638) (318,276) Depreciation charges 86,125 54,623 Finance costs 4,167 - Finance income (20,154) (19,760) (292,500) (283,413) Increase in trade and other receivables (17,078) (991) (Decrease)/Increase in trade and other payables (8,741) 17,398 Cash generated from operations (318,319) (267,006) 2. CASH AND CASH EQUIVALENTS The amounts disclosed on the cash flow statement in respect of cash and cash equivalents are in respect of these balance sheet amounts: Year ended 31 December 2007 31/12/07 1/1/07 GBP GBP Cash and cash equivalents 671,231 495,653 Year ended 31 December 2006 31/12/06 1/1/06 GBP GBP Cash and cash equivalents 495,653 439,982 Cash and cash equivalents consist of cash on hand and balances with banks. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2007 1. INFORMATION The financial information set out in this report, which has been approved by the directors on 2 June 2008 does not constitute the Company's statutory accounts for the year ended 31 December 2007 or 31 December 2006 but is derived from those accounts. Statutory accounts for 2006 have been delivered to the Registrar of Companies and those for 2007 will be delivered following the Company's Annual General Meeting. The auditors have issued an unqualified report in respect of the 2007 accounts. The report and accounts for the year ended 31 December 2007 will be sent to the shareholders shortly. 2.ACCOUNTING POLICIES Reporting entity Beowulf Mining plc is a company domiciled in United Kingdom. The address of the Company's registered office is 1 Green Hill, Little Thetford, Ely, Cambridgeshire, CB7 3HD. The Company primarily is involved in the exploration of copper and gold deposits. Compliance with accounting standards These financial statements have been prepared in accordance with International Financial Reporting Standards and IFRIC interpretations and with those parts of the Companies Act 1985 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention. Basis of preparation This is the first time the Company has prepared its financial statements in accordance with IFRSs, having previously prepared its financial statements in accordance with UK GAAP accounting standards. Details of how the transition from UK accounting standards to EU adopted IFRS has affected the Company's reported financial position, financial performance and cash flows are given in the notes to these accounts. Changes in accounting policies- First-time adoption In preparing these financial statements, the Company has elected to apply the following transitional arrangements permitted by IFRS 1 'First-time Adoption of International Financial Reporting Standards': - There have been no changes to the treatment of the intangible Licences and exploration costs. IFRS 6 'Exploration for and evaluation of Mineral resources' permits that entity to continue to use the accounting policy applied immediately prior to adopting IFRS. Intangible fixed assets - exploration costs Expenditure on the acquisition costs, exploration and evaluation of interests in licences including related overheads are capitalised. Such costs are carried forward in the balance sheet under intangible assets and amortised over the maximum period of the licences in respect of each area of interest where: a) such costs are expected to be recouped through successful development and exploration of the area of interest or alternatively by its sale; b) exploration activities have not yet reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active operations in relation to the areas are continuing. An annual impairment review is carried out by the directors to consider whether any exploration or development costs have suffered impairment in value and whether necessary provisions are made accordingly. Accumulated costs in respect of areas of interest that have been abandoned are written off to the profit and loss account in the year in which the area is abandoned. Exploration costs are carried at the lower of cost and net realisable value. Property, plant and equipment Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Plant and machinery - 25% on reducing balance Investments Fixed asset investments are stated at open market value. The revaluation adjustment is taken to the revaluation reserve. Taxation Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the balance sheet date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Foreign currencies Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. Share-based payment transactions Where equity settled share options are awarded to employees, the fair value of the options at the date of grant is charged to the income statement over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of all options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether market vesting conditions are satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition. Where terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to the income statement over the remaining vesting period. Where equity instruments are granted to persons other than employees, the income statement or share premium account if appropriate, are charged with the fair value of goods and services received. 3. EARNINGS PER SHARE Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares of 69,466,329 (2006 - 63,570,576) outstanding during the period. Diluted earnings per share is calculated using the weighted average number of shares of 86,173,497 (2006 - 91,209,358) adjusted to assume the conversion of all dilutive potential ordinary shares. Contact: Dr. Robert Young, Chairman, Beowulf Mining Plc +44 (0)1353 649 701 Gavin Burnell, Ruegg & Co Limited +44 (0)207 584 3663 David Scott / Nick, Bealer Alexander David Securities Limited +44 (0)207 448 9800 Gary Middleton, St. Swithins PR Ltd 07951 603 289

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