PRESS RELEASE 21st February 2005

CHAIRMAN'S STATEMENT

Your Company can look back with considerable satisfaction on the year 2004 which brought important exploration success on the Jokkmokk and Grundtraesk areas in Northern Sweden. This at a time when world commodity prices have been increasing relentlessly in the face of rising demand foreseen from the newly-emerging industrial nations of China and India. As a result Sweden, with favourable fiscal legislation for mining and exploration companies, is experiencing a major exploration boom for metals. Many of the world's major mining companies are actively exploring or reappraising Sweden's established mineral areas, as are a host of junior companies. Your Company's active interest and involvement in Sweden has thus proven timely and successful. Shareholders can rest assured that we enjoy warm relations with the national and local mining authorities, and that your Company is well recognised by the local populace.

A world class drill intersection (110 metres of 0.82% copper equivalent) was obtained on the Majves 1 exploration permit, Jokkmokk area in Northern Sweden. Over the Jokkmokk permits, which cover 82 square kilometres, Beowulf has signed a Joint Venture Agreement with Phelps Dodge Exploration Sweden AB ("Phelps Dodge"). Under the terms of this agreement, Phelps Dodge will have the right to earn up to 80% (eighty per cent) ownership of any deposit by funding all exploration and development costs to the level of a full ("bankable") feasibility study on any deposit found. Following a decision to proceed to development Beowulf will have to fund its own share of development costs to retain its interest or revert to a 1.5% Net Smelter Return. Phelps Dodge Exploration AB Sweden is a subsidiary of the Phelps Dodge Corporation, which together with its subsidiaries, is one of the world's leading producers of copper and molybdenum.

During 2004, the Phelps Dodge Joint Venture conducted drilling and mobile metal ion geochemistry over the Majves 1 claim. So far in 2005 the Joint Venture has commenced drilling an initial 1500 metres at seven sites. If the drill results are positive additional drilling will be undertaken. It is hoped that a major Iron Oxide Copper Gold (IOGC) deposit will be outlined in 2005.

In the Grundtraesk area Beowulf has the mineral rights to 43 square kilometres, which are 100% owned by the Company. Beowulf have completed nine drill holes, three of which have been drilled in February 2005 and assay results will be announced within six weeks. The six holes drilled in 2003 and 2004 have located gold with potentially economic mineralization of over 1 gram per ton, which your Board consider to be highly promising. The new holes were drilled in an area where mineralised boulders of copper and gold correspond to geophysical induced polarization (IP) anomalies.

In January 2005 three new exploration permits, Ussalahti 1, 2 and 3 covering about 10 square kilometres to the North of Kiruna town, Northern Sweden were identified and our applications granted. These licences are prospective for massive sulphide copper and gold deposits, and their acquisition was thus a significant accomplishment. Confidentiality Agreements with a North American major company and a British company have already been signed with a view to concluding a Joint Venture over these permits.

On 22 March 2004 Beowulf sold the exploration rights for platinum on the Sandison's Property on the Isle of Unst, Shetland Islands in exchange for 7,500,000 shares in Agricola Resources PLC ("Agricola"), plus a royalty on production of US$1 per ounce of platinum produced. Agricola has conducted an active exploration program over the property, indicating areas where reserves with potential economic grades of Platinum Group Metal exist. Local Shetland people and organisations are very positive about potential developments on Unst.

On 24 March 2004 Mr Anthony Scutt joined the Board of Directors as a Non Executive Director. On 13 August 2004 Beowulf changed its Corporate Adviser to Ruegg & Co Limited ("Ruegg"). On 26 January 2005 Ruegg were appointed as Nominated Adviser ("Nomad") for our planned application for the Company's shares to be traded on AIM. Phillip Securities (UK) Limited was also appointed on 31 January 2005 to become Broker to Beowulf for the purposes of AIM.

With regard to finance and corporate development your Company, at the time of writing, remains debt free with approximately GBP190,000 in cash balances which your board consider ample for our present and short term needs.

Market sentiment has improved and opportunities that we have are now more widely known, so we now plan for an AIM listing to be completed during the second quarter of 2005. As part of this process, it is proposed to change the name of the Company to Beowulf Mining PLC in order to reflect the fact that its exploration interest, include other minerals (primarily copper) in addition to gold deposits. It is also proposed to adopt new articles of association in order to ensure that the Company's constitution reflects current best practice ahead of the planned move to AIM. The two main changes to the articles of association are the inclusion of provisions governing holding and the transfer of the Company's shares in uncertificated form (eg. Under the CREST system) and the inclusion of provisions governing electronic communications between the Company and its members. In order to effect these proposals, shareholder resolutions will be proposed at the forthcoming annual general meeting. A full print of the proposed new articles of association is included with this report. I would ask you to join your board in supporting these resolutions in order to put your Company in the best possible position to proceed to the next stage of its development.

We will also be exploring the possibilities for later broadening our shareholder base, with a view to creating a new security that could appeal especially to Swedish investors, now seeking to invest directly in our activities.

In concluding on this optimistic note, I would like to take this opportunity to thank our shareholders and the many companies who have assisted in our development over the last year, and I look forward to issuing shareholders further updates on our progress and plans in the coming months.

Robert Young
Chairman

21 February 2005

The directors of Beowulf accept responsibility for this announcement.

For further information please contact;

Dr Robert Young Chairman, Beowulf Gold PLC bob.young@beowulf-gold.com	Gary Middleton Matt Scuffam St Swithin’s Public Relations
+44 (0) 1353 649 701	+44 (0) 207 429 4391
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The profit and loss account has been prepared on the basis that all operations are continuing operations.

There are no recognised gains and losses other than those passing through the profit and loss account.

BEOWULF GOLD PLC BALANCE SHEET AS AT 31 DECEMBER 2004

INDEPENDENT AUDITORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2004

We have audited the financial statements of Beowulf Gold Plc on pages 5 to 15 for the year ended 31 December 2004. These financial statements have been prepared under the historical cost convention and the accounting policies set out therein.

This report is made solely to the company's members, as a body, in accordance with Section 235 of the Companies Act 1985. Our work had been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors report and for no other purposes. To the fullest extent permitted by law, we do not accept of assume responsibility to anyone other than the company and the company's members as a body, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF THE DIRECTORS AND AUDITORS

As described in the statement of directors' responsibilities on page 2 the company's directors are responsible for the preparation of the financial statements in accordance with applicable law and United Kingdom Accounting Standards.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards.

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the directors' report is not consistent with the financial statements, if the company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors' remuneration and transactions with the company is not disclosed.

We read the directors' report and consider the implications for our report if we become aware of any apparent misstatements within it.

BASIS OF AUDIT OPINION

We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An Audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

OPINION

In our opinion the financial statements give a true and fair view of the state of the company's affairs as at 31 December 2004 and of its loss for the year then ended and have been properly prepared in accordance with the Companies Act 1985.

Price Bailey
Chartered Accountants
REGISTERED AUDITOR
Richmond House
Broad Street
Ely, Cambs.

21 February 2005