Option Agreement Signed

Beowulf Mining PLC
10 August 2005


                               BEOWULF MINING PLC

                                  News Release

         Goldfields Granted Rights of First Refusal on Ballek Licences.

London 10 August 2005: The directors of Beowulf Mining plc ('Beowulf') have
granted Gold Fields Exploration B.V. ('Gold Fields') the right of first refusal
for three months to Joint Venture on the Ballek 2 and 3 licences exploration
permits in the Arjjeplog region of Norrbotten, Northern Sweden.

The Ballek licences cover 78 square kilometres. The three month term of the
agreement gives Gold Fields the right to assay drill core previously drilled by
the Geological Survey of Sweden, conduct geological investigations and enter
previous work into a geological data base. All results will be given to Beowulf.

During the three months Gold Fields will have the right to negotiate a full form
agreement, and will have the right to match any other offer made to Beowulf for
a Joint Venture over the Ballek licences.

The directors of Beowulf accept responsibility for this announcement.

For further information contact :-

Dr Robert Young, Beowulf Mining plc Tel. [phone]

Mr Gavin Burnell, Ruegg & Co. Ltd Tel. [phone]

Mr Gary Middleton, St. Swithins PR Tel. [phone]

Mr. Nick Bealer, King & Shaxson Tel. [phone]




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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