BHR.L Regulatory News (BHR)

Beacon Hill Resources plc / Ticker: BHR / Index: AIM / Sector: Mining

24 June 2010

Beacon Hill Resources Plc ('Beacon Hill' or 'the Group')

AGM Statement

Beacon Hill Resources Plc (AIM: BHR), the AIM listed resource company, is pleased to announce that at its Annual General Meeting to be held today the following update will be given by the chairman of the meeting.

"We are pleased to update shareholders on our progress since our last annual general meeting. Over the course of the past twelve months we have implemented a new strategy for the Group, to develop a portfolio of projects to capitalise on the robust steel production industry. In line with this new strategy we have made two key acquisitions, providing us with an operating coal mine in the emerging coal region of Tete in Mozambique and a significant magnesite deposit in Tasmania, Australia."

Minas Moatize

Our most recent acquisition is the Minas Moatize coal mine in the globally significant coking coal region of Tete in Mozambique. The Minas Moatize mine will provide the Group with exposure to the lucrative coking coal market, which we believe will be amongst the most highly sought commodities in the world over the next decade and beyond. Coupled with this expected growth in demand, the Tete region is one of the largest undeveloped coking coal regions in the world, creating a strong foothold for Beacon Hill as owners of the only producing mine.

We have made rapid progress at the Minas Moatize project, with our initial focus on the refurbishment work which has recently been completed on the underground mine, which will see production increased from approximately 2,500 tonnes per month to approximately 8,000 tonnes per month. This is in addition to excavation work which is intended to increase production by an additional 120,000 tonnes over the next twelve months. The objective with this current work is to increase production and cash flow in the short term; however the Group remains focussed on establishing a much larger open cast operation, capable of producing approximately 2Mtpa saleable coal from 4Mtpa ROM starting in 2012.

Tasmania Magnesite

Since acquiring Tasmania Magnesite NL in October last year, we have laid the foundations for our development campaign with the objective of commencing production at the Arthur River magnesite project by the end of 2011. The first stage of this development programme was the application for a mining lease, which was submitted in December 2009. I am pleased to inform you that all of the relevant documentation has now been supplied to Mineral Resources Tasmania and the application process is now in its final stages.

In tandem with the application of a Mining Lease, Beacon Hill has made solid progress with the Development Proposal and Environmental Management Plan at the Arthur River project. In addition to this development work, we are also planning a further exploration and drilling programme to provide further uplift from the upgrading of the current measured and inferred resource of 39 million tonnes.

Board

Following the successful completion these two acquisitions and the transformation of the Group into an owner and operator of producing assets, Rahul Singh and Geoffrey Chalmers, non-executive directors have decided to step down from the board to focus on their other business interests. Mr Singh and Mr Chalmers will therefore not offer themselves for re-election at today's Annual General Meeting and step down at the conclusion of the meeting.

The Board would like to offer our sincere thanks to both Rahul and Geoffrey, who have been instrumental in guiding the Group over the last year and will continue to be available to advise the Group. The Board wish them well in their other business interests.

The Group will be seeking to appoint new experienced non-executive directors over the coming months.

Justin Lewis, Executive Chairman commented: "The past year has been tremendously exciting for the Group and we remain confident that Beacon Hill has the ability to generate healthy returns for our investors. We now have a defined approach to investment and development which I believe will maximise the value of our growing portfolio of assets in commodities relating to the steel industry. I would like to take this opportunity to particularly thank Rahul Singh and Geoffrey Chalmers who have been instrumental in the recent development of the Group and also thank our shareholders for their continued support and reiterate my confidence in Beacon Hill's determination to further build on its successes over the coming year."

**ENDS**

For further information on the Group, visit: www.bhrplc.com or contact: