BHR.L Regulatory News (BHR)

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

9 September 2010

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

Amendment to Subscription Agreement

Beacon Hill Resources plc (AIM:BHR), the AIM listed resource group, announces that further to the announcement on 19 July 2010 regarding an investment into its subsidiary BHR Mining Limited ('BHR Mining') by Global Minerals and Metals Pte Limited, the parties have agreed to extend the subscription date to on or before 24 September 2010 in order to finalise documentation relating to the investment.

A further announcement will be made upon completion of the subscription.

Contacts

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

Background

BHR Mining, a joint venture between Beacon Hill and Consolidated Minerals, entered into an agreement to acquire the Minas Moatize Mine ('the Mine') and take management control in April 2010. Since the acquisition of the Mine, BHR Mining has commenced a development programme to develop the Mine into a larger open pit operation to produce both coking and thermal coal for export markets. The Group has developed a plan which will allow the mining of up to 2Mtpa of saleable coal.

The investment by Global Coke Limited ('Global Coke'), through its subsidiary Global Minerals and Metals Pte Limited ('GMM'), is a key step in the development of the Mine and through the partnership with both Consolidated Minerals and Global Coke, the Group gains funding to develop the Mine, and potentially a buyer for the coking coal produced. BHR Mining also gains access to world class expertise on the manufacture of metallurgical coke and access to long standing relationships with major steel producers.

Agreement

Beacon Hill and BHR Mining have entered into a subscription agreement ('the Agreement') with Consolidated Minerals, Global Coke and GMM,, pursuant to which GMM has agreed to subscribe for 26% of BHR Mining for a cash consideration, subject to a minimum of US$55 million, equal to 26% of the net present value of the Mine to be determined by an expert. Pursuant to the amended Agreement, the subscription will take place now later than 24 September 2010.

Notes

Beacon Hill Resources Plc (AIM:BHR) is an AIM listed resource company focussed on the acquisition and development of assets in commodities relating to the steel production industry.

The Group currently has two primary assets:

·; Minas Moatize Coal Mine in Tete, Mozambique

BHR Mining Limited owns the Minas Moatize coal mine, the only operating mine in the globally significant coking coal region of Tete, Mozambique. Since acquiring the mine in April 2010, the Group has made strong progress towards ramping up production with a focus on establishing a large open cast operation, capable of producing approximately 2Mtpa saleable coal.

BHR Mining is a joint venture between Consolidated Minerals, Global Coke Limited and Beacon Hill. The recently announced strategic investment by Global Coke values BHR Mining at US$210 million; following this investment Beacon Hill will own approximately 50% of BHR Mining. BHR Mining has an agreement to enter into an off-take agreement with Global Coke to purchase all the coking coal produced by the mine over its life at a price referenced to market rates from the mine gate.

·; Tasmania Magnesite NL, Tasmania

In October 2009 the Group acquired Tasmania Magnesite NL, which owns the Arthur River and Keith River magnesite projects in north-west Tasmania. The Group's initial focus is on the Arthur River project, which is the third largest recorded magnesite deposit in Australia, with a JORC compliant measured and inferred resource of 39 million tonnes of magnesite.

The Group was recently granted a Mining Lease on the Arthur River project, and is now working towards production.

**ENDS**