BHR.L Regulatory News (BHR)

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

11 April 2011

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

Appointment of Contractors to Complete DFS and Design

at Minas Moatize Coal Mine

Beacon Hill Resources Plc (AIM: BHR), the AIM listed resource company, is pleased to announce that it has signed a Heads of Agreement with Basil Read (pty) Limited ('Basil Read') to appoint TWP Australia Pty Limited ('TWP'), a subsidiary of Basil Read, to complete the Definitive Feasibility Study ('DFS') and finalise the design of the mine and Coal Handling and Preparation Plant ('CHPP') at the Minas Moatize coal mine in Tete, Mozambique ('Minas Moatize'). This appointment is in line with the Group's rapid development plans for the mine and its objective to commence mining from the main open pit in January 2012.

Overview

·; TWP appointed to complete the DFS and finalise the mine and CHPP design at Minas Moatize

·; TWP is part of the Basil Read (pty) Limited ('Basil Read') group, which is the fifth largest construction firm in southern Africa and has extensive experience in open pit projects such as Minas Moatize

·; Following completion of the DFS, Basil Read will be appointed as principal mining contractor for the 4Mtpa run of mine ('ROM') and CHPP on a BOOT (build, own, operate and transfer) basis

·; Production from the underground mine continuing - currently selling to domestic markets and stock-piling ahead of first export shipment

Beacon Hill Executive Chairman Justin Lewis said, "I am delighted to announce this next significant milestone regarding the development of the Minas Moatize mine, as we progress towards our objective of mining from the main open pit in January 2012. Having completed the drilling programme and constructed the geological model, we are now in a position to finalise the DFS, including the design of the CHPP and mine.

"Basil Read and its subsidiary TWP are well recognised and highly respected mining contractors and engineers, and have all the requisite skills to ensure the value and production of Minas Moatize is maximised. We continue to make solid progress in all aspects of our development of Minas Moatize, and the Group remains on course for its maiden export of coal in Q2 2011."

About Basil Read

Basil Read is a major South African construction, mining and engineering company that has provided services throughout southern Africa for more than half a century.

Basil Read's mining division incorporates the group's opencast mining operations and drilling and blasting activities, housed in subsidiary Blasting & Excavating (Pty) Limited.

Basil Read Mining specialises in opencast contract mining; mine spoils rehabilitation; bulk earthmoving; thin, thick and multiple seam mining, hard-rock selective mining and materials handling. B&E provides drilling and blasting services to the southern African construction, quarrying and mining industries. It is the largest company of its kind and the major user of explosives in these industries in the region. Basil Read Mining has operated medium and long-term contracts for gold, platinum, nickel, iron, diamond and coal mining clients across Africa, using the latest operating equipment and innovative mining techniques to satisfy their evolving needs.

TWP Mining Projects provides geological, mining and processing consulting expertise in a range of specialist areas including exploration, resource estimation, mining engineering, mine design and scheduling, process plant design as well as mine economics and financial valuation. The DFS work for Minas Moatize will be completed at their offices in Perth, Australia.

**ENDS**

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

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 - the Minas Moatize Coal Mine in Tete, Mozambique and Tasmania Magnesite NL in Tasmania.