BHR.L Regulatory News (BHR)

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

19 May 2010

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

Drilling Work Commences at Minas Moatize Coal Project in Tete, Mozambique

Beacon Hill Resources Plc (AIM: BHR), the AIM listed resource company, is pleased to announce the commencement of an extensive drilling and testing programme at the recently acquired Minas Moatize coal mine in the Tete Province of Mozambique. The Minas Moatize coal mine, which was acquired by BHR Mining Limited ('BHR Mining'), Beacon Hill's 49% owned associate and in which the Group has an option giving exclusive right to increase its interest to 75%, is the only operating mine in the globally significant coking coal region of Tete. This drilling programme is designed to expand and further define the current 33 million tonne resource, in addition to enabling mine design and the finalisation of the coal handling and preparation plant ('CHPP') design.

Beacon Hill Executive Chairman Justin Lewis said, "The commencement of exploration work at Minas Moatize is an important development in our overall strategy to maximise the value of our interest in this project. Importantly, the Minas Moatize mine is currently producing thermal coal for domestic markets, providing us with immediate cash flow, facilitating the continued upgrading and refurbishment of the mine and thus enabling a significant increase in coal production in the near term. In addition to this, we will continue with our development programme in order to upgrade and expand our JORC compliant resource, providing further uplift and crystallising value for our shareholders."

BHR Mining has initiated a development programme with drilling at 250 metre intervals to bring the entire resource category to measured status, prove expected additional resources and allow mine planning to be conducted with increased certainty. Drill holes will be placed close to the proposed western boundary to accurately define the boundary and close off the western extent of the resource.

BHR Mining intend to drill five fully cored drill holes inclined at 45 degrees to the east, designed to intersect any minor dykes or faults that may not have been detected to date by previous drilling programmes. Three holes will be drilled through the Chipanga Seam into the Sosapinto seam 20 metres below the Chipanga Seam to prove additional reserves. Should the holes drilled into the Sosapinto Seam intersect coal, 200mm holes will be drilled at two of the sites to obtain sufficient core for a full evaluation of the washability properties of the two seams and complete full testing and analysis of the coking coal properties.

Resource Drilling Mozambique has been selected to complete the drilling programme and GAP Geophysics from South Africa has been appointed to record detailed logging of the holes. Mr. Hennie Davel, a geologist with experience in the Moatize Basin, has been appointed as the geologist to lead the exploration programme. The core samples will be tested at the ACIRL laboratories in either South Africa or Australia.

**ENDS**

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