BHR.L Regulatory News (BHR)

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

1 November 2011

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

Issue of Equity: Loan Note Conversion

Beacon Hill Resources Plc, the AIM listed resource company, has today issued 100,000,000 new ordinary shares of 0.25 pence each ('Ordinary Shares') to Africa Investment SUB3 Limited ('Africa Investment'), an entity connected to Renaissance Partners Investment Limited ('RPIL') following the full conversion at 12.5p per share of the convertible loan notes issued on 30 November 2010 ('Convertible Loan Notes').

Following this conversion, the enlarged issued share capital of the Company, will comprise 971,442,137 Ordinary Shares. There are no other outstanding Convertible Loan Notes issued by the Company.

The Company has made application for the new ordinary shares to be admitted to AIM, which is expected to occur, and dealings in the shares will commence, on 4 November 2011 ('Admission'). The new Ordinary Shares will, when issued, rank pari passu in all respects with the existing Ordinary Shares, including the right to receive any dividends and other distributions declared following Admission.

As a result of the above conversion, RPIL, via subsidiary companies or funds managed by it, is interested in 345,501,405 Ordinary Shares representing 35.57 per cent of the Company's enlarged issued share capital.

The Company is not subject to the UK Code on Takeovers and Mergers ('the Code'), however, it has provisions in its Articles of Association that broadly replicate certain features of the Code. When the Convertible Loan Notes were issued the Board of the Company resolved to waive the requirement, should such an obligation arise, for the holder of the Convertible Loan Notes to make a mandatory offer for any shares it does not already own in the Company as a result of the transfer or conversion of the Convertible Loan Notes. Accordingly, the Board, in accordance with its powers under the Articles, has confirmed its resolution to waive any requirement for Africa Investment or any entity connected with it, including RPIL, to make a mandatory offer as a result of the acquisition or conversion of the Convertible Loan Notes.

Justin Lewis, Chairman of Beacon Hill, commented, "I am pleased to note the continued support from our major shareholder Renaissance Partners, following the acquisition and conversion of this loan note. All outstanding loan notes issued by the Company have now been exercised. Development of the Company's main project, the Minas Moatize coal mine, continues apace, with production continuing from our initial pit and the coal being processed at the recently commissioned washplant. The Company now has in excess of 10,000 tonnes of coal stockpiled at Beira Port and anticipates making a maiden shipment of coal before the end of the year."

**ENDS**

For further information on the Company, 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 Company currently has two primary assets - the Minas Moatize Coal Mine in Tete, Mozambique and Tasmania Magnesite NL in Tasmania.