BHR.L Regulatory News (BHR)

4 November 2014

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

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

New Debt Facility and Restructuring Update

The Company is pleased to announce a further update on the new debt facility for the Minas Moatize coking coal mine expansion project in Mozambique and the restructuring of existing Group debt facilities.

Highlights

· Final revised legal due diligence report submitted to a South African Development Finance Institution ("DFI") with final approvals expected by year-end

· Amendment agreement signed with Vitol SA to defer principal and interest on the senior loan facility to 30 January 2015 pending completion of the new debt facility

· Negotiations ongoing with Convertible Loan note holders to restructure debt to facilitate new debt facility

· Commenced renewal of the MML Mining Concession for a further 20 years

Rowan Karstel, CEO commented:

"We are making steady progress in both our new project funding and restructuring and I remain optimistic we can deliver some resolution for our shareholders prior to the year-end. The Minas Moatize coking coal mine is one the very few globally that can sustain operations in this challenging price market if we complete the proposed expansion to 3.2 million tons per annum."

DFI New Senior Facility Update

The Company is pleased to announce legal counsel appointed by the DFI has now submitted its final revised legal due diligence report. Further delays were encountered by an additional request for corporate records dating back to 2005.

The Company expects the final review and approval process to now commence at the DFI with any material updates to be communicated to shareholders in due course.

Existing Vitol Senior Debt Facility

The Company is pleased to announce it has reached an agreement with Vitol SA regarding an amendment to the terms of the US$10 million senior debt facility.

As previously announced, amortization of US$1.7 million due 30 September 2014 has been deferred during this year and the Company has agreed to defer a both this amount and a further US$2.4 million due 31 December 2014, whereby US$4.1 million shall now fall due 30 January 2015 by which time the Company expects to have completed either a restructuring or refinancing of the Vitol senior debt facility. In addition the Company has elected to capitalize interest payments for the time being to conserve cash within the Group. The total capitalized balance outstanding to Vitol (including capitalized interest to 30 September 2014 and amendment fees) is US$10.56 million carried forward. The successful restructuring of the Vitol senior debt facility will likely be a key condition precedent to drawdown of any new DFI senior Facility in 2015.

Convertible Loan Note Re-Structuring

In addition to negotiations with Vitol SA and the DFI, the Company has continued negotiations with all existing convertible loan note holders regarding a potential restructuring of US$ 14.8 million in loan notes currently due for redemption between July 2015 to July 2018. The successful restructuring of the Convertible Loan Notes will be likely to be a key condition precedent to drawdown of any new DFI senior Facility in 2015. A further update will be issued in due course in the event an amendment agreement is concluded between the Company and convertible noteholders.

Renewal of MML Mining Concession

In April 2014, Minas Moatize Limitada ("MML"), the Company's wholly owned subsidiary was awarded a 25 year mining contract by the Government of Mozambique for Licence 1151L, which was subsequently ratified by the Administrative Tribunal. One of the key terms and benefits of the Mining Contract for MML confers the automatic right of renewal of the mining concession in favor of MML, subject to compliance with applicable laws. The Company's existing mining concession was granted in 2005 for 10 years.

MML has therefore commenced the renewal process for the mining concession for a further 20 years and on the basis of the signed Mining Contract would expect a timely renewal of the concession prior to expiration of the existing concession in June 2015.

**ENDS**