BHR.L Regulatory News (BHR)

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

5 October 2010

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

Placing to Raise £730,000

Beacon Hill Resources Plc, the AIM listed resource company, is pleased to announce that it has placed 5,175,000 new ordinary shares of 0.25 pence each at a price of 14.11 pence per share ('Placing Shares'). The Placing Shares have been subscribed for by Fortrend Securities Pty Limited ('Fortrend') pursuant to its agreement with Beacon Hill as previously announced on 2 March 2010. In addition, the Company has granted Fortrend options over 1,293,750 ordinary shares exercisable at 15.68p per share for a period of 3 years. The proceeds of the placing will be used to continue to progress the Company's strategy of developing its coal and magnesite assets in Mozambique and Australia respectively, acquiring and developing assets in commodities relating to the production of steel and for general working capital.

Following their admission, the Placing Shares will represent 2.0 per cent. of the enlarged issued share capital of the Company, which will then comprise 263,761,680 ordinary shares of 0.25 pence each.

The Placing is inter alia conditional on admission of the Placing Shares being admitted trading on AIM ('Admission'). It is expected that Admission will occur, and dealings in the Placing Shares will commence, on 11 October 2010. The Placing Shares will, when issued, rank pari passu in all respects with the existing issued shares of Beacon Hill, including the right to receive any dividends and other distributions declared following Admission.

Update on BHR Mining Limited

The process to complete the agreements between BHR Mining Limited and Global Coke Limited remains ongoing. The board of BHR Mining are also in discussions with the vendors of Minas Moatize with regard to finalising the balance of the consideration. The Board will update the market upon completion of this process in due course.

**ENDS**

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