BHR.L Regulatory News (BHR)

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

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED BY APPLICABLE LAW.

15 April 2011

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

Result of Placing

Beacon Hill (AIM: BHR), the AIM listed resource company, is pleased to announce that further to the announcement of 14 April 2011, the Company has raised approximately US$20.3 million* (£12.5 million) by way of a placing of 100 million new ordinary shares of 0.25 pence each ('the Placing Shares') ('the Placing'). The net proceeds of the Placing will be used to strengthen the Company's balance sheet as it looks to take advantage of its first mover position in the globally significant coking coal region of Tete, and in particular, take opportunities to strengthen its logistics chain ahead of its maiden export of coal from its 100% owned Minas Moatize mine in Q2 2011.

The Company recently entered into a Memorandum of Understanding ('MoU') relating to the acquisition of coal licence area 1165L in the Moatize Coal Basin, as announced on 4 April 2011, and should this acquisition occur, part of the proceeds will be used to part fund this consideration. The Company is currently actively talking to potential strategic partners with a view to financing the balance of the consideration, including by way of debt and off-take pre-payments.

Commenting on the Placing, Justin Lewis, Chairman of Beacon Hill said, "This Placing, which received significant institutional demand and was oversubscribed, will further strengthen the balance sheet of the Company and enable us to make additional investment in our rail and port solutions, prior to our first anticipated shipment of coal from our Minas Moatize mine in Q2 2011. These additional funds also equip the Company with the ability to actively evaluate additional opportunities in Tete, one of the largest undeveloped coking coal regions in the world, where we importantly have a first mover advantage as the only current producer.

"Our ability to identify attractive assets in the Tete region was underpinned by the recent announcement of an MoU to acquire licence area 1165L, and the Group has been actively pursuing discussions with strategic partners to finance the consideration for this acquisition. If completed, the acquisition of licence area 1165L will potentially give the Group a resource base of in excess of 500Mt in Tete, in addition to further near term potential for coking coal production."

The Placing

Beacon Hill announces that 100 million new ordinary shares of 0.25 pence each having been successfully placed with institutional investors by Collins Stewart Europe Limited ('Collins Stewart') and Renaissance Capital Limited ('Renaissance') acting as Joint Bookrunners and Joint Brokers. Collins Stewart is also the retained nominated adviser to Beacon Hill.

The price per Placing Share was set at 12.5 pence (the "Placing Price") and the Placing will raise gross proceeds of approximately US$20.3 million* (£12.5 million). The Placing Shares represent approximately 15.6 per cent. of Beacon Hill's issued share capital prior to the Placing.

The Placing Shares will be credited as fully paid and will rank pari passu in all respects with the existing ordinary shares of Beacon Hill, including the right to receive all dividends and other distributions declared, made or paid after Admission has occurred.

The Company has applied for Admission of the Placing Shares to trading on AIM, and it is expected that Admission will take place at 08:00 on 20 April 2011. Following Admission, the total number of shares in issue will be 740,625,519 Ordinary Shares. 

Any terms in this announcement not explicitly defined herein carry the same meaning as those defined in the announcement of the Placing of 14 April 2011.

* based on an exchange rate of 1.626 US Dollars per Pound Sterling

IMPORTANT INFORMATION

This announcement has been issued by and is the sole responsibility of the Company.

Collins Stewart Europe Limited, which is authorised and regulated in the United Kingdom by the UK Financial Services Authority ('FSA'), is acting as joint bookrunner, joint broker and nominated adviser to the Company and for no-one else in connection with the Placing, and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice to any other person in relation to the Placing or any other matter referred to herein.

Renaissance Capital Limited, which is authorised and regulated in the United Kingdom by the FSA, is acting as joint bookrunner and joint broker to the Company and for no-one else in connection with the Placing, and will not be responsible to anyone other than the Company for providing the protections afforded to its customers or for providing advice to any other person in relation to the Placing or any other matter referred to herein.

The distribution of this announcement and the offering of the Placing Shares in certain jurisdictions may be restricted by law. No action has been taken by the Company or its advisers that would permit an offering of such shares or possession or distribution of this announcement or any other offering or publicity material relating to such shares in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required by the Company and its advisers to inform themselves about, and to observe, such restrictions.

The information in this announcement shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would require preparation of a prospectus or other offer documentation, or be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.

No public offer of securities of the Company is being made in Australia, the United Kingdom, the United States or elsewhere. The information in this announcement does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 as amended ('the Securities Act') and the securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States.

The information in this announcement may not be forwarded or distributed to any other person and may not be reproduced in any manner whatsoever. Any forwarding, distribution, reproduction, or disclosure of this information in whole or in part is unauthorised. Failure to comply with this directive may result in a violation of the Securities Act or the applicable laws of other jurisdictions.

**ENDS**

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