BHR.L Regulatory News (BHR)

11 December 2014

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

Beacon Hill Resources Plc

("Beacon Hill" or the "Company")

Subscription to raise £56,055 gross

Beacon Hill, the coking coal developer focused on the Minas Moatize Coking Coal Mine in Tete, Mozambique, is pleased to announce that it has raised £56,055 (approximately US$88,000) before expenses, via a subscription for new ordinary shares, utilising the directors' existing authorities to allot new shares, granted at the general meeting of the Company held on 1 October 2014.

On 10 December 2014, the Company was notified that a new investor had subscribed for 560,550,000 new ordinary shares of 0.01 pence each in the capital of Beacon Hill (the "Subscription Shares") at a price of 0.01 pence per Subscription Share, to raise £56,055 (approximately US$88,000) before expenses (the "Subscription").

The Subscription Shares will represent approximately 12.24 per cent. of the Company's enlarged issued share capital. Application has been made for the Subscription Shares to be admitted to trading on AIM ("Admission").

The net proceeds raised from the Subscription will augment the group's existing cash resources and be used for general working capital purposes.

As set out in the Company's announcement of 1 December 2014, the proposed fundraising of up to £1.5 million gross detailed therein is conditional on the passing of all of the resolutions to be considered at the Company's forthcoming general meeting on 17 December 2014. If any resolution is not passed, such fundraising will not complete and the Company will most likely not have adequate working capital past the end of 2014, and will be forced to seek alternative sources of potential funding. The independent directors of the Company (being Justin Farr-Jones, Rowan Karstel and Murray d'Almeida) do not believe that any such funding will be available on a timely basis or at all. If any such alternative sources of potential funding are not available, it is highly likely that the Company will be forced into administration.

Application has been made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the Subscription Shares will commence at 8.00 a.m. on 15 December 2014.

Following the issue of the Subscription Shares, the Company's issued share capital will consist of 4,580,337,590 ordinary shares with voting rights. The Company does not hold any ordinary shares in treasury and accordingly there are no voting rights in respect of any treasury shares. The Subscription Shares will be fully paid and will rank pari passu in all respects with the Company's existing ordinary shares.

The above figure of 4,580,337,590 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Beacon Hill under the Financial Conduct Authority's Disclosure and Transparency Rules.

**ENDS**