BHR.L Regulatory News (BHR)

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

20 September 2011

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

Update re Possible Offer for the Company

Beacon Hill, the AIM listed coking coal producer, announced on 26 August 2011 (RNS Number 1229N) that it had been approached with a very early stage proposal to acquire the Group (the "Proposal"). In response to confirmation by the board that the Proposal did not reflect the current value of the Group and its assets, the Proposal has been withdrawn.

Beacon Hill continues to make good progress with the development of the Minas Moatize Coal Mine, a producing coal mine in the Tete Province of Northern Mozambique. Mining from the first open pit area, Trial Pit 1, is progressing well and the Coal Handling and Preparation Plant (Wash Plant) recently installed is processing the coal.

Progress continues to be made with logistics with the commencement of the main trucking operation to the port of Beira. The Group currently has a fleet of 20 trucks operating between Moatize and Beira, seven days a week, which will continue to be ramped up over the coming weeks.

The Company intends to release its Interim Results for the 6 months ended 30 June 2011 on 27 September 2011, in which it will provide a further update on Beacon Hill's continued progress in the development of the Minas Moatize Mine.

Justin Lewis, Chairman of Beacon Hill, commented "Whilst the board does not think this Proposal in any way reflects the current value of the Group, it does serve to highlight that whilst equity markets have been volatile, coal prices have remained very strong and demand for security of supply of coking coal is at an all time high. As highlighted in our recent announcement, the coal produced from Minas Moatize will be a premium Hard Coking Coal, underpinning the considerable value attributable to this asset as we move into our production phase at the main open pit mine in the next few months."

**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 Group currently has two primary assets - the Minas Moatize Coal Mine in Tete, Mozambique and Tasmania Magnesite NL in Tasmania.