?5 million Strategic Investment Secured

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

2 March 2010

Beacon Hill Resources plc ('Beacon Hill' or 'the Group')

£5 million Strategic Investment Secured

Beacon Hill Resources plc, the AIM listed resource company, is pleased to announce that it has entered into an agreement with Fortrend Securities Pty Ltd ('Fortrend') for the provision of up to £5 million of funding. The agreement will enable Beacon Hill to draw down funds over the next three years which will provide the Group with additional capital to develop its Arthur River Project in Tasmania and facilitate the appraisal and development of other projects that meet the investment criteria of the Group.

Beacon Hill Executive Chairman Justin Lewis said, "We are very pleased to have secured this significant commitment from Fortrend as this will provide the Group with additional capital to commit to existing and future projects, as we look to execute our strategy of building a robust portfolio of assets in commodities relating to the steel industry. In particular, the capital will allow us to accelerate development of our Arthur River magnesite project, which has a JORC compliant measured and inferred resource of 39 million tonnes, towards production and will also enable the continued evaluation of additional projects.

"The team at Fortrend is well known to us and we look forward to working with them in strengthening our position as a developer and provider of commodities to the steel industry and creating value for all of our investors."

Joe Forster, Managing Director of Fortrend Securities said, "We are pleased to be associated with the executive team at Beacon Hill, and are very excited about the magnesite project in Tasmania, Australia."

Fortrend has agreed to provide up to £5 million to the Group to be invested, at any time over the next three years, at Beacon Hill's discretion, by the issue of new shares to Fortrend. The Group has agreed to make three draw downs in the next 12 months, but is otherwise under no obligation to issue shares. Under the agreement, Beacon Hill can issue new ordinary shares at a 10 per cent. discount to the prevailing market price, with the maximum amount of each drawdown being a function of the recent trading volume at that time. For every four shares so issued, Beacon Hill will grant one option exercisable at the then prevailing market price for a period of three years from grant. 

In consideration of Fortrend entering into the agreement, Beacon Hill will pay a fee and has granted options over 20,833,333 ordinary shares, exercisable at 0.30p per share at any time until 2 March 2013.

**ENDS**

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