Isuue of Convertible Loan Notes

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

19 July 2010

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

£8.7m Convertible Loan

Beacon Hill Resources plc (AIM:BHR), the AIM listed resource group, is pleased to announce that it has secured a convertible loan of approximately £8.7m ('the Convertible Loan'). The Convertible Loan is repayable within 364 days and is convertible into Beacon Hill shares at 8p per share.

Beacon Hill has also reached agreement with the vendors of the Minas Moatize mine ('the Mine') to amend the terms of the acquisition agreement.

The Convertible Loan was arranged by Renaissance Group.

Beacon Hill Executive Chairman Justin Lewis said, "This is another significant step for the Group; this fundraising at a premium to current market prices, together with the strategic investment by Global Coke, ensures the acquisition and development of Minas Moatize is now fully financed."

Contacts

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

Background

BHR Mining Limited ('BHR Mining'), a joint venture between Beacon Hill and Consolidated Minerals, entered into an agreement to acquire the Minas Moatize Mine ('the Mine') and take management control in April 2010. Since the acquisition of the Mine, BHR Mining has commenced a development programme to develop the Mine into a larger open pit operation to produce both coking and thermal coal for export markets. The Group has developed a plan which will allow the mining of up to 2Mtpa of saleable coal.

The fundraising announced today is a further key step in the development of the Mine and, together with the strategic investment by Global Coke, ensures the acquisition and development of the Mine is now fully financed.

Convertible Loan

Beacon Hill has entered into unsecured convertible loan agreements ('the Loan Agreements') with lenders introduced by Renaissance Group (the 'Lenders'), pursuant to which Beacon Hill will borrow in aggregate £8,699,346 from the Lenders. The maturity date of the loans is 15 July 2011 and interest is payable after six months and upon maturity at 15% per annum. The loans and all interest are convertible at each Lender's election into ordinary shares in Beacon Hill at a price of 8p per ordinary share.

In connection with advice provided to Beacon Hill by Renaissance Group, Beacon Hill has granted warrants to Renaissance Group over 16,650,000 ordinary shares in Beacon Hill exercisable at 8 pence per ordinary share until 16 July 2013.

Amendment to acquisition terms

Finally, BHR Mining has agreed with the Vendors of the Mine to bring forward the payment of the deferred consideration such that BHR Mining will pay $6.5m by 21 July 2010, with the balance on or before 30 September 2010.

**ENDS**