Logistics and Rolling Stock Operational Update

 BEACON HILL RESOURCES PLC ('BEACON HILL' OR 'THE GROUP')

LOGISTICS AND ROLLING STOCK OPERATIONAL UPDATE

Beacon Hill Resources Plc, the AIM listed coal producer, is pleased to provide an operational update from its Minas Moatize Coking Coal Mine in Tete, Mozambique including developments regarding its end-to-end logistics solution and rolling stock operations:

· 90 Coal Rail Wagons successfully offloaded at the Port of Beira, Mozambique, on 7 March 2014

· 5 Grindrod rail locomotives completed and expected to arrive by rail in Mozambique in early April 2014

· Discussions with sub-leasing counterparties well advanced and expected to be completed during Q2 2014 in line with availability of full train sets

Rowan Karstel, CEO commented:

"The receipt of our rolling stock in country is another important milestone as we focus on proving both our export capability in line with our strategy to deliver Tier 1 coking coal production at our Minas Moatize Coking Coal Mine, as well as demonstrating our firm commitment to investing in Mozambique as a whole. In addition, an important condition precedent for our debt funding plans for 2014 is now complete."

-Delivery of Rail Wagons

90 rail wagons were completed by Transnet Engineering and inspected and signed-off by Thelo and the Company. Inspectors from Caminos e Ferros de Mocambique ('CFM') travelled to Uitenhage, South Africa to inspect the rail wagons and accepted all 90 rail wagons on 20 February 2014 as completed. The following day all rail wagons were taken to Port Elizabeth, loaded on the Tao Star bulk carrier and shipped to Beira. The vessel arrived in Beira on 3 March 2014 and after a short delay berthed on 5 March 2014. The 90 rail wagons were all discharged on 7 March 2014.

The rail wagons remain subject to further work by Transnet post arrival in Mozambique and hot commissioning inspection by CFM before they will be signed off for operations. Once singed off, lease payments for the wagons will commence

The rail wagons will be released once the final customs clearance documentation has been obtained from the Government of Mozambique.

Completion of Locomotives

Inspectors from CFM travelled to Pretoria-West, South Africa to inspect the locomotives and accepted all 5 locomotives on 21 February 2014 as completed. CFM has issued the trains the relevant locomotive registration numbers, and it is expected that the locomotives will be arriving in Beira via the existing rail networks in South Africa, Zimbabwe and Mozambique in early April 2014.

For further information on the BHR Rail Fleet, please click here to view a presentation:

http://www.rns-pdf.londonstockexchange.com/rns/0860D_-2014-3-25.pdf 

**ENDS**