Logistics Update

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

10 August 2011

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

Successful Completion of Trial Trucking of Coal to the Port of Beira

Beacon Hill, the AIM listed coking coal producer, is pleased to announce an update on recent developments with respect to logistics at its Minas Moatize mine in the Tete region of Mozambique.

Overview

·; Successful completion of trial trucking of coal from the Minas Moatize mine to the port of Beira ahead of maiden export shipment of coal towards the end of the year

·; Trucking solution anticipated to be capable of transporting 0.5Mtpa of coal

·; Provides the Group with an economically viable logistics solution which is not reliant on third party infrastructure

·; Continued progress in regard to negotiations with Sena Rail Line operators ahead of establishing a longer term logistics solution

Following the successful completion of the trial trucking operation, the Group has commenced preparations to truck coal to the port of Beira in readiness for the Group's maiden export shipment, which is targeted for the end of this year. Mozambican logistics company 'Transportes Lalgy, Lda' has been appointed to transport the coal with a view to establishing a trucking operation capable of transporting up to 0.5Mtpa by truck and road to the port of Beira.

The Group continues to have active discussions with the operators of the Sena Rail Line and is confident of making progress with regard to transporting coal via the Sena Rail Line to the port of Beira. Tests are currently being conducted over 574km of track between Moatize and the port of Beira to test the consistency of the railway, and final corrections of weaker areas of track are being made ahead of full commissioning. It is anticipated that the Sena railway will have capacity to transport six million tonnes of coal per annum, and has been identified as a suitable long term logistics solution for the Group.

Justin Lewis, Chairman of Beacon Hill commented, "We are pleased to announce the successful completion of our trial trucking operation to the port of Beira, which marks another step forward in the development of the Minas Moatize mine. This is a transport solution that is in our control and that is not dependent on the provision of third party infrastructure. It is a significant milestone for the Group as it will allow us to start stockpiling coal at the port in readiness for our first export shipment."

**ENDS**

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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.