Receipt of 0.5Mt Sena Rail Line Allocation

11 February 2013

Beacon Hill Resources Plc / AIM: BHR / ASX: BHU / Sector: Mining

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

Receipt of 0.5Mt Sena Rail Line Allocation

The Board of Beacon Hill is pleased to announce that its wholly owned subsidiary Minas Moatize Limitada ('MML') has entered into an Interim Rail Access Agreement with Portos e Caminhos de Ferro de Moçambique E.P. ('CFM') in which MML has received a capacity allocation of 0.5 million tonnes per annum ('Mtpa') on the Sena Rail Line ('Sena Line') commencing in April 2013.

Background

The Sena Line commences approximately three kilometers from the Minas Moatize Coking Coal Mine in Tete and proceeds over a distance of 580 kilometers to the Port of Beira. MML intends to use the rail capacity to commence exports of coking coal in 2013.

The Sena Line is currently nearing the completion of a US$60 million upgrade program that will result in its capacity rising to 6.5Mtpa. MML will become the third major coal exporter to utilise the Sena Line sharing capacity with existing coal exporters Rio Tinto and Vale.

Highlights

·; MML is granted line access by CFM for a capacity of 0.5Mtpa and MML pays CFM a monthly line access fee

·; The Interim Rail Access Agreement automatically renews itself each year until MML and CFM enter into a long term take or pay agreement

·; MML shall initially operate two train sets each consisting of two locomotives with 42 wagons (each wagon of up to sixty three tonnes load capacity)

·; The long term contract is in recognition of the significant investment in new rolling stock to be made by MML during 2013

Justin Farr-Jones, Chairman of Beacon Hill commented: "We look forward to a long and successful relationship with CFM. This is an important step in our plan to export coking coal from Mozambique this year."

Rowan Karstel, Group Managing Director Beacon Hill and MML commented: "This is a quantum step for MML and is the key to successfully export coking coal economically out of Tete Province."

**ENDS**