Update on Acquisition of Coal Licence 1165L

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

3 August 2011

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

Update on Acquisition of Coal Licence 1165L in Mozambique

Beacon Hill, the AIM listed coking coal producer, announces that further to the announcement of 4 April 2011 regarding the Group's Memorandum of Understanding to potentially acquire a 100% interest in coal licence area 1165L in the Moatize coal basin in Northern Mozambique ('Licence 1165L'), the exclusivity agreement with Global Minerals & Metals Pte Limited ('GMM') relating to the acquisition of Licence 1165L has been extended for a further 60 days to 3 October 2011.

Whilst the Group has made good progress in conducting the due diligence and finalising the legal documentation in relation to the acquisition, the finalisation of the acquisition is conditional upon GMM first acquiring Licence 1165L as part of the overall transaction, which has yet to be completed. The Group intends to use the additional time to undertake exploratory drilling at Licence 1165L, which will provide Beacon Hill with a better understanding of the resource at Licence 1165L. A further announcement will be made in due course to update shareholders of developments in this regard.

Justin Lewis, Chairman of Beacon Hill commented, "Licence 1165L represents an opportunity to significantly expand the Group's acreage and resource base within the Moatize Basin in Tete, Mozambique. Whilst this delay in finalising the acquisition is frustrating, particularly as it relates to agreements between third parties outside the control of the Group, we intend to use this opportunity to conduct further due diligence on the property, including a small drill programme.

"In tandem with our due diligence and exploratory work at Licence 1165L, we continue to make good progress at our wholly owned producing Minas Moatize mine, with initial trucks of coal having departed for the Port of Beira."

**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.