Update on Arthur River Project

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

18 March 2010

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

Update on Arthur River Project

Beacon Hill Resources plc (AIM:BHR), the AIM listed resource company, is pleased to provide an update with regard to the development of its Arthur River magnesite project in north-west Tasmania, which has a current JORC-compliant measured and inferred resource of 39 million tonnes of magnesite.

Mining Lease Application

As previously announced on 16 February 2010, a further hearing of the Mining Tribunal, in connection with the Group's Mining Lease Application, took place yesterday. An application by the objector to amend the name of the objector was dismissed together with arguments made by the intended new objector that they had 'standing' to make an objection. The Group has made an application to dismiss the objection as it remains, and the Tribunal has adjourned the hearing of that application for a further week until 24 March 2010, to allow the existing objector to make any further submissions he wishes concerning his standing.

In the meantime, the Group continues to work to a timetable that will see production at the Arthur River Project commencing by the end of 2011. Whilst the hearing before the Tribunal may result in a delay in the grant of a Mining Lease until the second quarter of 2010, the Group is progressing with development the DPEMP, to ensure it is completed by the end of 2010.

Development Proposal and Environmental Management Plan ('DPEMP')

The Group continues to make good progress with the development of its DPEMP for the Arthur River Project. An initial hydrological study has been completed by Coffey Mining with no adverse findings. In addition, work on Flora and Fauna studies have commenced and expect to report back soon.

Justin Lewis, Executive Chairman said, "The Board is pleased as we continue to make good progress at the Arthur River Project, despite the delays in being granted a Mining Lease. We remain confident that the permitting process will result in a positive decision by the Tribunal." 

**ENDS**

Further Information

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