Hi there Beacon Hill Resources, the AIM listed coal producer, today announced the signing of an operating lease for rolling stock, representing a major milestone in gaining allocation to transport coal from the Minas Moatize Coal Mine in the Tete Region of Mozambique to the Port of Beira on the Sena Rail Line. Please see todays flash note from house broker Cannaccord Genuity which has a target price of 14p on the Company.

The shares are currently trading up 14.08% to 3.20p. Best Lizzie
Beacon Hill Resources | Buy 8p | MC �29 | Operating lease signed Rolling stock lined up for rail access: Beacon Hill Resources has signed an operating lease for rolling stock in another step towards securing access to rail.

The signed lease advances the previously announced heads of agreement.

Five locomotives and 90 coal wagons will be provided by Thelo Rolling Stock Leasing with RRL Grindrod appointed as operator.

We see this as a positive sign that a rail access agreement with CFM for the Sena Rail line is getting near.

If secured, and if other conditions are met, Beacon Hill expects to begin rail operations in Q3/13. Rail consortium to open exports: Thelo is 50% owned by the South African governments Industrial Development Corporation and leases rolling stock to rail operators in sub-saharan Africa.

With Mozambique in the spotlight following negative commentary from Rio Tintos asset write down, Beacon Hill may have an opportunity to benefit from the countrys desire to demonstrate it is open for business.
[cid:image001.png@01CE005A.D504A0B0] Beacon Hill Resources Plc / AIM: BHR / ASX: BHU / Sector: Mining 1 February 2013 Beacon Hill Resources Plc ("Beacon Hill" or the "Company") Rolling Stock Operating Lease Signed for the Sena Line
The Board of Beacon Hill is pleased to announce that on 31 January 2013 its wholly-owned subsidiary, Minas Moatize Limitada ("MML"), signed an operating lease agreement ("Lease Agreement") with Thelo Rolling Stock Leasing Proprietary Limited ("Thelo"), for the provision of rolling stock on the Sena railway line in Mozambique (the "Sena Line") connecting Tete with the Port of Beira.
Transaction Highlights
� Thelo will lease to MML five Grindrod RL30SCC-3 as new locomotives for a term of 10 years;
� Thelo will also lease to MML ninety new Gondola-type coal wagons fitted with the patented Sheffield bogey system for a term of 10 years;
� MML has appointed RRL Grindrod Locomotives Proprietary Limited ("RRL Grindrod") as its rail services operator.

RRL Grindrod will assume day-to-day responsibility for MMLs train operations on the Sena Line.

RRL Grindrod will shortly commence its implementation plan, including the mobilisation of rail operating staff.
The Lease Agreement is an important milestone for Beacon Hill and a prerequisite of obtaining final rail allocation confirmation from Portos e Caminhos de Ferro de Mo�ambique.

Until the expected commencement of rail operations in Q3 2013, the Company will continue to make use of trucks to transport coal to the Port of Beira as an interim solution.
The Lease Agreement remains subject to the fulfillment of a number of suspensive conditions, including inter alia (a) final approval of export cover insurance from the Export Credit Insurance Corporation of South Africa SOC Ltd; and (b) procuring satisfactory all risks insurance cover in respect of the locomotives and the wagons.

Discussions in this regard are progressing well.

The stated suspensive conditions must be fulfilled prior to 28 February 2013, unless waived or extended by MML and Thelo.
Rowan Karstel, Managing Director of Beacon Hill, commented:
"We look forward to working with our new rail consortium.

The new rolling stock is an important milestone for our coal export operations on the Sena Railway line".
Ronnie Ntuli, Director of Thelo, commented:
"We are very proud to be associated with BHR and MML and pleased to be able to provide our client and Mozambique with a tailored and comprehensive new rolling stock financing solution".
Justin Farr-Jones, Chairman of Beacon Hill, commented:
"Id like to thank both Thelo and my own team for the enormous effort involved in finalising the Lease Agreement.

This was a cross-border transaction involving multiple parties forging new long term relationships in Mozambique.

Our rail consortium comprises the best talent operating in Africa today."
For further information, please contact:
Beacon Hill Resources Plc
Rowan Karstel, Managing Director ()
Justin Farr-Jones, Chairman ()
Timothy Jones, Group Finance Director () + 44 (0) 1372 464 549 David Premraj, Director, Corporate Development ()
+61 3 9627 9910 Canaccord Genuity Limited (Nominated Adviser)
Andrew Chubb / Sebastian Jones +44 20 7523 8000
Note:
About Beacon Hill Beacon Hill, dual listed on the AIM market of the London Stock Exchange (Code: BHR) and the Australian Securities Exchange (Code: BHU), is focused on building and developing a portfolio of near term production projects in commodities relating to the steel production industry.
Beacon Hill currently has three projects that provide the group with exposure to the steel production industry - the Minas Moatize Coal Project (Mozambique), the Changara Coal Project (Mozambique) and the Arthur River Magnesite Project (Australia).
About Thelo Thelo is 50% owned by Thelo Rolling Stock Partnership and 50% owned by the Industrial Development Corporation, a South African government-owned institution focused on promoting economic growth and industrial development in South Africa.
Thelo leases rolling stock (locomotives, wagons and passenger cars) to rail operators and freighters in Sub-Saharan Africa. Responding to the increasing need for modern, reliable rolling stock in this market, Thelo strives to alleviate the sizeable rolling stock backlog by providing innovative and cost-effective financial solutions to rail operators and freighters. Thelo forms an important part of Thelo Groups, its parent company, regional strategy of originating, investing in and operating critical infrastructure and capacity expansion in the transportation sector.