9th October 2014 Beacon Hill Resources Plc / AIM: BHR / Sector: Mining Beacon Hill Resources Plc (Beacon Hill or the Company) Agreement to Sub-Lease Rolling Stock
Beacon Hill Resources PLC, the AIM listed Mozambique coking coal miner, is pleased to announce that it has entered into a sub-lease of its rolling stock to an undisclosed party (the Sub-lessee).
This sub-lease agreement will support the Companys expansion strategy to advance Beacon Hills Minas Moatize Coking Coal Project to Tier One cash cost status which will deliver an economically robust mining project even during periods of depressed coking coal prices.
Highlights
* The Sub-lessee will utilise all of Beacon Hills five locomotives and 90 rail wagons on the Sena Line * Minimum lease term of 12 months with extension option * Increases Sena Line utilisation by up to 500,000 tonnes per annum * Final regulatory and Minister of Finance approval received and this represents the completion of a key milestone towards the completion of the Senior Debt Facility
Rowan Karstel, CEO commented:
"We are delighted to have secured a high calibre counterparty to lease our rolling stock on the Sena Line further proving the viability of the logistics solution whilst Beacon Hills Minas Moatize Coking Coal expansion project is advanced.
"This transaction is a win-win for ourselves and the Sub-lessee whilst also increasing the utilisation of the Sena Line.

Our two train sets are the newest class of rolling stock and are a big boost for the entire Mozambique coal supply chain.

We have taken 9 months to conclude this transaction and with considerable assistance from the Government of Mozambique represented by the Ministry of Mines and Ministry of Finance."
Background to the Transaction
During H1 2014, BHR announced the delivery of five new Grindrod locomotives and 90 Transnet Engineering rail wagons to Mozambique after 12 months of manufacture.

The transaction was funded by Thelo Rolling Stock South Africa, with Beacon Hills subsidiary BHR Investments Mauritius as lessee.

The new rolling stock has a value of approximately US$21 million.
Pending the upgrade of the Minas Moatize coking coal mine to a Tier 1 cash cost producer, Beacon Hill announced its intention to sub-lease the rolling stock until it re-commenced export operations through the Port of Beira.

The addition of the rolling stock translates to 500,000 tonnes per annum of new rolling stock capacity to the Sena railway rolling stock fleet with expected availability rates of 94% associated with new fleet.
**ENDS**
For further information, please contact: Beacon Hill Resources Plc Justin Farr-Jones, Chairman () Rowan Karstel, Chief Executive Officer () Canaccord Genuity Limited (Nominated Adviser and Broker) Neil Elliot / Joe Weaving
+44 20 7523 8000 St Brides Media & Finance Limited (Financial Public Relations) Susie Geliher / Elisabeth Cowell
+44 20 7236 1177
[cid:image002.png@01CECBDD.61F8A860] Elisabeth Cowell St Brides Media & Finance Ltd 3 St Michaels Alley, London, EC3V 9DS www.stbridesmedia.co.uk Tel: 0207 236 1177 | Mob: 07900248213 | Twitter: @StBrides1