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Blackheath Signs Definitive Agreements for Borralha and Bejanca Tungsten Projects

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/12/12 -- Blackheath Resources Inc. (TSX VENTURE:BHR)(FRANKFURT:04B) is pleased to announce that the Company has entered into definitive agreements (the "Agreements") for options to acquire a 100% interest in each of the Borralha Tungsten project and the Bejanca Tungsten-Tin project in northern Portugal. Both are past-producing mines and have the potential for development of additional tungsten and tin resources. Exploration plans are underway commencing with data compilation and early diamond drilling.

Borralha was Portugal's second largest tungsten mine until its closure in 1985 as a result of a decline in tungsten price. Ore was mined primarily from vertical quartz veins, supplemented by limited open pit excavations in the later years. Initial work by Blackheath will focus on exploration of two large, partially-developed tungsten-bearing breccia zones and several relatively untested sub-horizontal tungsten and tin bearing veins. The Borralha concession covers an area of 127.5 square kilometres located about 60 kilometres northeast of Porto in northern Portugal.

The Bejanca mines operated from the early 1900's until 1985 producing tin concentrates as well as tungsten concentrates which were smelted on-site to ferrotungsten for use in steel alloys. Mining was from several shallow open pits and shallow underground workings of tungsten-bearing hydrothermal quartz veins and stockworks in tungsten-bearing greisens. The Bejanca concession covers an area of 89 square kilometres located about 55 kilometres southeast of Porto in northern Portugal.

Blackheath's President & CEO, James Robertson, said: "We are very pleased to confirm the addition of the historic Borralha and Bejanca mines to our Portuguese tungsten portfolio under terms that are very favourable to our shareholders. We expect to commence a preliminary drilling program on both projects at an early date following data compilation and review."

Blackheath holds the options for both projects from Mineralia - Minas, Geotecnia e Construcoes, Lda. ("Mineralia") through exploration concessions (the "Concessions") granted by the Government of Portugal. The Concessions are granted for an initial period of two years renewable for a further three years in one year increments, after which they may be converted into preliminary exploitation licences and final exploitation licences successively. Under the Agreements, Blackheath will undertake to fulfill the terms of each Concession, including staged minimum exploration expenditures at Borralha totalling EUR980,000 over five years, and staged minimum exploration expenditures at Bejanca totalling EUR650,000 over five years. Under each agreement, Blackheath will pay Mineralia EUR25,000 upon execution of this definitive agreement, a further EUR100,000 upon the grant of a preliminary exploitation licence and a further EUR1 million upon mine production and the grant of a final exploitation licence, at which time Blackheath will hold a 100% interest in the project with no further obligations to Mineralia.

About Blackheath:

Blackheath Resources Inc. is listed on the TSX Venture Exchange, and is focused on tungsten exploration and development in Portugal. The Company also holds the Covas tungsten project, where exploration and drilling is currently underway. Management of Blackheath has previous experience in tungsten mining operations in Portugal through Primary Metals Inc., the operator of the Panasqueira Tungsten Mine from 2003 to 2007. Further information about the company's activities may be found at www.blackheathresources.com and under the company's profile at www.sedar.com.

On behalf of the Board,

James Robertson, P. Eng., CEO, President & Director

This news release was prepared by Company management, who take full responsibility for its content. James Robertson, P.Eng. is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. He has reviewed the technical disclosure in this release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Blackheath Resources Inc.
James Robertson
604 669 8988
604 669 2744 (FAX)
info@blackheathresources.com
www.blackheathresources.com

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