Hillsborough Resources Limited

Hillsborough Resources Limited

January 17, 2008 12:28 ET

Hillsborough Announces Settlement of Lawsuit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2008) - Hillsborough Resources Limited (TSX:HLB), (the Corporation) announces that it has reached an agreement with the plaintiffs in an Alberta-bench lawsuit lodged in 2004 against the Corporation claiming an amount of $21,000,000. The lawsuit arose as a result of a failed business transaction between the two parties.

Settlement terms are as follows:

- Cash payment of approximately $78,000 covering certain equipment acquired by Hillsborough under the terms of the original agreement, and

- Delivery from escrow of 100,000 common shares in the capital of the Corporation

The balance of the escrowed Hillsborough shares numbering 582,680 shares, will be returned to the Corporation for cancellation.

About Hillsborough Resources Limited

Hillsborough Resources Limited is a coal mining company that operates the Quinsam underground thermal coal mine in Campbell River, British Columbia, serving the local and west-coast U.S. cement industry. The Company is a limited partner in the Peace River Coal Limited Partnership, which has substantial metallurgical coal properties both in production start-up and under development near Tumbler Ridge, British Columbia. In addition, the Company is developing the proposed Wapiti thermal coal mine in the same region. Hillsborough also holds the Bingay Creek metallurgical coal property located in the Elk Valley region of southeast British Columbia.

Contact Information

  • Hillsborough Resources Limited
    David Slater
    President & C.E.O.
    (604) 684-9288
    (604) 684-3178 (FAX)
    Website: www.hillsboroughresources.com
    CHF Investor Relations
    Cathy Hume
    (416) 868-1079 ext. 231
    (416) 868-6198 (FAX)
    Email: cathy@chfir.com