Hillsborough Resources Limited

Hillsborough Resources Limited

May 11, 2006 12:55 ET

Hillsborough Resources: Hillsborough Announces Closing of Private Placement of Units

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 11, 2006) - Hillsborough Resources Limited (TSX:HLB) (the "Corporation") is pleased to announce the closing of the private placement of a total of 7,446,000 units, including the over-allotment units, at a price of $1.15 per unit, for gross proceeds to the Corporation of $8,562,900. Each unit was comprised of one common share of the Corporation plus half of one warrant, each full warrant entitling the holder to acquire a common share of the Corporation at any time over the next two years for $1.50 per share. The agents to the offering received a commission of 6% of the gross proceeds plus 521,220 agents' warrants to purchase common shares of the Corporation at a price of $1.25 per share and exercisable for up to one year. The Corporation plans to use the net proceeds from this offering for the exploration, development, expansion and operation of its North American mining and resource properties and for general working capital.

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, and the Crossville underground thermal coal mine in Tennessee serving the regional power utility and industrial markets. The Corporation is also developing substantial metallurgical coal properties near Tumbler Ridge in the Northeast of British Columbia, as well as the Bingay Creek metallurgical coal project in the Elk Valley region of Southeast British Columbia.

David Slater, President & Chief Executive Officer

This release may contain forward-looking statements regarding the Company's business or financial condition. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Actual results could differ materially from those described in this news release as a result of factors including but not limited to the following: adverse exploration or development results; adverse due diligence findings; re-assessments of corporate or development objectives and requirements; additional technical developments and considerations; unexpected increases in the costs of producing coal, changes in international coal or transportation markets, a rapid change in the value of the Canadian dollar particularly with respect to the US dollar, a fundamental slow down in the North American, Asian or worldwide economies; and other factors. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.

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