Hillsborough Resources Limited
TSX : HLB

Hillsborough Resources Limited
NEMI Northern Energy and Mining Inc.
TSX : NNE.A

NEMI Northern Energy and Mining Inc.

January 30, 2007 13:30 ET

Hillsborough Resources Limited and NEMI Northern Energy and Mining Inc.: Trend Mine Receives Permit to Increase Rate of Production to Up to 2 Million Tonnes Per Annum

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 30, 2007) - Hillsborough Resources Limited (TSX:HLB) ("Hillsborough") and NEMI Northern Energy and Mining Inc. (TSX:NNE.A) ("NEMI") are pleased to announce that Peace River Coal LP ("PRC") has now been issued the Trend full mine permit from the BC Ministry of Energy, Mines and Petroleum Resources, increasing Trend's permitted rate of production to 2 million tonnes of clean product per annum.

As previously reported, the modifications to Trend's coal preparation plant, including addition of the fines wash circuit, are complete. The plant is now fully operational with throughput approaching the planned capacity of 270 plant feed tonnes per hour, and Trend's mining operations are being ramped up to a targeted rate of production of 1.6 million plant feed tonnes per annum within the first half of this year. Trend's primary production is now coming from Phase 2, a larger pit developed in the fourth quarter of 2006 to support the planned production increase. PRC is currently preparing its detailed operating and development plans for 2007. Those plans are expected to be finalized in February, and particulars will be provided at that time.

PRC is a metallurgical coal producer with significant coal resources in northeast British Columbia in operation and under exploration and development, including the open pit Trend Mine. PRC is a limited partnership held 60% by Anglo Coal Canada Inc. (indirectly a wholly-owned subsidiary of Anglo American plc ("Anglo")), 20% by NEMI and 20% by Hillsborough. Peace River Coal Inc. (indirectly a wholly-owned subsidiary of Anglo) is PRC's general partner and operational manager, and Anglo Coal, a division of Anglo, markets over 90 million tonnes of coal worldwide.

NEMI Northern Energy and Mining Inc. is a coal mining company that holds a 20% interest 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.

Hillsborough Resources Limited is a coal mining company that, in addition to holding a 20% interest in the Peace River Coal Limited Partnership, operates the Quinsam underground thermal coal mine in Campbell River, British Columbia serving the local and west-coast U.S. cement industry. Hillsborough is also developing the Wapiti thermal coal mine in Northeast British Columbia to be the exclusive supplier commencing in 2010 for a 184 megawatt power generation plant to be constructed and operated on the property by AESWapiti Energy Corporation. Hillsborough also holds the Bingay Creek metallurgical coal property located in the Elk Valley region of Southeast British Columbia.

This release may contain forward-looking statements regarding the Companies' 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 Companies' expect are forward-looking statements. Although the Companies believe 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.

Contact Information

  • Hillsborough Resources Limited
    David Slater
    President & C.E.O.
    (604) 684-9288
    (604) 684-3178 (FAX)
    Website: www.hillsboroughresources.com
    or
    NEMI Northern Energy and Mining Inc.
    P.C. Devlin
    President and Chairman
    (604) 689-0277
    (604) 688-5210 (FAX)
    Website: www.nemi-energy.com