Hillsborough Resources Limited
TSX : HLB

Hillsborough Resources Limited

October 29, 2009 11:23 ET

Hillsborough Resources Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 29, 2009) - Hillsborough Resources Limited (TSX:HLB) ("Hillsborough" or the "Corporation") provides an update to shareholders with respect to the announcement by Vitol Anker International B.V. ("Vitol Anker") on July 20, 2009 regarding its intention to make an unsolicited take-over bid for the Corporation.

Further to the Corporation's news release dated July 31, 2009, the Special Committee of the Board of Directors of Hillsborough continues to work with its financial advisor, TD Securities Inc., to address the Vitol Anker take-over plans.

Hillsborough's shareholders are advised to take no action at this time, pending further guidance and recommendation from the Board of Directors of Hillsborough.

In addition, the Corporation reports that Anglo American plc ("Anglo American") intends to divest of its interest in the Peace River Coal Limited Partnership ("Peace River Coal"), 74.5% owned by Anglo American, 13.4% owned by Hillsborough Resources Limited, and 12.1% owned by NEMI Northern Energy & Mining Inc. The divestment of Anglo American's interest in Peace River Coal will be undertaken in a manner and on a timetable that will maximize value for Anglo American while protecting the Peace River Coal business and the interests of its minority shareholders. To that end, Peace River Coal has appointed a committee of its shareholders to explore options and to make recommendations to its board of directors.

Caution Concerning Forward-looking Statements

Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information as to estimates, forecasts, future financial or operating performance of the Corporation, future production, costs of production, capital requirements, operating expenditures, reserve potential, exploration drilling, exploitation activities and activities and events or developments that we expect to occur. Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", "forecasted" and "scheduled" or the negative thereof or variations thereon or similar terminology.

With respect to forward-looking statements and information contained herein, we have made numerous assumptions including among other things, assumptions about prices, anticipated costs and our ability to achieve our goals. In particular, our statements regarding future production expectation is based on current existing current resource/reserve estimates, production contracts in place, historical costs and mining conditions.

Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered by management to be reasonable and to be based on reasonable assumptions, are inherently subject to significant business, economic and competitive uncertainties and contingencies and involve known and unknown risks. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include adverse exploration or development results; interruptions in the ability of the Corporation to produce coal from any of its mines; inability to meet production volumes required; 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. See our recent annual information form and quarterly and annual management's discussion and analysis filed on SEDAR for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information.

Although we have identified factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or information, there may be other factors that cause actual results, performance, achievements or events not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on the forward-looking statements or information. We expressly disclaim any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise, except as required by law. All written and oral forward-looking statements and information attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.

Contact Information

  • Hillsborough Resources Limited
    David Slater
    President & C.E.O.
    (604) 684-9288
    or
    Hillsborough Resources Limited
    Ian Kirk, C.A.
    C.F.O.
    (604) 684-9288
    (604) 684-3178 (FAX)
    www.hillsboroughresources.com