Hillsborough Resources Limited

Hillsborough Resources Limited

November 15, 2006 19:45 ET

Hillsborough Resources Announces: Consent Agreement Reached With Western Canadian Coal Regarding Formation of Coal Limited Partnership by Hillsborough, Anglo Coal and NEMI

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 15, 2006) - Hillsborough Resources Limited (TSX:HLB) ("Hillsborough", or the "Corporation") is pleased to announce that it has signed an agreement with Anglo Coal Canada Inc. ("Anglo Coal"), NEMI Northern Energy and Mining Inc. (TSX:NNE) ("NEMI") and Western Canadian Coal Corp. (TSX:WTN) ("WCC") pursuant to which WCC has consented to the transfer of NEMI's interest in the Belcourt Saxon Limited Partnership to the limited partnership (the "Coal LP") being formed by Hillsborough, NEMI and Anglo Coal. The agreement also provides a mechanism between NEMI and WCC to resolve, subsequent to the formation of the Coal LP, an issue of whether a break fee is payable by NEMI in connection with the termination of a previously-announced merger transaction between it and WCC. The agreement further describes certain non-binding indicative terms which the parties will seek to incorporate into a definitive agreement that they will use reasonable commercial endeavours to negotiate, including a proposal to grant a 12 month option for WCC to acquire all or parts of certain coal properties from the Coal LP in exchange for cash or other agreed consideration; a proposal to provide 800,000 tonnes per annum run-of-mine coal to WCC for processing through WCC's Wolverine coal plant for terms that would include, among other things, pricing on a competitive and fully commercial basis; and a proposal to explore the potential of a coal association or operating alliance for the northeast British Columbia region.

As previously announced, Hillsborough is in the process of consolidating its north-eastern British Columbia metallurgical coal assets with those of Anglo Coal and NEMI into the Coal LP, with Hillsborough and NEMI each receiving a 20% interest in the Coal LP and Anglo Coal receiving a 60% interest. Completion of the transaction remains subject to a number of conditions including but not limited to approval of the respective boards of directors of Hillsborough and Anglo Coal and receipt of all regulatory, court and third party approvals.

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. Near Tumbler Ridge in Northeast British Columbia, the Corporation has substantial metallurgical coal properties under development including the Horizon mine project, and is developing the Wapiti thermal coal mine to be the exclusive supplier commencing in 2010 for a power generation plant to be constructed and operated on the property by AESWapiti Energy Corporation. The Corporation also holds the Bingay Creek metallurgical coal property located in the Elk Valley region of Southeast British Columbia.

David J. 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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