Hillsborough Resources Limited

Hillsborough Resources Limited

February 28, 2007 11:22 ET

Hillsborough Resources Announces Doubling of Wapiti Property Resources

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 28, 2007) - Hillsborough Resources Limited (TSX:HLB) today announces that it has received an updated resource tonnage estimate prepared by Norwest Corporation in respect of the Wapiti property, located in Northeast British Columbia.

In-place resources within the Wapiti property cover an area of approximately 5,550 hectares, and Norwest has provided a resource estimate of 80,108,000 tonnes of measured and indicated resource and a further 35,246,000 tonnes of inferred resource. This amounts to increases of 42,336,000 measured and indicated tonnes and 26,595,000 inferred tonnes, or 112% and 307%, respectively over the resources estimated in the previous technical report dated February 3, 2006. The updated Wapiti Coal Project Coal Resource Summary as prepared by Norwest is summarized as follows:

In-Place In-Place
Surface Underground
Mineable Coal Mineable Coal
Resources Resources
Area ASTM Group (ktonnes) (ktonnes)
Meas- Indi- In- Meas- Indi- In-
ured cated ferred ured cated ferred
WAPITI Subbituminous A to
COAL High Volatile
PROJECT C Bituminous 38,882 11,594 22,739 9,092 20,540 12,507
Total 50,476 22,739 29,632 12,507

Deposit Type Measured Plus Indicated Inferred
Surface Mineable 50,476 22,739
Mineable 29,632 12,507
Combined Total 80,108 35,246

Hillsborough expects to file on SEDAR a technical report prepared by Norwest in support of the updated resource estimate by mid-March 2007. This update incorporates the 2006 drilling and the addition of certain coal licenses, and the technical report will be prepared in accordance with the provisions of National Instrument 43-101, Form 43 - 101F1.

At this time, the AESWapiti power plant development is on hold as the BC government's recently announced policy on coal-fired power generation is assessed for its impact on the project. However, the Corporation is continuing the process of obtaining regulatory approvals for a Wapiti thermal coal mine. This large resource tonnage offers the opportunity for a mine development based on the export market and/or on gasification or coal-to-liquids. In addition, in the latter half of 2006 Hillsborough's wholly-owned GH Fuels Limited undertook an assessment of the regional greenhouse and small industrial markets in northeastern British Columbia and northwestern Alberta, with very encouraging results. Hillsborough is considering a small mine development project to service this regional market and for initial export market development.

About the Corporation

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 Corporation 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. In addition, the Corporation 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.

This release may contain forward-looking statements regarding the Corporation'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 Corporation expects are forward-looking statements. Although the Corporation 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.

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
    Jan Moir
    Vice President
    (416) 868-1079 ext. 237
    (416) 868-6198 (FAX)
    Email: jan@chfir.com
    CHF Investor Relations
    Heather Colpitts
    Account Manager
    (416) 868-1079 ext. 223
    (416) 868-6198 (FAX)
    Email: heather@chfir.com