Hillsborough Resources Limited

Hillsborough Resources Limited

March 24, 2005 07:00 ET

Hillsborough Resources: Hillsborough Reports Fourth Quarter and Full Year Results for 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HILLSBOROUGH RESOURCES LIMITED

TSX SYMBOL: HLB

MARCH 24, 2005 - 07:00 ET

Hillsborough Resources: Hillsborough Reports Fourth
Quarter and Full Year Results for 2004

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 24, 2005) -
Hillsborough Resources Limited (TSX:HLB) is pleased to announce its
financial results for the year ending December 31, 2004, as well as the
final quarter of 2004. All amounts are measured and reported in Canadian
dollars.



Years Ended Three Months
December 31 Ended December 31
(unaudited)
2004 2003 2004 2003
---- ---- ---- ----

Net earnings (loss) $1,811,056 $874,336 $172,645 $407,965
Earnings per share
- basic $0.06 $0.03 $0.00 $0.01
Earnings per share
- diluted $0.05 $0.03 $0.00 $0.01

Coal revenues $23.4 million $13.5 million $4.9 million $3.4 million
Clean coal sold
- tonnes 492,885 284,371 110,593 71,121


The financial results and operational highlights for the 2004 fiscal
year were as follows:

- Hillsborough's net earnings for the year were $1,811,056 or $0.06 per
share, versus 2003 earnings of $874,336 or $0.03 per share.

- Coal revenues increased 73% to $23.4 million in 2004 from $13.5
million in 2003 and coal sales increased 73% to 492,885 tonnes in 2004
from 284,371 tonnes in 2003, reflecting strong demand during 2004 for
coal from the Quinsam mine.

- Hillsborough's cash on hand at December 31, 2004 was $6.9 million with
net working capital of $9.0 million, versus cash on hand at December 31,
2003 of $1.4 million and net working capital of $6.1 million.

- During 2004, Hillsborough acquired the Middle Point barge loading
facility near the Quinsam mine on Vancouver Island, British Columbia,
for $3.7 million, giving it greater control over its transportation
process and reducing transportation costs.

- Also during 2004, Hillsborough entered into an option to acquire the
Bingay Creek metallurgical coal property in the Elk Valley region of
southeast British Columbia, and in January 2005 an application was
submitted for a small mine permit.

- In February 2005, Hillsborough completed the purchase of various coal
licenses and mining assets in Crossville, Tennessee, and has now started
the process of bringing an underground mine into operation on the
property.

- In January 2005, Hillsborough signed a letter of intent to acquire for
exploration and development a substantial portfolio of metallurgical
coal, PCI and thermal coal properties near Tumbler Ridge in northeast
British Columbia, and in March 2005 this acquisition was completed.
Drilling is currently underway on the properties as Hillsborough
proceeds with the first phase of its work programs on the properties,
the preparation of coal resource estimate reports in accordance with
National Instrument 43-101.

Hillsborough's audited consolidated financial statements for the year
ended December 31, 2004 have been prepared in accordance with Canadian
generally accepted accounting principles. The consolidated financial
statements and management's discussion and analysis of financial
condition and results of operations, as well as additional information
relating to Hillsborough, are available on SEDAR at www.sedar.com and on
Hillsborough's web site at www.hillsboroughresources.com.

Mr. David Slater, President and CEO of Hillsborough, stated, "2004 has
been a very successful year for Hillsborough. Our mining operations have
seen strong results from Quinsam, and we've made significant progress
with our objective of growing Hillsborough through the start-up of
mining operations in Tennessee, the development of the Bingay Creek
property in Southeast BC and the acquisition of our newest coal holdings
in Northeast BC. Hillsborough will evolve during 2005 into a company
with operations diversified not only geographically, but across the
range of coal products it offers as well".

"David J. Slater"

President & Chief Executive Officer

This release may contain forward-looking statements regarding the
Company's business or financial condition. 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
and development results; 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.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Hillsborough Resources Limited
    David Slater
    President & CEO
    (604) 684-9288
    (604) 684-3178 (FAX)