Hillsborough Resources Limited

Hillsborough Resources Limited

June 17, 2008 11:54 ET

Hillsborough Resources is Pleased to Announce Shareholder Approval

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 17, 2008) - Following completion of its annual meeting on Thursday, June 12, Hillsborough Resources Limited (TSX:HLB) is pleased to announce shareholder approval of:

- the conversion of a US $10 million debt due to Vitol SA into a debenture convertible into common shares of Hillsborough at a conversion price of 93 cents per share, which price represented the weighted average of share trades at the time the transaction was negotiated.

- appointment of Mr. John Collenette, Vitol's Chief Financial Officer, as a director of Hillsborough.

Hillsborough also announces that it has identified interesting, high-quality, metallurgical coal targets at its Crossville mine near Crossville Tennessee. Initial drilling has been positive and has led to a decision to commence further exploration. Because of the permitted nature of the mine, a decision to re-commence mining operations, if subsequently determined to be appropriate, can be executed with rapidity, without a major outlay of capital.

About the Corporation

Hillsborough Resources Limited is a coal mining company that operates the Quinsam underground thermal coal mine near Campbell River, British Columbia, serving the local and west-coast U.S. cement industry and is increasing export sales. The Company is a limited partner in the Peace River Coal Limited Partnership, which has substantial metallurgical coal properties both in production and under development near Tumbler Ridge, British Columbia. In addition, the Company 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. Its Crossville Mine in Tennessee is presently under care and maintenance.

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
    Hillsborough Resources Limited
    Ian Kirk, C.A.
    (604) 684-9288
    (604) 684-3178 (FAX)
    Website: www.hillsboroughresources.com