Hillsborough Announces A Unit Offering to Raise $7,002,000

For release: April 17, 2006

Not for distribution to United States newswire services or for dissemination in the United States.

Hillsborough Resources Limited (TSX: “HLB”) (the “Corporation”) is pleased to announce that it has entered into an agreement with a syndicate of agents lead by Canaccord Adams and including Dominick & Dominick Securities Inc. (collectively the “Agents”), in connection with the private placement of up to 5,835,000 units at a purchase price of $1.20 per unit, for gross proceeds of up to $7,002,000.  Each unit will be comprised of one common share of the Corporation plus half of one warrant, each full warrant entitling the holder to acquire a common share of the Corporation at any time over the next two years for $1.50 per share.  The Agents will have an over-allotment option expiring April 28, 2006 to place an additional 2,500,000 units at $1.20 per unit, potentially increasing the gross proceeds under the offering to $10,002,000.  The Corporation plans to use the proceeds from the offering for the exploration, development, expansion and operation of its North American mining and resource properties and for general working capital.

The securities to be issued under this offering will be offered by way of private placement in British Columbia, Alberta and Ontario and such other jurisdictions as may be agreed to by the Corporation and the Agents, and to accredited institutional investors in the United States pursuant to Rule 506 of Regulation D of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”).  The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.  The offering is scheduled to close on or about May 9, 2006, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the appropriate securities regulatory authorities.

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, and the Crossville underground thermal coal mine in Tennessee serving the regional power utility and industrial markets.  The Corporation is also developing substantial metallurgical coal properties near Tumbler Ridge in the Northeast of British Columbia, as well as the Bingay Creek metallurgical coal project in the Elk Valley region of Southeast British Columbia.