Corporation, and to the north, west and southby vacant Crown mineral lands.

Drilling programs in 2004 conducted by Hillsborough Resources delineated over 7.5 million tonnes of measured, indicated and inferred resources. In January 2005, a small mine permit application was submitted. A subsequent drilling program carried out in the spring of 2005 substantially increased the resource base. A total of 15.5 million tonnes of measured and indicated resources have now been identified plus additional inferred reasources of 2.4 million tonnes. At this level of resource base, the property is now suited to a larger mine development with a production level possibly in the in the range of 1 million tonnes per year. For this reason and because of rail congestion experienced by CP Rail in moving coal out of the Elk Valley region Hillsborough is now considering a full mine permit application for the property. Therefore, further work on the Small Mine application has been suspended.


Bingay Creek Operations

In a surface mine scenario the Bingay Creek coals have potential for production of various metallurgical grade clean coal products, including lower-FSI coals for pulverized coal injection(PCI) use in steel-making, and high-FSI coking coals. As is typical of other coal mines, blending of seams will be required to produce products for the marketplace.

In early June 2005 a new National Instrument 43-101 report on the Bingay Creek property was completed by C.G. Cathyl-Bickford, P. Geo., of Westwater Mining, a consultant to Hillsborough Resources and an “Independent Qualified Person.” The report has been filed on SEDAR and is available for viewing at www.sedar.com.

The Bingay property is located in an area that has a history of substantial metallurgical coal mining which will continue well into the future. Rail access to tidewater, although currently congested, is expected to adapt itself to future requirements for coal haulage. The property is geographically positioned to deliver into the hungry and substantial Asian Markets.


Hillsborough Developments and Operations