Hillsborough Announces Proposal to Develop Energy Generation Project in Northeast British Columbia with AES Pacific

Hillsborough Resources Limited (TSX: ?HLB?) is pleased to announce a proposal to develop an energy generation project in Northeast British Columbia with AES Pacific, Inc., under the name AESWapiti Energy (?AESWapiti?). The energy generation project would include a 165 MW thermal electric power plant and a 35 kilometre, 230 kV transmission line, and would have a contemplated project life of at least 40 years. Fuel for the energy generation facility would be supplied by the Wapiti coal mine operated by Hillsborough. The Wapiti coal property is located between Tumbler Ridge and Dawson Creek in Northeast BC, adjacent to the Heritage Highway.

BC Hydro is seeking new sources of energy, including power from independent power producers, and AESWapiti is now submitting a bid under the current BC Hydro call for power production tenders. AESWapiti is also entering into the Environment Assessment process in support of this bid submission. In this regard, it has commenced information meetings in Northeast BC, and is submitting a Project Description to initiate the process.

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