Hillsborough Resources (HLB)

[tedwitt]

Vey nice call

[creede]

Me either. Rrufff might know, because he certainly made a great call on this one.

[tedwitt]

Nice to see you as well. Have not kept up with coal prices as of late. If IGCC ever became really economical then coal would steadly climb for 5 - 10 years.

[creede]

Hey Ted, good to see you.

[tedwitt]

Buying on the Canadian is a different world than buying on the US.

I usually buy a stock on the Canadian. Bought a lot of stocks up there for the exchange rate.

[creede]

Ah, thanks for the info.

[rrufff]

It took a dive - profit taking, so better if you are buying. Most of the brokers online require you to buy it with the pink ticker HLSRF.pk. However, that one doesn't display accurate quotes. So, you have to get a quote on HLB.to and convert that to US and enter that. It's then routed to the Canadian MM, through the broker's international desk.

If you go to stockhouse.com, you can convert currencies right on the summary page.

[creede]

Well said.

What I am fuzzy about is which ticker to buy T.HLB or HLSRF.pk.

[rrufff]

Much easier to take positions in full reporting plays these days where you can at least come to logical opinions with respect to value. Unfortunately, most of IHub prefers the penny and sub-penny plays, and those are fun if you know how to minimize risk.

[creede]

Wow. Haven't seen you this bullish in a long time. I may have to take a dip.

[rrufff]

There are about 20 posts over on stockhouse.com debating the merits of a HLB.to = HLSRF.pk vs a couple of other juniors WTN and GCE. Bottom line is that these two have already made 8-9 baggers from lows while HLB is "only" up about 2.5 x lows. The arguments come down to higher trend in spot market prices will gradually translate into higher contract prices. HLB has low fixed costs compared to the others. The other two should continue to run, but HLB should get discovered and could have an explosive run from here, particularly after profit-taking on Friday.

[creede]

Very nice move.

[rrufff]

HLB.to=HLSRF.pk - hit new 52 wk high .90 before profit taking down to .81 today. There are a lot of very informative posts over on stockhouse.com. Particularly interesting are some comparisons with other Canadian coal Juniors which have had very big multi-bagger gains and arguing for a share price of $2.50 or even higher for HLB.

Some of the comments discuss its favorable cost structure, port facilities, reserve & prospects, Canadian dollar, etc.

[creede]

Excellent call, rrufff. Big congrats.

[rrufff]

HLB.to = HLSRF.pk hitting another double digit rise today to .84C high - now about .81C. Take a look at the long term chart and see where it was and how fast it moves now that it finally has some volume.

Coal is catching up with oil with a vengence, with the headlines in China and Australia and Africa compounding the demand and now, it seems, our microcaps juniors are being discovered.

Look for it to test $1 and then run from there. Multi year high is about $2.

[rrufff]

Feb 3 - McClatchy-Tribune Regional News - Peter Frost Daily Press, Newport News, Va.

Thousands of tons of black, sooty coal poured off long conveyor belts into holding bays on two large coal vessels docked at the pier of Newport News' Dominion Terminal Associates on Friday.

Standing beside his white pickup truck covered in sludge, safety supervisor David Hofe -- who's worked at the terminal for more than 15 years -- paused, staring at the spectacle. It's the first time he's seen two ships being loaded side-by-side in a long time.

"It's unbelievable," he said. "It's just something we haven't seen for years."

The combination of favorable economic and global supply-chain factors has Hampton Roads coal exporters scrambling to boost capacities to meet a skyrocketing demand for American coal.

A weak dollar, growing demand from developing countries like China and India and various supply problems in other coal-producing countries are pushing a resurgence in the coal industry not seen for nearly a decade.

Coal shipments though the port of Hampton Roads could rise more than 50 percent in 2008 to between 42 million and 45 million tons. That's up from about 28 million tons in 2007, said David F. Host, president of T. Parker Host Inc., a shipping agent based in Norfolk.

"It's crazy," Host said. "I've seen perfect storms, but this is the ultimate perfect storm. I mean, seriously."

The region's three coal terminals, two railways and a handful of companies on the periphery are adding workers, re-tuning idle equipment and paying hours upon hours of overtime to try to keep up with the surge, which many say could last two to three years.

At Dominion Terminal Associates, coal volume through the terminal could surpass 15 million tons this year, more than double what it moved in 2007, said president Charles Brinley. The group plans to boost its 60-person work force by eight to 10 new employees. In the meantime, Brinley said, terminal operations are running about 40 percent on overtime hours.

The region's two other terminals, Kinder Morgan Energy Partners Pier IX terminal in Newport News and Norfolk Southern Corp.'s Pier 6 at Lamberts Point in Norfolk, also are considering adding new staff as the coal surge continues.

Norfolk Southern's exports rose 25 percent in 2007 and the company expects "continued strong export volume," said Robin C. Chapman, public relations manager.

Coal shipments from Hampton Roads have averaged in the low- to mid-20 million tons range for the past seven years, down from a high of 65.5 million tons in 1991, Host said. Much of the coal shipped out of terminals here is metallurgical coal, used in making steel. The smaller but rapidly growing portion is "steam grade" coal, the type burned to generate electricity at power plants

Since that 1991 peak, the terminals have laid off coal workers, scaled back maintenance schedules on equipment with more downtime and mothballed some equipment and facilities. Now, with demand for U.S. coal projected to be strong for at least a couple of years, they're racing against the clock to return operating levels to where they were nearly two decades ago.

While demand for coal hasn't dipped much in the last 20 years, the business remains highly cyclical. Much of that is due to fluctuations in global currencies, which changes the bottom-line price of the commodity in different countries. When the dollar weakens, foreign buyers can get U.S. coal at a much cheaper rate because of more favorable exchange rates.

"But that's only one part of the picture," said Thomas Hoffman, a senior vice president with Pittsburgh-based Consol Energy Inc., one the nation's largest coal producers. "It's really a global phenomenon. A number of things have come together in the last 12 to 18 months and it really starts with China and India."

While Europe has long imported large amounts of coal to fire its power plants, it has only been a spot player in the U.S. market because it could get the fossil fuel cheaper from around the globe, including China, Australia, South Africa and South America. In other words, Europe only looked to the U.S. if there were problems elsewhere.

China has made a sharp turn from a net exporter to a net importer as its rapidly growing economy developed the need for steel to build and new power plants for electricity, and it dried up as a source. At the same time, it began taking coal from Australia, pushing up prices and putting pressure on Australia's limited infrastructure.

Meanwhile, supply in Colombia is "sold out," Brazil is "using more of its own coal than ever" and Venezuela is too unstable to be a reliable supplier, Host said.

Add to the picture a severe flooding incident in Australia that roiled its supply and power shortages in South Africa that shut down mines, "and you've got all these overseas buyers coming here asking us how many tons do we have to sell. It's no longer 'What's your price?' It's 'How much do you have?'" Host said.

For the Port of Hampton Roads -- the largest coal port in the U.S. -- the outcome is simple.

"We're just hugely busier," said Dominion president Brinley. "We're just trying to keep up."

[rrufff]

Jan. 28 (Bloomberg) -- Coal rose to a record in Asia and also advanced in Europe as floods in Australia and snow storms in China restricted output, spurring generators to secure supply.
Anglo American Plc today said operations have resumed at five South African mines shut Jan. 25 because of power shortages. Coal prices at Australia's Newcastle port, a benchmark for Japan, South Korea and Taiwan, jumped 3.9 percent to a record $93.35 a metric ton in the week ended Jan. 25, according to globalCOAL. European coal advanced to a two-week high.

``It's difficult to see in the next 18 months to two years who would have the capacity to significantly increase supply,'' Graham Chapman, managing director at Richmond, U.K.- based consultant Energy Edge Ltd., said by telephone today.

In Australia, the world's biggest coal exporter, Macarthur Coal Ltd. and Wesfarmers Ltd. said they wouldn't be able to meet contract supplies from some mines in Queensland state after heavy rain. China ordered domestic coal shippers to halt exports after heavy snow and rail congestion shut supplies to 5 percent of the country's coal-fired generators.

Coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement from April through to the end of June gained 75 cents, or 0.6 percent, to $124.50 a metric ton as of 12:13 p.m. in London, according to ICAP Plc prices. That's the highest since Jan. 10.

Weglokoks SA, Poland's largest coal exporter, said today it has no supply available to sell to clients without existing contracts. Poland was the 10th-largest exporter of coal used in power plants in 2006.

Indonesian Supply

PT Bumi Resources, Asia's third-largest coal producer, and smaller rival PT Berau Coal today said they can't increase production because of government commitments and a lack of equipment.

Taiwan Power Co., the island's biggest electricity producer, said it plans to buy coal in the spot market because of concern China will stop exports. The utility issued a tender last week for about 1 million metric tons of coal and may buy more in the spot market.

``Even before these developments, spot prices for coal and coke were at record high levels,'' Macquarie Group analysts led by Jim Lennon said in a report. ``Current price negotiations for annual contracts could be settled at much higher levels than previously thought.''

Xstrata Plc, Rio Tinto Ltd. and PT Bumi Resources will seek higher contract prices for 2008, with Australian coal likely to fetch more than $100 a ton at loading ports, compared with $55.65 a ton in 2007, Christine Salim, an analyst at Samuel Sekuritas in Jakarta, said in a note to clients today. The global average may be $80 a ton this year, and $90 a ton in 2009.

European Coal

European coal prices increased 87 percent in the past year as utilities from Germany's E.ON AG to Enel SpA in Italy sought an alternative to increasingly expensive oil and gas, and India stepped up imports from South Africa. Rising prices in Europe and Asia bolstered a U.S. market that hasn't been linked to the international coal trade for two decades, because the country produces enough to meet domestic use.

``If these problems linger, there's going to be significant pressure on a market that was already robust,'' Stephen Leer, chief executive officer of Arch Coal Inc., the second-largest U.S. producer, said in a Jan. 25 interview from St. Louis.

The other primary coal-exporting countries, Indonesia and Colombia, are already at or near capacity and may struggle to boost supplies, he said.

Export Markets

``Our ports are a little congested, but we still have wiggle room to sell into export markets,'' Leer said.

Coal for delivery to Big Sandy Barge, a benchmark for the Eastern U.S., jumped $3.50, or 5.8 percent, to $63.50 a ton in spot trading last week, according to data compiled by Bloomberg. Eastern coal gained 61 percent in the past year. In the West, at Wyoming's Powder River Basin, coal rose 33 percent to $12 a ton, according to Bloomberg data.

Consol Energy Inc. plans to open a terminal later this week in Baltimore that was forced to halt shipments when a portion of a pier collapsed about four weeks ago. Consol's port can handle about 15 million tons a year, more than twice the company's exports in 2006.

U.S. exports may climb to 75 million tons this year from 50 million in 2006, Jeremy Sussman, an analyst at Natixis Bleichroeder in New York, said in an interview.

The biggest U.S. producers are scheduled to report fourth- quarter earnings this week. Analysts forecast greater profits at three of the top four producers, because of higher prices and increasing demand internationally.

To contact the reporter on this story: Christopher Martin in New York at [e-mail] .

Last Updated: January 28, 2008 07:46 EST

[creede]

Rrufff, very impressive work in such a fickle market.

Detailed Quote for Hillsborough (T.HLB)
$ 0.60 0.07 (+13.21%) Volume: 840.95 k 3:55 PM EST Jan 28, 2008

[rrufff]

Posted by: up-down
In reply to: rrufff who wrote msg# 1208 Date:1/28/2008 12:32:34 PM
Post #of 1213

China Has a Power Shortage; South Africa Has a Power Shortage

POSTED: Monday, January 28, 2008

FROM BLOG: Fund my Mutual Fund - High quality analysis of growth stock investing, focusing on top 50-60 stocks in the market.

The following blog post is from an independent writer and is not connected with Reuters News. The opinions and views expressed herein are those of the author and are not endorsed by Reuters.com.

I talk about our coming World of Shortages (tm) :) each and every week. More and more evidence comes to the forefront, no matter what commodity we discuss. You can click here for all my posts about inflation which is essentially the other side of worldwide shortages.... we just have more and more evidence from a story here, and a story there. Once you begin adding up all these mole hills, eventually you have the mountain. Maybe this was why the coal stocks were so buoyant last week.

China Feels New Year Chill as Coal Shortage Bites

China is experiencing an acute power shortage with a nationwide electricity shortfall at 70 gigawatts, the equivalent of almost Britain’s entire generating capacity.

State media has described the crisis as China’s worst-ever power shortage. With coal prices soaring and supplies disrupted by some of the most severe winter weather in years, it is certainly the most acute since 2004 when demand outstripped supply by 40 gigawatts.

A rush for individual generators and to buy diesel to fuel them sent state firms into the international markets, provoking a spurt in crude oil prices.

So worried is the government that on Friday it put in place a two-month ban on coal exports. (leaving more for our producers to fill the gap... bingo)

The coal shortages have forced the five biggest electricity producers to close 90 power stations - with a combined capacity of more than 20,000 megawatts - in northern and central China. Coal stockpiles at the plants have dropped below the "caution mark" of three days' requirements.

The shortage could not have come at a worse time for the ruling Communist Party. The leadership is anxious to ensure plentiful supplies of power for the most important holiday of the year, the Lunar New Year holiday,which begins on February 7, just as rising prices – particularly for food – are fuelling popular discontent.

Chronic winter shortfalls of coal, which fuels 78 per cent of China’s electricity supply, have been aggravated by transport disruptions due to unusually heavy snow across central, eastern and northern China. The unusually icy temperatures have prompted a surge in demand for power as people try to keep warm.

The core problem is that China’s economy is still caught between Marxist central planning and market forces. Domestic prices of coal have been liberalised and rose 14.2 per cent year on year in December while electricity prices rose only 2.1 per cent since these are capped to by the state to curb inflation. Utilities have chafed at caps on electricity rates that prevent them from passing the higher costs for coal on to customers.

That last point, is what I see as a major problem for China. They continue to supress free market pricing in the energy market... which in turn drives demand even higher than it should be, so its a very vicious cycle. Keep prices lower than they should be, and keep driving up demand over "market levels". At some point something breaks. And it breaks badly.

Now on to South Africa...

South African Mines Remain Shut Down Amid Power Shortages

AngloGold Ashanti Ltd. and Gold Fields Ltd., Africa's biggest gold producers, kept their South African mines closed for a second day as an electricity shortage threatened growth in the continent's biggest economy.

Mining companies stopped thousands of workers going down shafts, some of which are more than two miles (3.2 kilometers) deep, after state utility Eskom Holdings Ltd. said it couldn't guarantee a stable electric supply.

Gold and platinum rose to records in London trading yesterday on concern that shortages may result from the mine closures.

Eskom, which supplies 95 percent of South Africa's power, mostly by burning coal, can't meet demand after the government delayed an expansion decision by four years.

Eskom asked 138 industrial customers on Jan. 24 to cut use after heavy rain damaged coal stocks, cutting generation that threatened to destabilize the entire grid, said Andrew Etzinger, a spokesman from Johannesburg-based Eskom.

Talks also have started with coal suppliers about diverting some high-quality coal destined for exports to Eskom plants for blending with the coal normally used. Export-quality coal is more expensive than the coal Eskom typically uses.

The power cuts may shave South African growth by half a percentage point this year, Goolam Ballim, chief economist of Standard Bank Group Ltd., Africa's biggest lender, said yesterday.

Since early in the fall, I've mentioned coal as the forgotten commodity - despite all the fuss about how dirty it is, it is driving much of the world's growth. Now we see 2 countries potentially diverting exports to take care of in house emergencies. And in this World of Shortages, I think what we are seeing here is just a preview of what will be coming.

Remember, 2006 marked the first year this globe has ever seen with >50% people living in urban centers as opposed to rural. And each year the global population grows. And each year more move to cities. And we're struggling even at these levels with our global natural resources.

This is why I am saying the most dangerous words ever written: "It is different this time". Inflation is of a global scale and will be derived from a population too large for our world's natural resources. These are long term, structural changes. Eventually (10+ years) technological innovation will come in and alleviate some of the issues, but in the 1-8 year period - I think it's going to be a very hairy situation. I can't forecast past that because I don't know what innovations will come to the forefront... but if they are not meaningful we will have major global crisis. We're just seeing small blips now...

http://tinyurl.com/2fefv6

[rrufff]

Thanks to poster up-down on the Coal board of IHub

Hillsborough Resources Ltd.
1200 W. 73rd Ave.
Suite 925
Vancouver, BC V6P 6G5
Canada

http://www.hillsboroughresources.com

Phone: [phone]

Transfer Agent
Computershare Trust Company of Canada Inc.,
510 Burrard St.
3rd Floor
Vancouver, BC V6C 3B9
Canada

Coal revenue: ($)
24,285,075 (2006)
22,086,973 (2005)
23,395,086 (2004)

Net earnings: (loss) ($)
(5,384,822)(2006)
1,141,024 (2004)
1,811,056 (2004)

The results of 2006 also include the interest
expense related to both the Anglo Coal loan of $4.5 million,
which was outstanding from the end of 2005 through
November 2006, and the capital lease obligation which was
newly established in the fourth quarter of 2005.

The Corporation had long
term financial debt at December 31, 2006 of $2,912,421,
including capital lease obligations, versus $6,664,506 at
December 31, 2005, with the decrease resulting primarily
from the elimination of the Anglo Coal loan of $4.5 million
plus accrued interest as part of the property interest
crystallization.

http://www.hillsboroughresources.com/investor_relations/annual_report.php

-----

OS: 58,434,986
Employee Count (2005/2004): 138 / 83

http://www.stockhouse.com/comp_info.asp?symbol=HLB&table=list


Hillsborough Announces Settlement of Lawsuit 1/17/2008 12:28:18 PM

Hillsborough Announces Increase of Debenture Financing From $7 Million to $10 Million 1/17/2008 12:26:44 PM

The Maybach Review: Has added Hillsborough Resources Ltd. to their watch list 1/17/2008 11:02:17 AM

Hillsborough Announces Q4/08 Sale of 130K Tonnes at US $91 Per Tonne FOB and the Sale of Surplus Equipment for CDN $1.2 Million 1/16/2008 2:59:25 PM

Pinnacle Digest: Major Appointment Sparks Review 1/14/2008 5:25:27 AM

Hillsborough Appoints Vice President Finance-Chief Financial Officer 1/11/2008 12:19:30 PM

Hillsborough Expanding Production at Quinsam Mine as Global Coal Price Heats Up; New Mining at 2 South Starts in December 12/6/2007 12:49:45 PM

Hillsborough Closes $3 Million Equity Private Placement With MinQuest Capital 11/19/2007 2:11:19 PM

Hillsborough Resources Limited: Quinsam Mine Production Update 11/16/2007 3:09:37 PM

----

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.

The Corporation holds a 20 percent interest in the Peace River Coal Limited Partnership, which has substantial metallurgical coal properties both in production and start-up and under development near Tumbler Ridge, British Columbia. In addition, Hillsborough is reviewing opportunities to develop the proposed Wapiti thermal coal mine in the same region.

The Corporation also holds the Bingay Creek metallurgical coal property located in the Elk Valley region of Southeast British Columbia, and coal bed methane licences on Vancouver Island. It also owns and operates the Middle Point Barge Facility near Campbell River, BC and GH Fuels Limited, which caters to greenhouse operators in British Columbia.

Hillsborough has been a publicly traded company since 1988 and shares of the Corporation are listed for trading on the Toronto Stock Exchange under the symbol “HLB”.

-----

January 17, 2008 - Hillsborough Resources Limited (HLB:TSX) is pleased to announce that it has modified and increased its previously-announced debenture financing such that it is now seeking to raise $10,000,000 in unsecured, five year, 10% convertible debentures. Under the terms of the new financing, Salman Partners will act as agent on a best efforts basis while Hillsborough’s largest shareholder, MinQuest Fund 1, LP will commit a lead order of $2 million. As a result, MinQuest Fund 1, LP’s stake in Hillsborough will rise to approximately 15% on a fully diluted basis.

The debentures have a 5 year term and are convertible into common shares of Hillsborough at any time up until maturity at a conversion price of $0.60 per share. After two years, the Corporation has the right, under certain circumstances, to redeem the debentures. The transaction is subject to due diligence and to regulatory approval.

The expected closing date of the transaction is February 13, 2008. Proceeds will be committed to capital equipment at the Quinsam mine and wash plant, as well as to definition drilling and feasibility work at 7 South and Quinsam North projects. Cash commitments at Hillsborough’s Peace River Coal Partnership will also be addressed.

The above financing will enable Hillsborough to optimize its operations and to take full advantage of current coal prices which are unprecedented in the Company’s history.

----

Looking into the Hillsborough Resources Limited (TSX:HLB), performance for yesterday January 17, 2008 we can notice that the Canadian Market reacted to the lawsuit settlement. By late afternoon on January 17, 2008 the stock was up 7 percent on higher average volume.

An agreement with the plaintiffs in an Alberta-bench lawsuit lodged in 2004 against the Hillsborough Resources Limited Hillsborough Resources Limited claiming an amount of $21,000,000 as announced on January 17, 2008 by Hillsborough Resources Limited (TSX:HLB), The lawsuit arose as a result of a failed business transaction between the two parties.

Settlement terms are as follows: - Cash payment of approximately $78,000 covering certain equipment acquired by Hillsborough under the terms of the original agreement, and - Delivery from escrow of 100,000 common shares in the capital of the Corporation The balance of the escrowed Hillsborough shares numbering 582,680 shares, will be returned to the Corporation for cancellation.

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. The Company is a limited partner in the Peace River Coal Limited Partnership, which has substantial metallurgical coal properties both in production start-up 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.

-----

http://www.worldcoal.org

[rrufff]

January 26, 2008
China's power shortage stokes Canadian coal producers
By CP


CALGARY -- China's hunger for energy resources presents a great opportunity for Canadian coal producers, the executive director of the Coal Association of Canada says.

But Canada isn't a big enough producer to put a dent in the emerging superpower's fuel shortage, Allen Wright said yesterday.

"I think it's a good thing for our industry,' Wright said.

But we're not going to be the player that actually turns the situation around if they've got a shortage."

The coldest, snowiest winter in decades has caused power shortages and left millions of Chinese without heating and running water.

Yesterday, the country's Transport Ministry ordered ports to temporarily stop loading coal for exports as China struggles to meet domestic power needs.

State-owned shipper Cosco Holdings Co. Ltd. was hauling about 760,000 tonnes of coal in an emergency shipment.

China's coal markets have been tight in recent years. It exported 16% less coal in 2007 than it did a year earlier, while imports rose 34%.

Vancouver-based coal producer Hillsborough Resources Ltd. (TSX:HLB) signed a deal last week to sell 130,000 tonnes of thermal coal to an Asian generating facility for about $11.8 million.

"I think it's a positive from the point of view that they've found a market for it. I hope they can do more," Wright said in a research note.

There is also massive global demand for metallurgical or coking coal, the type used in steel production.

"Take a look at the demand for steel and that will give you a pretty good indication of what the demand for coking coal is," he said.

Virtually all the coal Fording Canadian Coal Trust (TSX:FDG.UN) is sold to the global steel industry, said Catherine Hart, the company's senior investor relations analyst.

Fording's customers buy coal through long-term contracts, she explained.

Light, sweet crude for March delivery rose $1.30 to settle at $90.71 on the New York Mercantile Exchange after rising as high as $91.38.

[rrufff]

Jan. 28 (Bloomberg) -- Coal rose to a record in Asia and also advanced in Europe as floods in Australia and snow storms in China restricted output, spurring generators to secure supply.

Anglo American Plc today said operations have resumed at five South African mines shut Jan. 25 because of power shortages. Coal prices at Australia's Newcastle port, a benchmark for Japan, South Korea and Taiwan, jumped 3.9 percent to a record $93.35 a metric ton in the week ended Jan. 25, according to globalCOAL. European coal advanced to a two-week high.

``It's difficult to see in the next 18 months to two years who would have the capacity to significantly increase supply,'' Graham Chapman, managing director at Richmond, U.K.- based consultant Energy Edge Ltd., said by telephone today.

In Australia, the world's biggest coal exporter, Macarthur Coal Ltd. and Wesfarmers Ltd. said they wouldn't be able to meet contract supplies from some mines in Queensland state after heavy rain. China ordered domestic coal shippers to halt exports after heavy snow and rail congestion shut supplies to 5 percent of the country's coal-fired generators.

Coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement from April through to the end of June gained 75 cents, or 0.6 percent, to $124.50 a metric ton as of 12:13 p.m. in London, according to ICAP Plc prices. That's the highest since Jan. 10.

Weglokoks SA, Poland's largest coal exporter, said today it has no supply available to sell to clients without existing contracts. Poland was the 10th-largest exporter of coal used in power plants in 2006.

Indonesian Supply

PT Bumi Resources, Asia's third-largest coal producer, and smaller rival PT Berau Coal today said they can't increase production because of government commitments and a lack of equipment.

Taiwan Power Co., the island's biggest electricity producer, said it plans to buy coal in the spot market because of concern China will stop exports. The utility issued a tender last week for about 1 million metric tons of coal and may buy more in the spot market.

``Even before these developments, spot prices for coal and coke were at record high levels,'' Macquarie Group analysts led by Jim Lennon said in a report. ``Current price negotiations for annual contracts could be settled at much higher levels than previously thought.''

Xstrata Plc, Rio Tinto Ltd. and PT Bumi Resources will seek higher contract prices for 2008, with Australian coal likely to fetch more than $100 a ton at loading ports, compared with $55.65 a ton in 2007, Christine Salim, an analyst at Samuel Sekuritas in Jakarta, said in a note to clients today. The global average may be $80 a ton this year, and $90 a ton in 2009.

European Coal

European coal prices increased 87 percent in the past year as utilities from Germany's E.ON AG to Enel SpA in Italy sought an alternative to increasingly expensive oil and gas, and India stepped up imports from South Africa. Rising prices in Europe and Asia bolstered a U.S. market that hasn't been linked to the international coal trade for two decades, because the country produces enough to meet domestic use.

``If these problems linger, there's going to be significant pressure on a market that was already robust,'' Stephen Leer, chief executive officer of Arch Coal Inc., the second-largest U.S. producer, said in a Jan. 25 interview from St. Louis.

The other primary coal-exporting countries, Indonesia and Colombia, are already at or near capacity and may struggle to boost supplies, he said.

Export Markets

``Our ports are a little congested, but we still have wiggle room to sell into export markets,'' Leer said.

Coal for delivery to Big Sandy Barge, a benchmark for the Eastern U.S., jumped $3.50, or 5.8 percent, to $63.50 a ton in spot trading last week, according to data compiled by Bloomberg. Eastern coal gained 61 percent in the past year. In the West, at Wyoming's Powder River Basin, coal rose 33 percent to $12 a ton, according to Bloomberg data.

Consol Energy Inc. plans to open a terminal later this week in Baltimore that was forced to halt shipments when a portion of a pier collapsed about four weeks ago. Consol's port can handle about 15 million tons a year, more than twice the company's exports in 2006.

U.S. exports may climb to 75 million tons this year from 50 million in 2006, Jeremy Sussman, an analyst at Natixis Bleichroeder in New York, said in an interview.

The biggest U.S. producers are scheduled to report fourth- quarter earnings this week. Analysts forecast greater profits at three of the top four producers, because of higher prices and increasing demand internationally.

To contact the reporter on this story: Christopher Martin in New York at [e-mail] .

Last Updated: January 28, 2008 07:46 EST

[rrufff]

Thanks - nice today hit a high of .62C, closed at .60

[creede]

And like magic she responds. Nice call, and thanks for the headsup.

0.53 0.02 (+3.92%) Volume: 262.1 k 3:20 PM EST Jan 25, 2008

[rrufff]

Haven't posted here in a long while. Coal has been a tough play but it's starting to pick up some followers. This past week, there have been media stories about shortages of coal in China, India and South Africa, the latter of which caused mines to shut down.

So, the price of coal should finally start catching up with oil.

I've been picking up some of this, as well as natural gas play ASPN and O&G FPP.

[creede]

LOL

You think the Chinese will be buying all that coal to keep the garage warm for their new Ferrari?

http://www.investorshub.com/boards/board.asp?board_id=8740

[rrufff]

Lots of predictions that coal will be "hot" LOL over the next year. With oil at highs and likely to climb, there is more attention being paid to coal. I've seen some claims that China will buy up tons.

[creede]

Think this is a reversal, or that the downtrend will continue?

[creede]

Oh, I see what you are saying. You cannot trust the quotes because they are often just so old. Makes sense now.

So you go to stockhouse? I took a quick look at it. It's a little more along the lines of SI and IHUB, except you cannot do the graphics and stuff. Do you have to pay anything there?

[rrufff]

There is an excellent conversion on stockhouse. You look up the company and then there is a drop down menu for the currency you want.

There is also one on Yahoo but I like the stockhouse better.

It's hard to explain and I think I have you a little confused. The shares are the same. There are no US shares. You are buying Canadian shares. The listing on pinks is really just a way for US investors to trade online. Because there are relatively few trades under the pink symbol, the quotes and the trades do not reflect current reality. The HLSRF last trade might be a few days old even. I don't think you can even get a level 2 on alpha trade for hlsrf. Maybe you can do it. Do you get Canadian quotes?

Again, the key is to get the HLB.to quote and then convert to US dollars.

Not to get too far off base, but there are stocks that trade simultaneously on a Canadian exchange and e.g., AMEX or NASDAQ. The company actually applies for a dual listing. Then the price of the shares is arbitraged between the 2 by big players and MM's. This is not the case with pinkies. As I said, the pinkie "listing" is not a real listing of any kind, just a convenience.

[creede]

Wow... wow. I had a feeling that this would be yet another learning experience. Thanks for the excellent post. I do have a couple of questions... surprise.


This might be great information for the ibox.

The important thing to understand also with the pink listing is that you shouldn't buy or sell based on the pink sheet quote. The volume and the price are not necessarily accurate. You take the Canadian quote and convert to dollars. Enter your bid or offer accordingly. There is also a small markup or markdown that the broker in Canada gets but I haven't found that to be a major problem.

Seems very confusing that the pinksheet quote is not a conversion of the canadian price... is that too high tech? lol

Do you have the conversion rate handy? TIA

So, is it safe to assume that if we make money in this stock, it's probably not going to be from U.S. buyers, since I would figure that most would just not mess with the conversion factor, and the difficulty getting filled?

[rrufff]

I don't know the details and haven't really spent a lot of time on Canadian securities. Used to totally avoid them as they had less regulation but they've established more credibility as has the otc bb here over the past decade. Pink sheets is trying, but until they get to full reporting of at least the capital structure and changes, it's hard to ascribe a lot of credibility there.

But - SEDAR - is like EDGAR here. It's where the filings are located electronically for us online investors. The exchange is .to. There are several exchanges with varying requirements, kind of like we have here NYSE, ASE, NASDAQ are all stock exchanges, where stock is "exchanged," with specialist or market maker acting as intermediary.

OTC BB and pink are not strict stock exchanges but really places where orders are placed by market makers. Similar but different and I'm being less than precise.

Best formal definitions can be found at the websites for each entity.

sedar.com - Canadian filings

Back to the pink sheet listing for Canadian companies. It's not the same type of listing. It's really for informational purposes and convenience in placing orders online. If you look at the pinksheets.com details, you'll find that they often list exceptions for foreign investments for that reason.

I've often bypassed the pink and called the broker and asked them to list directly with a market maker in Canada. The reason I did this was that the pink sheet listing that I did online was routed to a market maker in Canada that was not that active in the stock and I was not getting the fill.

The important thing to understand also with the pink listing is that you shouldn't buy or sell based on the pink sheet quote. The volume and the price are not necessarily accurate. You take the Canadian quote and convert to dollars. Enter your bid or offer accordingly. There is also a small markup or markdown that the broker in Canada gets but I haven't found that to be a major problem.

Again, I apologize for being less than precise. I've got more notes on this stuff but I don't do it a lot so for details, best to look at Canadian trading sites.

stockhouse.com has probably the best message boards for Canadian stocks.

[creede]

So SEDAR is in fact a real exchange. So a stock like Hillsborough is not a pinksheet, but a fully filing company. Does SEDAR require 3 quarterly, and one annual audited report each year?

[rrufff]

SEDAR - has stuff that is more stuff similar to what you see on full filing reporting companies.

These Canadian companies use a pink symbol for traders in the US. You often see a statement that a company trades on the pink exchange. Pink is not an exchange first of all. The symbol is really just a convenience as brokers like Ameritrade do not allow for trading online on foreign markets.

When you enter the pink symbol, the shares are routed to Canadian market makers and traded there. The shares are listed on the US brokerage account under the pink symbol with US dollar value for convenience only.

[creede]

Alright.... been scratching around in the latest financials.

Here's the o/s and market cap.

~> HLSRF .5587 x (o/s Sept 30, 2006) 54,212,375 = 30,288,454 nano (Feb 3, 2007)

Alright, nice sized cap. Could easily see it going to a micro seeing how easily it moves.

I saw that the cash went from 5.6 mil to only 600k. Where did all the money go? Did it have something to do with Crossville shutting down?

Also, I see this stock has warrents, and options attached to it's share structure. I got a bit confused looking at that section. Can you tell me how many warrents there are, and are they already a part of the o/s? What effect good or bad could they have on the pps?

[creede]

So, not much interest on IHub, where the pennies are the play and people love those stocks that can go up 10X in a week. As long as we all know that this is the case, and that the plays here have inherent huge risks, particularly if they are non-reporting pinkies, then gambling in the IHub casino stock is our choice. I think it should be part of a diversified portfolio that allocates risk.

I have to agree. I think there are several reasons that investors tend to neglect plays like Hillsborough. First of all, I think it comes down to a lack of understanding. It takes time and effort to actually sit down and learn what is good and what is bad inside of the reports. In the beginning it's all greek, but the more we try, the more we learn. But that's not the softer, easier way..... which is why I think the pinks can be so alluring. Usually all there is a bunch of PR's, and some cut and paste google DD. No filings, no transparency, no numbers to crunch. Just pick an entry, and hope like heck you do not see CLYP, HDSN, VFIN, BRGE, or VERT anytime soon.

Secondly, I think it often comes down to financial desperation. You can see the train of thought when someone about out of capital reasons that it's best to buy $500.00 worth of a .0005 stock in the hopes that it will 100 bag to .05, and then they will get diversify into some safer plays later. Heard of people living pay check to pay check? I bet we would be shocked how many try to live from stock to stock..... not too safe a passage in them waters.

End of soapbox diversification rant. lol

[creede]

Sure, I would like to assist. It will be a good learning experince for me, since I have not ventured off the American Exchanges. I went to pinksheets, and notice that there are no reports of any kind there for Hillsborough. I then went to Sedar.com to do a little reading. Are those documents more along the lines of pinksheets reports, or would they be more on the parallel of SEC filings?

[rrufff]

This has been as low as about .35 US. Currently about .60, but it has been over 2x that I believe last year.

Although I post more on IHub about the pennies, I put more into these type of plays as they are different breeds of stock. The larger microcap stocks are not subject to the hidden dilution and momo and bash moves to the same extent as we see here on IHub.

Different types of risks, but more info upon which to base decisions.

Some of my other favorites are ORFR, PHPG, DFNS, VSYS, AMLJ (all varying defense and security type plays), FPP, ASPN, BSIC in microcap oil and gas, CPSX tech manufacurer working on the internal heat problem as chips get smaller. Some others I like PDGE (mold, asbestos remdiation, rebuilding), EKCS, VSR.

Anyway, these won't give you the multi baggers in a week and all are closer to lows than highs. So, not much interest on IHub, where the pennies are the play and people love those stocks that can go up 10X in a week. As long as we all know that this is the case, and that the plays here have inherent huge risks, particularly if they are non-reporting pinkies, then gambling in the IHub casino stock is our choice. I think it should be part of a diversified portfolio that allocates risk.

[rrufff]

Hillsborough Resources Announces New Subsidiary Northwest Pozzolan and a Federal Grant From Sustainable Development Technology Canada
1/23/2007
VANCOUVER, BRITISH COLUMBIA, Jan 23, 2007 (CCNMatthews via COMTEX News Network) --

Hillsborough Resources Limited (TSX:HLB) ("Hillsborough", or the "Corporation") is pleased to announce the establishment of Northwest Pozzolan Limited ("NW Pozzolan") as a wholly owned subsidiary of Hillsborough. NW Pozzolan is in the process of developing the Kaolin clay resources contained in the tailings impoundment at Hillsborough's Quinsam mine for the purpose of producing metakaolin, a world class supplementary cementing material. Metakaolin is used in portland cement concrete as a high performance admixture for improving both fresh and hardened characteristics, without having any significant effects on normal concrete colour. The product will be marketed under the trade name "METAPOZZ".

A pilot project has been underway at the Quinsam mine site over the last eighteen months to produce sufficient quantities of METAPOZZ to allow the performance of a full suite of scientific tests by an independent engineering firm. When METAPOZZ is added to concrete at 8 to 12 per cent replacement of cementitious material by weight, the result is increased strength, reduced permeability, full protection against alkali silica reaction and the virtual elimination of efflorescence. Metakaolin can replace up to 15 per cent of portland cement, the latter's production being a significant source of CO2 emissions. Given this potential for decreasing CO2 emissions and the encouraging results to date, Hillsborough has been approved by Sustainable Development Technology Canada for up to $868,000 in federal grants to support research and development on this project. These funds will be used to further develop the project and to establish its commercial feasibility.

The acceptance and usage of high performance concretes in portland cement structures is in response to the demand from developers, engineers and architects to build higher and much more durable structures. "With the current boom in the Pacific Northwest economy and Hillsborough's established customer base of cement producers, we see NW Pozzolan as a natural fit to the Hillsborough family," says David Slater, President and C.E.O. of Hillsborough. "METAPOZZ is the result of demand and innovation, and is a potential solution for users of high performance concretes." For more information on NW Pozzolan and its new product METAPOZZ, please visit our website at www.nwpozzolan.com.

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. The Corporation holds a 20% interest in the Peace River Coal Limited Partnership, which has substantial metallurgical coal properties both in production start-up and under development near Tumbler Ridge, British Columbia. In addition, the Corporation is developing the Wapiti thermal coal mine in the same region to be the exclusive supplier commencing in 2010 for a power generation plant to be constructed and operated on the property by AESWapiti Energy Corporation. Hillsborough also holds the Bingay Creek metallurgical coal property located in the Elk Valley region of Southeast British Columbia.

[rrufff]

Would you like to assist? This one is not a momo play so not a lot of interest on IHub. It's more a SI type of pick - the type the Microcap Kitchen people play.

It's a top junior coal miner in Canada, and it was hurt by the fall in energy prices, as well as the environmental issues in coal. However, given the democrats and Bush's new interest in alternatives to oil, this presents an opportunity.

They recently restructured part of the business and combined operations with Anglo coal, a large entity. Last week they PR'd that are developing a new business from the tailings in their operations. This will lead to a new revenue stream. The PR included info about a Canadadian government grant, apparently because this new business makes for more efficient and environmentally friendly cement manufacturing.

In any event, it's quoted as HLB.to and HLSRF.pk.

Insiders have been buying all the way down. There have been some mis-steps, including a written down mine. But these are the type of opportunities that often lead to multi-baggers. Again, it's not a momo play, but, if you take a look at the chart, you see one that easily moves very steeply over a year.

[creede]

Are you keeping this one all to yourself? I noticed this is the only board on IHUB you moderate.

Did you happen to see that they now have the boards that we assist on? Click the boards moderated # on your profile.

BTW - I'm stalking your every trade. lol

[rrufff]

Nemi, Anglo Coal Canada and Hillsborough to consolidate Northeast BC properties

VANCOUVER, Jul 11, 2006 (Canada NewsWire via COMTEX News Network) --
Hillsborough Resources Limited (HLB:TSX) ("Hillsborough") and NEMI Northern Energy and Mining Inc. (NNE:TSX) ("NEMI") are pleased to announce that they have entered into a non-binding letter of intent, together with Anglo Coal Canada Limited ("Anglo Coal Canada"), indirectly a wholly-owned subsidiary of Anglo American plc (AAL:LSE), and Itochu Corporation ("Itochu"), whereby the north-eastern British Columbia metallurgical coal assets of Hillsborough, NEMI and Anglo Coal Canada will be consolidated into a company to be formed for the purpose.

Shareholdings in the new entity will be subject to a fair market valuation of each company's metallurgical coal assets located in Northeastern British Columbia. Anglo Coal Canada and Hillsborough will have the right to contribute additional funding to make their shareholdings 60% and 20%, respectively in the event of a shortfall in the valuation of the assets contributed. Anglo Coal Canada will by its shareholdings have management control of the new company.

In addition, Anglo Coal Canada will provide funding to NEMI over the next three months subject to certain conditions. Itochu will continue to have off-take, marketing and equity conversion rights relative to the NEMI assets.

The parties intend to finalise the transaction within the next three months with comprehensive due diligence exercises and binding agreements to be concluded during this time, although the finance agreements for a portion of the total debt will be prioritised to enable NEMI to meet its current obligations.

The transaction is subject to regulatory and respective company board approvals.

David Slater, President and CEO of Hillsborough, said, "The synergies that are inherent in this consolidation are very compelling from a financial, operational and logistical aspect. I believe that we have taken the first step towards creating a truly world-class coal operation in northeast BC."

The Anglo Coal division of Anglo American plc has interests in operations in South Africa, Australia, Venezuela and Colombia producing in excess of 100 million tonnes of coal per annum. The Anglo American group of companies is involved in the mining of, among others, gold, platinum, diamonds (through its interest in De Beers), base metals, iron ore and other industrial minerals.

NEMI Northern Energy and Mining Inc. is a western Canadian based coal company with strategically located metallurgical coal properties in northeast British Columbia. NEMI owns a 100% interest in the Trend Property located near the town of Tumbler Ridge. NEMI also has a 50% interest in the Belcourt Saxon Limited Partnership that covers over 50,000 hectares of known and highly prospective coal bearing land in northeast British Columbia.

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. Hillsborough 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.

This release may contain forward-looking statements regarding the Company'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 Company expects are forward-looking statements. Although the Company 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.

SOURCE: NEMI Northern Energy & Mining Inc.

SOURCE: Hillsborough Resources Limited

[rrufff]

Thanks for posting that. This is one of my larger holdings and eventually people will be coming back to coal and natural gas as they realize that high energy prices are here to stay and that the cost of heat compared to oil is now a bargain.

[roguedolphin]

HLB.TO/HLSRF.PK......Got Coal??? Hillsborough Resources is at a great buy point right here...


http://stockcharts.com/h-sc/ui?s=HLB.TO&p=D&yr=1&mn=0&dy=0&id=p17169956825


HLB.TO insiders just bought some large blocks of stock last week in the market (Hesperian Capital Management is a great value player), so did rogue.....

http://www.canadianinsider.com/coReport/allTransactions.php

Hillsborough Resources Limited (HLB) As of May 20th, 2006
Filing Date Transaction Date Insider Name Nature of transaction Securities # or value acquired or disposed of Unit Price
May 19/06 May 19/06 Fawcett, David Albert 10 - Acquisition in the public market Common Shares 10,000 $1.030
May 15/06 May 12/06 Fawcett, David Albert 10 - Acquisition in the public market Common Shares 10,000 $1.100
May 11/06 May 11/06 Hesperian Capital Management Ltd. 11 - Acquisition carried out privately Common Shares 225,000 $1.150
May 11/06 Dec 12/05 Hesperian Capital Management Ltd. 00 - Opening Balance-Initial SEDI Report Common Shares
May 11/06 May 11/06 Hesperian Capital Management Ltd. 11 - Acquisition carried out privately Common Shares 675,000 $1.150

[rrufff]

Nice news out after the close

Hillsborough Resources: Hillsborough Announces Fuel Supply Agreement with AESWapiti Energy Corporation
4/11/2006

VANCOUVER, BRITISH COLUMBIA, Apr 11, 2006 (CCNMatthews via COMTEX News Network) --

Hillsborough Resources Limited (TSX:HLB) is pleased to announce the execution of a fuel supply agreement with AESWapiti Energy Corporation ("AESWapiti"). Under the terms of the agreement, Hillsborough's Wapiti property would be the exclusive supplier of thermal coal for a proposed power generation plant to be sited on the property, located between Tumbler Ridge and Dawson Creek in Northeast BC. AESWapiti has now entered a bid submission under the current BC Hydro open call for power tender process, and the fuel supply agreement establishes pricing and other fuel supply terms in support of the submission. Submissions made under the open call for tenders will be reviewed and assessed by BC Hydro over the coming months, and it is understood that the decision for awards of energy purchase agreements by BC Hydro will be made during the third quarter of 2006.

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.

David J. Slater, President & Chief Executive Officer

This release may contain forward-looking statements regarding the Company'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 Company expects are forward-looking statements. Although the Company 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.

SOURCE: Hillsborough Resources Limited

Hillsborough Resources Limited Lindsay Brumwell Corporate Communications [phone] [phone] (FAX) www.hillsboroughresources.com

Copyright (C) 2006 CCNMatthews. All rights reserved.

[rrufff]

Hillsborough Resources: Hillsborough Announces Fourth Quarter and Full Year Results for 2005
Friday March 31, 6:42 pm ET


VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 31, 2006) - Hillsborough Resources Limited (TSX:HLB - News) is pleased to announce its financial results for the year ending December 31, 2005, as well as the final quarter of 2005. All amounts are measured and reported in Canadian dollars.

Years Ended Three Months
December 31 Ended December 31
(unaudited) 2005 2004 2005 2004
------------- ------------- ------------ ------------
Net earnings
(loss) $ 1,141,024 $ 1,811,056 $ (226,053)$ 172,645
Earnings
per share
- basic $ 0.03 $ 0.06 $ 0.00 $ 0.01
Earnings
per share
- diluted $ 0.03 $ 0.05 $ 0.00 $ 0.00Coal revenues $22.6 million $23.4 million $5.5 million $4.9 million
Clean coal
sold - tonnes 474,412 492,859 118,009 110,567
The financial results and operational highlights for the 2005 fiscal year were as follows:

- A reduction in year-over-year earnings of $670,000 resulting from the following:

- Higher general and administration costs associated with the Northeast BC properties

- Consolidated production costs in the fourth quarter due to the inclusion of Crossville Coal as it ramps up its Tennessee operations, with Crossville's operating loss during the first three months of it's production start-up period being $1.2 million including asset retirement obligation accretion expense of $170,907

- Offsetting the above, a gain of $1.3 million was recognized during the year from a future income tax recovery resulting from the renunciation of flow-through expenditures in year

- During 2005, Hillsborough acquired eleven northeast properties, totaling some 100,000 acres, and embarked on a substantial and extensive exploration program to confirm resource estimates of metallurgical coal

- Discussions and negotiations held in 2005 with Anglo Coal, a subsidiary of Anglo American plc, for an agreement on certain of the Northeast properties. As a result, a formal Coal Projects Agreement was executed between Hillsborough and Anglo Coal in early February, 2006

- Drilled off the Bingay Creek metallurgical coal property in the Elk Valley area of Southwestern BC, and established a significant measured resource

- Finalized a three year extension of a contract with a major customer at Quinsam at an increased price

- Commenced mining at Crossville, Tennessee, initially by way of a box-cut taken to expose the underground access portals, and on September 27th, 2005, by way of a conventional, room and pillar underground mine

Hillsborough's audited consolidated financial statements for the year ended December 31, 2005 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 as well as on Hillsborough's website at www.hillsboroughresources.com.

Mr. David Slater, President & CEO of Hillsborough, stated, "On their face, the financial results for 2005 were disappointing. However, when taken in the context of the substantial increase in activity that took place during the year, and the high level of administrative and professional fees needed to bring these projects to fruition, they can be regarded as acceptable. The work that has been done in 2005 will pay back to Hillsborough in subsequent years."

[rrufff]

HLB.TO....HLSRF.PK-

Hillsborough Resources: Hillsborough Announces Proposal to Develop Energy Generation Project in Northeast British Columbia With AES Pacific
3/20/2006

VANCOUVER, BRITISH COLUMBIA, Mar 20, 2006 (CCNMatthews via COMTEX) --
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.

David J. Slater, President & Chief Executive Officer

[mick]

thank you. you are one great person in my books. thanx again.

[rrufff]

u 2 mick!!!

[mick]

HAPPY VALENTINE'S DAY TO OUR FRIENDS, READERS, MY ASSISTANTS, AND TO ALL THAT WORK HARD FOR SHARING AND CARING FOR EACH OTHER HERE AT THE IHUB.