Hillsborough Resources (HLB)

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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.