Coal

[mhlld]

Hillsborough Announces Commercial Production Commences From Crossville Underground Mine
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 28, 2005) - Hillsborough Resources Limited (TSX:HLB - News) is pleased to announce that that commercial production from the Crossville underground coal mine in eastern Tennessee commenced on September 27th, 2005. The final US Mine Safety and Health Administration (MSHA) approvals for the underground mine were issued, and mining operations commenced immediately thereafter. The Crossville mine will ramp up to a targeted production rate of 600,000 clean short tons per annum, with the full production rate expected to be achieved in 2006. Approximately two thirds of the mine's production is slated for delivery to the Tennessee Valley Authority's Kingston power plant under the terms of a five year coal delivery contract, with the remaining production available for delivery into the regional market under spot or shorter-term contract.

David Slater, President and CEO of Hillsborough, stated "I am very proud of what our team has accomplished today at Crossville. To get this mine into production as quickly as they did, procuring and deploying the necessary mining equipment when such equipment is in as short supply as it is currently, speaks volumes of the dedication and resourcefulness of our people. The support we've received from Crossville and the Cumberland County community, indeed from all levels of government in Tennessee, has been greatly appreciated, and we look forward to the opportunity to make a positive contribution as corporate citizens. I have no doubt that the Crossville Mine will be a great success for Hillsborough, and a stellar example of the benefits mining can bring to a community."

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 the Northeast of 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. 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; 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.


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Contact:

Hillsborough Resources Limited
David Slater
President & CEO
[phone]
Fax: [phone]
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