A National Instrument 43-101 technical report on the Bingay Creek property was completed for Hillsborough Resources by C.G. Cathyl-Bickford and filed with Sedar in June of 2005 (June 3, 2005, August 3, 2005). The following information is derived in whole or in part from this report.

The Bingay Creek property lies along the western margin of the Elk Valley coalfield of southeastern British Columbia. The coal-measures at Bingay Creek are hosted by the Mist Mountain Formation, part of the Jura-Cretaceous Kootenay Group. The coal-measures are folded into an east-verging, northeast-plunging asymmetric syncline, known as the Bingay Syncline. Coals of interest for surface mining are present along both limbs of the syncline, within its tightly-compressed core, and across its southern nose at Bingay Hill.

The Bingay Creek coal property contains at least thirty-one correlatable coal beds which range in true thickness from 0.3 to 16.2 metres. Cumulative thickness of these coals is 62.6 metres, over a stratigraphic interval of 460 metres. Coal thus forms about 13.6 per cent of the stratigraphic section at Bingay. Of these coals, 24 are at least 1 metre thick.

- Eight coal beds are concentrated into three relatively compact coal zones (the 9-10, 11-12 and 20-21 zones) for which resources were estimated in 2004.

- Out of the other twenty-three coal beds, an additional eight beds have been sufficiently explored during the 2005 drilling programme to allow for coal-resource calculations; thus, a total of 16 major coal beds have been brought into the resource base within the present report.

- All coal beds greater than 1 metre thick (and consisting of at least two thirds coal by thickness) lying between the No.9-10 and No.21 coal zones have now been brought into the resource base.

- Within the less-explored basal part of the Mist Mountain Formation (below the No.9 coal bed), eight coal beds with individual thicknesses of at least 1 metre and ranging up to 2.99 metres are present. These coals are only known from two boreholes, and therefore cannot yet be brought into the resource base.

The Bingay Creek coals consist of alternating bright (probably vitrinite-rich) and dull (probably inert-rich) bands, associated with thin and thick internal partings of variably-carbonaceous mudstone, and less frequent partings of siltstone, ironstone, tonstein and sandstone.

Most of the internal partings within the coals contain plant debris and rootlet traces, indicative of the formation of paleosols. Rooting is somewhat less common beneath the coal beds, suggesting that some of the coals originated as floating 'peat islands' above the waters of lakes, ponds or lagoons. The Bingay Creek coals are slightly, to intensely, sheared, but most of the coals have retained coherent bedding and banding, and the coal-measures as a whole have retained their normal stratigraphic succession.

The Bingay Creek coals are of medium volatile to high volatile bituminous rank. The rank of the coals is highest (their volatile content is lowest) near the base of the coal-measures, and rank declines (volatile content increases) towards the top of the coal-measures.

Mean maximum vitrinite reflectance of nine composite samples taken from the Bingay Creek coals in the 2004-programme boreholes ranges from 0.92 per cent to 1.05 per cent.

All of the presently-identified resource base of surface-mineable coal at Bingay Creek is contained within the upper two-thirds of the Mist Mountain Formation (in coal beds No.9 through No.21). In summary, 15.512 million tonnes of coal are measured and indicated resources of immediate interest for surface mining; and 2.410 million tonnes of coal are inferred resources of immediate interest for surface mining (C. Gwyneth Cathyl-Bickford, Geological Report on the Bingay Creek Coal Property for Hillsborough Resources Limited, May 31, 2005 (on file with SEDAR (www.sedar.com))).

Eight firms have explored within and nearby the Bingay Creek property prior to Hillsborough's 2004 and 2005 programs. They are the Elk Valley Coal and Coke Company Limited (1910), Canadian Pacific Railway Syndicate (1901-1910), California Standard Company (1955 and 1956), Imperial Oil Limited (1959), Cominco Limited (1967,1974), Specific Natural Resources Ltd. (1979), Utah Mines Ltd. (1983), and Iron Creek Exploration Ltd. (1988, 1990, 1994, 1996, 1997, 2002).

In 1974, Cominco Limited drilled 6 holes rotary-drill holes just outside the property. In 1983, Utah drilled three diamond-drill holes on the property totaling 886.7 metres. In 2004 and 2005, Hillsborough Resources Limited drilled a total of 14 rotary-drill holes. The length of the 20 rotary-drill holes is 3074.8 metres. Trenching, test-pitting and adit driveage has also occurred and the area has been geologically mapped in detail by the California Standard Company in 1955 and 1956, Utah Mines Ltd. in 1983 and for Hillsborough in the summer of 2004. Regional geological mapping has also been done by the provincial and federal geological surveys.

Centermount Coal Ltd, a wholly-owned subsidiary of Centerpoint Resources, owns 100 per cent of the Bingay Main (Bingay Creek) property (2015). Centermount Coal began exploration in 2010 and entered the pre-application phase of Environmental Assessment in 2013. Work in 2015 consisted of baseline environmental studies, and engineering and geological reviews, with drilling planned for 2016 (EMPR INF CIRC 2016-1).

As of 2012, Resources at Bingay Main include 42.43 million tonnes (Measured) and 52.9 million tonnes (Indicated) of metallurgical coal. The proposed open-cut and underground mine would produce 2 million tonnes of hard coking coal per year, with an estimated mine life of approximately 20 years (Information Circular 2016-1).