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The three ILB mines (Francisco, Wild Boar and Gateway) have coal prices49 (a mix of contract <br />and spot prices) that cluster around the historic spot prices In the ILB (see Table 6). ILB prices <br />have declined substantially over the last four years and dropped significantly during 2015 (See <br />Table 7: Illinois Basin Coal Prices 2005 to Present). For example the spot prices of ILB 11800, <br />11500 and 11000 were $55.90, $65.45 and 53.40 per ton in February 201250. At the beginning of <br />February 2016 the some coal per ton spot price dropped to $36.14, 40.40 and $30.00 per ton <br />respectively51. In addition, from February 2015 to February 2016 the ILB 11800 spot price <br />dropped from $60.39 per ton to $40.40 per ton, a 30% decline. <br />Although the Peabody 8K disclosure on the debt exchange was issued on January 22, 2016, 52 <br />it contained only production and prices through the third quarter of 2015. SNL Energy reports <br />an overall decline in ILB production in 2015 of 10%.53 All three of the Peabody mines reported <br />weak fourth quarter production results.14 Table 7 shows a precipitous price drop in the third <br />and fourth quarter of 2015. The risk of per ton mine prices at Gateway, Francisco and Wild <br />Boar declining is high. Peabody offers no short, medium or long term price forecast in its 8K <br />overview disclosure on the future financial condition of the mines s5 <br />49 Form 8K-2016 Debt, Peabody Energy, Overview of Selected Assets, January 22, 2016- A five year coal price disclosure is <br />provided for each mine identified as part of the company's new special vehicle. <br />50 SNL, Markets and Deals/Coal Summary/ Physical Markets Survey/Region This is a proprietary database Information <br />available upon request See also Appendix I (SNL Physical Markets) <br />51 Platts Coal Trader, Weekly Survey,. Traditional Physical Market January 29, 2016 <br />52 http //www.peabodyenergy.com/content/162/sec-filings, Form SK -2016 Debt. <br />53 Steve Piper, With weaker market gas premium was eliminated coal displacement remains, SNL. February 2, 2016 <br />54 Christopher Coats, Production slips at Peabody's U- S. mines in latest quarter after uptick in Q 3 15, SNL. January 26, 2016, <br />55 Since Peabody is addressing the forward value of these mines to serve as collateral for securing mortgages. the revenue to <br />expense calculation is critical. The revenue dynamics in the Illinois Basin have deteriorated rapidly in the last eight months. <br />This is likely to affect future valuations. One does not expect from Peabody a full valuation of these mines as part of the 8K <br />filing, but the basic outlines of future value would include at minimum future price assumptions. See for example. <br />http //www.bvresources.comipdfsllNB061313/BVR%20%200uarries%208%20Mines.pdf <br />Peabody's Strategies for Survival Ignore Market Realities and Risk Backfiring 13 <br />