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41 <br />J. E. STOVER & ASSOCIATES, INC. <br />2352 NORTH 7T" STREET, UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245-4101, FAX: (970) 242-7908 <br />MINE ENGINEERING <br />MINE RECLAMATION <br />PARTIAL BOND RELEASE LETTER — <br />BOWIE NO. 1, EAST MINE <br />June 30, 2017 <br />Re: Bowie Resources, LLC <br />P.O. Box 483 <br />Paonia, CO 81428 <br />Dear People: <br />CIVIL ENGINEERING <br />CONST. MANAGEMENT <br />Bowie Resources LLC, is the successor in interest to Cyprus Orchard Valley Coal Company and <br />Colorado Westmoreland Inc's. responsibilities under Division of Reclamation, Mining and Safety, <br />Permit No. C-1981-038. Bowie Resources LLC backfilled, graded and seeded the east mine <br />facilities/portal area in 2008, 2009 and 2011. During the following years, vegetation has <br />flourished. A vegetation study was performed during the summer of 2016 which indicates the <br />vegetation meets the requirements of a Partial Phase II bond release. In addition to the Phase II <br />release request, Bowie has reclaimed 26 of the 74 drill holes associated with the mine, and is <br />requesting full bond release for that work. <br />One provision of the Division of Reclamation, Mining and Safety's Rules is that the mine must be <br />bonded for the estimated reclamation cost. Now that a portion of the reclamation work has been <br />performed, Bowie Resources LLC has formerly requested a partial bond release from the Division <br />of Reclamation, Mining and Safety. Bowie Resources LLC has a bond liability of $3,261,189.05 and <br />has requested about $610,000 of that amount be released. In accordance with the Division's Rule <br />3.03.2(1), Bowie Resources LLC is required to send written notice of its partial bond release <br />request to adjacent land owners, surface owners and various local governing bodies. <br />The area for which partial bond release is being requested is at the Bowie No. 1, East Mine, located <br />in Delta County, approximately four (4) miles north of Paonia, CO. The east mine is located in the <br />NW/4SE/4, SW/4NE/4 of Section 24, Township 13 South, Range 92 West, 6th P.M. The reclaimed <br />drill sites are located in the following sections: <br />