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RULE 2 PERMITS <br />material that is removed and stockpiled by the Truck/Shovel operation to cap the regraded areas. It was <br />also noted through review of Exhibit 6, Item 6, that in the region of the initial boxcut area, no unsuitable <br />material was found in the seam sequence from the F6 coal seam to the G8 coal seam that will be removed <br />by the Truck/Shovel operation. The entire seam sequence from the top overburden through to the bottom <br />G8 seam, which resides in the area of the initial boxcut, will be placed in the valley fill locations; this will <br />allow Colowyo enough spoil room to reach the desired mining depth. <br />In the following analysis, Colowyo has demonstrated that no Truck/Shovel spoil material will exceed the <br />suitability range for overburden criteria as described in Volume 1, section 2.05. This demonstration will <br />be completed by showing the total percentage of unsuitable material in comparison to the total amount of <br />suitable material in the truck/shovel sequence as it relates to the drill hole data shown in Exhibit 6, Item 6. <br />It was discussed with DRMS, that as long as the total percentage does not exceed 15% of the total truck <br />shovel sequence for each drill hole, spoil suitability will not be an issue based upon the overburden <br />seams. <br />Drill Hole 83-D3-06 <br />Unsuitability range in feet of Truck Shovel Sequence: <br />SAR > 15 = N/A <br />Se > 0.3 = 6.7 feet <br />B>5.0=N/A <br />Sat <25 or >80 = 28.5 feet <br />Mo > 1.0 = 7.8 feet <br />Total Depth from surface to Bottom of Truck Shovel Sequence (F6) = 184.7 feet <br />Total Percentage of each criteria for Truck Shovel Sequence: <br />SAR = N/A <br />Se = 6.7 feet/184.7 feet = 3% <br />B = N/A <br />Sat = 28.5 feet/184.7 feet = 15% <br />Mo = 7.8 feet/184.7 feet = 4% <br />Suitability analysis for Drill Hole 83-D3-06 shows all criteria within the suitable range. <br />Drill Hole 83-D3-07 <br />Unsuitability range in feet of Truck Shovel Sequence: <br />SAR > 15 = 7.6 feet <br />Se > 0.3 = 5.0 feet <br />B>5.0=N/A <br />Sat <25 or >80 = 8.4 feet <br />Mo > 1.0 = 15.8 feet <br />Total Depth from surface to Bottom of Truck Shovel Sequence (F6) = 295.1 feet <br />Total Percentage of each criteria for Truck Shovel Sequence: <br />SAR = 7.6 feet/295.1 = 3% <br />Se = 5.0 feet/295.1 feet = 2% <br />B = N/A <br />Sat = 8.4 feet/295.1 feet = 3% <br />Mo = 15.8 feet/295.1 feet = 5% <br />Suitability analysis for Drill Hole 83-D3-07 shows all criteria within the suitable range. <br />South Taylor/Lower Wilson — Rule 2, Page 69 Revision Date: 4/7/17 <br />Revision No.: RN -07 <br />