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"CONFIDENTIAL INFORMATION" <br />Page Two <br />• COAL QUALITY <br />Numerous mining operations in the Cameo "B" seam have determined that the coal <br />is high volatile bituminous with low sulfur content and moderately high ash content. <br />The weighted analysis of 63 samples, taken from 1951 - 1960, of unwashed mine <br />run is shown below: <br />Cameo "B" Seam <br />Average <br />Moisture <br />7.92% <br />Average <br />Volatile Matter <br />35.56% <br />Average <br />Fixed Carbon <br />46.94% <br />Average <br />Ash <br />9.58% <br />Average <br />Sulfur <br />0.64% <br />Average <br />BTU per pound <br />11,773 <br />Analysis of two drill hole core samples (9A and 13) are shown below for the Cameo, <br />"C" seam. No other representative cores or other samples of the Cameo "C" seam are <br />available. <br />• Cameo "C" Seam <br />Average Moisture 4.67% <br />Average Volatile Matter 35.85% <br />Average Fixed Carbon 49.25% <br />Average Ash 10.62% <br />Average Sulfur 0.64% <br />Average BTU per pound 11,761 <br />METHOD USED IN CALCULATION OF RESERVES <br />The in-place coal reserves of Federal Lease No. C-01538 were calculated by <br />using data from drill hole logs, and an isopach map of the Cameo "B" seam from the <br />report "Reserves Appraisal of GEX Co., Cameo Coal Properties, Mesa County, Colo." <br />by Monkhouse, Brown and Assoc., Dec. 1976. <br />Of the 9 drill holes used, holes 2, 3, 4, 9A, 11, 12, 13 and 14 were electri- <br />cally logged. Holes 4, 8A, 12, 13 and 14 were core sampled. Drill hole logs and <br />. core samples were used to calculate average thickness of the seam. <br />