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• <br />E <br />• <br />Category Acres <br />Measured <br />674.04 <br />Indicated <br />1104.84 <br />Inferred <br />495.29 <br />3. Palisade Seam <br />Recoverable Reserves <br />(50% Recovery Rate) <br />Avg. Thickness Tons <br />7.60' 4,612,366 <br />7.24' 7,198,449 <br />7.12' 3,173,810 <br />The only significant coal in the Iles Formation on this lease <br />is the Palisade Seam. The Palisade was tested in 6 holes during the <br />1976-1977 drilling program. The seam thins rapidly southeastward from <br />the outcrop in the vicinity of the Midwest mines, where it is 3 to 4 <br />feet thick. The thickest coal, 4.60 feet, was found in hole CC -76-2, in <br />the north central part of the property; the seam thins to the west, <br />south, and east of this point. The following table shows depth and <br />thickness of the Palisade in the holes in which it was tested. <br />Hole No. <br />Thickness, ft. <br />Depth, ft. <br />CC -76-1 <br />2.11* <br />802.00 <br />CC -76-2 <br />4.60 <br />1,007.34 <br />CC -76-3 <br />2.87 <br />854.57 <br />CC -76-4 <br />3.20 <br />1,227.54 <br />CC -76-5 <br />0.48** <br />541.12 <br />CC -76-6 <br />2.78 <br />634.42 <br />Average Thickness 2.58 <br />*Contains significant partings **Coaly siltstone and/or very silty coal <br />