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C� <br />• <br />• <br />Quality of the Palisade in the holes tested averages as follows: <br />Moisture, as received <br />7.58% <br />Btu, as received <br />11,161 <br />Ash, dry <br />15.11% <br />Volatile `fatter, dry <br />36.80% <br />Fixed Carbon, dry <br />48.08% <br />Btu, dry <br />12,061 <br />Sulfur, dry <br />1.07/ <br />FSI <br />2 <br />Carbon, dry <br />67.94/ <br />Hydrogen, dry <br />4.85% <br />Nitrogen, dry <br />1.73% <br />Chlorine, dry <br />0.02% <br />Oxygen, dry <br />9.26% (by difference) <br />Ash Fusion, F <br />2,700+ all values <br />"Reserve Base" estimates were calculated in accordance with General <br />Mining Order No. I. The "Coal Reserve Base Map" shows the location of <br />drill holes which were used to calculate tonnages. Due to the coal <br />thicknesses, reserves were figured around hole CC -76-2 only. The Palisade <br />work map shows what area was included in the calculations (232.09 acres) <br />of this 125.66 acres were measured and 106.43 indicated. Total "Reserve <br />Base" amounted to 1,921,713 tons. <br />No "Mineable" or Recoverable" estimates were made because of the <br />overall average thickness of the seam and the limited amount of reserves. <br />Additional information pertaining to this lease can be found in the <br />drill hole data accompanying this report. <br />