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• <br />• <br />• <br />It is anticipated that both room and pillar methods and retreat <br />type longwall techniques will be utilized depending upon conditions for <br />the extraction of the coal. <br />Additional information pertaining to this lease can be found in the <br />drill hole data accompanying this report. <br />Lease C-029889 <br />Mineable Reserve Base <br />(Carbonera) <br />Category <br />Acres <br />Avg. Thickness <br />Tons <br />Measured <br />Measured <br />351.68 <br />6.97' <br />Indicated <br />1711.82 <br />6.89' <br />Inferred <br />458.87 <br />6.78' <br />Avg. BTU/Pound <br />Tons (As Received) <br />4,415,256 10,426 <br />21,241,835 10,426 <br />5,603,085 10,426 <br />Recoverable Reserve <br />(502 Recovery Rate) <br />Category <br />Acres <br />Avg. Thickness <br />Tons <br />Measured <br />349.61 <br />6.97 <br />2,193,096 <br />Indicated <br />1696.65 <br />6.89 <br />10,528,363 <br />Inferred <br />438.42 <br />6.78 <br />2,675,270 <br />2. Cameo Seam <br />The Cameo coal zone is notable for the thickness of its seams <br />and its great extent. It has been the most productive zone in the Book <br />Cliff's coal field. The interval between the Cameo and the underlying <br />Palisade on this lease varies from 416 to 457 feet and averages 429 <br />feet. (See Typical Cross Section) The interval between the Cameo and <br />the overlying Carbonera ranges from 40 to 100 feet and averages 64 feet. <br />This interval generally consists of thin coals and carbonaceous, laminated <br />sandy siltstores, although significant sandstones (over 10 feet thick) <br />are present in four of the existing test holes. Typically the immediate <br />and main top consists of laminated to thin bedded sandy carbonaceous <br />siltstone and silty carbonaceous sandstone. The seam, which occurs as a <br />single bed over much of the lease, appears to split toward the southeast, <br />where one to three rider seams are present. <br />