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Quality of the Cameo average as <br />follows: <br />• <br />Moisture, as received <br />7.68: <br />Btu, as received <br />10,224 <br />Ash, dry <br />19.71% <br />Volatile ratter, dry <br />35.85% <br />Fixed Carbon, dry <br />44.43% <br />Btu, dry <br />11,082 <br />Sulfur, dry <br />0.92% <br />FSI <br />1 <br />C. (dry <br />63.17% <br />R (dry) <br />4.51% <br />N (dry) <br />1.35% <br />Cl (dry) <br />0.01% <br />0 (dry) <br />10.32% <br />"Reserve Base" estimates were calculated in accordance with General <br />Mining Order No. 1. The "Coal Reserve Base Map" shows the location of <br />drill holes which were used to calculate tonnages. A work map has been <br />included which shows how the lease was divided into sections so acreages <br />could be obtained. The "Coal Recovery Chart — Reserve Base" shows each <br />• block along with coal thicknesses and calculated in place tons. Reserve <br />base on the total 2550.92 acres amounts to 29,640,799 tons. <br />"Mineable" reserves were calculated using an 8.0 foot maximum seam <br />height. This amounts to 29,497,259 tons which is within less than 1% of <br />the "Reserve Base". <br />Due to certain factors, i.e., OSM, subsidence, State of Colorado, <br />etc.; no detailed mine plan has been drawn up at this time. Recoverable <br />reserves were therefore calculated by first deducting coal contained in <br />a 50 foot boundary strip (453,573 tons) and then using a recovery factor <br />of 50% for the remaining acreage. This results in a total of 14,521,843 <br />tons. Thicknesses in excess of 8.0 feet were not used because of anticipated <br />mining techniques, which include room and pillar methods and retreat <br />• longwall systems. The roof supports used in longwall mining are limited <br />as to the amount of vertical travel. Iherefore, these supports have to <br />be sized to be effective in the lowest coal encountered, which in this <br />