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~J D OXBOW MINING, INC. ELK CREEK EXPLORATION PROGRAM NOTICE OF INTENT 4.0 DESCRIPTION OF LAND TO BE AFFECTED The area where the proposed exploration activities will occur includes portions of the Elk Creek valley bottom on the north side of the North Fork of the Gunnison River and the adjacent steep mountain slopes. Elevations in the immediate vicinity range from approximately 6,000 feet above mean sea level (amsl) in the valley bottom to 8,500 feet amsl on the upper ridgelines and mountain tops. The azea is semi-and with annual precipitation of approximately 17 inches, soils aze generally poorly developed and relatively shallow except in the drainage bottoms and valleys, and vegetation is dominantly mountain brush and juniper woodland. Elk Creek is an intermittent drainage with seasonal flows in response to spring snowmelt and runoff from major thunderstorm events. 5.0 DESCRIPTION OF EXPLORATION ACTIVITIES ~loration Access - To the extent possible, exploration sites will be located adjacent to existing roads or trails. If existing access is not available and ground conditions are favorable, exploration equipment may move across undisturbed terrain to access the exploration site. In the case of access across undisturbed terrain, equipment movement and other traffic will be kept to an absolute minimum. If rurface disturbance is unavoidable in order to access an exploration site, any required roads will be constructed at the minimum practical width and will be aligned so as to minimize total length, avoid drainages, and limit erosion to the extent possible. Since any required exploration roads are expected to be in use less than 6 months, they will be constructed in compliance with applicable standards for light-use roads under Rule 4.03.3. Where construction of new roads or modification of existing roads is required, road work will be initiated immediately prior to exploration and road corridors will be reclaimed as soon as possible following completion of exploration activities. Construction of exploration roads, where required, will involve clearing trees and large shrubs from the road alignment, removing and windrowing available topsoil on the side of the road, establishing drainage along the road by constructing temporary ditches, berms, or irtstalling temporary culverts as required, and grading the road to provide a smooth operating surface. Exploration Trenching - In order to plan for and complete detailed designs for mine face-up and initial mine development, OMI may do limited surface trenching to locate, delineate, and chazacterize coal seam outcrops. Normally any required trenching will be done on or adjacent to existing roads and will involve the use of a tracked dozer or backhole to remove any overlying material and expose the coal seam. Trenching will be limited to a maximum depth of approximately 30 feet, with trench width corresponding to depth to assure safe conditions for inspection of the exposed coal seam. If trenching or temporary placement of the excavated material will impact any undisturbed areas, soil material will first be removed and windrowed along the edge of the disturbance azea. Once the coal seam is exposed, it will be inspected to obtain necessary information, grab samples may be obtained for further evaluation and analysis, and the trench will then be filled back in and associated disturbance azeas reclaimed, as appropriate. Maximum disturbance area for trench exploration is expected to be approximately 0.5 acres.