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BOWIE RESOURCES LIMITED <br />BOWIE NO. 1 MINE <br />IMPOUNDMENT YEARLY INSPECTION <br />In accordance with Rule 4.05.9(14), all impoundments shall be inspected at least yearly <br />to determine if the impoundment has been maintained as designed, and in accordance <br />with the approved plan and the applicable regulations. This yearly inspection is for the <br />impoundments located at the Bowie No. 1 Mine. <br />On March 27, 2004 I performed the required yearly inspection. I, J. E. Stover, have a <br />wide variety of experience in the design and construction of earth fill embankments. <br />Nothing was observed during the inspection that would indicate the ponds have a <br />potential for failure. There was no appearance of erosion, ihstability, structural <br />weakness or other hazardous conditions. There are no required monitoring procedures <br />or instrumentation other than quarterly and yearly inspections. There are no aspects <br />which might affect stability and there is no required maintenance. Ponds 1 through 4 <br />were dry to damp with a small pool in Pond 2. The timber storage area pond and <br />stockpile pond had pools of water. The refuse and loadout ponds were dry. West mine <br />sediment pond W-1 had a pool of water within 9-inches of the primary spillway. West <br />mine sediment pond W-2 had about 6-inches of standing water. There was no <br />discharge from any of the impoundments. <br />The impoundments have the following estimated capacities: <br />IMPOUNDMENT CAPACITIES -ACRE FEET <br /> Water Sediment Total <br />Pond 1 N/A N/A 0.70 <br />Pond 2 N/A N/A 0.51 <br />Pond 3 N/A N/A 0.52 <br />Pond 4 N/A N/A 0.60 <br />Refuse N/A N/A 0.67 <br />Timber 0.27 0.37 0.64 <br />West Mine W-1 0.54 0.25 0.79 <br />West Mine W-2 0.67 0.38 1.05 <br />Coal Stockpile SH-133 0.16 0.19 0.35 <br />Loadout N/A N/A 1.8 <br />-1- <br />