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Coal Tonnage Calculation The coal tonnage was based off our most recent model information (the model information was provided to the Craig BLM office on 7uly 5, 2005) which includes the drill hole data noted on Drawing No. I. The bum areas in these ridges are very unpredictable and cannot be clearly delineated without intensive drilling. For example please see Drill Hole WP-Ol-02 on the Drawing No. 1. Colowyo has taken their proposed extraction to the approximate center of the ridge line. The seams targeted for this lease modification are the "D" and "E" Seams only. Note that while the "C" and "F" seams are shown on the crossection, because of geologic conditions, they cannot be recovered by highwall mining, and are uneconomic by surface methods. Coal Extraction Methodologies With Colowyo's recent success with highwall mining, Colowyo is pursuing highwall mining targets in the adjacent areas of the existing pits. This lease modification is one of those areas. Coal extraction would be a two phase operation for both seams. A mining bench will be established bypre-stripping with the Truck\Shovel operation. This will occur along the east side of the modification area. Following the pre-strip, the coal exposed will be removed by traditional surface mining techniques. The remaining portion of each seam is then planned to be recovered by highwall mining. I[ should be noted that Colowyo's ability to extract this coal will be based on geotechnical conditions that have yet to be determined. The highwall miner is capable of extracting coal from the hortizontal depths up [0 1100 feet, which conforms to the area included in [his lease modification. The highwall miner has sufficient technology to control and manage the extraction height and depth, including the depth in the portal to within inches. The extraction of this coal will be planned in our mining sequence with the remainder of the West and East pits. cr,,,o