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Coal Tonna¢e Calculation <br />The coal tonnage was based off our most recent model information which includes the drill hole data noted on Drawing No. 1. The <br />bum azeas in these ridges are very unpredictable and cannot be clearly delineated without intensive drilling. For example please see <br />Drill Hole WP-O1-02 on the Drawing No. 1. Colowyo has taken their proposed extraction to the approximate center of the ridge <br />line. The seams tazgeted for this lease modification are the "C" and "D" Seams only. <br />Coal Eatractiou MethodoloEies <br />With Colowyo's recent success with Highwall Mining, Colowyo is pursuing Highwall Mining targets in the adjacent azeas of the <br />existing pits. This lease modification is one of those azeas. Coal extraction would be a two phase operation for both seams. A <br />mining bench will be established by pre-stripping with the Truck\Shovel operation. This will occur along the east side of the new <br />lease area. Following the pre-strip, the coal exposed will be removed by traditional surface mining techniques. The remaining <br />portion of each seam is then planned to be recovered by Highwall Mining method. It should be noted that Colowyo's ability to <br />extract this coal will be based on geotechnical conditions that have yet to be determined. The Highwall miner is capable of <br />extracting coal from the horizontal depths proposed in the lease modification (less than 400 feet). The Highwall miner has <br />sufficient technology to control and manage the extraction height and depth, including the depth in the portal to within inches. The <br />extraction of this coal will be planned in our mining sequence with the remainder of the West and East pits. <br />