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3. Operation Plan - Permit Area The location of the mining activity is in the SE NE ;, Section 24, T5S, R92W, 6th Prime Meridan. The Eastside Mine is in the outcrop of the "E" coal seam, in the east side of Harvey Gap. The coal seam at the Harvey Gap Project mining site is approximately twenty (20) feet thick. The seam dips at fifty-nine (59) degrees to the south. The entries will be driven into the coal in an easterly direction on an upward slope of 1-2%. This will allow water to drain from the face to a central pumping station. Once the boundary of coal burn is determined by underground drilling and an adequate coal safety zone is established, then entries will be driven up at twenty percent (20%) grade (see Map HGP-4: Mine Plan). Based on currently known geologic conditions and presumptions of mining methodologies to be tested in this mining activity, Eastside anticipates a two entry system will be initially developed into the coal seam for an approximate distance of 3,500 feet to the lease boundary. Coal will be mined across the pitch (59 degrees) by using continuous miners. The coal will then be hauled outside the mine with diesel haulage equipment. Upon completion of the initial two entry system the coal down dip will be developed by driving one entry to the east boundary. Pillar recovery will commence as soon as a minimum of four levels are completed. The upper pillars will be recovered first working from the property boundary back to the portal area. Future ming will proceed downdip in the coal seam until a depth is reached which precludes further mining. The present depth being considered as a cutoff point is 2500 feet of overburden. As the mine is advanced downdip development of the area to the west of the portal area will be started. The area to the west will be developed and mined in the same manner as the eastern part of the mine. 90 Revised 2/91