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<br />Mine Safety <br />Peerless Resources, Inc. considers the good health and safety of each <br />miner to be the prime factor to the success of all operations. Peerless <br />Resources, Inc. will comply with all mine safety and health rules and <br />regulations and other applicable safety laws to protect the well being <br />of their employees. A number of safety provisions will be incorporated <br />into the planned mining operations to insure compliance with those laws <br />and regulations. <br />The mine will be equipped with emergency facilities and have an <br />organized, functional safety program. All mine employees will be <br />instructed concerning mine safety procedures and meet MSHA safety and <br />• training requirements. New employees will be required to attend a <br />minimum of 40 hours of classroom orientation before starting work in the <br />mine. <br />Special care will be taken by the company to prevent mine fires. All <br />combustible materials will be stored so as to minimize potential for <br />combustion. The mine will be provided with suitable firefighting <br />equipment and trained personnel, certified to use breathing apparatus in <br />case of a mine fire or rescue. Smoking or the carrying of any type of <br />open flame device will be prohibited in the mine or within 25 feet of <br />the portal. The mine operation will comply with the fire protection <br />requirements outlined in MSHA regulations, 30 CFR part 75 and 77. <br />Coal dust will be controlled using good housekeeping, wetting face <br />areas, rock dusting and ventilation. Large quantities of coal dust will <br />be prevented from accumulating on the surface of any type of equipment <br />capable of producing heat or sparks. All working areas and return <br />. entries will be rock dusted to prevent dangerous accumulations of coal <br />dust. <br />REAR 0 4 ~~ <br />2.05-14 <br />