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EXPLORATION PERNIIT Mtnera[Perm[t #: M Surface Permit #: S 1 To: Cottonwood Land Company St. Tweatymile Coal Company 29515 Routt County Road #27 Oak Creek, Colorado 80467 Date: August 18, 2005 Twentymile Coal Company (TCC) requests permission to conduct exploration operations, including geophysical surveys and exploration drilling on behalf of Juniper Coal Company, a Delaware corporation, for coal deposits only, on and over the surface/mineraUlease interests in Routt County, Colorado in the following described lands, ("Subject Lands"): Parcel # N/A Township and Range and Section # TSN, R88W, Section 30, SE'/., SE'/d TSN, R88W, Section 30, SE'/., NW'/< TSN, R88W, Section 31, SE'/,, NW'/a Our proposed exploration operations will be conducted in a workmanlike manner according to accepted industry standards and will be in compliance with all applicable laws. We agree to indemnify and hold you harmless from any claims, actions and judgments that may result from our operations on the Subject Lands. Yout agreement will grant us the right to enter upon the Subject Lands to conduct exploration operations thereon. This right may be exercised by TCC's employees; its agents, contractors or assigns at any time and from time to time during a one (1) yeaz period commencing on the date that you sign this letter. As consideration for allowing TCC to conduct exploration operations on the Subject Lands, TCC will make a one-time payment to you of One Aollazs ($] .00). Payment will be paid prior to entry upon the Subject Lands. Please acknowledge the granting of your consent to TCC allowing it to conduct the proposed exploration operations by signing both copies of this letter and returning one copy to the address set forth below, Very Twentymi~Coal Company 970-870-2712 PERMISSION TO CONDU GEOPHYSICAL OPERATIONS ON THE LAND DESCRIBED ABOVE IS HEREBY GRANTED THIS 3l '"~ DAY OF ~l1Jf , 2005 BY. e ~lG~ BY: ~..Pio~6~C.P,1~i.P. -1.~.~0 C7®7'TJiB/1dDOD G~J~/D ~<~il/~9/!/ y