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EXPLORATION AND PROSPECT DRILLING AGREEMENT Made as of this ~,%~ day of May, 2007 ("Effective Date") This EXPLORATION AND PROSPECT DRILLING AGREEMENT ("Agreement"), is made by and between the Donald D. Zulian Revocable Trust and the Beverly J. Zulian Revocable Trust, with an address of P.O. Box 577, Craig, CO 81626-0577 ("LICENSOR") and COLORADO COAL RESOURCES, LLC with an address of 701 Market Street, Ste. 832, St. Louis, MO 63101 ("LICENSEE). In consideration of the sum of $10.00, the receipt of which LICENSOR hereby acknowledges, and in further consideration of the mutual covenants set forth below, LICENSOR and LICENSEE agree as follows: Exploration Rights. LICENSOR grants LICENSEE or its agents or subcontractors, for the term of this Agreement, the nonexclusive right to enter the lands depicted or described on Exhibit A attached hereto and incorporated herein by reference (the "Property"), from time to time, to prospect for, drill, take core samples, survey, and otherwise evaluate coal and other minerals and strata underlying the surface of the Property. LICENSEE shall also have the nonexclusive right to perform all studies necessary or convenient to obtain governmental approvals and permits necessary for coal exploration and related operations. 2. Indemnity and Insurance. LICENSEE shall fully indemnify, defend and save LICENSOR free and harmless against any and all claims, damages, loss and expense, including attorney's fees and other legal expenses, by reason of liability imposed or claimed to be imposed by law upon the LICENSOR for damage because of bodily injuries (including death at any time resulting therefrom) or on account of damage to property sustained by any person or persons arising out of or in consequence of LICENSEE'S use of the Property described in this Agreement whether or not such bodily injuries, death or damage to property arise or are claimed to have arisen in whole or in part out of the negligence or any other grounds of legal liability, but excluding, however, any liability caused by the sole negligence or willful misconduct of the employees or agents of LICENSOR. Without limiting the foregoing, LICENSEE shall maintain in force the following insurance; (a) If LICENSEE has any employees (whether full or part time), Workers' Compensation Coverage, Traumatic Injury (including death) and Occupational Disease Disability insurance in accordance with the laws of the state in which the Property is located for all employees located on the Property; and (b) Comprehensive General Liability and Property Damage insurance (including contractual coverage) with bodily injury limits of $2,000,000.00 per person and $2,000,000.00 aggregate and property damage with a limit of $1,000,000.00 aggregate; and (c) Accident insurance covering each participant in an amount of $1,000,000.00 per person and aggregate. All insurance policies must contain an unqualified provision that the insurance carrier will give LICENSOR ten (10) days' prior written notice of any cancellation, change or lapse of such policy. Prior to utilizing the property herein and upon LICESOR'S request,