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CRAGG SURVEYING Stephen B. Cragg PLS 14762 2900 Road • Hotchkiss, Colorado 81419 Phone 970.872-2258 Fax 970-872-3358 August 30, 2004 Bowie Resources LLC Bowie No 2 mine Paonia, Co. 81428 Attn. Collin Stewart RE: Bowie No. 2 Mine Subsidence Survey Juy 2004 A subsidence monitortng survey network has been established by Cragg Surveying for the Bowie Resources, Bowie No. 2 Mine. The survey is based on the existing survey control grid in place around the Bowie No. 2 Mine surtace facilities. The points for the subsidence survey network have been established using a Trimble 4800 GPS survey system. This GPS survey has been calibrated to the existing survey control grid and then the survey has been extended to the north to cover the area where the coal has been mined and will be mined in the future. • The subsidence survey netvrork was started in May of 1999 with additional points added in August 1999, November 2l)D0, November 2001, November 2002, and November, 2003. The majority of the subsidence monitoring pants area # 5 rebar, 24 to 30 inches in length, with a 2 inch aluminum survey cap. The qps are stamped: Cragg Surveying, LS 24944. Suluidence stations up Hubbard Creek and stations over the north IongHrall panels D-8 and D-9 and the west lorgwall panels WD-1 and WD-2 were surveyed from Juy 13 to Juy 22, of 2004 The falowing tables list the survey points with the coordinate data, northing, Basting and elevation for each point along with a table showing the relative shift in position Some of the points show small changes in position which may be due to inherent error in the survey, while some of the pants show noticeable shift in position resulting from subsidence due to the mining. See the accompanying map which shows the surtace topography, underground mining plan, and the location of the subsidence pants. I• 52-1