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CRAGG SURVEYING Stephen B. Cragg PLS 1476 2900 Road Hotchkiss, Colorado 81419 Phone 970-872-2258 Fax 970.872-3358 August 21, 2003 Bowie Resources Ltd. Bowie No 2 mine Paonia, Co. 81428 Attn. Collin Stewart RE: Bowie No. 2 Mine Hubbard Creek Subsidence Survey A subsidence monitoring 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 glibrated 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 network was started in May of 1999 wkh additional points added in August 1999 through November of 2002. The majority of the subsidence monitoring points are a # 5 rebar, 24 to 30 inches in length, with a 2 inch aluminum survey cap. • The caps are stamped: Cragg Surveying, LS 24944. The survey stations along Hubbard Creek were surveyed again on July 17 of 2003. The following tables list the survey points with the coordinate data, northing, Basting and elevation for each point along wRh a table showing the relative shift in position from the May 23, 2003 survey to the July 17, 2003 survey. Some of the poirrts show small changes in position which may be due to inherent error in the survey, while some of the points may show noticeable shift in position resulting from subsidence due to the mining. There are some areas that show evidence of Surface earthslides due to natural geologic activity. See the accompanying map which shows the surface topography, underground mining plan, and the location of the subsidence points. • S7-1