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CRAGG SURVEYING <br />Stephen B. Cragg PLS <br />14762 2900 Road <br />• Hotchkiss, Colorado 81419 <br />Phone 970-872-2258 <br />Fax 970-872-3358 <br />January 26, 2004 <br />Bowie Resources Ltd. <br />Bowie No 2 mine <br />Paonia, Co. 81428 <br />Attn. Collin Stewart <br />RE: Bowie No. 2 Mine <br />Subsidence Survey <br />A subsidence monitoring survey network has been established by Cragg Surveying for the <br />Bowie Resources, Bowie No. 2 Mine. The survey is based on the existing survey control grid in <br />place around the Bowie No. 2 Mine surface facilities. The points for the subsidence survey network <br />have been established using a Trtmble 4800 GPS survey system. This GPS survey has been <br />calibrated to the existing survey control grid and then the survey has been extended to the north to <br />cover the area where the coal has been mined and will he mined in the future. <br />• The subsidence survey network was started in May of 1999 with additional points added in <br />August 1999, November 2000, November 2001, and November, 2002. The majority of the <br />subsidence monitoring points area # 5 rebar, 24 to 30 inches in length, with a 2 inch aluminum <br />survey cap. The caps are stamped: Cragg Surveying, LS 24944. <br />The survey network was surveyed again from October to November of 2003 with additional <br />points established in November of 2003. Not all of the survey stations in the network were <br />surveyed. After November 17 snow conditions made the access to the top of the mountain <br />impassable. <br />The following tables list the survey points with the coordinate data, northing, testing and elevation <br />for each point along with a table showing the relative shift in position from the 2002 survey to the <br />2003 survey. For the points in Hubbard Creek the table shows the change from July 2003 to <br />November 2003. <br />Some of the points show small changes in position which may be due to inherent error in the <br />survey, while some of the points show noticeable shift in position resulting from subsidence due to <br />the mining. See the axomparrying map which shows the surface topography, underground mining <br />plan, and the location of the subsidence palls. <br />u <br />52-1 <br />