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~` CRAGG SURVEYING *; Stephen B. Cragg PLS ' 14762 29110 Road ' Hotchkiss, Colorado 81419 Phone 97l}872-2258 Fax 970.872-3358 August 01, 2007 Collin Stewart Bowie Resources LLC P.O. Box 1488 Paonia, Co. 81428 Jim Stover J.E. Stover and Associates P.O. Box 60340 Grand Junction, Coorado 81506 RE: Bowie No. Z and No. 3 Mines Subsidence Survey June 20 --~ June 29, 2007 A subsidence monitoring survey network has been established by Cragg Surveying for the Bowie Resources, Bowie No. 2 and 3 Mines. The survey is based on the existing survey control grid in place mound the Bowie No. 2 Mine surface 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 tin extended to the north to cover the area where the coal has been mined and will t>e muted in the future. The subsidence survey network was sorted in May of 1999 with additional points added in August 1999, November 2000, November 2001, November 2002, and November, 2003. The majority of the subsidence monitoring points area # 5 rebar, 24 to 30 inches in length, with a 2 inch aluminum survey cap. The pps are stamped: Cragg Surveying, LS 24944. New subsidence stations over the west tongwall panels WD-1, WD-2 and WD-3 of the Bowie No.2 Mine and the west longwall panels B-1, B-2 and B-3 of the Bowie No.3 Mine were established and surveyed from December O5 to December 14 of 2005. These new subsidence monibring points are # 5 and # 6 rebar with no aluminum survey cap on top. The folbwing fables list the survey points with the coordinate data, northing, easing and elevation for each point along with a table showing the relative shift in position from the previous survey. Some of the points show small changes in position whidr may be due to inherent error in the survey, while some of the points show noticeable shift in position tresutiing from subsider~e due to the mining. See the accompanying map which shows the surface topography, underground mining plan, and the Nation of the subsidence points.