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CRAGG SURVEYING <br />Stephen B. Cragg PLS <br />1476 2900 Road <br />Hotchkiss, Colorado 81419 <br />Phone 970-872-2258 <br />Fax 970-672-3356 <br />January 20, 2003 <br />Bowie Resources Ltd <br />Bowie No 2 mine <br />Paonia, Co. 81428 <br />Attn. Basil Bear <br />RE: Bowie No. 2 Mine <br />Subsidence Survey <br />A subsidence montoring 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 <br />in place around the Bowie No. 2 Mine surface facilities. The points for the subsidence survey <br />network have been established using a Trimble 4800 GPS survey system. This GPS survey <br />has been calibrated to the existing survey control grid and then the survey has been extended <br />to the north to cover the area where the coal has been mined and will be mined in the future. <br />The subsidence survey network was started in May of 1999 with additional points added in <br />• August 1999, November of 2000 and November of 2001. The majority of the subsidence <br />monitoring points area # 5 rebar, 24 to 30 inches in length, with a 2 inch aluminum survey cap. <br />The caps are stamped: Cragg Surveying, LS 24944. <br />The survey network was surveyed again from October 7th to November 6th of 2002 with additional <br />points established in November of 2002. <br />The following tables list the survey points with the coordinate data, northing, Basting and elevation <br />for each point along with a table showing the relative shift in position from the 2001 survey to the <br />2002 survey. Some of the points show small changes in position which may be due to inherent <br />error in the survey, while some of the points show noticeable shift in position resulting from <br />subsidence due to the mining. See the accomparrying map which shows the surface topography, <br />underground mining plan, and the location of the subsidence points. <br />• <br />