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CRAGG SURVEYING Stephen B. Cragg PLS 14762 2900 Road • Hotchkiss, Colorado 81419 Phone 970-872-2258 Fax 970$72-3358 April 10, 2005 Collin Stewart Bowie Resources LLC P.O. Box 1488 Paonia, Co. 81428 Jim Stover J.E. Stover and Associates 2768 Compass Drive Grarrd Junction, Colorado 81506 RE: Bowie No. 2 Mine Subsidence Survey Date of Survey -April 07, 2005 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 centre grid in place arourxi the Bowie No. 2 Mine surface facilities. The poirrts for the subsidence survey network have • been established using a Trimble 4800 GPS survey system. This GPS survey has been calitxated 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 with additional pants added in August 1999, November 2000, November 2001, November 2002, and November, 2003. The majority of the subsidence monitorirg pants area # 5 rebar, 24 to 30 inches in length, with a 2 inch aluminum survey cap. The caps are stamped: Cragg Surveying, LS 24944. Subsidence stations up Hubbard Creek were surveyed on April 07, 2005. The falowing tables list the survey points with the coordinate data, northing, Basting and eleva5on for each pam along with a table showing the relative shift in position from the previous survey. Some of the points show small changes in position which may be due to inherent error in the survey, while some of the poirrts show noticeable shift in position resulting from subsidence due to the mining. See the accemparrying map which shows the surface topography, underground mining plan, and the location of the subsidence pants. C~ S1-1