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CRAGG SURVEYING <br />Stephen B. Cragg PLS <br />14762 2900 Road <br />• Hotchkiss, Colorado 87419 <br />Phone 970-872-2258 <br />Fax 970-872-3358 <br />May 27, 2005 <br />Bowie Resources LLC <br />P.O. Box 1488 <br />Paonia, Co. 81428 <br />Attn. Collin Stewart <br />RE: Bowie No. 2 and No. 3 Mines <br />Subsidence Survey <br />May 9 - 10, 2005 <br />A subsidence monitoring survey network has been established by Cragg Surveying for the <br />Bowie Resources, Bowie No. 2 and 3 Mines. The survey is based on the existing survey control grid in <br />place around the Bowie No. 2 Mine surtace faali0es. The points for the subsidence survey network have <br />been established using a Trimble 4800 GPS survey system. This GPS survey has been calibrated to <br />the existing survey control grid and then the survey has been extended to the north to cover the area <br />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 poirrts added in August 1999, <br />November 2000, November 2001, November 2002, and November, 2003. 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 />Subsidence stations over the west Iongwall panels WD-1, WD-2 and W0.3 were surveyed on <br />May 9 and May 10 of 2005. <br />The following tables list the survey points with the coordinate data, northing, Basting and elevation for <br />each point along with a table showing the relative shift in position from the previous survey. <br />Some of the points show small changes in position which may be due to inherent error in the survey, <br />while some of the points straw noticeable shift in position resulting from subsidence due to the mining. <br />See the accomparrying map which shows the surtace topography, underground mining plan, and the <br />location of the subsidence points. <br /> <br />S2-1 <br />