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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 />June 26, 2008 <br />Collin Stewart <br />Bowie Resources LLC <br />P.O. Box 1488 <br />Paonia, Co. 81428 <br />Jim Stover <br />J.E. Stover and Associates <br />P.O. Box 60340 <br />Grand Junction, Colorado 81506 <br />Kt Ckl E® <br />JuL 2 $ 20oa <br />Division of Fceclamation, <br />Mining and SatetY <br />RE: Bowie No. 2 and No. 3 Mines <br />Subsidence Survey - Hubbard Creek <br />Survey date: May 12 -> May 14, 2008 <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 surface facilities. 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 the <br />existing survey control grid and then the survey has been extended to the north to cover the area where <br />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 August 1999, <br />November 2000, November 2001, November 2002, November 2003 and December of 2005. The majority <br />of the subsidence monitoring points are a # 5 rebar, 24 to 30 inches in length, with a 2 inch aluminum <br />survey cap. The caps are stamped: Cragg Surveying, LS 24944. Some of the monitoring points are # 5 <br />and # 6 rebar with no aluminum survey cap on top. <br />The following tables list the survey points with the coordinate data, northing, exsting and elevation for each <br />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, while <br />some of the points show noticeable shift in position resulting from subsidence due to the mining. See the <br />accompanying map which shows the surface topography, underground mining plan, and the location of <br />the subsidence points.