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SEP-26-2008 FRI 11:45 AM BLM COLO STATE OFFICE <br />UNITED STATES <br />DEPAIVTMENT OF THE INTERIOR <br />BUREAU OF LAND MANAGEMENT <br />COAL EXPLORATION LICENSE <br />FAX NO. 303 239 3799 P, 02 <br />r-a 1 <br />n <br /> <br /> y? <br /> <br />oti <br />Serial Number COC-72168 e ' CE1. <br /> <br /> <br />Issue Date: August Ol 2008 <br />Ln ,.: <br />Expiration Date: August 01 2010 rtia <br />This license, entered into on, August 01, 2008 by the United States of America, the licensor, through the Bureau of <br />Land Management (BLM), and <br />Bowie Resources, LLC <br />PO Box 483 <br />Paonia, CO 81428 <br />the licensee, is hereby issued under the Mineral Leasing Act of 1920, as amended (30 U.S.C. section 181 et se , and <br />is subject to all applicable Federal, State, and local laws and regulations, including Title 43, Code of Federal <br />Regulations (CFR), Part 3400. <br />Sec. 1. RIG14TS UNDER LICENSE--This license confers the right to perform exploration operations in accordance <br />with the terms and conditions of this license, the approved exploration plan, and. applicable regulations in the <br />following-described lands situated in the State of Colorado: <br />T,12S, R,9I W, 6th.P.M. <br />Sec, 27, S2, NW, S2NE, inclusive; <br />The area described contains approximately 560.00 acres. <br />This license is issued for a period of two years and shall confer no right to a lease. It shall not be extended; however, <br />the licensee may apply for a new exploration license to be issued simultaneously with the expiration of this license, <br />The issuance of this license shall not preclude the issuance of a coal lease at such time and to such persons as <br />deemed appropriate by the BLM State Director or by his delegated representative, hereafter called the "authorized <br />officer," If a coal lease is issued for lands included in this exploration license, those lands common to both lease and <br />license shall be canceled from the license effective the date of lease issuance. <br />Sec. 2. EXPLORATION-The licensee shall diligently explore the lands by drilling, by excavating, by geophysical <br />or geochemical surveying, or by other acceptable methods. The licensee is entitled to use for exploration purposes <br />so much of the surface of the licensed lands as reasonably necessary for such operations in accordance with the <br />approved exploration plan which is attached and made a. part of this license. <br />Sec. 3. OPERATIONS--(a) The licensee shall comply with all applicable rules and regulations of the Secretary of <br />the Interior and, as to any lands in this license which are administered by another Federal agency, with the <br />regulations and orders of that agency. <br />(b) The licensee shall comply with the provisions of the operations regulations at 43 CFR Part 3480 and all orders <br />issued pursuant thereto. Copies of the operating regulations may be obtained from the Uncompahgre Field Office <br />Manager. <br />(c) The licensee shall allow inspection of the premises and operations by authorized representatives of the <br />Department of the Interior or other Federal agency administering the lands and shall allow the free ingress and egress <br />of Government officers and other persons using the lands under authority of the United States. Upon request of the