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UNITED STATES <br />DEPARTMENT OF THE INTERIOR <br />BUREAU OF LAND MANAGEMENT <br />COAL EXPLORATION LICENSE <br /> N <br />C= <br /> <br /> C_ .7 <br /> <br />Serial Number COC-71108 <br /> CA ;- <br /> <br />Issue Date: July 01, 2008 <br /> <br />Expiration Date: July 01, 2010 <br /> <br />This license, entered into on, July 01, 2008 by the United States of America, the licensor, through the Bureau of <br />Land Management (BLM), and <br />Oxbow Mining, LLC <br />3737 Hwy 133 <br />PO Box 535 <br />Somerset, CO 81434 <br />the licensee, is hereby issued under the Mineral Leasing Act of 1920, as amended (30 U.S.C. section 181 et se g. 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. RIGHTS 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. 13S, R.90W, 6th.P.M. <br />sec. 3, lots 5-12,15-16, inclusive; <br />sec. 4, lots 5-16, inclusive; <br />sec. 5, lots 5, 12, 13, 16, & 19, inclusive; <br />The area described contains approximately 1,035.52 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.