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• 2.04.6 <br />The B-1 Seam, lower B-Seam, meets the minimum physical criteria to be <br />considered a coal resource. The B-1 Seam thickness ranges from 5 to 16 feet. <br />The reason the seam is not considered a coal resource is because of <br />inadequate interburden between the B-2 Seam and the B-1 Seam. The <br />interburden between the seams ranges from 6 to 54 feet on the fee property. <br />The seams are separated by as much as 30 feet of interburden in only a small <br />portion of the property. In orderfor a seam to be considered a coal resource the <br />interburden between seams must be at least 30 feet. The B-1 Seam overlies the <br />A-Seam by 86 to 106 feet. <br />The B-2 Seam, upper B-Seam, meets the minimum physical criteria to be <br />considered a coal resource. The B-2 Seam thickness ranges from 9 to 22 feet. <br />The C-Seam overlies the B-2 Seam by 38 to over 114 feet. The seam does not <br />meet the minimum physical criteria to be considered a coal resource. The C- <br />Seam thickness ranges from 2 to 7 feet. The areas where the seam does <br />achieve a mineable thickness are laterally discontinuous and do not comprise <br />• a reserve of adequate areal extent to be considered a coal resource. <br />The D-1 Seam, lower D-Seam, does not meet the minimum physical criteria to <br />be considered a coal resource. The D-1 Seam thickness ranges from 2 to 6 <br />feet. The areas where the seam does achieve a mineable thickness are laterally <br />discontinuous and do not comprise a reserve of adequate areal extent to be <br />considered a coal resource. <br />The D-2 Seam, upper D-Seam, overlies the Rollins Sandstone by 350 to 450 <br />feet and is 46 to 105 feet above the D-1 Seam. The D-2 Seam will be developed <br />from the Bowie No. 2 Mine. Seam thickness ranges from 8 to 16 feet. <br />The E-2 and E-1 Seams on the property were correlated and measured. Neither <br />seam meets the minimum physical criteria to be considered a coal resource. <br />The E-2 Seam thickness ranges from 2 to 4 feet. The E-1 Seam thickness <br />ranges for 2 to 5 feet. The interburden between the seams averages about 66 <br />feet. The E-1 Seam overlies the D-2 seam by 171 to 192 feet. <br />The F Seam was not positively identified on the property. <br />r~ <br />U <br />PR-08 <br />2-04 - 15 - <br />7/03 <br />A~P~~ <br />9/s5/o3 <br />