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2-59 <br />2.5.4 Reserve Estimates <br />~', <br />In light of the overburden and graben's influence on mining economics, <br />the operator has adjusted its reserve estimates in a number of areas of the <br />permit. Below is a table summarizing the minable and recoverable reserves. <br />RESERVE SUMMARY ACRES AVERAGE TOTAL TOTAL <br /> THICKNESS MINABLE RECOVERABLE <br />SECTION 15 74 7.5 999,000 749,000 <br />ECTION 16 12.5 7.5 168,750 126,000 <br />ECTION 21 91.5 7.5 1,235,250 926,000 <br />ECTION 22 331 7.5 4,468,500 3,351,000 <br />ECTION 27 210 7.5 2,835,000 2,126,000 <br />ECTION 28 0 7.5 0 0 <br />FEE COAL 76.5 7.5 1,032,750 775,000 <br />OTAL 11,306,250 8,053,000 <br />Total Minable is defined as tons produced from room and pillar mining 7.5' <br />high (where possible) in the Total or Upper Cameo seam minus a 500' burn <br />exclusion following the outcrop of the seam. Recoverable tons equal 75% of <br />minable since the acreage figures are an outline of the mine workings and <br />projections. Additionally, a 200' barrier pillar on either side of the faults which <br />define the edges of the graben have been excluded from both Minable and <br />recoverable reserve estimate. <br /> <br />McClave Volume 1 03/06 <br />