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truck and/or pipe trailer, rig-up truck, air compressor, core trailer, and two or three 4 x 4 pickups for <br />• the drill-crew and company representatives. For each coal exploration (non-geotechnical) drillhole, a <br />short section (typically 40-60 feet) of threaded surface casing will be set to stabilize unconsolidated <br />surface materials. Drillholes will be a nominal 6.25 inches in diameter and will vary in depth from <br />approximately 400 to 1,900 feet. Holes drilled for geotechnical investigations range from 50 to 150 <br />feet. The anticipated total depth for each coal exploration drillhole is identified in Table 2, Sage <br />Creek Project - 2009 Exploration Program Drillhole Specifications. It is anticipated that the Wadge <br />coal seam and associated roof and floor units will be cored in each non-geotech drillhole. Several <br />holes (ccu037, ccu044, ccu038, ccu042, ccu048, ccu046 and ccu040) will be drilled down to the Wolf <br />Creek coal seam. Associated roof and floor units will also be cored for these drillholes. If other coal <br />seams of interest are penetrated (e.g., Lennox or Sage Creek) they may be cored, as well. Cores will <br />be recovered, examined and logged by a qualified geologist, and core samples may be sent-off for <br />analysis of coal and roof/floor chemistry and characteristics and rock-strength parameters. It is <br />anticipated that the majority of drillholes will extend approximately 40 feet below the Wadge or Wolf <br />Creek coal seam. The primary circulation medium will be water and drilling mud. In the event that <br />subsurface conditions are favorable, air or an air/foam medium may be utilized, as an alternative to <br />mud. Air or an air/foam medium will be utilized for all geotechnical holes. Water for drilling will be <br />obtained from stock ponds located on surface controlled by Sage Creek. Drilling contracts will <br />specify that only non-toxic, bio-degradable compounds and additives may be used for drilling muds. <br />• <br />Sage Creek Project - 2009 N01 <br />04/08/09 10