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COAL FINES <br />Conveyor belt transported coal arrives at the surface for crushing, <br />screening, storage, and truck loading. The processing of coal is part of <br />the operation of the surface areas of the King II Mine. Four products are <br />prepared for customer use. They are lump coal (6 inches plus), stoker <br />coal (1 x 1/4 inch), nut coal (3 x 1 inch), and mine run coal (2 inch <br />minus). <br />In the processing of these coals, fines are created (1 / 4 inch minus), by <br />crushing and screening. These fines are mixed with mine run coal and <br />sold. Coal fines are not stored on the surface in large amounts before <br />being mixed with the mine run and sold. Of the processed product, <br />about 10% to 15% of the coal is fines. <br />Mine run, stoker, and lump ("domestic") coal is stored in stockpile areas <br />shown on Map King II-007. Mine run storage may amount to 40,000 <br />tons. Open stockpiling is necessary, but large stockpiles are undesirable <br />because of the potential of spontaneous combustion of the coal. Care is <br />taken to keep the coal from being scattered. This is not only <br />advantageous from the standpoint of controlling erosion of the pile but <br />also contamination with spoil materials. <br />RETURN OF COAL MINE WASTE TO ABANDONED WORKINGS <br />No coal mine waste will be returned to underground workings at the King <br />II Mine. <br />SHAFTS: VENTILATION, AIR & ESCAPE <br />Currently, the construction of ventilation, air, escape or other shafts is <br />not anticipated. <br />GCC Energy, LLC King II Mine <br />Section 2.05.3 <br />Page 8 March, 2010