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Exploration Drilling by Peabody Sage Creek Coal Company <br />(within the Yoast Permit Area) <br />Seneca Coal Company hereby gives Peabody Sage Creek Coal Company permission to <br />conduct exploration drilling within the Yoast permit area as shown on attached Exhibit A., <br />PSCM Exploration Surface Ownership. <br />Peabody Sage Creek Coal Company submitted a Notice of Intent to Explore (NOI X -2008- <br />229-01) to conduct exploration drilling within Sage Creek Coal Company's area of interest. <br />This NOI included drillhole # ccu028 within the Yoast Permit area. The drilling occurred <br />during August and September 2008 and provided Sage Creek with important supplemental <br />geologic and coal related information. <br />Peabody Sage Creek Coal Company has submitted a Notice of Intent to Explore (NOI X- <br />2010- 231 -01) to conduct additional exploration drilling within Sage Creek Coal Company's <br />area of interest. This NOI includes drillhole # ccu049 within the Yoast Permit area. The <br />drilling will occur during the summer /fall of 2010 and will provide Sage Creek with <br />important additional supplemental geologic information and coal related information. <br />Peabody Sage Creek Coal Company will be responsible for the reclamation liability <br />associated with the disturbance and reclamation activities associated with the exploration <br />drilling project. <br />in/Z -33 Y12.oea <br />