2010-06-28_REVISION - C1981019 (5)

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presentation by Cedar Creek occurred using the proposed standards for the post- mining land use subcomponent of grazing land. Sample points for Phase III bond release and reference areas evaluated in 2007 and 2008 are indicated on Maps 1 — 3 (a for 2007 and b for 2008) . Field sampling for the directly measurable variables of ground cover, production, and woody plant density was systematically conducted from July 27 through August 2, 2007 and July 28 through August 3, 2008. The growing season prior to and during the second sampling period could be qualitatively characterized as above average with regard to precipitation. Sampling occurred immediately following the peak of growth in July. Field efforts in 2007 and 2008 were conducted by or under the direct supervision of Cedar Creek's Senior Range / Wildlife Ecologist, Mr. Steven R. Viert, Senior Plant Ecologist, Mr. Erik M. Mohr, and Range Ecologist. Mr. Jesse H. Dillon. The remainder of this document is divided into logical sections. Section 2.0 provides the methodology utilized for these investigations, whereas, Section 3.0 provides results and discussion. Raw data tables are presented in Appendix A. Acreages presented in this document are reasonably accurate as determined by Cedar Creek and are based on mapping provided by Colowyo. Precipitation data presented on Table P and Chart P is the average of two weather stations at the Colowyo Mine (SCN16 and WSTPT). Precipitation in the project area was determined to be above average when compared with the eight -year average for the 2007 / 2008 growing season (September 2007 through August 2008). However, this eight -year average is potentially below the actual long -term average for the mine given that 2001 through 2004 are recognized as below- average precipitation years region wide (drought years). For example, the nearest official weather station (Craig 4SW) received only 44% of its average precipitation in 2001, 61% in 2002, 86% in 2003, and 83% in 2004. Given this analysis the long -term average precipitation at the Colowyo mine is most likely in the 19 inch range as opposed to the recent seven -year average of 17.7 inches. Therefore, precipitation during the 2007 / 2008 growing season (20.0 inches) was most likely slightly above average as opposed to well above average. Precipitation during the growing season was above average with April, May, and June exhibiting 1.94, 2.79, and 1.08 inches, respectively. Cedar Creek Associates, Inc. Page 2 Colowyo Mine - Bond Release Evaluation Phase III Year 2