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Coal Exploration 180-Day Report <br />Prospector: Mountain Coal Company, LLC <br />P.O. Box 591, Somerset, CO 81434 <br />Gunnison County <br />Notice of Intent #: MR352 & MR361 <br />Project Name: Exploration Drilling Dry Fork <br />And Lions Mesa <br />Item #1: <br />Map attached. <br />Item #2: <br />Lions Mesa - 4 of 5 proposed sites drilled (5th not needed). Two holes 10LC-01 and 10LC-02 have <br />been plugged and abandoned with the drill sites regarded, retopsoiled and reseeded. The remaining <br />two holes 10LM-01 and 10LM-02 have been plugged and abandoned. The holes were drilled with <br />heli-mobile equipment which requires no surface disturbance. <br />Dry Fork - 3 of 3 proposed holes have been drilled. The 3 holes, 10LWE5X40, 10LWE6X62 and <br />10LWE7X70 have been converted to Methane Drainage Wells (MDW's) as prescribed in MR's 352 & <br />361. Access roads and sites are reclaimed to an interim level (roads narrowed, etc.) including <br />regarding, retopsoiling, and reseeding. The access roads will be gated and kept dormant until <br />needed for future use as MDW access. Final reclamation will be completed following MDW use. <br />Item #3: <br />No additional changes to the original prospecting and reclamation plan. <br />Item #4: <br />August 31, 2010, expected completion of all exploration and reclamation activities for this project. <br />Item #5: <br />No, the prospector does not wish this report to be considered confidential? <br />Item #6: <br />No additional comments. <br />7?4 <br />i tea. o