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J. E. STOVER & ASSOCIATESy INC. <br />f? 2352NORTH 7th STREEET, UNIT B <br />r GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245-4101, FAX 242-7908 <br />MINE ENGINEERING CIVIL ENGINEERING <br />MINE RECLAMATION CONST. MANAGEMENT <br />December 9, 2010 <br />J. J. Dudash ci <br />0 <br />Division of Reclamation, Mining & Safety C <br />1313 Sherman St., Room 215 \ <br />Denver, CO 80203 <br />00 <br />Re: Bowie Resources, LLC, Bowie No. 2 Mine <br />Application for a Technical Revision <br />Ownership Change <br />Permit C-1996-083 <br />Dear Mr. Dudash: <br />On behalf of Bowie Resources, LLC, (Bowie) enclosed is an application for a technical <br />revision to amend Bowie's ownership and control information. Bowie is currently 100% <br />owned by Cedars Energy LLC. In a closing expected to occur on December 20 (or as <br />soon thereafter as possible), L&L Energy, Inc. will make a loan to the Bowie. In <br />connection with the loan, L&L Energy, Inc. will receive warrants (an option) to acquire <br />55% of Bowie's equity units. The parties currently contemplate that L&L Energy, Inc. <br />will exercise the warrants in April or May 2011. After the warrants are exercised, Bowie <br />will be owned 55% by L&L Energy, Inc. and 45% by Cedars Energy LLC. <br />L&L Energy, Inc. would like assurance that it can be added to the permit. Can DRMS <br />provide a letter to Bowie that indicates L&L Energy, Inc. will be added to the permit after <br />it exercises its warrants subject to public comment and a final check of the AVS system. <br />This assurance letter is very important to L&L Energy, Inc. and it may be a necessary <br />component of the December 20th closing. The December 20th closing is very important <br />to Bowie's financial well being. <br />Amended pages 2.03-2, 23, 31 and 32 are enclosed. The date assumed for the <br />ownership change, as shown on page 2.03-23, is April 29, 2011. This date will be <br />amended later to reflect the date L&L Energy, Inc. exercises its warrants and assumes <br />55% ownership in Bowie. <br />Sincerely, <br />J. E. Stover, P.E. <br />Consulting Engineer