2010-12-17_REVISION - C1981019 (115)

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0 • Diamond Drilling Database: o TS recommends that CCC include validation for overlapping intervals in its validation tables. o Status: Complete. A new suite of additional data validation tools have been added to the drill hole database. The lithology and sample input screens now check for overlaps and gaps within data. The validation tools will not allow the form to be exited until overlaps and gaps have been mitigated. o TS recommend that a check downhole survey be carried out on a deep hole in Collom to confirm the assumptions that all holes drilled vertically remain vertical. o Status: Complete. Deviation logs were collected on 14 of 37 drill sites during the 2004 exploration project. Four holes (C- 04 -06, C- 04 -37, C -04- 28 and C- 04 -39) were completed into the Trout Creek Sandstone. It was then determined that the deviation observed in these holes did not significantly affect the measured depths of the holes. • TS recommends that the seam intersection data from the series of 12 hydrogeological holes surrounding C -04 -16 should be entered into the • Access database • Status: Complete. These data have been entered into the drill hole database and have been added to the model. Holes C- 04 -16f and C -04- 16h were not included in the geological model due to their close proximity to holes C- 04 -16e and C- 04 -16j. The lithology data from these holes have also been forwarded to Mr. Mike Whateley and Mr. John Forkes for geostatistical analysis. • TS recommends that CCC should write a procedure to define how composites are compiled to ensure consistency in the composites when used in the resource estimation process. • Status: Complete. The method used to composite coal quality for modeling is outlined in the "Geological Modelling Protocol" in appendix 3 of this memorandum. This protocol has also been included with other Collom exploration protocols. • CCC should ensure that all seam composites have seam names. • Status: Complete. Seam names have been applied to all incremental and composite samples in the drill hole database. • The drill holes listed in Appendix 1 need to be checked and corrected where • necessary.