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Addendum to the Collom Area Geology Pre - Feasibility Report <br />• 4.0 Correlation, Geological Database and Geological Modeling <br />4.1 Drill Hole Database and Seam Correlation <br />The Colowyo Exploration Team meticulously compiled all of the data and data <br />files for each drill hole. Colowyo provide a data entry technician to the <br />Colowyo Exploration Team to key drill hole data into the database. Following <br />established procedures, field geologists reviewed the data entry and made <br />corrections as needed to the data. <br />The Colowyo Exploration Team also created graphical strip logs for each drill <br />hole as an additional check for each drill hole. Each strip loq contains the <br />graphical representation of the lithology, geophysical logs (gamma, density, <br />resistivity and caliper) and a histogram of the dry basis ash for each <br />incremental coal quality sample. <br />• The 2006 drilling the in the Collom Mine Area ceased in February 2006. <br />Immediately following the drilling, the Colowyo Exploration Team performed <br />a detailed review of the Collom Mine Area seam correlations. This correlation <br />exercise focused on the coal seams below the GC. <br />The Colowyo Exploration performed a detailed correlation exercise in January <br />2005 for all of the drilling west of Wilson Creek. However, few drill holes <br />existed in the Collom Mine Area intersecting coals below the GC. <br />Because most of the 2005 and 2006 holes were drilled to the KM layer or to <br />the Trout Creek sandstone significantly, more data exists for the seams <br />below GC. Therefore, the data required detailed review to ensure consistent <br />and cohesive correlation of coal seams below GC. <br />The Colowyo Exploration Team documented correlation changes on database <br />• printouts and updated the drill hole database. <br />September 2006 Page 9 of 25 <br />IN <br />