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Addendum to the Collom Area Geology Pre - Feasibility Report <br />• <br />HGC used the geological model in MineScape to prepare resource and reserve <br />estimates presented in Section 5.0. HGC also used the geological model to <br />prepare a complete suite of SurvCADD format grid file for the roof and floor <br />structure surfaces across the Collom Mine Area. HGC exported the <br />SurvCADD grid surfaces using a 25 -feet grid cell size. <br />4.3 Coal Quality Database and Model <br />4.3.1 Collom Area Coal Quality Data <br />The "August 2005" report relied heavily on the quality data collected during <br />the 2004 exploration program. Since that time, Colowyo collected <br />approximately 3,139 incremental coal samples and approximately 597 <br />composite samples within the Collom Mine Area. <br />SGS in Denver delivered the coal quality results to Colowyo in spreadsheets <br />• and paper data sheets. HGC transferred the electronic data into the drill hole <br />database. Table 4.3 summarizes the type and number of coal quality <br />samples within the Collom Mine Area. <br />Table 4.3 <br />Summary of Collom Area Coal Quality Data <br />Quality Type <br />Number of Samples <br />in Collom Mine Area <br />Samples in <br />Entire Model <br />Proximate <br />7,660 <br />16,387 <br />Ultimate <br />701 <br />2,050 <br />Ash Fusion <br />1,551 <br />3,782 <br />Mineral Ash/ <br />Sodium <br />1,456 <br />3,313 <br />Mercury <br />604 <br />913 <br />Sulfur Forms <br />131 <br />431 <br />n <br />LJ <br />September 2006 Page 11 of 25 <br />