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Addendum to the Collom Area Geology Pre - Feasibility Report <br />• <br />Table 5.2 <br />Leased In -Situ Coal Resource Estimate <br />for the Collom Phase 1 & 2 Mine Area <br />Resource Area Measured Indicated Resource Base Inferred Resource Coal <br />Phase 1 & 2 Extent 77,536 6,674 84,210 0.00 84,210 <br />Note: All values in thousands <br />Table 5.3 <br />Estimated Coal Quality of the Collom Phase 1 & 2 Coal Resources* <br />Moisture Ash Btu /Lb Sulfur ASG Ash Fusion Mercury Sodium <br />15.37 5.45 10,745 0.47 1.32 2,500 0.04 0.45 <br />*As- Received Moisture Basis <br />Table 5.4 illustrates the estimated Collom Mine Area resources by vertical in- <br />situ ratio increment. Figure 5.2 illustrates the cumulative, vertical, in -place <br />ratio for all seams through the GB. <br />Table 5.4 <br />Estimated Collom Phase 1 & 2 In -Situ Coal Resources <br />by Ratio Increment <br />Ratio <br />Tons <br />Avg. Coal <br />Total Waste Volume <br />Ratio <br />Increment <br />000's <br />Thickness <br />000's be <br />be /ton <br />Ratio 0 - 4 <br />150 <br />6.50 <br />666 <br />4.44 <br />Ratio 4 - 8 <br />83,649 <br />5.86 <br />493,875 <br />5.90 <br />Ratio 8 - 12 <br />411 <br />5.67 <br />4,127 <br />10.04 <br />Grand Total <br />84,210 <br />5.86 <br />498,668 <br />5.92 <br />For comparison purposed, HGC estimates that the leased portion of the 3- <br />dimensional Collom Pit Shell contains approximately 69.1 million tons of coal, <br />see Table 5.5. Table 5.6 presents the As- Received basis coal quality <br />estimated for coal resources within the Collom Pit Shell. <br />U <br />September 2006 <br />Page 17 of 25 <br />