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Collom Area Geology Pre - Feasibility Report <br />is 8.3.3 Phase 4/I -Pod Area Resource Estimate <br />The Phase 4/I -Pod area is estimated to contain approximately 202.1 million <br />tons of recoverable coal, see Table 8.2. The "Measured + Indicated" <br />resource base contains an estimated 170 million recoverable coal tons with <br />an estimated recovery factor of 90 %. All coal within the Phase 4/I -Pod area <br />resides on uncontrolled unleased Federal coal. <br />The estimated product coal quality of the Measured + Indicated resources in <br />the Phase 4/I -Pod Area is: <br />Quality Parameter Estimated Value <br />Product Moisture % 15.12 <br />Ash % 8.09 <br />Heat (Btu /Ib) 10,463 <br />Total Sulfur % 0.54 <br />Ash Fusion Temp. 2,583 <br />The Phase 4/I -Pod area contains coal resource estimates from the Y25 seam <br />• through the L7 seam. However, the coals below the K7 seam reside beneath <br />the KM Ash layer. The KM Ash layer might prove to be a technical restriction <br />to mining coals below it. Therefore, a more viable resource estimate of the <br />Phase 4/I -Pod area might only include coal seams down through the I7. <br />Approximately 116.3 million total recoverable tons exist in the Phase 4/I -Pod <br />area through the I7 seam. The "Measured + Indicated" resource base <br />contains approximately 117.7 million recoverable tons for coals through the <br />I7 seam. The estimated coal recovery factor for the Phase 4/I -Pod resource <br />area through the I7 seam is 91 %. <br />The estimated product coal quality of the Measured + Indicated resources in <br />the Phase 4/I -Pod Area to the I7 Seam is: <br />Quality Parameter Estimated Value <br />Product Moisture % 15.85 <br />Ash % 6.57 <br />Heat (Btu /lb) 10,542 <br />Total Sulfur % 0.52 <br />Ash Fusion Temp. 2,539 <br />• <br />August 2005 <br />Page 35 of 38 <br />