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Collom Area Geology Pre- Feasibility Report <br />,0 <br />• <br />Because the 2005 Exploration Program is currently drilling in the Phase 4/1- <br />Pod area, the resource estimates of the area are preliminary and will be <br />refined once the data has been collected, input, checked and modeled. <br />8.3.4 Phase 3 Resource Estimate <br />The Phase 3 area is estimated to contain approximately 103.9 million <br />recoverable tons of coal, see Table 8.2. The estimated "Measured + <br />Indicated" recoverable coal resource is approximately 102.7 million tons with <br />a calculated recovery factor of 89 %. All of the Phase 3 coal is uncontrolled <br />unleased Federal Coal. <br />The estimated product coal quality of the Measured + Indicated resources in <br />the Phase 3 Area is: <br />Quality Parameter <br />Product Moisture <br />Ash <br />Heat (Btu /Ib) <br />Total Sulfur % <br />Ash Fusion Temp. <br />Estimated Value <br />17.02 <br />5.54 <br />10,220 <br />0.49 <br />2,474 <br />The Phase 3 resource area has currently become a long -term target area that <br />will only be developed once the CMA and /or the Phase 4/I -Pod area have <br />been depleted. Colowyo has no current plans for development of the Phase 3 <br />Resource Area. <br />8.3.5 Collom LBA Resource Estimate <br />The Collom LBA is estimated to contain approximately 120.2 million <br />recoverable tons of coal. The estimated "Measured + Indicated" recoverable <br />coal resource is approximately 118.5 million tons with a calculated recovery <br />factor of 91 %. <br />August 2005 <br />Page 36 of 38 <br />i, <br />_mss. <br />