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Collom Area Geology Pre - Feasibility Report <br />• <br />• <br />• <br />Page 2 of 4 <br />hole resides in the file DHbyResArea.xls on the CD -ROM <br />of this report. <br />Audits or Reviews <br />KEC performed a high level geological audit of CCC in <br />January 2003. This report resides in the KEC corporate <br />office in Gillette, Wyoming. Rio Tinto performed a review <br />of the 2004 Collom Exploration and Evaluation Project in <br />October 2004. The draft report of the review is entitled : <br />AR2262 Collom PFS Interim Review Report (Draft).doc A <br />copy of this report is on the CD -ROM of this report. <br />Re ortin <br />g of Exploration Results <br />Mineral Tenement and Land <br />CCC holds Federal and State leases over all of the areas <br />Tenure Status <br />included in this report. Figure 3.2 of the report illustrates <br />the Coal Control Map for CCC. A very detailed description <br />of Colowyo's land, coal and water leases was compiled as <br />part of the "Pre- feasibility Study of Underground <br />Resources ", April 2003. The file " Review of Land Topo <br />Subsidence Issues is included on the CD -ROM of this <br />report. <br />Exploration done by other <br />Exploration across the CCC properties has been <br />parties <br />conducted by previous owners. These include Consol, <br />Inc, Utah International, and Grace Energy (now CCC). <br />The CCC drill hole database identifies the company who <br />drilled each hole in the database. <br />Geology <br />Several detailed geological reports exist for CCC. One <br />detailed geological report was prepared in 1995 -1996 and <br />is known as the GEOCID report. (Electronic versions of <br />this report are current unavailable. Printed copies of the <br />report exist at the CCC mine office). Another detailed <br />geological report was prepared in 2002 and is known as <br />the Korte report The text of this report is included on <br />the CD -ROM of this report. <br />Data Aggregation Methods <br />The CCC coal quality data is combined using weight <br />averages based upon the length of each sample relative <br />to the total seam thickness. <br />Diagrams <br />Each drill hole within the CCC database has at least one <br />geophysical logs illustrating the downhole geology in the <br />hole. The drill holes from the 2004 Collom Exploration <br />and Evaluation project each have a detailed strip log <br />containing lithology, seam correlation, geotechnical <br />fractures (if applicable) and geophysical log traces <br />(g amma , density resistivity and caliper). <br />Estimation and Reporting of Resources <br />Database integrity <br />The CCC geological database has been reviewed in <br />detailed during both the GEOCID and Korte geological <br />reviews. The data collected from the 2004 Collom <br />Exploration and Evaluation Project followed an outline for <br />data entry and database validation This file is included <br />on the CD -ROM of this report. <br />Geological Interpretation <br />Detailed geological interpretation was performed during <br />both the GEOCID and Korte projects. Ongoing <br />interpretation is being performed as part of the 2004 <br />Collom Exploration and Evaluation Project. <br />Page 2 of 4 <br />