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EXECUTIVE SUMMARY <br />Project Focus <br />At KEC Colowyo Coal Company's (CCC) request, Rio Tinto Technical Services (TS) visited <br />CCC during the period 14 -24 March 2005, in order to review the status of the geological <br />databases and associated data. This review was required to ensure the veracity of the data <br />used in the geological model update, and resource and reserve calculations. <br />Approach <br />TS used a series of Excel spreadsheets to review the data from the all the drilling data in the <br />database. Information was derived from drilling programmes completed by KEC as well as <br />campaigns by Grace and Utah. TS also reviewed the QA/QC Procedures and the Geological <br />Model. <br />Major Findings <br />Significant amounts of work have been completed to update the drill hole database. <br />Many procedures are in place and are being followed. <br />Procedures identify seams >2 ft thick for sampling. CCC mines seams <2 ft. <br />Following a brief review of the CCC geological database TS considers that the <br />majority of data in the Collom database are sufficiently reliable to be used for <br />resource estimation purposes. <br />• The Apparent Specific Gravity (ASG) data show scatter. <br />Some of the historic drill holes have been included in the database. <br />• Seam correlations have been standardised across and beyond the Collom lease <br />areas. <br />• Original data are stored in a secure location in good order. <br />Access database integrity is good. Only the database manager has delete rights <br />and users have data entry and edits rights. <br />• There are good and improving data validation processes in place. <br />• CCC does not have written data entry/transfer procedures for its drill hole database. <br />CCC does not have documented procedures for use when archiving or exporting <br />data from its Geological model. <br />Visualisation of seam surfaces in the geological modelling software, MineScape, <br />indicates that a drill hole intersection is not necessarily honoured by the surface. <br />RIO <br />TINTO <br />BR3273: FINAL Version: 1 i T e ,h n"" l51e "i -, <br />