2011-04-06_PERMIT FILE - X201123102

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PEABODY SAGE CREEK PROJECT 2011 EXPLORATION PROGRAM NOTICE-OF-INTENT SUPPLEMENTAL INFORMATION 3) Basis of Rights to Enter for Exploration and Reclamation The proposed drillhole locations and surface and coal ownership at the nine (9) sites Peabody Sage Creek Mining, LLC plans to drill as part of the 2011 Exploration Program are summarized on Table 1, 2011 Drillhole Location and Ownership, while Map 1, 2011 Exploration Program Surface Ownership, and Map 2, 2011 Exploration Program Coal Ownership, show the drillhole locations and ownership. All of the proposed drill-sites are on lands where surface access and use are allowed under surface use agreements with the surface landowner; the right to explore and prospect for coal is granted through existing leases and licenses. Right-of entry agreements are found in Appendix A, Surface Owner Access Agreements. This NOI covers all nine (9) exploration sites; however four (4) of the sites fall within the Seneca Coal Company Yoast Mine Permit No.C-94-082. These four drillholes will also require a minor revision to the Yoast permit verifying permission to drill. It should be noted that PSCM will be responsible for the reclamation bond associated with the four (4) drillholes within. the Yoast permit area. 4) Description of Land to be Affected A significant portion. of following information regarding environmental resources was collected in conjunction with the permitting of the previous exploration programs and the Yoast Mine and has been summarized for this 2011 NOI Application. Surface Topography: The general topography of the area is characterized by relatively gentle north-northeast facing, moderately sloping, side slope benches and ridges, with steep south-southwest facing escarpments on the east and south end of the project area. Topographic relief in the proposed exploration area is approximately 6,500 feet to 7,200 feet. Geologic Setting: Coal bearing strata of the project area are part of the Iles and Williams Fork Formations of the Mesaverde Group. The coals of primary economic interest are designated as the Middle Coal Group, and include the Lennox, Wadge, Sage Creek and Wolf Creek coal seams. These units and their stratigraphic sequences are illustrated in Figure 1, General Geologic Column. The proposed exploration area is located in the southern extension of the Waskaki/Sand Wash Structural Basin. The basin is bordered on the east the Park Range Anticline and on the southwest by the Axial Basin Anticline. Stratigraphically, the Middle Coal Group was deposited between two regressive sandstone deposits. Surface expressions of these two sandstone units, the Twentymile Sandstone Member of the Williams Fork Formation, and the Trout Creek Sandstone Member of the Iles Formation appear as prominent cliff-forming units throughout the Williams Fork Mountains. PSCM 2011 NOI 6 April 2010