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COAL EXPLORATION 180-DAY REPORT <br />Prospector: Sage Creek Coal Company Notice of Intent No: X-2010-231-01 <br />Address: 29515 Routt County Road 27 Project Name: SAGE CREEK EXPLORATION 2010 <br />Oak Creek, CO. 80467 County: ROUTT <br />Date: 5/2/2011 <br />This report is filed in accordance with Rule 2.02.6(3)(a) of the Regulations of the Colorado Mined Land Reclamation <br />Board for Coal Mining, adopted in accordance with the Colorado Surface Coal Mining Act, C.R.S. 34-33-101 et seq. <br />The purpose of this report is to update the Division on exploration and reclamation activities that have occurred in <br />the past 180 days of active prospecting. The report also indicates any changes in operations from what was stated in <br />the original Notice of Intent sent to the Division. The Operator may use this form, modify this form, or use a different <br />format altogether. <br />1. Attach a map that shows: <br />a) Which proposed holes have been drilled to date, <br />b) Any actual or proposed relocations of holes, <br />c) The extent of all significant road construction completed to date (exclude minor blade work), and <br />d) Current location of all drill rigs and test equipment. <br />2. Describe what and where reclamation activities have occurred in the past 180 days. Mention sealing and <br />plugging, regrading, retopsoiling and reseeding activities. (Attach additional pages, if needed.) <br />All exploration and geotechnical holes were plugged and abandoned with the exception of CCU058 and CCU060 which were not <br />drilled. These holes are tentavily planned to be drilled in 2011. Holes CCU055, CCU057 and CCU062 were moved to new <br />locations closer to the portal. Holes were plugged from total depth to surface. Plugging material consisted of a portland cement <br />slurry and/or bentonite chips. Surface casing was either pulled and removed or cut off about three feet below ground surface. <br />Holes are marked with a metal cap showing the hole number and the year drilled. <br />All drilling locations were reclaimed. The mudpits used in the drilling were drained and backfilled. The locations and access <br />disturbance were leveled and recontoured and the stockpiled topsoil was replaced and spread. The disturbed areas were then <br />reseeded.