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September 26, 2011 X -200- 189 -06 /Trapper UG Feasibility Phase I KAG <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA Applicable <br />N - Air Resource Protection <br />N - Backfill & Grading <br />N - Fish & Wildlife <br />N - HN-drologic Balance <br />N - Gen. Compliance With Mine Plan <br />N - Other <br />N - Roads <br />R - Reclamation Success <br />N - Revegetation <br />N - Slides and Other Damage <br />N - Signs and Markers <br />N - Topsoil <br />COMMENTS <br />RECLAMATION SUCCESS - Rule 2.02(a) and 4.21.2(2): <br />This was a bond release inspection for coal exploration activities conducted under a Notice of <br />Intent (NOI) for exploration of coal involving the removal of 250 tons or less. Graham Roberts of <br />Trapper Mining Inc. was present during the inspection. Eighteen boreholes were drilled under <br />this NOI to collect information related to the feasibility of a future underground coal mining <br />operation. Holes were drilled in undisturbed areas as well as areas that were previously <br />disturbed and /or reclaimed as a result of the ongoing surface coal mining operation under coal <br />permit #C- 1981 -010. A sampling of drill sites were observed by pedestrian survey. Four <br />boreholes were completed as ground water monitoring wells. These four wells are now part of <br />coal permit #C- 1981 -010 as a result of recently approved Minor Revision #217. Ground <br />conditions were ideal on this day and the weather was warm and mild. <br />We started the inspection at site 23 located in an area of the Trapper surface mine that has <br />been bond released. The site was difficult to discern from the surrounding area. Cattle were <br />grazing the area, although not heavily. The site appeared in excellent condition with no <br />problems noted. <br />Using a GPS, we located site 26. Nothing unusual was observed and the site appeared well <br />reclaimed. <br />Site 27 is one of the locations completed as a monitoring well. The well is a flowing artesian <br />well. <br />Site 32 was located along the far east side of the Trapper mine permit boundary under a power <br />line. A two -track road for power line access bisects the location. The site is successfully <br />reclaimed with shrubs and grasses observed. <br />Site 24 is located above a stock pond in a reclaimed area. Vegetation was excellent. <br />Sites 19, 25, and 31 were drilled in areas previously disturbed by active mining prior to <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 0 <br />Page 2 of 7 <br />