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Bond No. <br />COLORADO DIVISION OF MINERALS AND GEOLOGY <br />1313 Sherman Street, Room 215, Denver, Colorado 80203, (303) 866 -3567 <br />1021503 <br />Notice of Intent No. X - 2007 - 229 - 00 <br />COAL EXPLORATION RECLAMATION BOND <br />CORPORATE SURETY <br />34 -33 -101 et. sec ., C.R.S. 1973, as amended <br />RE CEIVED <br />JUL 18 2007 <br />Divis of Rec\amauon, <br />Mining and Safety <br />KNOW ALL MEN BY THESE PRESENTS, That <br />Colorado Coal Resources, LLC <br />of the County of in the State of Missouri as Principal <br />and Lexon Insurance Company <br />of the County of Jefferson in the State of Kentucky a <br />corporation organized and existing under the laws of the State of Texas and <br />duly authorized to transact a bonding and surety business in the State of Colorado, as surety, are held <br />hereby and firmly bound unto the State of Colorado (the "State ") in the sum of <br />Thirty - Two Thousand Two Hundred Twenty - Four and 00/100 DOLLARS <br />($ 32,224.00 ) for the payment of which sum, well and truly to be made, we <br />hereby bind ourselves and our personal representatives, successors and assigns, jointly and severally, <br />firmly by these presents. <br />WHEREAS, the Principal has filed a complete Notice of Intent to Explore on certain lands in <br />Routt County, Colorado which are described in Exhibit A, attached hereto. <br />WHEREAS, the Principal has agreed with the State to complete a plan for reclamation, as <br />required by law, of the lands disturbed by reason of such exploration operations. Such Plan may be <br />amended from time to time with the approval of the State, acting through the Department of Natural <br />Resources and, as appropriate, the Division of Minerals and Geology ( "the Division ") of the Mined <br />Land Reclamation Board ( "the Board "). <br />(The phrase "Board or Division" in this bond means the organ of State government which has <br />the authority to act in the circumstance referred to in the Colorado Surface Coal Mining Reclamation <br />Act (34 -33 -101 et seq.)). <br />NOW THEREFORE, the conditions of this obligation are such that, if the above- bonded <br />Principal shall, in conducting such exploration operations, faithfully perform the requirements of the <br />narrative description or exploration and reclamation plan, as applicable, as amended from time to <br />time, and comply with the conditions of the Notice of Intent and with all applicable laws and <br />regulations of the State, and if the Board or the Division shall make a finding that the lands upon <br />which such operations have been conducted have been satisfactorily reclaimed, then the Board or the <br />