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MINE ENGINEERING CIVIL ENGINEERING <br />MINE RECLAMATION CONST. MANAGEMENT <br />January 19, 2012 <br />J. E. STOVER & ASSOCIATES INC. <br />Mr. Jason Musick <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />2352 NORTH 7 STREET, UNIT B <br />GRAND JUNCTION, COLORADO 81501 <br />PHONE: (970) 245 -4101, FAX 242 -7908 <br />Re: New Elk Mine (Permit No. C -1981 -012) <br />2011 Coal Exploration Notice of Intent (NOI -X- 2011- 232 -01) <br />Amendment Number 3 <br />Add 16 New Exploration Holes <br />Dear Mr. Music: <br />Recery ED <br />pivisloe of Re Safety crt, <br />Mining & <br />With this letter, New Elk Coal Company (NECC) is submitting a request for permission to drill <br />an additional sixteen (16) exploration holes under approved NOI -X- 2011 - 232 -01. <br />Attached is revised NOI Item 3 which provides a discussion of the right of entry to the <br />exploration holes. The attached table provides details of each exploration hole. A reclamation <br />bond estimate and drill hole location map are also enclosed. All other sections of NOI -X -2011- <br />232-01 should still be valid. <br />Please feel free to contact me with any questions. <br />Sincerely, <br />J. E. Stover, P.E. <br />Consulting Engineer <br />cc: Ron Thompson, NECC <br />2011 Amended Notice of Intent, Paragraph 3 <br />Drill Hole Details <br />Reclamation Bond Estimate <br />Core Exploration Sites and Monitoring Wells Map revised January19, 2011 <br />