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MINE ENGINEERING CIVIL ENGINEERING <br />MINE RECLAMATION CONST. MANAGEMENT <br />March 9, 2012 <br />Re: Bowie Resources, LLC <br />P.O. Box 483 <br />Paonia, CO 81428 <br />Dear People: <br />Bowie Resources LLC, is the successor in interest to Cyprus Orchard Valley Coal <br />Company and Colorado Westmoreland Inc's. responsibilities under Division of <br />Reclamation, Mining and Safety, Permit No. C- 1981 -038. Bowie Resources LLC <br />backfilled, graded and seeded the mine facilities /portal area in 2008 and 2009. <br />One provision of the Division of Reclamation, Mining and Safety's Rules is that the mine <br />must be bonded for the estimated reclamation cost. Now that a portion of the reclamation <br />work has been performed, Bowie Resources LLC has formerly requested a partial bond <br />release from the Division of Reclamation, Mining and Safety. Bowie Resources LLC has a <br />bond liability of $4,624,936 and has requested that up to $1,250,000 of that amount be <br />released. In accordance with the Division's Rule 3.03.2(1), Bowie Resources LLC is <br />required to send written notice of its partial bond release request to adjacent land owners, <br />surface owners and various local governing bodies. <br />The area for which partial bond release is being requested is at the Bowie No. 1, East <br />Mine, located in Delta County, approximately four (4) miles north of Paonia, CO. The east <br />mine is located in the NW /4SE /4, SW /4NE /4 of Section 24, Township 13 South, Range 92 <br />West, 6 P.M. <br />Sincerely, <br />J. E. tover, P.E. <br />Consulting Engineer <br />J. E. STOVER & ASSOCIATES, INC. <br />P.O. BOX 60340 <br />GRAND JUNCTION, COLORADO 81506 <br />PHONE: (970) 245 -4101, FAX 242 -7908 <br />PARTIAL BOND RELEASE LETTER <br />