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Description of Land to be Affected <br />PEABODY SAGE CREEK PROJECT <br />2012 EXPLORATION PROGRAM <br />NOTICE -OF- INTENT <br />SUPPLEMENTAL INFORMATION <br />Basis of Rights to Enter for Exploration and Reclamation <br />The proposed drillhole locations and surface and coal ownership at the five (5) sites Peabody <br />Sage Creek Mining, LLC (PSCM) plans to drill as part of the 2012 Exploration Program not <br />within the permit boundary are summarized on Table 1, 2012 Drillhole Location and <br />Ownership, while Map 1, 2012 Exploration Program Surface Ownership, and Map 2, <br />2012 Exploration Program Coal Ownership, show the drillhole locations and ownership. <br />All of the proposed drill -sites are on lands where surface access and use are allowed under <br />surface use agreements with the surface landowner; the right to explore and prospect for coal <br />is granted through existing leases and licenses. Right -of entry agreements are found in <br />Appendix A, Surface Owner Access Agreements. <br />The 2012 Exploration Program has a total of eleven (11) exploration sites; however six (6) of <br />the sites fall within the PSCM's Sage Creek Mine's permit (C- 2009 -087). These six <br />drillholes will require a minor revision to the Peabody Sage Creek Mine Permit (C -2009- <br />087) verifying permission to drill. It should be noted that PSCM will be responsible for the <br />reclamation bond associated with the six (6) drillholes within the PSCM permit area. <br />A significant portion of following information regarding environmental resources was <br />collected in conjunction with the permitting of the previous exploration programs and the <br />Peabody Sage Creek Mine and has been summarized for this 2012 NOI Application. <br />Surface Topography: The general topography of the area is characterized by relatively <br />gentle north - northeast facing, moderately sloping, side slope benches and ridges, with steep <br />south - southwest facing escarpments on the east and south end of the project area. <br />Topographic relief in the proposed exploration area is approximately 6,500 feet to 7,200 feet. <br />Geologic Setting: Coal bearing strata of the project area are part of the Iles and Williams <br />Fork Formations of the Mesaverde Group. The coals of primary economic interest are <br />designated as the Middle Coal Group, and include the Lennox, Wadge, Sage Creek and Wolf <br />Creek coal seams. These units and their stratigraphic sequences are illustrated in Figure 1, <br />General Stratigraphic Column. <br />The proposed exploration area is located in the southern extension of the Waskaki /Sand <br />Wash Structural Basin. The basin is bordered on the east the Park Range Anticline and on <br />the southwest by the Axial Basin Anticline. Stratigraphically, the Middle Coal Group was <br />deposited between two regressive sandstone deposits. Surface expressions of these two <br />sandstone units, the Twentymile Sandstone Member of the Williams Fork Formation, and the <br />Trout Creek Sandstone Member of the Iles Formation appear as prominent cliff - forming <br />units throughout the Williams Fork Mountains. <br />PSCM 2012 NO1 6 April 2012 <br />