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April 19, 2012 C- 1981 - 018 /Deserado Mine ZTT <br />GENERAL MINE PLAN COMPLANCE: <br />Four piles of drill piping has been stock piled around the Access Road leading to the Rock Dust Tank SAE. Two <br />piles are located north and two piles are located south of the road. The piping has been stored outside of the <br />disturbed area boundary and will either need to be removed or have the disturbed area boundary changed to <br />include the area where the pipes have been stored. <br />Drill pipes stored outside of the disturbed area boundary. <br />PROCESSING WASTE /COAL MINE WASTE PILES — Rule 4.10 and 4.11 <br />Drainage Control; Surface Stabilization; Placement: <br />Rocks discharged from the Rotorary Breaker were being stocked and hauled to the Refuse Piles or being used <br />throughout the mine site. <br />Refuse stocked on north end of RP -2/3 has been spread and compacted. Fresh refuse was being stocked, spread <br />and compacted on RP -2/3. <br />Refuse stocked on RP -5A from the winter months have been spread and compacted. <br />REVEGETATION — Rule 4.15 <br />Vegetative Cover; Timing: <br />Light vegetation was observed in the disturbed area that was recently seeded around the B -Seam Dewatering Pond <br />system. <br />Number of Partial Inspection this Fiscal Year: 7 <br />Number of Complete Inspections this Fiscal Year: 3 <br />Page 4 of 4 <br />