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Exhibit °C Exploration License No. COC -74911 <br />Township 13 South Range 93 West 6` P.M. <br />Sec 9, Lots 9 -16; <br />Sec 10, Lots 9 -16; <br />Sec 11, Lots 9 -16; <br />Sec 12, Lots 9-16; <br />Sec 13, All, <br />Sec 14, All; <br />Sec 15, Lots 1-10, 14 -15; <br />Sec 16, Lots 1 -4; <br />Sec 23, Lots 1 -15; <br />Sec 24, All; <br />Sec 25, All; <br />Sec 26, Lots 1 -15; <br />See 35, All; <br />Sec36, Lots 1 -8, 11 -14. <br />Of the approximately 13,873 acres of surface described above, 68.2'/0 (9,407 acres) of this surface is privately <br />owned, and 31.8% (4,466acres) are managed by the BLM. <br />Exploration drilling activities will be short term and will be conducted for a two year period. Exploration <br />mobilization is expected to begin as soon as approval is given and weather and ground conditions allow. It is <br />expected to be completed within two years. <br />The Ex !oration Area and Geology: <br />The proposed exploration license covers upland areas located between the West Roatcap Creek and <br />Leroux Creep drainages and north of the community of Hotchkiss. The area lies generally west of the Orchard <br />Valley coal lease tracts (C -53356 and C37210). The geology and coal character are anticipated to be similar to <br />the Orchard Valley coal lease tract with at least one seam of recoverable coal, outcropping on the southern slopes <br />of the Oak Mesa, and dipping into the mesa at approximately 5 degrees. <br />Topography: <br />The surface lands of this proposed exploration area consist of a combination of privately owned and <br />BLM managed sections, however, a majority of the exploration drill pads will occur solely on private surface, <br />with only one drillhole expected to occur on BLM surface. The elevation in the exploration area ranges from <br />approximately 7,100 ft. above mean sea level (amsl) in the southwest corner of the exploration license area to <br />9,100 ft. (ams]) in the north portion of the area. Forty -three (43) drill sites are proposed with elevations ranging <br />from approximately 7,580 ft. to 8,980ft. feet (amsl). This area is semi -arid with annual precipitation of <br />approximately 17 inches, mostly as snow. <br />Ft <br />Both Leroux Creek and West Roatcap Creek are perennial drainages with minor flows occurring all year <br />long. The flow volumes vary in response to spring snowrnelt and runoff from major rainfall events. Flow volumes <br />will also vary depending upon the amount of runoff that is diverted into irrigation channels that run through this <br />area and provide water to local orchards and farm land. There are two other drainages, the Dever, and Jay Creek <br />drainages that are in the area of the proposed exploration drilling activities. These drainages have intermittent <br />flows that varying depending upon runoff available and varying amounts captured by local irrigation canals. <br />Proposed exploration activities will be located no closer than 1,000 ft. to Leroux Creek or 'West Roatcap drainage <br />channels. <br />Soils: <br />The environmental resources and values occurring within the proposed area are projected to be consistent <br />August 26, 2011 <br />