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Collom Area Geology Pre - Feasibility Report <br />4.0 Exploration History <br />4.1 2004 Exploration Program <br />Colowyo commenced a large scale drilling and exploration program <br />throughout the Collom Resource Area in July 2004. The program continued <br />into December 2004. Colowyo compiled a group of consulting geologists to <br />act as the Collom Exploration Team. Colowyo contracted with Call & <br />Nicholas, Inc. (CNI) to perform the geotechnical study of the CMA. Colowyo <br />contracted with Water Management Consultants, Inc. (WMC) to perform the <br />hydrological study of the CMA. <br />In March 2005, the Collom Exploration Team compiled a detailed summary of <br />the 2004 Exploration Program in a report titled: 'Geological Summary of the <br />2004 Collom Exploration and Evaluation Project ", March 2005. Details of the <br />2004 Exploration Program reside in that report. Excerpts of the summary <br />report are included in this report. <br />The objectives of the 2004 Exploration Program included: <br />• Delineating the extent of the Collom deposit <br />• Reducing drill hole spacing <br />• Increasing the coal quality database <br />• Refining seam correlations, especially seams below GC <br />• Locating additional high value resource areas <br />• Collecting continuous core sample for geomechanical testing <br />• Installing baseline monitoring wells <br />• Performing a large scale pumping test <br />The 2004 Exploration Program focused on working safely and maintaining <br />consistent data collection throughout the project. Prior to starting each shift, <br />the drilling crews discussed safety issues of the day. Additionally, formal <br />safety meetings for the entire exploration team were held prior to starting <br />each 10 -day drilling period. To be consistent with Rio Tinto's safety <br />August 2005 Page 12 of 38 <br />