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Collom Area Geology Pre - Feasibility Report <br />Summaries of the estimated coal resources and reserves are presented in <br />section 8.3 and 8.4, respectively. Detailed resource tables broken out by <br />seam and moisture basis reside in Appendix K. <br />8.2 Collom Resource and Reserve Areas <br />Resource estimates have been compiled over three locations of the Collom <br />Resource Area, see Figure 8.1). The estimated coal resources occurring in <br />the Collom LBA have also been compiled. <br />Marston & Marston, Inc. (Marston) redesigned the CMA, or Collom Phase 1 & <br />2 area for the mining portion of the Collom Pre - Feasibility study. This pit was <br />designed to include coal through the GB seam. The estimated coal reserves <br />of the CMA reflect the three dimensional pit design. The estimated coal <br />resources were calculated using the crest of the Marston pit design and <br />applied vertically through the coal section. <br />The "Phase 4/I -Pod" area represents the east wing of the 2002 Collom <br />Ultimate pit merged with the redesigned Marston pit and extended south to <br />the interpreted extent of I seam. The I seam extent is based on 2004 <br />drilling. Some of the 2005 drilling focused on the Phase 4/I -Pod area. <br />Exploration drilling of the Phase 4/I -pod area was being performed at the <br />time of writing this report. Therefore, Phase 4/I -Pod resource estimates will <br />be updated once the 2005 drilling data can be compiled and modeled. <br />The "Phase 3" area represents west wing of the 2002 Collom Ultimate pit <br />merged with the redesigned Marston pit. The "Phase 3" nomenclature refers <br />to the 2002 Colowyo Cost Ranking Study. Coal resource estimates have <br />been calculated through the GB seam. <br />August 2005 Page 32 of 38 <br />