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Collom Area Geology Pre - Feasibility Report <br />8.3.3 Phase 4/I -Pod Area Resource Estimate <br />The Phase 4/I -Pod area is estimated to contain approximately 202.1 million <br />tons of recoverable coal, see Table 8.2. The "Measured + Indicated" <br />resource base contains an estimated 170 million recoverable coal tons with <br />an estimated recovery factor of 90 %. All coal within the Phase 4/I -Pod area <br />resides on uncontrolled unleased Federal coal. <br />The estimated product coal quality of the Measured + Indicated resources in <br />the Phase 4/I -Pod Area is: <br />Quality Parameter <br />Product Moisture <br />Ash <br />Heat (Btu /lb) <br />Total Sulfur <br />Ash Fusion Temp. <br />Estimated Value <br />15.12 <br />8.09 <br />10,463 <br />0.54 <br />2,583 <br />The Phase 4/I -Pod area contains coal resource estimates from the Y25 seam <br />through the L7 seam. However, the coals below the K7 seam reside beneath <br />the KM Ash layer. The KM Ash layer might prove to be a technical restriction <br />to mining coals below it. Therefore, a more viable resource estimate of the <br />Phase 4/I -Pod area might only include coal seams down through the I7. <br />Approximately 116.3 million total recoverable tons exist in the Phase 4/I -Pod <br />area through the I7 seam. The "Measured + Indicated" resource base <br />contains approximately 117.7 million recoverable tons for coals through the <br />I7 seam. The estimated coal recovery factor for the Phase 4/I -Pod resource <br />area through the I7 seam is 91 %. <br />The estimated product coal quality of the Measured + Indicated resources in <br />the Phase 4/I -Pod Area to the I7 Seam is: <br />Quality Parameter <br />Product Moisture <br />Ash <br />Heat (Btu /lb) <br />Total Sulfur <br />Ash Fusion Temp. <br />Estimated Value <br />15.85 <br />6.57 <br />10,542 <br />0.52 <br />2,539 <br />August 2005 Page 35 of 38 <br />