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Addendum to the Collom Area Geology Pre - Feasibility Report <br />The Geological Resource review performed in March 2005 by the Colowyo <br />Exploration Team highlighted an area of lower ratio X -Seam at the base of <br />Little Collom Gulch. This area resides in the axis of the Collom Syncline. <br />Mining of potential Little Collom X -Seam coal needs occur prior to <br />development of the Collom Mine Area because Little Collom Gulch provides <br />access to the Collom Mine Area and might be the location of a large out -of- <br />pit dump from the Collom Pit. <br />The Colowyo Exploration Team drilled 10 holes in the Little Collom X -Seam <br />area in 2005 and 2006. The Colowyo Exploration Team also dug 23 trenches <br />in the Little Collom X -Seam area to locate X -Seam coal near the surface and <br />to identify potential faults within the synclinal axis. <br />Colowyo is currently developing conceptual mine plans to determine the <br />( viability of mining X -Seam in the area. Colowyo has also prepared an <br />exploration plan to acquire additional drilling and mapping data in Little <br />Collom Gulch. <br />2.3 Future Exploration <br />In the spring of 2006, RTEA decided to focus Colowyo's mine development on <br />the South Taylor Mine Area. Therefore, additional no additional drilling or <br />exploration plans currently exist for the Collom Mine Area. <br />The Collom Mine Area pit needs re- designing when Colowyo revisits Collom. <br />Colowyo must also determine the mining method and the location of the <br />boxcut. At that time, the boxcut area needs detailed geological exploration. <br />September 2006 Page 6 of 25 <br />