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Addendum to the Collom Area Geology Pre - Feasibility Report <br />Table of Contents <br />Tableof Contents ................................................ ............................... ii <br />1.0 Introduction .................................................... ............................... 1 <br />1.1 Collom Mine Area Location ....................... ............................... 1 <br />2.0 Geological Exploration ...................................... ............................... 2 <br />2.1 2005/2006 Exploration Drilling ................. ............................... 2 <br />2.2 2005/2006 Exploration Results ................. ............................... 4 <br />2.2.1 Drill Hole Spacing ........................ ............................... 4 <br />2.2.2 Burn Extent ................................ ............................... 4 <br />3.0 Geological Audits and Corporate Oversight .......... ............................... 7 <br />4.0 Correlation, Geological Database and Geological Modeling .................... 9 <br />4.1 Drill Hole Database and Seam Correlation .. ............................... 9 <br />4.2 Geological Modeling ................................. .............................10 <br />4.3 Coal Quality Database and Model ............... .............................11 <br />5.0 Coal Reserve and Reserve Estimates ................... .............................13 <br />5.1 Resource and Reserve Parameters ............. .............................13 <br />5.2 Collom Resource and Reserve Areas ........... .............................15 <br />5.3 Estimated Collom Mine Area Reserves ........ .............................16 <br />5.4 Estimated Collom Mine Area Resource Base .............................16 <br />5.5 Estimated Collom Inventory Coal Tonnage .. .............................18 <br />6.0 Comparison of Resource Estimates ...................... .............................20 <br />September 2006 Page <br />