The coal reserves reported herein are typically low-volatile bituminous coals which exhibit metallurgical coal characteristics. The primary coal-bearing formations on these Properties are of the Pennsylvanian System of the Carboniferous Period, and are part of the Pottsville Formation. The average seam thickness for coal horizons in these formations ranges from less than 1 foot to more than 5 feet. Within the subject Properties, coal zones can locally exceed 10 feet where individual coal beds merge to form a single mineable unit. Coal reserve deposits on the Properties average approximately 1,700 in depth below the surface of the Properties. Structurally, the strata form a homocline that exhibits a regional northwest-southeast strike and a regional southwestward dip of less than one percent. The seams are continuous across much of the Properties with complex zones of offset due to faulting. Seams generally retain normal stratigraphic sequences and are rarely modified from predeformational thickness.

Mineable coal beds within the subject Properties are typically low-ash, low-sulfur, highthermal content, and low-volatile bituminous coals. Although maximum seam thickness may reach over 10 feet, the seam thickness of the mineable zones in this evaluation generally averages 4.5 to 5.0 feet. These mineable zones include the Mary Lee and Blue Creek seams which define the coal reserves that are presented herein. These seams are present and continuous across the entirety o ........

The metallurgical coal is mined using longwall extraction technology with development support from continuous miners. Mine No. 4 - underground operation with single longwall system.

The mining plan at the No. 4 Mine is based upon underground longwall mining methods, which incorporates the use of the room-and-pillar method which facilitates and supports the production from the longwall equipment. Two coal seams within close proximity of each other, the Blue Creek and Mary Lee seams are currently being mined simultaneously (locally referred to as “twin seam mining”), at a depth of approximately 2,000 feet. Both seams are suitable for metallurgical purposes and/or as a compliance steam coal.

Description:
- Seam - Blue Creek/Mary Lee;
- Seam height - 45 inches;
- Cutting height - 85 inches;
- Panel width - 1,115 ft;
- Panel length - 4,000-13,000 ft;
- Over-burden - 1,600 ft;
- No. of gate entries - 4;
- Depth of cut - 36 inches;
- Shearer - Joy 7LS-1D;
- Haulage system - Ultratrac 2000;
- Roof support yield (tons) - Joy 1,300;
- Face conveyor type (strand, motors) - JWR with CSTs, 42-mm chain, twin strand inboard, three 1,200-hp motors;
- Face conveyor width/speed - 1,000 mm/305 fpm;
- Stageloader type, width, speed - JWR, 1,300 mm, 420 fpm;
- Crusher - JWR.

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