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 of the Properties, with the exception of localized zones disrupted by faulting. These seams have been extensively deep mined on adjacent properties and appear, from CBM gas development wells, to demonstrate additional resource potential beyond the boundary of the Properties. The seams average approximately 1,700 in depth below the property surface and 1,200 below MSL.

The Mary Lee and Blue Creek coal seams are part of the Mary Lee depositional coal zone. The Mary Lee seam averages 18 inches in thickness across the subject Properties and is characterized by a single bench of bright-banded coal with no significant rock partings. The Mary Lee seam is stratigraphically 2.5 to 3.0 feet above the Blue Creek seam. The Blue Creek seam averages 4.5 feet in thickness and is characterized by bright banded coal with a boney zone near the middle of the seam. The seam contains no major rock partings. The total combined thickness of the Mary Lee to Blue Creek zone averages approximately 8.5 feet. The two seams are separated by a shale interval that averages 2.5 to 3.0 feet in thickness.

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.

Underground mine production is hoisted to the surface and immediately sized to a minus 2-inch product through a run-of-mine crushing and screening section consisting of a 60-inch reciprocating feeder, an 8-foot x 22-foot double deck incline screen, and a 12-foot x 24-foot rotary breaker. Oversize material from the screen is fed to the rotary breaker where large rock is removed and sent to the refuse dump. All material smaller than 2 inches is carried by conveyor belt to the raw coal stacking tube and raw coal storage pile.

Raw coal is drawn from the raw coal storage pile using four (4) 48-inch reciprocating feeders. The raw coal is carried by conveyor at 1,300 raw tons per hour to the preparation plant. Raw coal is distributed to two (2) 6-foot x 16-foot and three (3) 8-foot x 16-foot incline screens where the material is sized at 3/8 inch. All material larger than 3/8 inch is sent to four (4) 9-foot low flow heavy media vessels. Clean coal from the vessels reports to four ........