The geology of the properties is consistent with regional trends. Coal seams of economic importance on the properties typically range from 1 foot to 6 feet in thickness and are primarily low-volatile in rank. There are 11 coal seams on the properties that demonstrate reserve or resource potential including (not all of which are included within this report), in descending stratigraphic order: Sewickley, Redstone, Pittsburgh, Bakerstown, Upper Freeport, Lower Freeport, Upper Kittanning, Middle Kittanning, Lower Kittanning, Brookville, and Mercer.

Mineable coal seams within the properties are typically low-ash, low to high-sulfur, and high-thermal content bituminous coals. Regionally, the coals are typically low volatile in rank, with rank increasing from west to east. The maximum seam thickness may reach over 6.0 feet where multiple coal benches occur in proximity to one another; however, the average mineable thickness of the seams in this evaluation generally ranges from 1 foot to 4 feet. Seams are generally continuous, but may be locally absent. Secondary discontinuity due to erosional features is present in most areas, resulting in seam outcropping, or visible exposure of the seam at the surface. Other than oxidation of the coal exposed at the surface, erosion of the seams has no significant impact on the mineralized deposits. Mineable seams associated with the properties are generally outcrop-accessible. Coal seams are characterized by both single-bench and multiple-bench coal horizons with parting (non coal) material varying by seam and area. Seam parting is common within the coal seams on the properties with intra-seam parting material increasing drastically in some areas. Roof strata are typically shale or sandy shale with zones of sandstone roof being common. Floor strata are typically sandstone, shale, sandy shale, fireclay, or in the case of the Upper Kittanning, limestone.

Limestone beds occur within the various stratigraphic groups of the region. Some of these limestone beds are extracted in conjunction with surface mining of the Sewickley coal in particular.

NAPP currently operates the Casselman Mine, an underground mine utilizing the room and pillar mining method; the Quecreek Mine, an underground mine utilizing the room and pillar mining method; the Acosta Deep Mine, an underground mine utilizing the room and pillar mining method; the Schrock Run Mine, a surface mine using contour mining methods; the Hamer Mine, a surface mine using contour and highwall mining methods; and the Horning mine is under development.

The proposed surface mines are planned to be operated by a mobile equipment spread built around a Hitachi EX3600 or Komatsu PC 2000 shovels, which is the principal excavator. The surface mine operations are linked in the financial model by the progression of equipment spreads and crews from resource area to resource area. The configuration of this equipment spread, or fleet is projected to be maintained for the future mine projections. Surface-mining activities are projected to occur from 2017 through 2028 at annual production rates up to 724,000 tons. Equipment replacements are scheduled at appropriate times over the period for the equipment.

There are currently three active underground mines operated by Corsa: Acosta, Quecreek and Casselman. In addition to the active mines, Corsa has one idled underground mine planned to resume operations in the future (Horning). Corsa has a short-term forecast that includes four active underground mines, with the Keyser underground mine replacing Quecreek when it is depleted in 2019. Production in Acosta will be expanded to include all 3 seams mined simultaneously.

Projected annual production peaks at approximately 2.9 million clean tons. Mine plans are designed to project operating each resource area to depletion. Crews and equipment are scheduled to move to subsequent resource areas as depletion occurs.

The projected mines are assumed to operate similarly to the active mines, using the same equipment, crews, and methodology. Each mine is scheduled to operate one or two production sections, each configured as a single continuous miner sections. In all cases, mines are forecasted to produce coal two shifts each day and reserve the third shift for maintenance, as well as belt and power moves. Production is scheduled Monday through Friday each week, and alternative Saturdays for some crews.

All of the mines can be accessed by box cut openings or highwall exposed by surface mining operations. Pillar extraction is only assumed for Quecreek, but not any other current or future operations since no such plan has been approved by the appropriate regulatory agencies for those operations.

NAPP currently operates two preparation plants, the Cambria Plant and the Shade Creek Plant, and has one preparation plant temporarily idled, the Rockwood Plant.

Raw coal produced from the mine is currently delivered by truck to the Cambria and Shade coal preparation facilities.

Some raw coal produced from the mine is shipped directly to the customer on a raw basis or blended with processed or purchased coal, depending on coal quality and specific customer requirements. Corsa preparation facilities have raw coal handling systems consisting of a rotary breaker and screen used to remove large rock and size raw coal. Raw coal is then shipping on a raw basis or blended with washed coals from the preparation plant.

Raw coal to be processed is stockpiled, then loaded by a wheel-loader into a hopper for conveyor transport into the coal preparation plant.

Raw stockpile capacity includes approximately 70,000 tons of raw coal ground storage at the Sh ........