The Brule deposit is comprised of three LV bituminous coal seams deposited as layers in sedimentary rock formations. The three potentially economic seams are Seam 60, Upper Seam and Lower Seam. The Blind deposit, located to the northeast of the Brule deposit (see Figure 5) has two inferred and potentially economic seams: the Upper Seam and Lower Seam. The coal seams and sediments were deposited in an inter fingered and alternating succession of transgressive and regressive cycles along the Western Canadian Sedimentary Basin, and therefore are variable in thickness and coal quality.

Generally for the Brule deposit, the folds trend to the northwest and are open, regular, consistent and predictable. The wavelength of the folds is greater than 1.5 km and the bedding inclinations average around 30º. Six faults have been identified in the area of interest in the Brule deposit. These faults are limited in extent and are generally of reverse orientation.

The Blind deposit is centered on a single northeast-facing steeply dipping anticline limb (monocline). The modeled geological structure, based on drill hole intercepts and surface outcrops, includes a centrally-located drag structure, single reverse orientation fault and minor seam overturn toward the southeast.

The Brule Mine uses standard open-pit mining equipment that is diesel fuel-powered. This equipment includes hydraulic excavators, front end loaders, off-highway rear-dump haulage trucks, rotary drills and support machinery. About 35% of the waste material excavated to uncover coal (Seam 60, Upper Seam and Lower Seam) will be placed in waste dumps to the south and east of the developing pit.

The remaining 65% of waste material will be backfilled into the resulting pit to minimize impact on the environment and reduce cost.

The mining equipment is being used to carry out unit operations that are designed to minimize coal loss and dilution. Coal wedge removal, contact cleaning and excavation are planned to be performed with hydraulic backhoes operating in modes that are designed to eliminate any blasting or dozing of the coal seams. Backhoe operating modes should change as seam dips change to optimize coal recovery.

Brule is an open-pit coal mine producing ultra low volatile pulverized coal injection ("ULV PCI").

All coal mined will be transported to the Willow Creek CHPP for sizing (rotary breaker) and, when required, for processing to reduce the coal ash content to 8% percent on an air-dried basis. The new Willow Creek CHPP uses standard coal washing methods of heavy media cyclones, water only cyclones, spiral circuits and flotation to achieve a yield equivalent to the original Sandwell flowsheet.

Coarse and fine (minor) tailings from the preparation plant will be transported to designated storage areas on the Willow Creek mine site. Average projected clean coal yield from ROM production is 86.2% and 90.4% when moisture gains are taken into account.