Geological Setting, Deposit Types and Mineralization.
The coal deposits in the eastern USA are the oldest and most extensively developed coal deposits in the country. The coal-bearing formations on the properties are Carboniferous in age, being in the Pennsylvanian system, which includes the Monongahela, Conemaugh, Alleghany, and Upper Pottsville groups. These coal-bearing formations contain two-fifths of the nation’s bituminous coal deposits, extend over 900 miles from northern Alabama to Pennsylvania, and are part of what is known as the Appalachian Basin. The Appalachian Basin is more than 250 miles wide and in some portions, contains over 60 coal seams of varying economic significance. Seams are typically between 1 foot and 6 feet in thickness, with relatively little structural deformation. Coal in the region is classified as high- to low-volatile bituminous with rank increasing to the east. Coals are typically characterized as low to medium sulfur and high heat content.

Mineralization.
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 generall ........

NAPP currently operates the Horning Mine, an underground mine utilizing the room and pillar mining method.

Mine: Horning D.
The Horning D mine is an active mine with a single production section. The Lower Freeport D seam is accessed via an existing boxcut along the outcrop. This mine is a metallurgical coal operation with approximately 75% of production on leased mineral property and the remaining 25% on mineral property owned by Corsa.

Production is scheduled for 255 days each year, which represents production on Monday through Friday. On each day, a single production section is scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. The section is configured as regular sections with one continuous miner available for production. Productivity is planned at the rate of 180 feet of advance per shift of operation.

Principal production equipment includes a continuous miner, two roof bolters, a continuous haulage system, and one scoop. Coal is extracted from the production face with the continuous miner and
hauled to the mine conveyor via continuous haulage. At the conveyor belt, the coal is discharged from the haulage system onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal to the outside, where it is stacked on the ground to await truck transport to the preparation plant and load-out. The truck haul distance is approximately 2 miles.< ........

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