Geology of the Properties The geology of the properties is consistent with regional structural trends. In Maryland, the local Casselman synclinal fold is evident in the Casselman mine. 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, in descending stratigraphic order: Sewickley, Redstone, Pittsburgh, Bakerstown, Upper Freeport, Lower Freeport, Upper Kittanning, Middle Kittanning, Lower Kittanning, Brookville, and Mercer. 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 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 outcro ........

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.

Underground reserves are mined using continuous mining room and pillar methods. Production sections are configured as single-unit sections, employing one continuous miner and one or two roof bolters per section; many are configured as continuous haulage units.

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 150 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 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.

Corsa preparation facilities have raw coal handling systems consisting of a rotary breaker and screen used to remove large rock and size raw coal.

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