Hamilton extracts coal from the Herrin seam. The seam lies between 900 and 1100 feet deep and dips gently to the east/southeast. The seam varies in thickness over the reserve area from 5 feet to 9 feet. On a 1.60 float, dry basis, the Herrin seam averages 8.0% ash, 2.8% sulfur, and 13,420 btu/lb. The Herrin seam mineral deposit type (coal rank) is a high volatile bituminous B/C coal.

The Springfield seam underlies the Herrin seam by approximately 100 feet. This seam is extensively mined throughout the Illinois basin. On a 1.60 float, dry basis, the Springfield seam averages 8.1% ash, 1.7% sulfur, and 13,700 btu/lb. The Springfield seam mineral deposit type (coal rank) is a high volatile bituminous B/C coal.

The primary coal-bearing strata is of Carboniferous age in the Pennsylvanian system.

The geologic model developed to characterize the resource/reserve is a bedded sedimentary deposit model. This is generally described as a continuous, non-complex, typical cyclothem sequence that follows a bedded sedimentary sequence. The geology, including coal thickness and extent has been and continues to be verified by an extensive drilling program.

HCC extracts coal from the Herrin seam utilizing the longwall and room and pillar method of underground mining. The dual-split ventilation system allows two continuous mining machines to operate on mains and submains. The sweep ventilation system allows one continuous miner to operate on the longwall gate entries. With the installation of a bleeder shaft and fan in each longwall district, the ventilation goes from the headgate to the tailgate of the longwall and to the inby bleeder shaft. Infrastructure within the mine includes conveyors, ventilation, power, fresh water, and compressed air systems, one longwall face and the associated development units. Longwall panels
are approximately 1,400 feet wide and up to 18,770 feet in length.

Planned production varies according to contracted sales volume and expectations of market condition and on an annual basis ranged between 2.9 million and 6.3 million tons over the 2017 through 2021 period.

Typical reserve recovery rates for Hamilton range from 21%-100%. Pillar size varies throughout the reserve typically ranging between 232’ x 102’ (250’ centers) and 82’ x 82’ (100’ centers). Entries and crosscuts are driven approximately 18’ wide.

There are approximately 128.5 million clean tons remaining in the Hamilton reserve to be mined within the controlled properties. The current life of reserve plan anticipates exhausting the reserve in 2042. The lifespan of the mine is dependent on many factors an ........

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