EB (MT. SPIEKER)

To intent was to begin development of the mining operations at the EB area in 2008 with full production in 2009. Under the feasibility study, the EB area pit is planned to produce coal from 2009 through the end of 2014. All coal produced from the mines will be processed in the coal preparation plant that is operating at the Perry Creek area.

A technical report dated Nov 26/07 was released and provided scientific and technical information based on the results of the revision to the 2005 FS. The report outlined indicated resources of 11.8 Mt, inclusive of those mineral resources modified to produce mineral reserves. EB area resources equal an estimated 8.0 Mt of Probable ROM coal reserves with an estimated ROM ash content of 28.8% on an air dried basis (db). The overall Project stripping ratio is projected to be 4.9 bank cubic meter (bcm) per ROM tonne, requiring the removal of 39.7 million bcm (Mbcm) of waste during the Project’s life. The waste total excludes 1.6 Mbcm of topsoil scheduled to be removed from waste dump areas and from the mine buildings and other infrastructure sites. Recommendations include the completion of sample analysis and the interpretation of the results received from the 2007 drilling program and their subsequent incorporation into resource models and mine plans. In 2005, a mine feasibility study (2005 Study) was commissioned for the open-pit mine to be developed in the EB and Perry Creek areas, and estimate resources and reserves based on the results of this study. The report recommended that additional drilling should be performed in the EB area to reclassify Indicated resources as Measured resources, and to collect more data on coal seams and coal quality which will be required for detailed mine planning. (Nov/07) In 2001, 21 additional holes were completed at the property in areas deemed amenable to open-pit or underground mining; several resource estimates and feasibility studies were completed for mine development.