Brier Creek

The mining property is located in Muhlenberg County, Kentucky, U.S.A.

The coal seams with economic potential in the Muhlenberg County, Kentucky properties are in the Tradewater, Carbondale, and Shelburn Formations. A total of six seams associated with the Muhlenberg County properties have been identified as exhibiting potential surface or deep mineable reserve or resource tonnage. These seams are, in ascending stratigraphic order; Bancroft, KY6, KY9, KY10, KY11 and KY12.

The mine will operate a single production section and should achieve annual production above 750,000 tons. At full production, 43 miners are expected to be employed at Brier Creek. Over the life of the mine, production totals are estimated to be 2.6 million tons of saleable coal. Reserves are expected to be depleted in 2013.

The physical characteristics of this underground coal reserve dictate that the room and pillar mining method be employed. The plan includes a single operating section with two continuous mining machines. Brier Creek will employ a synchronous mining method.

Secondary pillar mining is not planned for this operation. However, a modified perimeter mining plan may be developed. Brier Creek mine may increase its overall reserve recovery and reduce costs by implementing such a plan.

The aforementioned room-and-pillar mining method will ordinarily yield a recovery rate of approximately 50 percent of the in-situ coal seam.

Given the mine size and limited life, support facilities will be kept to a minimum.

The beneficiation yield for the Brier Creek mine is projected to be approximately 76 percent. Adverse roof or floor conditions could reduce the expected recovery and affect the preparation plant operating schedule and cost.

Nominal capacity of the coal preparation plant is up to 200 raw tons per hour, which should readily meet washing requirements for the Brier Creek mine. The optimal feed size for the jig washer will be determined.

Over-size and under-size material will be pre-screened and separated for direct shipment to market. The plant can be upgraded to classify and wash fine coal, but capital expenditures for the improvements are expected to be substantial.

Coal is expected to be transported from Brier Creek mine by truck to several local power plants in the immediate vicinity. Additionally, the Island Dock terminal is located approximately 12 miles from the operation, which expands the market opportunities for Brier Creek production.