BTS NATURAL RESOURCESRUSH RUN MINE PROJECT

RICES LANDING, PENNSYLVANIAProject Engineers:

Bob BurnsTom Cook Sam Smith

MNG 451 Part 2

Tuesday, April 24, 2012 104 Hosler 11:00-12:00PM

Introduction Located in Greene County, PA Pittsburgh 8 Coal Seam-Average

Thickness of 7.7ft. Single Longwall Mine Over 190 Million Tons of Reserves Located Adjacent to Monongahela River Over 207 Drillholes with 168 Quality

Data 99.5 % of Reserve, is at Least Indicated

(84.8% measured)

Commodity Info High Volatile Bituminous

Northern Appalachia Coal Region

Metallurgical: $145.13/ton

Thermal: $68.65/ton

Location

Surrounding Areas of Concern

Road Route 88

Streams Rush Run Pumpkin Run Neel Run Coal Run

Towns Jefferson,

Population 337

Dry Tavern, Population 403

Historical Districts Rice's

Landing: 81arces

Towns and Roads

Permit Area

Geology Pittsburgh 8 Coal Seam North-South: Elevation Range 250-800 East-West: Elevation Range 400-850 Floor

Mostly Sandy Shale (5 feet) with Fireclay (1 foot) intermittent

Roof A-Panels- Mostly Sandstone (35 feet) D-Panels-Draw Slate (2 feet) and Sandstone (35 feet) B & C-Panels- Mostly Draw Slate (2 feet) and Shale

(10 feet)

Sandstone Adverse geologic areas

with known: Low coal quantities Sandstone wash-outs Immediate sandstone

roof

Difficulty factors of 1.5-3.0

Mostly concentrated in: A panels & D panels

Geologic Column

Zoomed in view of the north south fence diagram

Reserve Classification

CHARACTERISTIC AMOUNT UNIT AMOUNT UNIT

TOTAL AREA 560,434,836.18 SQ. FT 12,865.81 ACRES

MEASURED AREA 472,989,043.31 SQ. FT 10,858.33 ACRESSEARCH RADIUS FROM DRILLHOLE 0 - 0.25 MILES

INDICATED AREA 84,356,677.70 SQ. FT 1,936.56 ACRESSEARCH RADIUS FROM DRILLHOLE 0.25 - 0.75 MILES

INFERRED AREA 3,103,567.79 SQ. FT 71.25 ACRESSEARCH RADIUS FROM DRILLHOLE 0.75 - 3 MILES

HYPOTHETICAL AREA 0.00 SQ. FT 0.00 ACRESSEARCH RADIUS FROM DRILLHOLE 3+ MILES

RESERVE CLASSIFICATION DEFINED USING COAL THICKNESSES

Reserve and QualityThe drillholes

date back to 1975 and were obtained from CONSOL Energy

190 M in-situ tons, 126 minable clean tons

Approximately 15,023 acres

Clean Ash

Ash Quality Data     

Raw Ash ContentDrill holes: 168  

Low Average High7.65 10.19 14.09

1.55F Ash Content

Drill holes: 167  

Low Average High5.98 7.66 8.76

Clean BTU

BTU Quality Data     

Raw BTU ContentDrill holes: 80  

Low Average High12,988.00 13,576.40 13,912.00

1.55F BTU ContentDrill holes: 166  

Low Average High13,937.00 14,133.04 14,434.00

Clean Sulfur

Sulfur Quality Data 

Raw Sulfur ContentDrill holes: 168  

Low Average High0.88 2.19 5.85

1.55F Sulfur ContentDrill holes: 167  

Low Average High0.95 1.64 2.49

Coal Thickness

DEFINITION AMOUNT UNITTOTAL DRILLHOLES

COAL SEAM

TOTAL RECOVERABLE RESERVES 189,792,498.74 TONS

PROPERTY AREA TOTAL AREA 4,629,085,335.03 FT3

TOTAL AREA 15,032.84 ACRES

COAL SEAM CHARACTERISTICSDENSITY 82.00 LB/FT3

MINIMUM COAL THICKNESS 4.73 FTAVERAGE COAL THICKNESS 7.07 FTMAXIMUM COAL THICKNESS 9.42 FT

AVERAGE OVERBURDEN THICKNESS 558.81 FT

TOTAL UNDERGROUND RESERVES

PITTSBURGH 8

207.00

Mine Layout

Mine Plan Designed to accommodate 1 LW, 4 CM Sections

Mains oriented at N18E (A:18) or S18W (A:198) Gates oriented at S72E (A:108) or N72W (A:288)

Considerations placing panels: overlying cities, horizontal stresses(N70E), low cover, railroad.

Designed similar to other mines operating in Pittsburgh 8 seam.

Mine Plan (CM Sections) Super-section for Mains Development

70 ft/shift advance rates 6-9 entries for support Equal Intake to Return Entries Run Around Needed every 5 LW Panels

Single Miner LW Development Section 85 ft/shift advance rates 60o angles for all crosscuts Angle Shoots every 5 walls

Cut Sequence for Gate Road Gate Road (LW Development) Cut Sequence

1. 300’ advance in return entry (green)

2. 300’ advance in track entry (yellow)

3. 150’ advance in belt entry (blue)

4. 108’ advance in belt-track xc (pink)

5. 150’ advance in belt entry (red)

6. 108’ advance in belt-return xc (orange)

7. All cuts include a 30’ overdrive

Gate Road DimensionsDimensions of Gate Road Sections:

Barrier Pillar: 254’ by 114’ Center to Center: 270’ by 130’

Yield Pillars: 119’ by 54’ Center to Center: 135 by 70’

Crosscut Angles Cut on 60o Centers

Stability Factors: Development: 5.04 Head Gate: 3.91 Bleeder: 3.20 Tail Gate: 2.34

Mains Section DimensionsTypical Mains Dimensions:

Return Blocks (Big Blocks):

224’ by 64’ 240’ by 80’ Center to

Center

All Other Pillars will be: 104’ by 64’ 120’ by 80’ Center to

Center

Crosscuts will be turned 90o from center

Run Around Shoots every 4 LW Panels

Stability Factors: Development: 3.41

Mine Plan (Longwalls) Longwall Panels (4 Groups):

29 total

Barrier Pillars of 150-300 ft between sets.

1250’ face lengths for A, B, C1-C5

1500’ face lengths for C6 – C10, D

LW Panel Production Panel Lengths:

Average: 10,244.08 ft Range: 5,166 – 15,817 ft Average Tonnage: 4.06 million tons

Shear Cut Rates: 1250’: 26 ft/shift 1500’: 23 ft/shift A Panels: 15.5 ft/shift

Clean Coal Production: 1250’: 7,617.95 tons/shift 1500’: 10,065.27 tons/shift

Longwall Panel Summary

PANEL NAME

FACE LENGTH, FT

PANEL LENGTH, FT COAL, TONS

SEAM HEIGHT, FT

RAW ASH %

RAW SULFUR,

%RAW BTU,

BTU/LB

CLEAN ASH,

%

CLEAN SULFUR,

%

CLEAN BTU,

BTU/LBEXTRACTION TIME, YEARS

SHEAR ADVANCE

RATE, FT/SHIFT

CLEAN COAL,

TONS/SHIFTA1 1250 9,769.16 3,628,742.03 6.81 9.50 1.90 13,659.16 7.41 1.48 14,174.75 1.03 13.17 4595.464037A2 1250 10,025.03 3,472,555.53 6.76 9.98 2.14 13,610.50 7.36 1.55 14,155.03 1.53 9.1 3152.134267A3 1250 7,835.69 2,731,879.06 6.60 9.32 1.67 13,575.97 7.34 1.51 14,132.47 1.33 8.164 2762.464477A4 1250 8,732.52 3,125,152.79 7.03 9.80 2.02 13,669.88 7.73 1.66 14,076.68 1.28 9.475 3412.795527A5 1250 5,166.64 1,987,788.79 7.26 10.22 2.16 13,568.36 7.75 1.65 14,049.99 0.60 11.88 4420.387377B1 1250 15,817.27 5,847,193.71 7.21 9.62 1.88 13,673.02 7.50 1.53 14,139.75 0.94 26 9611.461417B2 1250 11,237.68 4,038,208.67 7.01 9.87 2.19 13,629.21 7.46 1.68 14,142.65 0.84 26 9342.977664B3 1250 12,978.23 4,549,384.05 7.20 9.91 2.02 13,665.75 7.37 1.52 14,186.68 0.93 26 9588.9817B4 1250 12,493.12 4,529,638.40 7.05 9.72 2.07 13,614.18 7.50 1.60 14,171.60 0.93 26 9400.557971B5 1250 13,200.52 4,789,508.05 6.97 9.86 2.17 13,613.54 7.51 1.58 14,157.61 0.75 26 9283.12943C1 1250 15,351.28 5,939,826.59 7.72 9.79 1.70 13,624.78 8.01 1.41 14,111.06 0.86 26 10282.1708C2 1250 15,773.26 5,945,304.17 7.39 10.71 2.13 13,594.82 7.86 1.61 14,105.87 0.87 26 9843.064143C3 1250 14,493.59 5,339,521.66 7.36 10.69 2.08 13,491.45 7.93 1.60 14,103.68 0.87 26 9801.257067C4 1250 8,948.06 3,115,451.64 6.79 10.75 2.25 13,266.38 7.66 1.69 14,160.32 0.81 26 9049.901319C5 1250 8,947.64 3,345,880.72 7.30 11.29 2.81 13,416.65 8.19 1.88 14,041.69 0.81 26 9722.443569C6 1500 9,121.22 4,030,348.68 7.21 10.31 2.29 13,477.39 7.91 1.73 14,105.12 1.21 23 10193.33886C7 1500 9,030.99 3,972,437.59 7.15 10.42 2.37 13,463.95 7.90 1.75 14,103.04 1.38 23 10120.581C8 1500 9,624.87 4,284,384.57 7.12 9.57 2.22 13,641.95 7.88 1.72 14,100.67 1.38 23 10064.33631C9 1500 8,946.89 4,081,443.44 7.37 10.32 2.29 13,661.24 8.26 1.91 14,100.78 1.21 23 10426.00274

C10 1500 8,946.75 4,116,492.51 7.59 10.90 2.24 13,656.06 8.29 1.62 14,057.46 0.70 23 10731.41661D1 1500 8,875.05 3,836,049.32 7.03 10.58 2.52 13,606.37 7.62 1.75 14,147.43 0.86 23 9941.259463D2 1500 8,892.32 3,990,205.73 7.30 9.71 2.11 13,665.38 7.50 1.58 14,165.58 0.69 23 10320.6788D3 1500 9,097.51 4,051,918.37 7.18 10.39 2.57 13,489.83 7.65 1.79 14,123.50 1.03 23 10152.03433D4 1500 8,935.00 3,907,989.70 6.92 9.80 1.89 13,596.39 7.86 1.87 14,101.07 1.38 23 9786.831982D5 1500 8,969.01 3,773,611.01 6.86 9.01 1.76 13,732.62 7.13 1.49 14,200.63 0.69 23 9705.977544D6 1500 9,060.28 3,855,886.41 6.91 9.32 1.85 13,735.91 7.26 1.52 14,186.49 0.70 23 9776.965065D7 1500 8,937.01 3,740,619.04 6.83 9.73 2.41 13,714.29 7.98 1.88 14,039.57 1.21 23 9660.316193D8 1500 8,936.06 3,697,820.24 6.73 10.76 2.56 13,531.44 8.00 2.04 14,087.75 0.70 23 9517.598543D9 1500 8,935.62 4,085,685.47 7.43 10.55 2.58 13,537.84 8.18 1.98 14,051.85 0.69 23 10516.42475

LONGWALL PANEL REPORT

Yearly Production Summary Life of Mine Clean Coal: 125 million tons

Life of Mine Coal: 143 million tons

Average Clean Coal: 3.8 million tons/yr

Average Rock Tons/Year: 245, 000 tons/yr

Average Run of Mine: 4.33 million tons/yr

Yearly ProductionCALENDAR

YEARPERIOD OF

PRODUCTION COAL, (Tons)CLEAN

COAL, (Tons) ROCK, (Tons)TOTAL GROSS,

(Tons)RAW

ASH, %RAW

SULFUR, %RAW BTU,

BTU/LBCLEAN ASH, %

CLEAN SULFUR,%

SULFUR, LBS/MMBTU

POUNDS OF SO2/MMBTU

CLEAN BTU, BTU/LB

Year 1 5/1/2012 - 5/1/2013 235,024.98 219,119.43 109,608.30 344,633.28 9.64 1.91 13,604.14 7.20 1.46 1.02 2.05 14,240.54Year 2 5/1/2013 - 5/1/2014 448,101.68 417,775.94 168,910.35 617,012.03 9.94 2.10 13,638.00 7.40 1.56 1.10 2.20 14,180.55Year 3 5/1/2014 - 5/1/2015 416,841.58 388,631.40 194,316.58 611,158.16 10.43 2.23 13,629.96 7.39 1.62 1.14 2.28 14,193.73Year 4 5/1/2015 - 5/1/2016 1,438,698.10 1,341,332.74 222,958.89 1,742,769.86 9.98 2.16 13,620.26 7.39 1.55 1.10 2.19 14,175.56Year 5 5/1/2016 - 5/1/2017 3,605,755.29 3,361,732.12 262,471.94 3,687,024.96 9.98 2.04 13,658.98 7.63 1.56 1.11 2.21 14,142.54Year 6 5/1/2017 - 5/1/2018 3,724,649.25 3,472,579.81 334,603.59 3,208,146.98 9.60 1.89 13,638.55 7.60 1.76 1.25 2.49 14,126.46Year 7 5/1/2018 - 5/1/2019 2,285,394.28 2,130,727.88 375,932.07 5,322,982.89 9.91 2.05 13,636.23 7.34 1.47 1.04 2.08 14,159.76Year 8 5/1/2019 - 5/1/2020 2,548,175.00 2,375,724.66 275,208.67 1,574,545.06 9.40 1.66 13,606.04 7.33 1.45 1.03 2.05 14,164.22Year 9 5/1/2020 - 5/1/2021 2,394,255.66 2,232,221.96 246,147.91 3,070,355.20 9.87 2.01 13,639.15 7.34 1.55 1.09 2.19 14,195.48Year 10 5/1/2021 - 5/1/2022 2,644,593.39 2,465,617.83 197,786.86 2,283,444.35 9.72 1.97 13,614.79 7.49 1.61 1.14 2.29 14,122.30Year 11 5/1/2022 - 5/1/2023 4,932,289.91 4,598,492.16 151,916.27 5,091,378.01 10.29 2.35 13,571.58 7.71 1.76 1.24 2.49 14,127.29Year 12 5/1/2023 - 5/1/2024 7,079,188.10 6,600,096.82 205,408.58 7,284,596.68 9.64 1.96 13,629.16 7.44 1.58 1.12 2.23 14,182.59Year 13 5/1/2024 - 5/1/2025 5,990,497.09 5,585,084.08 210,829.70 6,201,326.79 9.89 2.09 13,637.24 7.49 1.58 1.12 2.23 14,176.98Year 14 5/1/2025 - 5/1/2026 5,777,398.00 5,386,406.69 409,749.70 6,187,147.70 10.17 2.20 13,621.13 7.61 1.62 1.15 2.29 14,133.99Year 15 5/1/2026 - 5/1/2027 5,715,282.58 5,328,494.99 272,029.08 5,987,311.66 10.38 2.18 13,618.90 7.71 1.57 1.11 2.23 14,140.38Year 16 5/1/2027 - 5/1/2028 5,429,143.63 5,061,720.79 212,370.26 5,641,513.89 10.14 2.54 13,604.18 7.47 1.69 1.19 2.38 14,166.73Year 17 5/1/2028 - 5/1/2029 4,791,390.02 4,467,127.81 356,151.98 5,147,541.99 10.23 2.32 13,610.26 7.46 1.76 1.24 2.48 14,187.79Year 18 5/1/2029 - 5/1/2030 6,222,356.75 5,801,252.40 406,945.71 6,629,302.46 10.38 2.33 13,553.16 7.70 1.72 1.21 2.43 14,148.90Year 19 5/1/2030 - 5/1/2031 6,866,553.85 6,401,852.81 99,729.60 6,966,283.45 10.56 2.04 13,638.65 7.93 1.60 1.13 2.27 14,110.34Year 20 5/1/2031 - 5/1/2032 5,021,345.98 4,681,521.27 489,254.84 5,510,600.82 10.42 2.37 13,468.38 7.67 1.89 1.33 2.67 14,140.98Year 21 5/1/2032 - 5/1/2033 5,576,351.59 5,198,966.30 249,807.40 5,826,158.99 9.98 1.98 13,523.46 7.86 1.79 1.27 2.54 14,111.34Year 22 5/1/2033 - 5/1/2034 5,156,642.17 4,807,661.15 395,965.90 5,552,608.07 9.91 2.04 13,583.73 7.70 1.76 1.24 2.49 14,131.79Year 23 5/1/2034 - 5/1/2035 5,970,302.99 5,566,256.64 247,212.13 6,217,515.12 10.28 2.11 13,629.85 7.64 1.72 1.21 2.43 14,135.34Year 24 5/1/2035 - 5/1/2036 5,010,171.93 4,671,103.43 288,585.23 5,298,757.16 9.87 2.02 13,683.39 7.66 1.59 1.13 2.26 14,128.12Year 25 5/1/2036 - 5/1/2037 4,515,377.19 4,209,794.43 153,076.33 4,668,453.52 9.88 2.19 13,561.87 7.58 1.74 1.23 2.46 14,157.30Year 26 5/1/2037 - 5/1/2038 3,984,392.94 3,714,745.08 165,384.40 4,149,777.34 9.49 2.31 13,670.09 7.86 1.78 1.26 2.52 14,092.32Year 27 5/1/2038 - 5/1/2039 3,205,058.47 2,988,152.86 294,315.77 3,499,374.23 9.95 2.20 13,597.38 8.06 1.78 1.27 2.53 14,068.41Year 28 5/1/2039 - 5/1/2040 3,535,180.72 3,295,933.76 256,394.02 3,791,574.75 9.90 2.29 13,650.32 8.18 1.84 1.31 2.62 14,063.38Year 29 5/1/2040 - 5/1/2041 3,278,206.53 3,056,350.56 64,823.87 3,343,030.40 10.57 2.44 13,647.34 8.24 1.81 1.29 2.58 14,047.45Year 30 5/1/2041 - 5/1/2042 4,576,897.23 4,267,151.04 481,433.41 5,058,330.64 10.20 2.39 13,641.14 8.04 1.93 1.37 2.73 14,100.95Year 31 5/1/2042 - 5/1/2043 3,376,976.11 3,148,435.80 146.59 3,377,122.70 10.95 2.42 13,617.57 8.41 1.89 1.34 2.68 14,109.16Year 32 5/1/2043 - 5/1/2044 5,632,033.37 5,250,879.76 215,415.38 5,847,448.75 10.64 2.46 13,634.61 8.19 1.88 1.33 2.67 14,067.59Year 33 5/1/2044 - 5/1/2045 3,022,222.97 2,817,690.95 22,012.05 3,044,235.02 10.66 2.24 13,597.29 7.99 1.64 1.16 2.32 14,121.16

FINALIZED PRODUCTION REPORT FOR EACH MINING PERIOD

Yearly Tonnage

Analysis of Roof Bolt Stability (ARBS) Entry Width 16’ Bolt Pattern 4’ x 4’ Coal Mine Roof Rating (CMRR): 42 Suggested Length 5.9 ft. Diameter 0.75 inches Stability Factor 2.5 Bolt Capacity 29.5 Tons ARBS

Suggested 20.9 Actual 22.1

Roof Support Entry Width 16’ Bolt Pattern 4’ x 4’ Anchorage in

Sandstone and Shale Immediate Roof 3 ft. Weak Strata Bolt

Length 8 ft. Combination Bolt J-Bar Cable Bolts at

Intersections 10 ft.

Subsidence Plan Offer homeowners 30% of appraised

property value

Restore any/all stream damage

Any damage above 30% BTS will compensate the property owner

Towns

Worse Case Subsidence

Avgerage Coal Thickness, (ft) 7.03Shallowest Depth, (ft) 300

w/h (shortest) 0.24Critical Panel Span (WC), (ft) 414.40

Apparent Subsidence Factor (a ) 0.63Max Subsidenxe (Sm), (ft) 4.43Inflection Point, (d ), (ft) 92.73Angle of Draw, (Degrees) 21.30

Angle of Critical Deformation, (Degrees) 5.03

1,685.82

Subsidence

Width of the area that could be within the zones of influence, (ft)

Water Control

PARAMETERSPORTAL #1

SUMP AREAINACTIVE A

PANELS

ACTIVE SECTIONS TO

#2 SUMP AREASUMP #2 TO

SUMP #1

NEEL RUN TO FRESH WATER

RESERVOIRPIPE DIAMETER, IN 6.00 6.00 6.00 6.00 8.00

QUANTITY, GPM 1,050.00 100.00 950.00 950.00 600.00DISCHARGE LENGTH, FT 3,571.62 16,808.58 16,480.00 22,357.15 500.00

LIFT HEIGHT, FT 319.25 0.00 0.00 0.00 25.00PUMP EFFICIENCY, % 0.85 0.85 0.85 0.85 0.85

TOTAL HEAD W/ ACCESSORIES & FRICTION LOSS 532.33 872.23 881.77 1,186.50 79.81

PUMP RATE, RPM 3,200.00 3,200.00 3,200.00 3,200.00 3,200.00PUMP HP, BHP 165.99 25.90 248.77 334.74 14.22PUMP HP, IHP 195.28 30.47 292.67 393.81 16.73

PUMP SUMMARY

Longwall-400 GPM Sections, (4)-100GPM

Fire Fighting: 50 GPM at 50 PSI Miscellaneous: 100 GPM

Belts Mains: 3,000 TPH; 54” Width; 600 FPM; 503 BHP

Longwall: 2,374 TPH; 54” Width; 474 FPM; 670 BHP

Slope: 4,362 TPH; 60” Width; 700 FPM; 750 BHP 12.14 Degrees

Training Academy:1,574 TPH; 48” Width; 400 FPM; 203 BHP

Ventilation 30,000 CFM at Face of Development

Sections 66,000 CFM at Face of Mains Sections 90,000 CFM at Headgate of Longwall Head Loss of 8.2 Inches of Water 600,000 CFM Needed 2 Fans – 300,000 CFM Each

Surface Facilities Bathouse/Portal-400 ft x 700 ft Parking Lot- 450 ft x 300 ft Mine Supply Yard- 550 ft x 950ft Shaft- 320 ft, 20 ft Diameter Slope-12.14 degrees, 322 ft deep,

1531 ft long 1 Raw Coal Silos- 275 ft 2 Clean Coal Silo- 150 ft Barge Load Out- 1600 TPH

Surface Facilities

Preparation Plant

With 70% Prep Plant Yield, We Will Have Around 2.8 million tons/years of Clean Coal.

Will use overland belt to transport waster material to refuse.

Barge and rail will be used for transportation out of the prep plant.

Barge $2.21 nominal dollars per ton and rail is $0.049 nominal dollars per ton mile.

Preparation Plant

Electrical Power Will Be Using Distribution Voltage of 13,600VAC

Running 4/0 cable In Mains and 1/0 Cable In Gate Roads

Worst Case Scenario VD = 21.06%

Will Need Two Substations for Worst Case Scenario Causing a VD1 = 8.86% and VD2 = 2.92%

Mains Electrical OutlookEquipment Number HP Voltage Load Factor Current

Countinous Miner 2 850 2300 0.85 386.57Roof Bolter 2 80 950 0.75 77.72Shuttle Car 4 150 550 0.85 570.56Auxlilary Fan 2 40 550 0.9 80.55Feeder Breaker 1 150 550 0.85 142.64Battery Charger 2 50 550 0.3 33.56Scoop Charger 2 50 550 0.4 44.75Auxiliary Load 2 20 220 0.5 55.94Pump 1 293 440 0.7 286.82

a(2415) 5.63a(997.5) 13.63a(577.5) 23.55a(462) = 29.44a(231) 58.87

Turns Ratio With 5% factor

I(2415) = 68.65I(997.5) = 5.70I(577.5) = 37.03I(462) = 9.743444I(231) = 0.95High Side Current = 122.07

Man Power Work year: 240 days Overtime days (average): 18 days Average workable hours: 2232

Total Employees at Full Production: 309 Employee Payroll: $25,394,488.00 Average Employee: $82,182.81

Labor Cost: $5.87/ton Efficiency for Mine Life: 5.58 tons/man-hr

General Equipment Locomotives: Brookeville 25 Ton Mantrips:12 Diesel: 17 Passenger Mantrips: 6 Diesel: 8 Passenger Refuge Shelter: STRATA 15 Ton Supply Car: Approximately 50

Equipment for Section Continuous Miners: 14ED JOY, (5 Miners) Loaders: EU27 JOY, (5 Loaders) Shuttle Cars: 10SC32C JOY, (6 Shuttle

Cars) Battery Haulers: JOY BH20, (4 Haulers) Scoops-CAT SU488 Battery, (5 Scoops) Bolters: Fletcher Model HHDR, (10

Bolters) Feeder: JOY Stamler BF-14, (4 Feeders)

Equipment for Longwall Shearer: JOY 7LS1 Shields: CAT 1,929 Tons, Width 59 inches

1250’ Face 250 Shields 1500’ Face 300 Shields

Pan Line: JOY Armored Face Conveyor: JOY

Training Academy Room and Pillar

Mining

Different Aspect to Rush Run Mine

Expecting Advance Rates of 15 to 20 feet With Additional Auxiliary Operations Involved

Cost and Economics Capital Expenditure:

$780 Million

Initial Capital: $240 Million

Saleable Product Thermal 35% Metallurgical 65%

NPV at 7%: $2.166 Billion

NPV at 10%: $1.377 Billion

NPV at 15%: $686.6 Million

IRR of 36%

Cumulative Cash Flow: $7.3 Billion

Cumulative Cash Flow

Net Profit/Loss Per Year

Sensitivity Analysis

PRICE OF COALCHANGE DISCOUNT RATE

10.00% NPV IRR30.00% $2,009,596,825.67 46.26%15.00% $1,570,147,702.99 39.81%10.00% $1,423,664,662.09 37.57%0.00% $1,130,698,580.30 32.93%

-10.00% $837,732,498.51 27.99%-15.00% $691,249,457.62 25.37%-30.00% $251,800,334.93 16.47%

Sensitivity Analysis

Sensitivity Analysis

TOTAL OPERATING EXPENDITURESCHANGE DISCOUNT RATE

10.00% NPV IRR30.00% $774,508,646.77 26.91%15.00% $952,603,613.54 29.99%10.00% $1,011,968,602.46 30.99%0.00% $1,130,698,580.30 32.93%

-10.00% $1,249,428,558.15 34.82%-15.00% $1,308,793,547.07 35.75%-30.00% $1,486,888,513.84 38.48%

Sensitivity Analysis

Thank You