Senior Mine Design Senior Mine Design ProjectProject

David Allan Coal CompanyDavid Allan Coal CompanyHasben Mine ProjectHasben Mine Project

Justin Bushneck & Kris LillyJustin Bushneck & Kris LillySelected slides from Oral PresentationSelected slides from Oral Presentation

Area Mining HistoryArea Mining HistoryThe Hasben Mine Project The Hasben Mine Project Property is Surrounded by Property is Surrounded by 5 Inactive Mines in The 5 Inactive Mines in The Pittsburgh SeamPittsburgh Seam

Gateway MineGateway MineMather MineMather MineRobena MineRobena MineNemacolin MineNemacolin MineCrucible MineCrucible Mine

1 Operating Mine RAG 1 Operating Mine RAG America’s Emerald MineAmerica’s Emerald Mine

Reserves Reserves and Qualityand Quality

MAXIMUM

%

AVERAGE %

MINIM

UM %

STANDARD

DEVIATIO

N

ASH 14.08 10.03 8.19 0.58C-ASH 8.67 7.68 6.22 0.36SUL 5.67 2.12 1.08 0.37C-SUL 2.36 1.56 1.00 0.19YLD 96.87 93.35 87.24 0.96

MAXIMUM

AVERAGE

MINIM

UM

STANDARD

DEVIATIO

N

THK (Ft) 8.12 6.68 5.3 1.92BTU 13,910 13,596 12,989 113C-BTU 14,395 14,119 13,937 68

In Place Reserves

10 yr. Clean Recoverable

TonsAcres 12,452 4,260Total Tons 157,352,594 17,640,464Measured & Indicated Tons

116,308,486 3,660

Inferred Tons 41,044,107 3,660

Coal

Reserves Reserves and and

Quality Quality (Sulfur)(Sulfur)

Subm

ain

D

61

60

59

58

75

76

77

78

8786

85

84

Main #4 Left54

50

51

52

53

32

31

30

29

28

27

26 25

24

23

11

82

Main #4 Right

57

56

55

80

81

12

13

14

15

16

10

9

8

7

6

Blee

der P

anel

Mai

n #3

Main #2Main #1

22

Subm

ain

A

18

19

20

21

5

4

3

2

1

Insufficien

t Data

Insufficien

t Data

Project Name

Drawing Name

Date:

Checked By:

Scale:

Drawn By:

DRAWING No.Ju s ti n Bu sh n ec k

Justin Bushneck

Hasben Mine

Pittsburgh Raw Sulfur Map(Full Seam)

Kris Lilly

10-1-031" = 4000' SUL-001

David Allan Coal Company

17

68

Subm

ain

C

Subm

ain

B

49 79 83

63

624438

41

42

43

67

66

65

64

40

39

45

46

4748

37

36

35

34

33

74

6970

71

72

73

Reserve ClassificationReserve ClassificationMeasured & Measured & IndicatedIndicated

Acreage: 9,204 Acres Acreage: 9,204 Acres TotalTotalAcreage: 3,660 (10 Acreage: 3,660 (10 yr)yr)

Inferred Inferred Acreage: 3,258 AcresAcreage: 3,258 AcresAcreage: 600 (10 yr)Acreage: 600 (10 yr)

Average Influence / Average Influence / Drillhole: 134 Acres

Project Name

Drawing Name

Date:

Checked By:

Scale:

Drawn By:

DRAWING No.J us tin Bu sh n ec k

Justin Bushneck

Hasben Mine

Pittsburgh Seam Reserve Classification Map

Kris Lilly

11-19-031" = 4000' RES-001

David Allan Coal Company

Inferred

Indicated

Measured

Insuffic

ient D

ata17

68

Subm

ain

C

Subm

ain

B

49 79 83

63

624438

41

42

43

67

66

65

64

40

39

45

46

4748

37

36

35

34

33

74

6970

71

72

73

Subm

ain

D

61

60

59

58

75

76

77

78

8786

85

84

Main #4 Left54

50

51

52

53

32

31

30

29

28

27

26 25

24

23

11

82

Main #4 Right

57

56

55

80

81

12

13

14

15

16

10

9

8

7

6

Blee

der P

anel

Mai

n #3

Main #2Main #1

22

Subm

ain

A

18

19

20

21

5

4

3

2

1

Drillhole: 134 Acres

Mine PlanMine PlanRoom and Pillar OperationRoom and Pillar Operation1.6 Million Tons Annually1.6 Million Tons AnnuallyRiver Transportation River Transportation PanelsPanels

3,500 to 4,500 Feet Long3,500 to 4,500 Feet Long10 Entries.10 Entries.35 to 45 Blocks Long35 to 45 Blocks Long

EntriesEntries18 Feet Wide18 Feet WideFull Seam Mining HeightFull Seam Mining Height100’ X 100’ Center to Center100’ X 100’ Center to Center

Coal Production by YearCoal Production by YearDate

Raw Coal (tons)

Clean Coal (tons)

Revenue @ $30/ton

2005 802,142 609,628 $18,288,8282006 1,030,924 783,502 $23,505,0632007 1,864,665 1,417,146 $42,514,3692008 2,009,278 1,527,051 $45,811,5272009 2,118,994 1,610,436 $48,313,0652010 2,115,931 1,608,107 $48,243,2152011 2,222,801 1,689,329 $50,679,8562012 2,134,505 1,622,224 $48,666,7142013 2,189,929 1,664,346 $49,930,3902014 2,205,016 1,675,812 $50,274,3692015 2,282,635 1,734,803 $52,044,0832016 2,234,317 1,698,081 $50,942,430

23,211,136 17,640,464

Unmined Coal

Pow

er C

ente

rPo

wer

Bel

tT

ail P

iece

Bar

rier

Pill

ar

Bar

rier

Pill

ar

Drawing Name:

Project Name:

David Allen Coal Co.Justin Bushneck

Panel Cut Sequence

Hasben Mine

1" = 100'Scale:

Just in Bushneck

Drawn By:

PC-002DRAWING No.

4-24-04Date:

Kris LillyChecked By:

6765

35 29 24 20 14 1033 26 22 17 12 7

25

28

30

32

61

63 64

58

34

31

27

23

56

54

51

21

19

16

53

50

48

18

15

13

46

44

41

11

9

6

43

39

37

8

4

2

40

38

36

5

3

1

68 66 62 60 59 57 55 52 49 47 4245

Panel Cut Panel Cut SequenceSequence

Ground ControlGround Control

100’ X 100’ Center to Center Pillars100’ X 100’ Center to Center Pillars82’ X 82’ Block Size82’ X 82’ Block SizeSFSF

Development Loading 3.52Development Loading 3.52One Side & Active Gob 1.99One Side & Active Gob 1.99Active Gob 2.03Active Gob 2.03

100’ Barrier Pillars Between Panels100’ Barrier Pillars Between Panels120’ Barrier Pillars Between Properties120’ Barrier Pillars Between Properties

Roof BoltingRoof BoltingSpacing Spacing

3 Feet From Rib3 Feet From Rib4 Feet Between Bolts4 Feet Between Bolts

Bolt TypesBolt Types#6 Rebar Grade 60#6 Rebar Grade 608’ Long 8’ Long 8” X 8” Plates8” X 8” PlatesFully Grouted ResinFully Grouted Resin

Additional Support Will Be Installed if Additional Support Will Be Installed if NeededNeeded

VentilationVentilationProjected Seam Gas Content: 100 ftProjected Seam Gas Content: 100 ft33/t to 300 /t to 300 ftft33/t /t At 300 ftAt 300 ft33/t of Methane, 30,000 cfm is Needed in /t of Methane, 30,000 cfm is Needed in Last The Last Open Crosscut to Keep Methane Last The Last Open Crosscut to Keep Methane Below 1%Below 1%Four Sections Require 240,000 to 320,000 cfmFour Sections Require 240,000 to 320,000 cfmFace Ventilation Types:Face Ventilation Types:

Main & Submain: Twin SplitMain & Submain: Twin SplitProduction Panel: Single SplitProduction Panel: Single Split

Joy Joy AxivaneAxivane Mine Fan, Model M120Mine Fan, Model M120--7979--710 710 8” of Water Gage @ 300,0008” of Water Gage @ 300,000 cfmcfm

Panel VentilationPanel VentilationSingle SplitSingle Split

Unmined Coal

Inta

ke

Inta

ke

Neu

tral

Neu

tral

Return

Return

Neu

tral

Checked By:

Kris LillyJustin BushneckScale:

Drawn By:

1" = 100'Ju st in Bushneck

4-25-04Date: DRAWING No.

V-002

Hasben MineProject Name:

Drawing Name: Panel Ventilation

David Allen Coal Co.

Bar

rier

Pill

ar

Bar

rier

Pill

ar

Bel

t

Pow

erPo

wer

Cen

ter

Tai

l Pie

ce

CurtainLine CurtainStoppingReturnNeutralIntake

KEY

Underground TransportationUnderground Transportation

Track Haulage for Men & SuppliesTrack Haulage for Men & SuppliesTrack Ends at Mouth of PanelsTrack Ends at Mouth of Panels

Men will Ride to Section on Super Xcited Men will Ride to Section on Super Xcited MantripMantrip

Foremen & Mechanic Will Use Xcited Supercar on Foremen & Mechanic Will Use Xcited Supercar on SectionSection

Supplies Will be Taken from The Track to The Supplies Will be Taken from The Track to The Section By The Powell ScoopsSection By The Powell Scoops

Return Headings Will Be Traveled By The Return Headings Will Be Traveled By The StingerStinger

Equipment SelectionEquipment SelectionUnderground (Per Underground (Per Section)Section)

Dash Three Continuous Dash Three Continuous MinerMinerHDDR Fletcher BolterHDDR Fletcher Bolter10SC Shuttle Cars10SC Shuttle CarsPowell ScoopPowell Scoop

Bucket DusterBucket DusterCogar FeederCogar FeederPower CenterPower CenterJohnson IndustriesJohnson Industries

Xcited SupercarXcited SupercarSuper Xcited Super Xcited MantripMantripStinger Stinger MantripMantrip

Brookville Track Mantrips

SurfaceSurfaceBucket LoaderBucket LoaderTrack DozerTrack DozerDump TruckDump TruckCraneCraneGraderGraderCinder TruckCinder TruckSkid steerSkid steerForkliftForkliftBucket TruckBucket TruckUtility TruckUtility TruckPickupsPickupsExcavatorExcavator

Brookville Track Mantrips

HaulageHaulage

Mains & SubmainsMains & Submains48” Belt48” Belt1000 Tons Max Belt Potential1000 Tons Max Belt PotentialOperating at 600 Ft. Per MinuteOperating at 600 Ft. Per MinuteMax 700 Ft. Per MinuteMax 700 Ft. Per Minute

PanelsPanels36” Belt36” Belt600 Tons Max Belt Potential600 Tons Max Belt Potential650 Ft. Per Minute650 Ft. Per Minute

Electrical PowerElectrical PowerIncoming Distribution PowerIncoming Distribution Power

138,000 VAC138,000 VAC

SubstationSubstation25,000 KVA @ 12,470 VAC25,000 KVA @ 12,470 VAC

Surface and Underground Are Separate Power Surface and Underground Are Separate Power Systems from the same SubstationSystems from the same SubstationAll Sections Have Same Power CenterAll Sections Have Same Power Center

12,470 VAC Primary12,470 VAC Primary995, 480, 240, 120 VAC Secondary995, 480, 240, 120 VAC Secondary300 VDC Rectified Secondary300 VDC Rectified Secondary

Water ControlWater ControlWater Inflow SourcesWater Inflow Sources

Surrounding MinesSurrounding MinesCoal & Rock StrataCoal & Rock StrataMining MachineryMining MachineryPersonnel Errors Personnel Errors

Sump Type & Sump Type & LocationLocation

Main Sumps Bottom of Main Sumps Bottom of Return ShaftReturn ShaftSubmainSubmain Sumps, Each Sumps, Each Belt Drive or 5,000 Ft. Belt Drive or 5,000 Ft. IntervalsIntervalsProduction Sumps, Production Sumps, 2,500 Ft. from 2,500 Ft. from Beginning of Panel

Project Name

DRAWING No.

MSP-001

Drawing Name

Date:

Checked By:

Scale:

Drawn By:

Justin Bushneck

Main Sump Drawing

Kris Lilly

3-22-041" = 12'

Hasben Mine

David Allan Coal Company

6" Discharge Pipes

8" Discharge Pipe

Top of Return Shaft

Treatment Pond

EntryEntry

Sump

200'

Beginning of Panel

Processing PlantProcessing Plant1000 Ton Per Hour1000 Ton Per Hour4 Circuits4 Circuits

CoarseCoarseMediumMediumFineFineUltra FineUltra Fine

Plant Total Recovery 76%Plant Total Recovery 76%

Size Plant Capacity Clean Coal RefuseCircuit Distribution Raw (TPH) Product (TPH) (TPH)Coarse -2 inch +1/4 inch 68.60% 684 488 196Intermediate -1/4 inch +28 µm 21.61% 215 192 24Fine -28 µm +200 µm 5.14% 51 44 7Ultra Fine -200 µm +0 µm 4.65% 46 43 4

100.00% 997 766 231

TonnagesSize DistributionSignificant Size

Distribution in Plant

Totals(Dry Basis, Undiluted, 1.55 Float)

Preparation Plant Flow sheetPreparation Plant Flow sheet

Static Thickner

Spirals Protection Sieve Screen

Double Start Spirals

Centrifuge Effulent

Pond

Spiral Refuse Screen

Sump & Pump

Density and Gauge Flowmeter

High Capacity Screen Bowls

Spiral FineCoal Screen

Van Tube

Screen Bowl Distributor

Classifying Cyclone

Spiral FeedDistributor

Flotation Cells

Clean Coal Centrifuge Dryer

H.M. Vessels

H.M. Vessesl Refuse D&R Screen

Clean CoalCrusher

RocksGrizzly Screen

Rotary BreakerRock Pile

RailProject Name

DRAWING No.

Flow-001

Drawing Name

Date:

Checked By:

Scale:

Drawn By:

Justin Bushneck

Processing Plant Flow Sheet

Kris Lilly

4-21-041" = 5000'

Hasben Mine

David Allan Coal Company

500TPH1000TPH

3 TPH

997 TPH

313 TPH

684 TPH

684 TPH

227 TPH 724 TPH

57.4 TPHFeeder

215 TPH

97 TPH

7 TP

H

24 TPH

44 T

PH192

TPH

196

TPH

220

TPH

488

TPH

243 TPH

44 T

PH

46 T

PH

51 T

PH

2 TP

H

+1/4"

-1/4"

-1/4"

+1/4"

+28µm-28µm

-28µm

+0µm

-28µm +200µm

+2"

-2"

-2"

-2"939.6 TPH

H.M. Cyclone Refuse D&R Screen

Sieve Screen

H.M. Cyclone

H.M. Cyclone Clean Coal D&R Screen

Clean Coal Centrifuge Dryer

Dilute Media Sump and Pump

1500 Ton Silo'sRefuse Disposal Area

Sieve Bend

Spiral Feed Sump and Pump

Heavy Media Cyclone Feed Sump and Pump

Refuse Screen

Dilute Media Sump and Pumps

Belt Press

Barge

Coarse Clean Coal Centrifuge Dryers

Clean Coal

Nuclear Density Device

Magnetite Storage Bin with Rotary Feeder

Nuclear Density Device

Overdense Media Sump and Pumps Coarse Dilute Media

Sump and Pumps

Magnetic Separator

Distrubutor

Overland 48" Conveyor BeltFrom Portal Opening

Raw Coal Stacker100,000 Tons Raw Coal Storage

Conveyor to Plant

Raw Coal Screen

Pre-Wet Screen

Magnet

43 T

PH

3 TP

H1 TPH

Agitator

Caterpillar 769D Off High Dump Truck

Size Plant Capacity Clean Coal RefuseCircuit Distribution Raw (TPH) Product (TPH) (TPH)Coarse -2 inch +1/4 inch 68.60% 684 488 196Intermediate -1/4 inch +28µm 21.61% 215 192 24Fine -28µm +200µm 5.14% 51 44 7Ultra Fine -200µm +0µm 4.65% 46 43 4

100.00% 997 766 231(Dry Basis, Undiluted, 1.55 Float)

Totals

TonnagesSize DistributionSignificant Size

Distribution in Plant

Surface FacilitiesSurface FacilitiesMain PortalMain Portal

Life of Mine PortalLife of Mine PortalMain Load out & Main Load out & Preparation PlantPreparation PlantWater Treatment FacilityWater Treatment FacilityMain Supply DropMain Supply DropMine OfficeMine OfficeWarehouseWarehouseMine ShopMine ShopBathhouseBathhouseGuardhouseGuardhouseSubstationSubstationMine Fan

Satellite PortalSatellite PortalWater Treatment FacilityWater Treatment FacilityMine OfficeMine OfficeBathhouseBathhouseSubstationSubstationMine FanMine Fan

Refuse PileRefuse Pile25 Acres25 Acres

50 Ft. High50 Ft. High

CapacityCapacity2,2000,000 Tons Refuse2,2000,000 Tons Refuse

Plans to Purchase Plans to Purchase Additional 55 AcresAdditional 55 AcresMine Fan

Project ScheduleProject Schedule20022002

Land Acquisition in JuneLand Acquisition in JuneReview Acquired Mining DataReview Acquired Mining Data

20032003Exploration, Reserve Study, Mine PlanningExploration, Reserve Study, Mine Planning

20042004Financial Approval, Plant & Surface Design & Financial Approval, Plant & Surface Design & ConstructionConstruction

20052005January 2, 2005 Production BeginsJanuary 2, 2005 Production Begins

MarketingMarketing

Possible Sales LocationsPossible Sales LocationsFt. MartinFt. MartinHatfield's FerryHatfield's FerryFuture LongviewFuture Longview

Expected Realization $30 Per TonExpected Realization $30 Per Ton

Operating & Capital CostOperating & Capital Cost

CapitalCapital

Total Over 10 YearsTotal Over 10 Years$107,279,800$107,279,800

Capital to Full Capital to Full ProductionProduction

$101,482,816

ExpenseExpenseSuppliesSupplies

Roof ControlRoof ControlUnderground Underground Ventilation ControlVentilation ControlMaintenance ItemsMaintenance ItemsUtility ItemsUtility ItemsBeltingBeltingTrackTrack

PersonnelPersonnelRebuilt Equipment

$101,482,816

Rebuilt Equipment

EconomicsEconomicsAssumptions:Assumptions:Coal Market Price $30/ Coal Market Price $30/ Ton FOB BargeTon FOB BargeNPV Discounted at 5%, NPV Discounted at 5%, Coal Reserve Bought in Coal Reserve Bought in 20022002Production Begins 2005Production Begins 2005Full Production in 2008

NPV @ 5% is NPV @ 5% is negativenegative

IRR 3% in Ten YearsIRR 3% in Ten YearsIRR 5% in Thirty IRR 5% in Thirty YearsYears

Full Production in 2008

RecommendationsRecommendationsA More Thorough Investigation, or A More Thorough Investigation, or

Higher Realization of ProductHigher Realization of Product