Bear Coal Deposit

The Bear Coal Deposit consists of 8 coal licenses totaling 2,046 hectares. During 2005, the Company exercised its option to acquire coal leases that cover 100% of the Bear Coal Deposit. Under the terms of the agreement, the Company paid a total of $215,000 and granted a royalty of 2.5% of the coal sales, FOB mine site.

After the joint venture agreement with Itochu Corporation and LG International, Compliance holds a 60% interest in the Bear Coal Deposit, which is approximately 10 km to the northwest of the Raven Project.