Outlook

Future development at the Basin rests with the market demand levels.

Sales demand will drive the coal production levels at the project. The Basin Coal Mine is producing a quality clean coal product that is currently being sold into the Pacific Northwest Thermal Coal market. Future growth in production will be dependent on Compliance being able to secure a larger share of this market or through the development of the Company’s proposed wood waste and coal power plant (read Power Generation section). Offshore sales will continue to be price sensitive, and with the recent strengthening in the US /Canadian dollar it makes the barriers to entry more difficult.

Overview of Mine Site, 600 meter raw coal haul (Pit to Plant Site)