2005 Exploration Drilling

During summer of 2005 Compliance completed a $750,000 exploration program on block A and block B of the Bear metallurgical coal deposit. A total of 20 drill holes were completed in block A while block B saw 9 holes drilled.

ResourceEye Geological Services Inc. prepared a geological report that updated the resource estimates to include this 2005 summer drilling program. While not 43-101 compliant, this report confirmed 5.0 million tonnes would be accessible by open pit methods. Some additional infill drilling will be required to upgrade this report to a 43-101 status.