coalspur projects, page-4

Valinvestor

Correct. 1.2 bill capex to produce 12 mil saleable. However, approx $430 mil is set aside to purchase own mining equipment including two draglines at $124 mill a piece and there is $102 mill to build own load out on CN main rail line which could ultimately load over 20 mill tonne pa. Capex will build infrastructure capable of dealing with increased tonnages from Vista Extension and Vista South. Draglines allow low mining costs. Mine gate cash costs of C$27.3/t in the initial 10 years of production and C$34.4/t over life of mine average free-on-board cash costs of C$61.0/t in the initial 10 years of production and C$68.1/t over life of mine. At .94 USD/CAD it is more economical that most Australian mines. Capex is for min 28 year mine life. All in all not that excessive.

Regards
Danash