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First Coal Eyes Near Term Production Non-exhibitor

www.firstcoal.com
with 1 million + MT 604.605.8811
RI: Based on the resources you have to date at much higher than today’s contract prices. The
Central South, how long of a mine life would expectation is that these prices will rise in 2010
this be?  and remain relatively strong in the years follow-
ing that.
DS: The mining technique we have chosen is an
innovative concept of trench mining with high- RI: What is the geometry of the deposit like? 
wall  mining  equipment. We will be creating
trenches on 600 metre centres and mining into DS: These deposits are multiple steeply dipping
the high-walls of the trenches with remote con- seams.We have inclines and anticlines dip-
trolled underground mining equipment. At this ping 50 to 90 degrees along strike. The strike
stage we have designed the trenches down to 50 runs northwest to southeast, around 10 km at
metres in depth and with that we see a 12-15 Central South, so what we see are seams ex-
year mine life at Central South. We also have tending continuously through the strike zone.
the potential to go up to 100 meters in depth We put trenches on 600 metre centers and then
and that would ex- we can mine into
tend the life of the the high wall from
within the trenches.
mine.  “North Eastern BC is one We have designed
RI: That’s huge.
Will the approach
of the few places in the the equipment to
mine in horizontal-
that you are taking world that infrastructure ly 300  metres.  We
with this new tech- believe the South
nique using the exists to get quality re- Cirque property to
trenching equip- sources out into the in- be of very similar
ment actually save geology.
Doug Smith you money? ternational market.”
President & CEO ~ President & CEO Doug Smith
RI: Have you begun
DS: We believe to consider market-
First Coal Corporation is a private Cana-
so. The concept ing the product and
dian company exploring on and devel- would create a sending samples to
oping coal properties in north-eastern smaller environ- prospective con-
British Columbia, Canada. First Coal mental footprint, which in our case means tracts?
has more than 90,000 hectares under greater cost efficiency. Also, because we’re min-
tenure licence or under application for ing trenches instead of more traditional meth- DS: We have sent small sized samples to poten-
licence in the Peace River Coalfield. First ods of mining, we will be mining less overbur- tial customers. We have done coking tests at a
Coal will be the first company in the den, which means a strip ratio between 4:1 and facility in Pittsburgh and we have specifications
world to mine coal from narrow, steeply 5:1. The combination of those two reduces the on the washed coal as well as the produced coke.
overall cost of the operation. We are just now beginning to send samples out
dipping seams using a method that to customers. 
combines the development of trenches RI: What would the per tonne operating costs be
and coal extraction using the ADDCAR when mining with this method? We’re in the process now of taking a large bulk
Any Dip Highwall Mining System. The sample from the Central South deposit.  The
Company is extracting bulk samples in DS: Our studies at the moment show that purpose is first to test the mining equipment
our delivered costs onto the vessel at Prince Ru- in the regional geology, to be sure it operates as
Q1 2010 using this technique and ex-
pert are about $91 Canadian per tonne. Prices expectedand second we need to provide large
pects to begin full production in 2013.
for coal are usually quoted internationally in bulk samples for commercial purposes..

R
esource Intelligence: Doug, you are explor- US dollars.   
RI: You recently applied for an environmental
ing in two project areas in central British
RI:  Your last resource size was estimated at 81 assessment for the South Central project. What
Columbia called Central South and South
million tonnes in all categories on the Cen- is involved with that and how long will it take?
Cirque. Let’s begin by describing each of these
tral South deposit. What is the price of simi-
project areas, the type of coal on each and any
lar metallurgical coal on North American mar- DS: We  are just in the process of applying for
resources that you have found. that. It could take 16-20 months to complete,
kets?
so we would hope that by the end of 2011 we
Doug Smith: These are the first two of the proper-
DS: Right now, the contract pricing is in the will have completed the environmental assess-
ties that we have and that we will be developing.
USD$129 per tonne range for hard cook- ment process and have completed the permit-
Both are located in North Eastern British Col-
ing and for PCI coal - it’s about USD$90 per ting process for the mine itself.
umbia. The Central South Coal Project has
tonne. Spot prices are much higher. We think
approximately 80 million tonnes of  metal-
our deposit has about 50% PCI and 50% cok- RI: What aspects of the team that you’ve put
lurgical  coal resources, about half  PCI  and
ing coal. But, while these prices are acceptable together gives you bragging rights?
half  medium-volatile hard coking  coal. And
to us, we’re certainly looking at the price of DS: We have a management team that has many
then to the south of that project is a property
coal continuing to recover as analysts suggest years in both the coal industy, and the mining
known as South Cirque, which has historic
it will, towards pre-recession levels, which were industry in general. As for myself, I have been
resources of over 500 million tonnes of metal-
lurgical coal.
68 See page 96 for Disclosure, Disclaimers & Info on Mineral Resource and Reserves
First Coal Corp. Non-exhibitor
www.firstcoal.com
- Continued 604.605.8811
involved in the coal industry for over 30 years holes ourselvesand we’re planning a full scale experienced group of mining professionals. We
having  worked with Luscar Ltd in Canada drilling program there over the next couple were able to weather the storm of 2008 by slow-
and Andalex Resources, Inc in the United years.  ing our activities but we are still on track with
States.  Our COO Peter Stokes has over 45 our business plan. I think that’s a testament to
years of experience in both metal mining and RI:  It certainly sounds like you have a lot of our strength as a company. 
coal mining throughout the world. He started energy focused on the Central South project.
his career with the National Coal Board, then Can you project when you’ll be in production RI: So in speaking to investors how would you
came to Canada and worked  with Kaiser Re- there in a base case scenario?  ask them to evaluate First Coal?
sources and Westmin Resources for a period of DS: First of all, we are just about to release our DS: We are still an exploration and develop-
time and then his own consultancy for years, scoping study this month. The next big step is ment company. As we come out of this next
working on projects around the world. Our to complete the environmental assessment pro- financing and complete thepermitting planned,
CFO Alan Ahlgren worked at Kinross Gold cess and permitting process in early 2012, then we will move then into a producing company
in the past, and finally our VP of engineering making a production decision immediately around 2013.We are a company with an innov-
Bruce Briggs, has extensive experience with coal afterward. In that case, we would commence ative mining method that  offers  the potential
and metal projects around the world.  production in 2013 and South Cirque would of lower costs in the metallurgical coal market.
RI: So it’s a team with substantial experience— follow behind that by 2016.  We are poised to come into production and the
particularly in coal mining. What has your ex- demand for our product is strong. North East-
RI: How well financed are you in the meantime ern BC is one of the few places in the world
perience been like working with the commun- to get yourself through that scoping study and
ities?  where transportation infrastructure exists with
into the next phase? ample available capacity to move quality resour-
DS: Very positive. Our focus and commitment DS: We have raised $63 million to date on the ces into the international markets.
is to hire First Nations companies and First Na- project, we have about $7 million remaining as
tions individuals from the surrounding area at we finish the bulk sampling. Once that is com-
every possible opportunity. In my experience, I pleted, we will begin the next fund raising so Milestones:
know that our presence in the Chetwynd area that we can complete the environmental assess- • Scoping study available by mid-
can provide substantial benefit to the commun- ment and further exploration on Central South
ity in the way of jobs and economic stimula- March 2010
and South Cirque. We own two drill rigs; our
tion.  • Financing activities in Q2 2010
plan is to resume exploration with those rigs as
well as contract rigs, so that we can maintain a • Environmental Assessment and
RI: What about South Cirque project? You said
rapid pace of resource growth.  production decision by Q1 2012
this has 575 million tonnes of historical resour-
ces. How much drilling and metallurgical work • Construction commences Q1 2012
RI: How did you manage to do all of this as a
have you completed? • Central South production 2013,
private company Doug?
South Cirque production 2016
DS: The historical resources were determined in DS: We developed a solid business plan with an
the early 1980s. We have drilled 15-20 drill

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