Document:

exv10w69

Exhibit 10.69

CONTRACT TO SELL REAL ESTATE

     This Contract to Sell Real Estate (the “Contract”), made as of this 11th day of
October, 2011 (“Contract Date”) by and between: WESTERN DIAMOND LLC, a Nevada limited liability
company, and WESTERN LAND COMPANY, LLC, a Kentucky limited liability company, (hereinafter
“Sellers”) agree to sell, and WESTERN MINERAL DEVELOPMENT,
LLC, a Delaware limited liability company (“Buyer”), agrees to buy, a partial undivided interest
in that certain real property and coal reserves described in the Exhibit A attached hereto and
made a part hereof (the “Property”), subject to the exclusions and exceptions set forth thereon,
as further described below.

     1. Sale of Partial Undivided Interest in Property and Calculation of Purchase Price.
Sellers shall sell to Buyer a partial undivided interest in the Property equal to a fraction,
the
numerator of which shall be equal to the amount of the net proceeds received by Buyer and/or
its
parent companies or affiliates from the Offering (hereinafter defined) (the “Purchase Price”),
and
the denominator of which is a dollar amount the Parties agree represents the aggregate fair
market value of the Property (the “Purchased Interest”).

     2. Title. Sellers shall convey to Buyer title to the Property by Corporation Special
Warranty Deed; subject, however, to those (if any) rights-of-way, easements, leases, deed and
plat restrictions, partitions, severances, encumbrances, licenses, reservations and exceptions
which are of record on this Contract Date, and to all rights of persons in possession and to
physical conditions, encroachments and possessory rights which would be evident from an
inspection of the Property. Sellers shall have no obligation to furnish Buyer any evidence of
its
title to the Property. Buyer agrees that they will have their attorney conduct whatever
examination of title to the Property or purchase title insurance as Buyer deems necessary. The
cost of such title insurance or attorney’s opinion shall be at Buyer’s expense.

     3. Closing. This Contract shall be fulfilled, the sale closed and possession of the
property given, on or before ninety (90) days after Buyer and/or its parent companies or
affiliates
receives the net proceeds of the Offering (hereinafter defined) (the “Closing Date”), or at
such
date as the Parties shall mutually agree. The Closing shall not occur unless and until the
representations and warranties of the Parties are true and correct in all material respects as
of the
Closing Date.

     Upon closing this Contract each party shall have been deemed to have waived any and all
defects of performance hereunder by the other party, other than the payment of good funds, but
including defects of title.

     4. Closing Costs. Sellers and Buyer shall pay prorata the real estate taxes on the
Property due and payable for the 2011 tax year. Buyer shall pay all subsequent installments of
real estate taxes, any special assessments, title examination expenses of Buyer’s counsel, any
surveying expenses and deed recording fees.

     5. Risk of Loss or Damage. Sellers will, at Sellers’ expense, maintain such policies
of insurance on the Property and improvements thereon as are currently in force until the
Closing

 

 

Date. The risk of loss or damage to the Property or to any or all improvements
thereon between the Contract Date and Closing Date shall be on Sellers. The occurrence of any
loss or damage, whether substantial or insubstantial, shall not avoid, terminate, or impair
this Contract, nor entitle Buyer to any reduction in the Price.

     6. Condition of Property.

     a. The Property is sold “as is.” Sellers make no warranty that the above- referenced
land is either safe or suitable for the purposes for which it is intended to be used, or for
any other
purpose or use. The land may be unsuitable for reasons including but not limited to rough,
unnatural and unstable surfaces, inadequate subjacent or lateral support, circumstances
relating
to the environmental quality of the land, or other conditions arising out of the prior use of
the
land.

     b. Sellers agree to permit Buyer, its employees, servants, representatives or
contractors to enter upon the Property at a reasonable time and in a reasonable manner for the
purpose of performing such tests, borings, surveys, studies, sampling, inspections as the
Buyer
deems necessary; provided, however, such acts do not unreasonably interfere with the Sellers’
current use of the land or ongoing operations on the property.

     c. Buyer agrees to defend, indemnify and hold Sellers harmless from and against all
claims, liabilities, law suits, losses, damages, and expenses, including attorney’s fees,
arising
either directly or indirectly, out of actions, or omissions, taken by Buyer, their employees,
servants, representatives or contractors, pursuant to this agreement. The provisions of this
paragraph shall survive the expiration, termination or cancellation of the agreement and shall
apply to any action taken by any government agency after the Closing Date.

     7. Conditions Precedent. This Contract and the mutual obligations set forth herein
shall be expressly contingent on the consummation and closing of the offering of units
representing limited partner interests in Armstrong Resource Partners, L.P. pursuant to an
initial
public offering with FBR Capital Markets & Co. and Raymond James acting as the co-lead
underwriters (the “Offering”). Should the foregoing condition precedent not be satisfied by
no
later than March 1, 2012, then the Parties agree that this Contract shall be null and void,
and
none of the Parties shall owe any further obligations to the others hereunder.

     8. Ancillary Provisions of this Contract. This Contract and the attached Exhibit A
constitute the entire agreement between the Parties, supersede all representations, notices,
advertisements, bids, agreements, memoranda and correspondence between, by or for the Parties
relating to the Property, and shall be construed in accordance with the laws of the
Commonwealth of Kentucky. No amendment or modification of this Contract shall be binding
unless made in writing. Waiver by either party or performance by the other party of any of the
provisions of this Contract shall not be construed as a waiver of any further right to insist
upon
full performance of the terms of this Contract. No adjustment in the Purchase Price shall
later be
made for any variances in acreage from that set forth in the deeds described on Exhibit A; and
the Purchase Price shall be construed as a lump sum amount paid for the Property as described
in

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Exhibit A. Each party shall be entitled to insist strictly upon the timeliness of
performance by the other Party of the other Party’s obligations.

     Each Party hereby indemnifies and holds harmless the other Party from all claims for
commissions, fees, expenses and liability of any broker, agent or finder, or person claiming to
such, by or through such indemnifying Party.

     Neither Party shall record this Contract. Neither Party shall assign this Contract, or any of
rights hereunder, without the prior written consent of the other Party, except to their affiliates,
subsidiaries or parent companies. Any such assignment or attempted or purported assignment shall be
void as to the other Party and, moreover, shall constitute a material breach of this Contract.

     If Sellers breach this Contract, Buyer’s remedy shall be limited to enforcing specifically
this Contract. If Buyer breaches this Contract, Sellers may recover Seller’s damages.

     If the parties do not execute this Contract contemporaneously, then the party first executing
and delivering this Contract to the other shall be deemed to have made an offer to enter into this
Contract which shall be irrevocable for a period of ninety (90) days following the date of such
execution. This offer may be accepted by the other party by executing this Contract and delivering
an executed copy to the first party.

     IN WITNESS WHEREOF, the Parties have executed this Contract as of the date first above
written, by their own hand and deed, and/or by their duly authorized representatives, each of
which represents, by signing this Contract, personally represents and guarantees his authority to
sign for the party indicated.

	 	 	 	 	 	 	 

	Western Diamond LLC

	 	 	 	Western Mineral Development, LLC
	 
	 	 	 	 	 	 
	/s/ Martin D. Wilson
 

By: Martin D. Wilson, Manager

	 	 
	 	/s/ Martin D. Wilson
 

By: Martin D. Wilson, Manager
	 	 

	 	 	 

	Western Land Company, LLC
	 	 
	 
	 	 
	/s/ Martin D. Wilson
 

By: Martin D. Wilson, Manager

	 	 

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EXHIBIT A

     The Property shall mean all of the coal reserves and real property described in, and
conveyed, demised or otherwise granted in or under the following deeds and instruments, to Western
Land Company, LLC and/or Western Diamond LLC, subject to all rights-of-way, easements, leases,
deed and plat restrictions, partitions, severances, encumbrances, licenses, reservations,
conveyances and exceptions of record, and to all rights of persons in possession, and to physical
conditions, encroachments and possessory rights which would be evident from an inspection of the
property at such time, and further excluding any portion of the mineral reserves, mining rights,
surface property or other real property associated with Armstrong’s Parkway Mine.:

     (i) The Corporation Special Warranty Deed from Central States Coal Reserves of
Kentucky, LLC and Beaver Dam Coal Company to Western Diamond LLC, dated September 19, 2006, of
record in Deed Book 363, page 369, in the Office of the Ohio County Clerk;

     (ii) The Partial Assignment of Coal Mining Lease from Central States Coal
Reserves of Kentucky, LLC to Western Diamond LLC dated September 19, 2006, of record in Deed Book
363, page 428, in the Office of the Ohio County Clerk;

     (iii) The Corporation Special Warranty Deed from Central States Coal Reserves of
Kentucky, LLC and Beaver Dam Coal Company to Western Diamond LLC, dated September 19, 2006, of
record in Deed Book 363, page 414, in the Office of the Ohio County Clerk;

     (iv) The Corporation Special Warranty Deed from Beaver Dam Coal Company to
Western Diamond LLC, dated September 19, 2006, of record in Deed Book 363, page 393, in the Office
of the Ohio County Clerk;

     (v) The Corporation Special Warranty Deed from Beaver Dam Coal Company to
Western Diamond LLC, dated September 19, 2006, of record in Deed Book 363, page 403, in the Office
of the Ohio County Clerk;

     (vi) The Corporation Special Warranty Deed from Central States Coal Reserves of
Kentucky, LLC to Western Diamond LLC, dated May 31, 2007, of record in Deed Book 528, page 284, in
the Office of the Muhlenberg County Clerk, and the Deed of Confirmation between Central States
Coal Reserves of Kentucky, LLC, Western Diamond LLC and Armstrong Coal Reserves, Inc., dated
September 30, 2007, of record in Deed Book 531, page 205, in the Office of the Muhlenberg County
Clerk;

     (vii) The Corporation Special Warranty Deed from Central States Coal Reserves of Kentucky, LLC
and Beaver Dam Coal Company to Western Diamond LLC, dated May 31, 2007, of record in Deed Book 368,
page 17, in the Office of the Ohio County Clerk, and the Deed of Correction between Central States
Coal Reserves of Kentucky, LLC, Beaver Dam Coal Company, LLC and Western Diamond LLC, of record in
Deed Book 369, page 759, in the Office of the Ohio County Clerk;

 

 

     (viii) The Partial Assignment and Assumption of Mineral Leasehold Estate from Central States
Coal Reserves of Kentucky, LLC to Western Diamond LLC, dated May 31, 2007, of record in Deed Book
528, page 320, in the Office of the Muhlenberg County Clerk;

     (ix) The Partial Assignment and Assumption of Mineral Leasehold Estate from
Central States Coal Reserves of Kentucky, LLC to Western Diamond LLC, dated May 31, 2007, of
record in Deed Book 528, page 330, in the Office of the Muhlenberg County Clerk.

     (x) The Corporation Special Warranty Deed from Central States Coal Reserves of
Kentucky, LLC to Western Land Company, LLC, dated December 12, 2006, of record in Deed Book 524,
page 505, in the Office of the Muhlenberg County Clerk;

     (xi) The Corporation Special Warranty Deed from Central States Coal Reserves of
Kentucky, LLC and Beaver Dam Coal Company to Western Land Company, LLC, dated December 12, 2006,
of record in Deed Book 365, page 36, in the Office of the Ohio County Clerk;

     (xii) The Partial Assignment and Assumption of Mineral Leasehold Estate from Central States
Coal Reserves of Kentucky, LLC to Western Land Company, LLC, dated November 20, 2006, of record in
Deed Book 524, page 523, in the Office of the Muhlenberg County Clerk, as amended and restated in
Deed Book 527, page 186, in the Office of the Muhlenberg County Clerk;

     (xiii) The Partial Assignment and Assumption of Surface and Mineral Leasehold Estate from
Central States Coal Reserves of Kentucky, LLC to Western Land Company, LLC, dated November 20,
2006, of record in Deed Book 365, page 57, in the Office of the Muhlenberg County Clerk;

     (xiv) The Corporation Special Warranty Deed from Central States Coal Reserves of Kentucky,
LLC, Beaver Dam Coal Company, Ohio County Coal Company, LLC and Grand Eagle Mining, Inc. to Western
Land Company, LLC, dated March 30, 2007, of record in Deed Book 367, page 1, in the Office of the
Ohio County Clerk;

     (xv) The Corporation Special Warranty Deed from Central States Coal Reserves of Kentucky, LLC
to Western Land Company, LLC, dated March 30, 2007, of record in Deed Book 527, page 118, in the
Office of the Muhlenberg County Clerk, as corrected by Deed of Correction dated September 30, 2007,
of record in Deed Book 531, page 213, in the Office of the Muhlenberg County Clerk; and

     (xvi) The Partial Assignment and Assumption of Surface and Mineral Leasehold Estate from
Central States Coal Reserves of Kentucky, LLC to Western Land Company, LLC, dated March 30, 2007,
of record in Deed Book 527, page 161, in the Office of the Muhlenberg County Clerk.exv10w70

Exhibit
10.70

ASSET PURCHASE AGREEMENT

BETWEEN

CYPRUS CREEK LAND RESOURCES, LLC

AND

ARMSTRONG COAL COMPANY, INC.

THIS ASSET PURCHASE AGREEMENT (“Agreement”) is made the 29th day of December,
2011, by and between CYPRUS CREEK LAND RESOURCES, LLC, a Delaware limited liability company
(“Cyprus Creek” and/or “Seller” herein) and ARMSTRONG COAL COMPANY, INC., a Delaware corporation
(“Armstrong Coal” and/or “Buyer” herein), both collectively the “Parties” herein.

RECITALS:

WHEREAS, Seller is the owner of certain real property rights and interests in coal
properties located in Muhlenberg County, Kentucky (hereinafter called “Seller’s Owned Coal”); and
certain leased coal lands (hereinafter the “Seller’s Leased Coal”) (hereinafter collectively
referred to as the “Assets” and/or “Property”); and

WHEREAS, Seller desires to sell, lease and sublease to Buyer and Buyer desires to purchase, accept
and receive from Seller certain interests and estates in the Assets as specifically described
herein, based on the covenants and agreements set forth herein.

NOW, THEREFORE, in consideration of the premises, and of the representations, warranties,
covenants and agreements contained herein, and intending to be legally bound hereby, the Parties
agree as follows:

ARTICLE 1

DEFINITIONS

Capitalized terms (including the foregoing recitals and the exhibits, and schedules attached
hereto, incorporated herein by reference and made a part hereof) shall have the meaning defined
herein. In addition, as used herein, the following terms shall have the following meanings:

Affiliate. The term “Affiliate” means: (i) any Person which, directly or indirectly, is in
control of, is controlled by or is under common control with a party for whom an affiliate is
being determined; or (ii) any Person who is a director or officer (or comparable position) of any
Person described in clause (i) above or of the party for whom an affiliate is being determined.

Control. The term “Control” means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of any Person, whether through the
ownership of equity interests, by contract or otherwise and either alone or in conjunction with
others.

12/27/11

Muhlenberg Co., Ky.

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Conveyancing Documents. The term “Conveyancing Documents” means the Cyprus #9 Deed,
Rogers #9 Sublease, Cyprus Creek & Duncan #9 Lease and Sublease, Cyprus Creek #9 Lease, and
Overriding Royalty Agreement, collectively and/or singularly in any manner.

Cyprus #9 Deed. The term “Cyprus #9 Deed” means the Seller’s Corporation Special Warranty
Deed to Buyer conveying Seller’s Owned Coal, specifically comprised of Seller’s right title and
interest in and to the #9 seam of coal only underlying tracts 199 and 209 as more specifically
described in the Cyprus #9 Deed, subject to all terms, conditions, covenants and contained
therein, from Cyprus Creek to Armstrong Coal, substantially in the same form attached hereto as
Exhibit A.

Closing. The term “Closing’ shall mean the date on which this Agreement shall be executed,
and the sale of Assets closed given on the date selected by the Parties, but, in no event later
than close of business Thursday, December 29, 2011, at the offices of Armstrong Coal located in
St. Louis, Missouri.

Person. The term “Person” means any individual, limited liability company, limited
liability partnership, partnership, corporation, trust or other person or entity.

Rogers #9 Sublease. The term “Rogers #9 Sublease” means the Seller’s sublease of certain
leased #9 coal reserves to Buyer, substantially in the same form attached hereto as Exhibit C and
the Short Form Memorandum thereof in the same form attached hereto as Exhibit D.

Rogers Consent to #9 Sublease. The term “Rogers Consent to #9 Sublease” means the consent
of the Rogers family to the Rogers #9 Sublease of certain Rogers Leased #9 Coal to Buyer,
substantially in the same form attached hereto as Exhibit E.

Rogers Agreement Relating to Additional Earned Royalty. The term “Rogers Additional
Royalty Agreement” means the agreement with the Rogers family for an additional one percent (1%)
earned royalty for all Rogers Leased #9 Coal mined and sold, substantially in the same form
attached hereto as Exhibit P.

Cyprus Creek & Duncan #9 Lease and Sublease. The term “Cyprus Creek & Duncan #9 Lease and
Sublease” means the Seller’s lease and sublease of certain owned and leased #9 coal reserves to
Buyer, substantially in the same form attached hereto as Exhibit F and the Short Form Memorandum
thereof in the same form attached hereto as Exhibit G.

Cyprus Creek #9 Lease. The term “Cyprus Creek #9 Lease” means the Seller’s lease of certain
owned #9 coal reserves to Buyer, substantially in the same form attached hereto as Exhibit I and
the Short Form Memorandum thereof in the same form attached hereto as Exhibit J.

Rogers Leased #9 Coal. The term “Rogers Leased #9 Coal” means Seller’s leasehold interests
in and to those certain #9 coal tracts leased from the Rogers, as described in the Rogers #9
Sublease.

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Duncan Leased #9 Coal. The term “Duncan Leased #9 Coal” means Seller’s leasehold interests
in and to those certain #9 coal tracts leased from Duncan, as described in the Cyprus Creek &
Duncan #9 Lease and Sublease.

Duncan Consent to Partial #9 Sublease. The term “Duncan Consent to #9 Sublease” means the
Duncan family consent to Seller’s sublease of certain Duncan Leased #9 Coal to Buyer,
substantially in the same form attached hereto Exhibit H.

“Survant” or “Company”. The terms “Survant” and/or “Company” shall mean the Delaware
limited liability company being formed and created by Cyprus Creek and Armstrong Coal pursuant to
the Formation and Transfer Agreement attached hereto as Exhibit Q.

Operating Agreement. The term “Operating Agreement” shall mean Survant’s and the Company’s
Operating Agreement attached hereto as Exhibit R.

Management Agreement. The term “Management Agreement” shall mean that certain agreement
attached hereto as Exhibit S.

Mortgage. The term “Mortgage” shall mean that certain Fee and Leasehold Mortgage, Security
Agreement, Assignment of Rents and Lease and As-Extracted Collateral, Fixture Filing, and
Financing Statement attached hereto as Exhibit M.

Note. The term “Note” shall mean that certain Negotiable Promissory Note, in the principle
amount of $4,435,495.83, together with interest as provided by the terms thereof, due and payable
in full on June 30, 2012, attached hereto as Exhibit B.

Sales Representation Agreement. The term “Sales Representation Agreement” shall mean that
certain agreement attached hereto as Exhibit T.

Formation and Transfer Agreement. The term “Formation and Transfer Agreement” shall mean
that certain agreement attached hereto as Exhibit Q.

Overriding Royalty Agreement. The term “Overriding Royalty Agreement” shall mean that
certain agreement attached hereto as Exhibit K and the Short Form thereof attached hereto as
Exhibit L.

No Mining Boundary. The term “No Mining Boundary” shall have the same meanings set forth in
the Cyprus #9 Deed and Rogers #9 Sublease.

UCC-1 Financing Statement (as-extracted collateral) shall have the same meaning as set
forth in the UCC-1 and UCC-1Ad forms attached hereto as Exhibit N.

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ARTICLE 2

SALE AND CONSIDERATION

Seller agrees to sell, lease and sublease to Buyer, and Buyer agrees to purchase, accept
and receive the Property as follows:

	 	(a)	 	Seller’s Owned Coal.

	 	a.	 	Fee Conveyance —  All of Seller’s right, title and interest in and to the #9 coal reserves described in the Cyprus #9 Deed, subject to the terms and
conditions contained therein and in the Overriding Royalty Agreement, reserving and
excepting all oil and gas and other minerals and the mining and mineral rights and
privileges related thereto;
	 
	 	b.	 	Lease of Partial Interest Owned Tracts — All of Sellers right, title and interest in and to the #9 coal reserves described in the Cyprus Creek & Duncan
#9 Lease and Sublease, subject to the terms and conditions contained therein and in
the Overriding Royalty Agreement, reserving and excepting all oil and gas and other
minerals and the mining and mineral rights and privileges related thereto; and
	 
	 	c.	 	Lease of Owned Tracts- All of Seller’s Sellers right, title and
interest in and to the #9 coal reserves described in the Cyprus Creek #9 Lease,
subject to the terms and conditions contained therein and in the Overriding Royalty
Agreement, reserving and excepting all oil and gas and other minerals and the
mining and mineral rights and privileges related thereto.

	 	(b)	 	Seller’s Leased Coal.

	 	a.	 	Rogers Leased #9 Coal- All of Seller’s right, title and interest in
and to the Rogers Leased #9 Coal reserves described in the Rogers #9 Sublease,
subject to the terms and conditions contained therein and in the Overriding Royalty
Agreement, reserving and excepting all oil and gas and other minerals and the
mining and mineral rights and privileges related thereto; and
	 
	 	b.	 	Duncan Leased #9 Coal- All of Seller’s right, title and interest in and
to the Duncan Leased #9 Coal reserves described in the Cyprus Creek & Duncan #9
Lease and Sublease, subject to the terms and conditions contained therein and in
the Overriding Royalty Agreement, reserving and excepting all oil and gas and other
minerals and the mining and mineral rights and privileges related thereto.

All of the foregoing are subject to the Exceptions and Reservations set forth below and to the
exceptions and reservations and footnotes contained in the Conveyancing Documents and the exhibits
thereto.

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	 	(c)	 	Sale “As Is”. The sale of Assets is “as is, where is, with all faults or defects”
without any express or implied warranty or representation by Seller as to, or any responsibility
or liability of any type whatsoever of Seller (or, Affiliates, related entities or owners or
employees of Seller) as to, the nature, condition, the presence or absence of any defect,
workmanship, design, maintenance, repair, mining, construction or safety of the Assets except as
otherwise set forth in this Agreement; and terms and conditions of sale are that Seller shall
have no liability to Buyer with respect to any of the foregoing or any other liability which
Buyer assumes pursuant to Article 4; and Seller shall have no liability to Buyer for loss or
damage to coal reserves based in whole or in part upon an assertion that Seller has mined or
developed a plan of mining in an improper, imprudent or unworkmanlike manner.
	 
	 	(d)	 	Title; Seller’s Owned Coal and Seller’s Leased Coal. Sellers do not warrant the
title to Seller’s Owned Coal or Seller’s Leased Coal generally. Seller does specially warrant
title to Seller’s Owned Coal as provided in the Cyprus #9 Deed, and the other real property
described in the Cyprus Creek and Duncan #9 Lease and Sublease, the Cyprus Creek #9 Lease and
the Rogers #9 Sublease. Other than as provided in the Cyprus #9 Deed, Cyprus Creek and
Duncan #9 Lease and Sublease, the Cyprus Creek #9 Lease and the Rogers #9 Sublease , Seller
shall have no liability to Buyer for any impairment of or interference with Buyer’s rights by
persons claiming title interests in derogation to that of Seller. Buyer acknowledges that
Seller has furnished to Buyer copies of all title information in its possession and readily
available to it, including copies of abstracts of title, commitments for title insurance and
title insurance policies. Abstracts of title, if existing, shall not be brought down to
current date by Seller. Seller shall not bear any third party expenses whatsoever relating
to the production of any such title information. Except as provided for in the Conveyancing
Documents, Seller will not subdivide the Sellers’ Owned Coal and/or Seller’s Leased Coal for
Buyer.
	 
	 	(e)	 	Provisions in Conveyancing Documents. The provisions of the
Conveyancing Documents shall be binding upon Buyer and Buyer shall take all Assets subject to
all interests, obligations, rights-of-way, easements, leases, deed and plat
restrictions, partitions, severances, encumbrances, licenses, reservations and exceptions
which are of record as of the date first above written, or any such rights that Buyer has
received notice of under the instruments and documents described in Section 3.1(e), and to all
rights of persons in possession, and to physical conditions, encroachments and possessory
rights which would be evident from an inspection of the Property, including, but not limited
to, the restrictive covenants affecting the Assets as set forth in the No Mining Boundary
provisions of both the Cyprus #9 Deed and Rogers #9 Sublease and the Buyer hereby accepts the
Assets subject to all such rights. Notwithstanding the provisions set forth

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	 	 	 	above in this Section 2(e), Seller and Buyer hereby agree that Section 3(a) of the Rogers
#9 Sublease is hereby amended to read as follows:

	 	 	 	Advance Royalty; Recoupments. Armstrong Coal shall pay to Cyprus Creek the
amount of advance royalty as provided under the Rogers 1947 Mineral Lease plus the
amount of the additional advance royalties as provided for in the Additional Advance
Royalties Agreement of $6,000.00 per month. Cyprus Creek shall pay the amounts to the
Lessors. Armstrong shall be solely entitled to amounts that are recouped or recoupable
from the Lessors based upon credits to the Lessee/Sublessor for payments made to
Lessors prior to the date hereof. Armstrong Coal shall also be solely entitled to
amounts recouped or recoupable from the Lessors based upon credits accrued or payments
made of advance royalties after the date hereof.

	 	(f)	 	The Property is sold “AS IS,” and Seller makes no warranty that either the #9 coal
reserves being sold, leased and subleased herein are safe or suitable for underground mining,
or suitable for any other purpose or use. The ability to mine the #9 coal seam is not
warranted by Seller and Buyer recognizes and accepts that the coal may be unsuitable for
underground mining for reasons, including, but not limited to, rough, unnatural and unstable
surfaces, inadequate subjacent or lateral support, circumstances relating to the environmental
quality of the Property, or other conditions arising out of the prior use of the Property.
Buyer shall assume all permits and liabilities (including any environmental liabilities)
associated with the Property.
	 
	 	(g)	 	Reservation of Non-Exclusive Access to Property. Seller hereby reserves unto itself
and its successors and assigns, and unto its Affiliate, Cyprus Creek Land Company, LLC, (the
surface owner) and unto Survant, a non-exclusive access to the Property hereby conveyed or
leased or subleased, to allow Seller, Cyprus Creek Land Company, and/or Survant, and their
successors and assigns access to the coal seams reserves lying beneath the coal seam so
conveyed or leased or subleased; provided, however, Seller and its Affiliates acknowledge and
agree that should their exercise of this Non-Exclusive Access to Property provision interfere
or otherwise prohibit Buyer’s mining of any or all coal seam conveyed and/or leased herein
(except those portions of Rogers Tract R237-2 and Fee Tract 209 that remain subject to
restrictive covenants prohibiting mining within the No Mining Boundary and subordinate to
Seller’s and its Affiliates’ dominant interests), Buyer’s mining operations and plans shall
take priority and precedence, and Seller and its Affiliates agree to take whatever steps may
be necessary, including, without limitation, the cessation of mining operations, in order to
permit Buyer to proceed with its mining operations.

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	 	(h)	 	Consideration. As consideration for the sale, lease and sublease of the
Assets pursuant to this Agreement, Buyer shall pay to Sellers the sum of THIRTEEN MILLION
THREE HUNDRED SIX THOUSAND FOUR HUNDRED EIGHTY SEVEN AND 50/100 DOLLARS ($13,306,487.50)
and all sums due under the Overriding Royalty Agreement (collectively the “Purchase
Price”), as follows:

	 	a.	 	EIGHT MILLION EIGHT HUNDRED SEVENTY THOUSAND NINE HUNDRED
NINETY-ONE AND 67/100 DOLLARS ($8,870,991.67) cash in hand, (“Cash Payment”)
payable at Closing; plus
	 
	 	b.	 	FOUR MILLION FOUR HUNDRED THIRTY-FIVE THOUSAND FOUR HUNDRED
NINETY-FIVE AND 83/100 DOLLARS ($4,435,495.83) as evidenced by the Note,
and secured by the Mortgage, and the UCC-1 Financing Statement (as extracted
collateral) all to be executed and delivered by Buyer to Seller at the Closing; and
	 
	 	c.	 	The “Overriding Royalty” of an overriding royalty payment for each ton
(2,000 pounds) of Coal mined, removed, and sold from the Property in the sum of:
(i) FIVE DOLLARS AND NO CENTS ($5.00) per ton for each ton of Coal mined, removed,
and sold by GRANTEE, its successors and assigns, in excess of ONE MILLION SIX
HUNDRED SIXTY THOUSAND EIGHT HUNDRED FIFTY (1,660,850) tons collectively mined,
removed, and sold from those certain tracts of the Property conveyed and leased to
GRANTEE under the (a) Cyprus #9 Deed and the (b) Cyprus Creek #9 Lease; and,
(ii) THREE DOLLARS AND TWENTY-FIVE CENTS ($3.25) per ton for each ton of coal
mined, removed, and sold the Property in excess of ONE MILLION FIVE HUNDRED THIRTY-NINE THOUSAND ONE HUNDRED FIFTY (1,539,150) tons collectively mined, removed, and
sold from those certain tracts of the Property leased and subleased to GRANTEE
under the (a) Rogers #9 Sublease and the (b) Cyprus Creek & Duncan #9 Lease and
Sublease. The Overriding Royalty shall be evidenced by the Overriding
Royalty Agreement and the Short Form Memorandum thereof, all in same form
attached hereto as Exhibit K, to be executed and delivered by Buyer to Seller at
the Closing.

The Cash Payment shall be made by wire or interbank transfer, to such account as Seller may
designate, in immediately available funds and evidence thereof shall be attached hereto as Exhibit
O.

ARTICLE 3

CLOSING AND POST CLOSING

3.1 Transactions at Closing. At the Closing the following transactions shall take
place:

7

 

	(a)	 	Deliveries to Buyer. Seller shall deliver, or cause to be delivered, to Buyer:

	 	(i)	 	Cyprus Creek #9 Deed, thereby transferring and conveying to Buyer
title and access to the Sellers’ Owned Coal;
	 
	 	(ii)	 	Rogers #9 Sublease, Cyprus Creek & Duncan #9 Lease and Sublease, and
Cyprus Creek #9 Lease, in the forms attached hereto, thereby leasing and subleasing to
Buyer the certain owned and leasehold interests in the #9 coal reserves described therein of Seller;
	 
	 	(iii)	 	Copy of executed Rogers Agreement Relating to Additional Earned
Royalty (1%) for the Rogers Leased #9 Coal; and
	 
	 	(iv)	 	Roger Consent to Rogers #9 Sublease.
	 
	 	(v)	 	Copy of unrecorded Rogers Agreement Relating to Additional Advance
Royalty “Deep #9 Coal N of Pkwy” dated 5/3/07
	 
	 	(vi)	 	Copy of unrecorded Duncan Agreement Relating to Advance Royalties and
Recoupment dated October 31, 2007
	 
	 	(vii)	 	Copy of Rogers 1947 Mineral Lease dated December 4, 1947, amended,
supplemented, and extended from time to time
	 
	 	(viii)	 	Copy of Notice of Rogers 1947 Mineral Lease, Deed Book 164, page 525
	 
	 	(ix)	 	Copy of “Indenture” (Duncan Coal Lease”) dated June 10, 1967
	 
	 	(x)	 	Copy of Short Form Notice of Duncan Coal Lease, Deed Book 258, page 488

     Such other documents or instruments as may be reasonably necessary in order to consummate the
transactions contemplated by this Agreement. Cyprus Creek shall use its best efforts to obtain the
Duncan Consent to Partial Sublease (#9) post-closing and Armstrong Coal agrees to provide any
reasonable assistance necessary to obtain the consent.

	(b)	 	Deliveries to Seller. Buyer shall deliver, or cause to be delivered, to
Seller:

	 	(i)	 	The Cash Payment;
	 
	 	(ii)	 	The Note;
	 
	 	(iii)	 	The Overriding Royalty Agreement and Short Form Memorandum thereof;
	 
	 	(iv)	 	The Mortgage and the UCC-1 Financing Statement (as-extracted collateral); and

8

 

	 	(v)	 	Short Form Memorandums of the Rogers #9 Sublease, Cyprus Creek & Duncan #9
Lease and Sublease, and Cyprus Creek #9 Lease.

Each of the foregoing actions shall be deemed to have occurred simultaneously at the Closing and
unless each of such actions is taken, none of the other actions shall be taken or be deemed to
have been taken, and any acts which may have been performed in respect thereof shall be cancelled
and treated as if void and of no force and effect.

3.2 Costs, Transfer Taxes and Fees. Regardless whether Closing occurs, except as otherwise
expressly provided in this Agreement, each party hereto shall bear its own costs and expenses in
connection with this Agreement and the transactions contemplated hereby, including without
limitation any examination of title to the Assets, any surveys thereof, and the preparation of
this and any other documents in connection with the transactions contemplated hereby. Buyer will
pay all costs in connection with any brokers employed by it in connection with this transaction,
any costs in connection with its examination and investigation of the Assets, and all costs in
connection with the issuance of bonds or other security. All applicable real estate transfer taxes
arising out of or incurred in connection with the Cyprus #9 Deed shall be borne by Buyer.

ARTICLE 4

LIABILITIES AND OBLIGATIONS

4.1 Taxes.

     (a) The Seller shall be responsible for the payment of all assessed Taxes relating to the
Assets for all Tax years ending on or before December 31, 2011, which Taxes are due and payable or
accrued before December 31, 2011.

     (b) The Buyer shall be responsible for the payment of all assessed Taxes relating to the
Assets for all Tax years ending after December 31, 2011, which Taxes shall become due and payable
after December 31, 2011.

     (c) To the extent required, the Sellers and Buyer shall cooperate in the preparation and
filing of all required Tax Returns, including cooperating in the resolution of any disputes related
to such Tax Returns.

4.2 Assumption of Liabilities.

     (a) On and after the Closing Date, Buyer assumes any and all liabilities to third parties
(meaning persons or entities other than Buyer or Seller) of any nature or type whatsoever, accruing
on or after the Closing Date, including but not limited to liabilities for property damage,
personal injury, bodily injury, consequential damages, punitive damages, fines, penalties, or other
damages or injuries, pursuant to any and all causes of action, whether pursuant to contract, tort,
statute or otherwise, directly or indirectly, arising out of or related to the use, ownership or
operation of the Assets on or after the Closing Date, including but not limited to the condition,
design, safety, construction, workmanship, possession, mining, and any other use of any Asset.

9

 

ARTICLE 5

REPRESENTATIONS AND WARRANTIES BY BUYER

As an inducement to Seller’s execution of the Agreement and its obligations to consummate the
transactions provided herein, Buyer makes the following representations and warranties which shall
be true and in effect as of the Closing Date.

5.1 Company Matters. Buyer is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware. Buyer has all requisite company power and
authority to carry on its business as now conducted and to execute this Agreement and perform its
obligations hereunder. All company action of Buyer necessary for the authorization, execution,
delivery and performance of this Agreement and the consummation of the transactions
contemplated hereby has been taken, and this Agreement constitutes, and will constitute, the legal,
valid and binding obligation of Buyer enforceable in accordance with its terms.

5.2 Compliance With Other Instruments. The execution, delivery and performance of this
Agreement and the consummation by Buyer of the transactions contemplated hereby will not result in
the violation of any provision of Buyer’s organization agreement, or any provision of any judgment,
writ, decree or order applicable to it or be in conflict with, or violate the terms of, any
agreement or instrument to which Buyer is a party, or to which it may be bound, or constitute a
default thereunder, or an event which, with the lapse of time or the giving of notice, or both,
would result in a default thereunder.

5.3 Governmental Consents. All consents, approvals, orders, authorizations, registrations,
qualifications, designations, declarations or filings with any federal, state or other governmental
agency or authority on the part of Buyer required in connection with the execution, delivery or
performance of this Agreement and the consummation of the transactions contemplated herein, have
been made or obtained, except as such enforceability may be limited by bankruptcy and similar laws
affecting the rights of creditors and general principles of equity. The execution and delivery of
this Agreement, the consummation of the transactions contemplated hereby, and the performance by
Buyer of this Agreement in accordance with its terms will not require, with respect to Buyer, the
approval or consent of or notice to any foreign, federal, state, county, local or other
governmental or regulatory body, except as expressly provided in this Agreement.

5.4 Brokers’ Fees. Buyer has not retained any broker, finder or agent or agreed to pay any
brokerage fees, finder’s fees or commissions with respect to this Agreement or the transactions
contemplated hereby.

5.5 Litigation and Claims. There is no suit, claim, action or proceeding now pending, or,
to Buyer’s knowledge, threatened, before any court, administrative or regulatory body or any
governmental agency to which Buyer is a party and which may result in any judgment, order, decree,
liability or other determination which would have a material adverse effect on Buyer’s ability to
perform its obligations hereunder. No such judgment, order or decree has been entered against Buyer
and remains unsatisfied, nor has any such liability been incurred and not discharged which has such
effect.

10

 

ARTICLE 6

REPRESENTATIONS AND WARRANTIES BY SELLER

As an inducement to Buyer’s execution of the Agreement and its obligations to consummate
the transactions provided herein, Seller makes the following representations and warranties which
shall be true and in effect as of the Closing Date.

6.1 Company Matters. Seller is a limited liability company duly organized, validly existing
and in good standing under the laws of the State of Delaware. Seller has all requisite company
power and authority to carry on its business as now conducted and to execute this Agreement and
perform its obligations hereunder. All company action of Seller necessary for the authorization,
execution, delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby has been taken, and this Agreement constitutes, and will
constitute, the legal, valid and binding obligation of Seller enforceable in accordance with its
terms.

6.2 Compliance With Other Instruments. The execution, delivery and performance of this
Agreement and the consummation by Seller of the transactions contemplated hereby will not result in
the violation of any provision of Seller’s organization agreement, or any provision of any
judgment, writ, decree or order applicable to it or be in conflict with, or violate the terms of,
any agreement or instrument to which Seller is a party, or to which it may be bound, or constitute
a default thereunder, or an event which, with the lapse of time or the giving of notice, or both,
would result in a default thereunder.

6.3 Governmental Consents. All consents, approvals, orders, authorizations, registrations,
qualifications, designations, declarations or filings with any federal, state or other governmental
agency or authority on the part of Seller required in connection with the execution, delivery or
performance of this Agreement and the consummation of the transactions contemplated herein, have
been made or obtained, except as such enforceability may be limited by bankruptcy and similar laws
affecting the rights of creditors and general principles of equity. The execution and delivery of
this Agreement, the consummation of the transactions contemplated hereby, and the performance by
Seller of this Agreement in accordance with its terms will not require, with respect to Seller, the
approval or consent of or notice to any foreign, federal, state, county, local or other
governmental or regulatory body, except as expressly provided in this Agreement.

6.4 Brokers’ Fees. Seller has not retained any broker, finder or agent or agreed to pay any
brokerage fees, finder’s fees or commissions with respect to this Agreement or the transactions
contemplated hereby.

6.5 Litigation and Claims. There is no suit, claim, action or proceeding now pending, or,
to Seller’s knowledge, threatened, before any court, administrative or regulatory body or any
governmental agency to which Seller is a party and which may result in any judgment, order, decree,
liability or other determination which would have a material adverse effect on Seller’s ability to
perform its obligations hereunder. No such judgment, order or decree has been entered against
Seller and remains unsatisfied, nor has any such liability been incurred and not discharged which
has such effect.

11

 

ARTICLE 7

CONDITIONS TO SELLER’S OBLIGATIONS TO CLOSE

The obligations of Seller to consummate the transactions provided for in this Agreement
shall be subject to the satisfaction of all conditions under Article 3 and each of the following
conditions on or before the Closing, subject to the right of Seller to waive, in writing, any one
or more of such conditions:

7.1 Representations and Warranties of Buyer. On the Closing Date, the representations and
warranties of Buyer contained in Article 5 of this Agreement shall be true in all material respects
as if made on that date.

7.2 Performance of This Agreement. Buyer shall have duly performed or complied with all of
the obligations to be performed or complied with by it under the terms of this Agreement on or
prior to the Closing.

7.3 Absence of Litigation. No suit, action or other proceeding or investigation which could
have a material adverse effect on Seller, unless instituted by Seller, shall be pending or
threatened before or by any court or governmental agency concerning this Agreement or the
consummation of the transactions contemplated hereby.

7.4 Further Assurances. Seller shall have received such further instruments and documents
as may reasonably be required to carry out the transactions contemplated hereby and to evidence the
fulfillment of the agreements herein contained and the performance of all conditions to the
consummation of such transactions.

7.5 No Default Under Any Negotiable Promissory Note, Mortgage, or Agreement. A condition
precedent to sale of Assets and performance by Seller shall be that Buyer and its Affiliates, shall
not be in default upon any Promissory Note made and given to Seller or any mortgage or agreement
relating thereto including, without limitation, those made and given by Armstrong Coal on December
19, 2011 in the amount of $903,933.12.

7.6 Formation of Survant. On or before Closing, the Parties shall have executed the
Company’s Formation and Transfer Agreement, Operating Agreement, Sales Representation Agreement,
and Management Agreement.

ARTICLE 8

CONDITIONS TO BUYER’S OBLIGATIONS TO CLOSE

The obligations of Buyer to consummate the transactions provided for in this Agreement shall
be subject to the satisfaction of all conditions under Article 3 and each of the following
conditions on or before the Closing, subject to the right of Buyer to waive, in writing, any one or
more of such conditions:

12

 

8.1 Representations and Warranties of Seller. On the Closing Date, the representations and
warranties of Buyer contained in Article 6 of this Agreement shall be true in all material respects
as if made on that date.

8.2 Performance of This Agreement. Seller shall have duly performed or complied with all
of the obligations to be performed or complied with by it under the terms of this Agreement on or
prior to the Closing.

8.3 Absence of Litigation. No suit, action or other proceeding or investigation which could
have a material adverse effect on Buyer, unless instituted by Buyer, shall be pending or threatened
before or by any court or governmental agency concerning this Agreement or the consummation of the
transactions contemplated hereby.

8.4 Further Assurances. Buyer shall have received such further instruments and documents as
may reasonably be required to carry out the transactions contemplated hereby and to evidence the
fulfillment of the agreements herein contained and the performance of all conditions to the
consummation of such transactions.

8.5 Formation of Survant. On or before Closing, the Parties shall have executed the
Company’s Formation and Transfer Agreement, Operating Agreement, Sales Representation Agreement,
and Management Agreement.

ARTICLE 9

GENERAL INDEMNITEES

9.1 Indemnity by Seller. Seller hereby agrees from and after the Closing to defend,
indemnify and hold harmless Buyer and its successors, assigns, officers, directors and employees
against and in respect of:

     (a) Any and all losses and damages resulting from (i) any misrepresentations or breaches of
warranty, agreement or undertaking by Seller under this Agreement, (ii) Sellers’ failure to perform
or otherwise fulfill any of its agreements under this Agreement, or (iii) any and all third party
actions, suits, proceedings, claims, liabilities and demands for damages of any type or nature
whatsoever, resulting from the use, ownership or operation of the Property, arising or accruing
before the Closing, including but not limited to liabilities for property damage, personal injury,
bodily injury, consequential damages, punitive damages, fines, penalties, or other damages or
injuries, pursuant to any and all causes of action, whether pursuant to contract, tort, statute or
otherwise, directly or indirectly, arising out of or related to the Assets, including but not
limited to the condition, design, safety, construction, workmanship, possession, mining, any other
use of any Asset. In no event shall Sellers indemnify Buyer for third party claims related to the
Assets for damages or claims accruing after the Closing as set forth in Section 9.2 or any claims
relating to the condition of the Assets previously disclosed to or known by Buyer pursuant to
Sections 2(e) and 3.1(a);

     (b) Any and all third party actions, suits, proceedings, claims, liabilities, demands,
assessments alleging matter encompassed by Section 9.1(a), judgments and costs and expenses

13

 

of any action, suit or proceeding, including reasonable attorneys’ fees actually incurred incident
to any of the foregoing or the indemnification provided hereby, including a successful defense;
and

     (c) Notwithstanding any other provision of this Agreement, Seller shall indemnify and hold
harmless Buyer and its successors and assigns from claims and liabilities arising from any breach
or default under the original third party leases (Rogers and Duncan) caused by Seller’s failure to
remit any earned royalty, advance royalty, or other payment that Buyer is required to remit to
Seller to satisfy any outstanding obligation owed to the original lessors; provided, that Buyer,
in fact, timely and properly remits such payments to Seller. In addition, Seller hereby agrees to
provide Buyer with copies of all notices of breach and/or default that Seller receives from the
lessors in a timely manner. Pursuant to Section 3.1(b), Seller shall use its best efforts to
obtain the Duncan Consent to Partial Sublease (#9) post-closing and hereby agrees to indemnify and
hold harmless Buyer and its successors and assigns from claims and liabilities associated with any
consent requirement for the Cyprus Creek & Duncan #9 Lease and Sublease arising under the Duncan
Coal Lease, other than any payment or performance obligations assumed or owed by Buyer under the
terms of the Cyprus Creek & Duncan #9 Lease and Sublease.

9.2 Indemnity by Buyer. Buyer hereby agrees from and after the Closing to defend,
indemnify and hold harmless Seller and its respective predecessors, successors, related entities,
assigns and officers, directors and employees of any of the foregoing against and in respect of:

     (a) Any and all losses and damages resulting from (i) any misrepresentations or breaches of
warranty, agreement or undertaking by Buyer under this Agreement, or (ii) Buyer’s failure to
perform or otherwise fulfill any of its respective agreements under this Agreement, or (iii) any
and all third party actions, suits, proceedings, claims, liabilities and demands for damages of any
type or nature whatsoever, resulting from the use, ownership or operation of the Property, arising
or accruing on or after the Closing, including but not limited to liabilities for property damage,
personal injury, bodily injury, consequential damages, punitive damages, fines, penalties, or other
damages or injuries, pursuant to any and all causes of action, whether pursuant to contract, tort,
statute or otherwise, directly or indirectly, arising out of or related to the Assets, including
but not limited to the condition, design, safety, construction, workmanship, possession, mining,
any other use of any Asset and any risk assumed by Buyer pursuant to this Agreement.

     (c) Any and all third party actions, suits, proceedings, claims, liabilities, demands,
assessments alleging matter encompassed by Sections 9.2(a), or judgments and costs and expenses of
any action, suit or proceeding, including reasonable attorneys’ fees actually incurred incident to
any of the foregoing or the indemnification provided hereby, including a successful defense.

9.3 Defense; Settlement.

     (a) If any claim, liability, demand, assessment, action, suit or proceeding (a “Claim”) shall
be asserted against an indemnitee in respect of which it proposes to demand

14

 

indemnification, it shall promptly notify in writing the indemnitor thereof. The notice will
specify the circumstances giving rise to such Claim. The indemnitor, at its expense, shall have
the responsibility of contesting, defending, litigating or settling the Claim in good faith. The
indemnitee may participate at indemnitor’s own expense in the negotiation, litigation or
settlement of any such Claim, provided that (notwithstanding any other provision hereof) if the
indemnitor agrees in writing promptly after it obtains knowledge thereof to be fully responsible
for any such Claim, the indemnitee’s participation shall be at its own expense from the date of
such notice. The indemnitor and the indemnitee will cooperate with each other as they reasonably
may request in the handling of any Claim. If the indemnitee, without the prior consent of the
indemnitor, makes any settlement with respect to any such Claim, the indemnitor shall be
discharged from any liability hereunder with respect thereto.

     (b) Upon the settlement of any Claim as provided above or the final resolution of any Claim by
a court of competent jurisdiction, the indemnitor will notify the indemnitee promptly. The
indemnitor promptly will pay such Claim and, in addition, will pay to the indemnitee an amount
equal to any losses, damages or expenses for which indemnity is prescribed herein (“Indemnity
Amounts”) incurred by the indemnitee in connection with such Claim net of taxes required to make
the indemnitee whole.

     (c) If the indemnitor fails to comply with its obligations under the preceding Sections, the
indemnitee may elect, but shall not be obligated, to contest, defend, litigate or settle any Claim
in good faith, and the indemnitor promptly will pay to the indemnitee an amount equal to any
Indemnity Amounts incurred by such indemnitee in connection therewith, and any amount net of taxes
required to make the indemnitee whole.

9.4 Survival. The representations, warranties, covenants and indemnities made in this
Agreement and in any certificate, schedule, document, instrument or in any Conveyancing Documents
delivered in connection herewith shall survive the Closing.

ARTICLE 10

MISCELLANEOUS

10.1 Assignment.

     (a) Except as otherwise expressly provided herein, neither this Agreement nor any of the
rights hereunder may be assigned by either party, in whole or in part, by operation of law or
otherwise without the prior written consent of the other party.

     (b) Subject to the restriction in Section 10.1(a), this Agreement shall be binding upon and
inure to the benefit of the parties hereto, their respective successors and assigns, and the terms
“Buyer” and “Seller” in this Agreement shall be deemed to include the successors and assigns of
Buyer and Seller.

10.2 Termination of Agreement. This Agreement and the transactions contemplated hereby may
be terminated only as follows:

15

 

     (a) By mutual consent of Seller and Buyer.

     (b) By either Seller or Buyer if, for any reason other than the failure of the party seeking
to terminate this Agreement to perform its obligations hereunder, the Closing shall not have
occurred on or before December 29, 2011, or such later date, if any, as Buyer and Seller may
hereafter agree upon.

     (c) By Seller if the conditions of Article 7 are not satisfied by Buyer.

     (d) By Buyer if the conditions of Article 8 are not satisfied by Seller.

     (e) Should this Agreement terminate for any reason or cause, Buyer shall return to Seller any
and all information, documents, maps and other materials which were provided to it, and agrees that
any information obtained by it with respect to the Assets or the business of Seller, whether or not
such business relate to the Assets, shall be kept confidential, shall not be given or disclosed to
any other party or entity or in any manner be used by Buyer to make available to any other party or
entity.

10.3 Cooperation. Buyer and Seller each agree to use reasonable efforts (i) to cause the
conditions precedent to its obligation to consummate the transactions provided for herein to be
satisfied, and (ii) to complete the actions required to be taken after the Closing as promptly as
practicable.

10.4 Entire Agreement, Modification and Integration. This Agreement, including the
schedules and exhibits attached hereto and made a part hereof, constitutes the entire agreement
between the parties. No changes of, modifications of, or additions to this Agreement shall be
valid unless the same shall be in writing and signed by both parties hereto. This Agreement,
together with the Exhibits hereto and the other agreements to be entered into by the Parties
pursuant hereto, sets forth the entire agreement and understanding of the Parties in respect to the
transactions referenced herein, and supersedes all other agreements, arrangements and
understandings relating to the subject matter hereof.

10.5 Third-Party Beneficiaries. Nothing in this Agreement shall entitle any person other
than the undersigned parties to any claim, cause of action, remedy or right of any kind.

10.6 Severability. If any provision of this Agreement shall be determined to be contrary
to law and unenforceable by any court of law, the remaining provisions shall be severable and
enforceable in accordance with their terms, unless such unlawful and unenforceable provision is
material to the transactions contemplated hereby, in which case the parties shall attempt, in good
faith, to negotiate a substitute provision.

10.7 Counterparts. This Agreement may be executed in one or more identical counterparts,
each of which shall be deemed an original but all of which together will constitute one and the
same instrument.

16

 

10.8 Headings. The table of contents and article and section headings contained in this
Agreement are inserted for convenience only and shall not affect in any way the meaning or
interpretation of the Agreement.

10.9 Governing Law. This Agreement shall be construed and enforced in accordance with the
laws of the Commonwealth of Kentucky.

10.10 Payment of Fees and Expenses. Each party hereto shall pay its respective fees and
expenses for counsel, accountants and other experts and all other expenses incurred by such party
incident to the negotiations, preparation and execution of this Agreement and the consummation of
the transactions contemplated hereby. Should any finder or broker make claim to any fee or expense,
despite the representations made by the parties, the party employing or otherwise responsible for
services claimed by such broker or agent shall be responsible for the claim.

10.11 Further Documents. Each party hereby agrees to deliver to the other party, as
appropriate, such other and further agreements, consents, documents, or instruments of
conveyance, assignment or transfer and to do such other things and to take such other actions,
supplemental or confirmatory, as may be reasonably required for the purpose of or in connection
with the consummation or evidencing of the transactions contemplated hereunder. If any agreement
pertaining to operation of or on any of the Assets has not been included on any schedule, Seller
shall, to the extent they have the right and if Buyer elects to take such agreement, assign such
agreement to Buyer.

10.12 Notices. All notices, requests, demands and other communications hereunder shall be
deemed to have been duly given if the same shall be in writing and shall be delivered personally or
sent by registered or certified mail, postage prepaid, and addressed as set forth below:

	 	 	 	 	 

	 

	 	(a)
	 	If to Buyer:
	 
	 	 
	 

	 	 	 	Armstrong Coal Company, Inc.
	 

	 	 	 	407 Brown Road
	 

	 	 	 	Madisonville, KY 42431
	 
	 	 
	 
	 	 	 	With copy to:
	 
	 	 
	 

	 	 	 	Mason L. Miller
	 

	 	 	 	Miller & Wells, PLLC
	 

	 	 	 	300 East Main Street, Ste. 360
	 

	 	 	 	Lexington, Kentucky 40507
	 
	 	 
	 

	 	 	 	-and-

17

 

	 	 	 	 	 

	 

	 	 	 	Armstrong Energy, Inc.
	 

	 	 	 	Attn: Martin D. Wilson, President
	 

	 	 	 	7733 Forsyth Blvd., Suite 1625
	 

	 	 	 	St. Louis, Missouri 63105
	 
	 	 
	 

	 	(b)
	 	If to Sellers:
	 
	 	 
	 

	 	 	 	Cyprus Creek Land Resources, LLC
	 

	 	 	 	701 Market Street, Suite 798
	 

	 	 	 	St. Louis, Missouri 63101
	 
	 	 
	 

	 	 	 	With copy to:
	 
	 	 
	 

	 	 	 	J. Sale Gordon
	 

	 	 	 	Gordon Law Offices, PSC
	 

	 	 	 	121 W. 2nd St.
	 

	 	 	 	Owensboro, Kentucky 42301

Any party may change the address to which notices are to be addressed by giving the other party
notice in the manner herein set forth.

10.13 Retention and Availability of Documents. Buyer agrees to preserve and keep all books
and records of Seller transferred to Buyer pursuant to this Agreement for a period of six (6) years
after the Closing. Such books and records need not be kept at their current locations. During
such period as such books and records are so required to be preserved and kept, duly authorized
employees, attorneys, accountants, agents and other representatives of Seller shall, on reasonable
prior notice, have access thereto during normal business hours to examine, inspect and copy such
books and records. In addition, during such period, Buyer shall cooperate fully with Seller,
including, without limitation, the making of personnel available to testify when reasonably
requested by Seller, in connection with any claims, demands, audits, suits or matters of a similar
nature made by or against Seller as the previous owner and operator of the Assets.

10.14 Inconsistencies. To the extent of any inconsistencies between the provisions of this
Agreement relating to the obligations and responsibilities of the Parties and the liabilities
assumed by them and the provisions of any other document described in this Agreement or any
document required by or described in any such document, the provisions of this Agreement shall
control.

10.15 Consequential and Punitive Damages. Neither party shall be liable to the other for,
and any remedy shall not include, any consequential or punitive damages under any indemnity, or in
connection with any misrepresentation or fraud, a breach of any covenant, warranty or
representation, made in this Agreement or any of the instruments or agreements described in and
required by this Agreement. This section shall not apply to consequential or punitive damages that
may be recovered by a third party for which Buyer or Sellers are to be indemnified.

18

 

10.16 Negotiation of Agreement. This Agreement was negotiated and drafted by all Parties
and their attorneys, and not by any Party to the exclusion of the other Parties. The Parties agree
that no ambiguity in this Agreement shall be construed against or interpreted to the disadvantage
of any Party by any court, or other governmental or judicial authority, because of any Party
having, or being deemed to have drafted, prepared, structured or dictated this Agreement, or any
provision herein.

10.17 Performance. Waiver by any party of performance by any party of any of the provisions
of this Agreement shall not be construed as a waiver of any further right to insist upon full
performance of the terms of this Agreement.

10.18 Variances in Acreages. No adjustment in the Purchase Price shall be made for any
variances in acreage from that represented herein; and the Purchase Price shall be construed as a
lump sum amount paid for the Property as described herein.

10.19 No Recording of Agreement. Neither party shall record this Agreement.

10.20 Seller’s Retained Inspection Rights and Associated Costs. Pursuant to the terms of
the Cyprus Creek and Duncan #9 Lease and Sublease, the Cyprus Creek #9 Lease, the Rogers #9
Sublease, and the Overriding Royalty Agreement, Seller has retained certain rights to inspect
and/or examine the Buyer’s mine and records as more specifically described in the above referenced
instruments. Without limiting any such rights, Seller hereby agrees that it shall bear its own
costs and expenses associated with such inspections and/or examinations.

[remainder of page intentionally left blank]

19

 

	IN WITNESS WHEREOF, Seller and Buyer have each caused this Agreement to be duly executed
and delivered in its name and on its behalf, all effective as of the day and year first
written above.

	 	 	 	 	 	 	 

	SELLER:	 	CYPRUS CREEK LAND RESOURCES, LLC
	 
	 	 
	 
	 	 T.L. Bethel	 	 
	 

	 	 

	 	 
	 

	 	By:	 	/s/ T.L. Bethel	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	VP	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	BUYER:	 	ARMSTRONG COAL COMPANY, INC.
	 
	 	 
	 
	 	Martin D. Wilson	 	 
	 

	 	 

	 	 
	 

	 	By:	 	/s/ Martin D. Wilson	 	
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	President	 	 
	 

	 	 	 	 

	 	 

20

 

Elk Creek

Ohio County

SCHEDULE A 

Owned Property

All of Lessor’s right, title and interest in and to the following surface and/or coal tracts
situated in Ohio County, Kentucky:

(a) The
Ohio County Underground #9 Coal Area of the owned Kentucky #9 seam of coal only comprised of
approximately 18,153.5 entire interest acres and 673.5 partial
interest acres, for a total of
approximately 18, 827 owned #9 coal acres, and all of the #9 coal
mining rights and privileges
appurtenant thereto, in, on, and underlying the owned entire interest
and partial interest #9 coal
only tracts, more particularly described on the attached
Exhibit A-1 and depicted on the map
attached hereto as Exhibit A-2; and

(b) The
Elk Creek Surface Area comprised of approximately 415 acres of owned
surface, and the
surface and coal mining rights and privileges appurtenant thereto,
more particularly described on
the attached Exhibit B-1 and depicted on the map attached hereto as B-2;

all of the aforesaid Exhibits are incorporated herein by reference and made a part hereof, together
with all appurtenants thereunto belonging or in anywise appertaining, and being subject to the
known exceptions and prior conveyances more particularly set forth herein.

BEING the same property acquired by Ceralvo Holdings, LLC from Cyprus Creek Land Resources, LLC and
Cyprus Creek Land Company by Deed dated March 31, 2008, of record in Deed Book 373, Page 262, in
the office of the Clerk of Ohio County, Kentucky.

 

 

EXHIBIT A-1

No. 9 Vein of Coal and No. 9 Coal Mining Rights Only

	 	 	 	 	 
	Item	 	Orig. L.C. No.	 	Acreage
	1.

	 	028 - 296
	 	220.09 acres

AND BEING the same property conveyed to Peabody Coal Company by Big Rivers Electric
Corporation by deed dated May 13, 1988, recorded in Deed Book
265, page 418, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	2.

	 	028 - 033, T.23
	 	258 acres
	 

	 	 	 	(except portion conveyed at Deed
Book 237, page 80)

AND BEING a portion of the property conveyed to Beaver Dam Coal Company and Rough River Coal
Company by Deed from W. G. Parrott, et ux., dated December 17, 1946, recorded in Deed Book 103,
page 394, in the Ohio County Clerk’s office. Rough River Coal Company conveyed its undivided
1/2 interest in Tracts No. 028 - 033 to The Alston Coal Company by deed dated November 21, 1947,
recorded in Deed Book 105, page 621; and The Alston Coal Company
conveyed its undivided 1/2
interest in Tracts No. 028 - 033 to Sentry Royalty Company by deed dated December 1, 1956,
recorded in Deed Book 154, page 573; of record in the Ohio County Clerk’s office.

	 	 	 	 	 

	3.

	 	028 - 122
	 	168 acres
	 

	 	 	 	(except portion conveyed at Deed Book 237, page 80)

AND BEING a portion of the property conveyed to Sentry Royalty Company and Beaver Dam
Coal Company by Raymond T. Nall, widower, by deed dated February 14, 1961, recorded in Deed
Book 178, page 18; and also being the same property in which Peabody Coal Company conveyed its
undivided 1/2 interest to Beaver Dam Coal Company, expressly reserving all underlying coal, by
deed dated December 27, 1974, recorded in Deed Book 210, page
657, both in the Ohio County
Clerk’s office.

	 	 	 	 	 

	4.

	 	028 - 252
	 	0.55 acres

AND BEING the same property conveyed to Peabody Coal Company by Edwin Brown, et ux, by
deed dated June 8, 1977, recorded in Deed Book 224, page 227, in the Ohio County Clerk’s
office.

	 	 	 	 	 

	5.

	 	028 - 251
	 	1.25 acres

AND BEING the same property conveyed to Peabody Coal Company by Earl Powers, et ux, by
deed dated June 8, 1977, recorded in Deed Book 224, page 229, in the Ohio County Clerk’s
office.

8

 

	 	 	 	 	 

	6.

	 	028 - 033, T.12, P.1
	 	135.25 acres
	 

	 	 	 	(except portion conveyed at Deed Book 237, page 80)
	7.

	 	028 - 033, T.6, P.2
	 	84.875 acres
	8.

	 	028 - 033, T.2, P.2
	 	72.5 acres
	9.

	 	028 - 033, T.45
	 	22 acres
	10.

	 	028 - 033, T.1, P.2
	 	58.5 acres
	11.

	 	028 - 033, T.25
	 	41.50 acres 50% Interest
	12.

	 	028 - 033, T.15
	 	42 acres
	13.

	 	028 - 033, T.47
	 	75 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company and Rough
River Coal Company by Deed from W. G. Parrott, et ux., dated
December 17, 1946, recorded in
Deed Book 103, page 394, in the Ohio County Clerk’s office. Rough River Coal Company conveyed
its undivided 1/2 interest in Tracts No. 028 - 033 to The Alston Coal Company by deed dated
November 21, 1947, recorded in Deed Book 105, page 621; and The Alston Coal Company conveyed
its undivided 1/2 interest in Tracts No. 028 - 033 to Sentry Royalty Company by deed dated
December 1, 1956, recorded in Deed Book 154, page 573; of record in the Ohio County Clerk’s
office.

	 	 	 	 	 

	14.

	 	028 - C - 107
	 	67 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company by Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	15.

	 	028 - 194
	 	5 acres

AND BEING the same property conveyed to Peabody Coal Company and Beaver Dam Coal
Company by J. William Bassett, Trustee, by deed dated March 2, 1971, recorded in Deed Book
192, page 387, in the Ohio County Clerk’s office.

	 	 	 	 	 

	16.

	 	028 - C - 41
	 	25 Less 5 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company by Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	17.

	 	028 - 234
	 	3 Less 0.25 acres

AND BEING the same property conveyed to Peabody Coal Company by M. J. Boling, et ux.,
by deed dated December 2, 1974, recorded in Deed Book 210, page 311, in the Ohio County
Clerk’s office.

	 	 	 	 	 

	18.

	 	028 - O - 7
	 	10 acres

AND BEING the same property conveyed to The Ohio County Land & Mining Company, a Kentucky
corporation, by J. P. Tichenor, et ux., by deed dated February 24, 1910, recorded in Deed Book
38, page 416, in the Ohio County Clerk’s office. Beaver Dam Coal Company became the owner of
all of the stock, mineral tracts, and property of the Ohio County Land & Mining Company, which
was composed of the same shareholders as the Beaver Dam Coal Company.

9

 

	 	 	 	 	 

	19.

	 	028 - C - 75
	 	100 acres Less 3 acres,
	 

	 	 	 	and Less 10 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam
 Coal Company by Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio County
Clerk’s office.

	 

	20.

	 	028 - 033, T.14, P.1
	 	34.80 acres
	 

	 	028 - 033, T.14, P.2
	 	66.15 acres
	21.

	 	028 - 033, T.1, P.1
	 	95 acres
	22.

	 	028 - 033, T.7, P.1
	 	100 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company and Rough River
Coal Company by deed from W. G. Parrott, et ux., dated
December 17, 1946, recorded in Deed Book
103, page 394, in the Ohio County Clerk’s office. Rough River Coal Company conveyed its undivided
1/2 interest in Tracts No. 028 - 033 to The Alston Coal Company by deed dated November 21, 1947,
recorded in Deed Book 105, page 621; and The Alston Coal Company conveyed its undivided
1/2 interest in Tracts No. 028 - 033 to Sentry Royalty Company by deed dated December 1, 1956,
recorded in Deed Book 154, page 573; of record in the Ohio County Clerk’s office.

	 
	23.

	 	028 - C - 68
	 	26.5 acres
	24.

	 	028 - C - 69
	 	100 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company by Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 
	25.

	 	028 - 033, T.2, P.3
	 	82.5 acres
	26.

	 	028 - 033, T.9
	 	83.88 acres
	27.

	 	028 - 033, T.5, P.1
	 	125 acres
	28.

	 	028 - 033, T.27
	 	6.25 acres
	29.

	 	028 - 033, T.5, P.1
	 	25 acres
	 
	AND BEING a portion of the property
 conveyed to Beaver Dam Coal Company and Rough River
Coal Company by eed from W. G. Parrott, et ux., dated December 17, 1946, recorded in Deed Book
103, page 394, in the Ohio County Clerk’s office. Rough River Coal Company conveyed its undivided
1/2 interest in Tracts No. 028 - 033 to The Alston Coal Company by deed dated November 21, 1947,
recorded in Deed Book 105, page 621; and The Alston Coal Company
conveyed its undivided 1/2 interest
in Tracts No. 028 - 033 to Sentry Royalty Company by deed dated
December 1, 1956, recorded in
Deed Book 154, page 573; of record in the Ohio County Clerk’s office.

	 
	30.

	 	028 - C - 133
	 	35 acres
	 
	31.

	 	028 - C - 134
	 	15 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company by Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed
Book 51, page 135, in the Ohio
County Clerk’s office.

	 
	32.

	 	028 - 033, T.29, P.4
	 	262 acres except cemetery
	33.

	 	028 - 033, T.29, P.5
	 	101.25 acres

10

 

	 	 	 	 	 

	 

	 	 	 	(except portion conveyed at Deed Book 237, page 80)
	34.

	 	028 - 033, T.32, P.3
	 	25 acres Undivided 1/2  Interest
	 

	 	 	 	(except portion conveyed at Deed Book 237, page 80)
	35.

	 	028 - 033, T.18, P.1
	 	240 acres
	 

	 	 	 	(except portion conveyed at Deed Book 237, page 80)
	36.

	 	028 - 033, T.16
	 	100 acres
	 

	 	 	 	(except portion conveyed at Deed Book 237, page 80)
	37.

	 	028 - 033, T.17
	 	55 acres
	 

	 	 	 	(except portion conveyed at Deed Book 237, page 80)
	38.

	 	028 - 033, T.28, P.1
	 	41 acres
	 

	 	 	 	(except portion conveyed at Deed Book 237, page 80)

AND BEING a portion of the property conveyed to Beaver Dam Coal Company and Rough River
Coal Company by deed from W. G. Parrott, et ux., dated December 17, 1946, recorded in Deed Book
103, page 394, in the Ohio County Clerk’s office. Rough River Coal Company conveyed its undivided
1/2 interest in Tracts No. 028 - 033 to The Alston Coal Company
by deed dated November 21, 1947,
recorded in Deed Book 105, page 621; and The Alston Coal Company
conveyed its undivided 1/2 interest
in Tracts No. 028 - 033 to Sentry Royalty Company by deed dated December 1, 1956, recorded in
Deed Book 154, page 573; of record in the Ohio County Clerk’s office.

	 	 	 	 	 

	39.

	 	028 - C - 35
	 	679 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company by Hattie B. Speed,
et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio County
Clerk’s office.

	 	 	 	 	 

	40.

	 	028 - 033, T.29, P.6
	 	9.58 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company and Rough River
Coal Company by Deed from W. G. Parrott, et ux., dated
December 17, 1946, recorded in Deed Book
103, page 394, in the Ohio County Clerk’s office. Rough River Coal Company conveyed its undivided
1/2 interest in Tracts No. 028 - 033 to The Alston Coal Company by deed dated November 21, 1947,
recorded in Deed Book 105, page 621; and The Alston Coal Company
conveyed its undivided  1/2 interest
in Tracts No. 028 - 033 to Sentry Royalty Company by deed dated December 1, 1956, recorded in
Deed Book 154, page 573; of record in the Ohio County Clerk’s office.

	 	 	 	 	 

	41.

	 	028 - C - 144
	 	123.75 acres
	42.

	 	028 - C - 72
	 	109 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal
Company by Hattie B. Speed,
et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio County
Clerk’s office.

	 	 	 	 	 

	43.

	 	028 - 033, T.61
	 	53 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company and Rough River
Coal Company by deed from W. G. Parrott, et ux., dated
December 17, 1946, recorded in Deed Book
103, page 394, in the Ohio County Clerk’s office. Rough River Coal Company conveyed its undivided
1/2 interest in Tracts No. 028 - 033 to The Alston Coal Company by deed dated November 21, 1947,
recorded in Deed Book 105, page 621; and The Alston Coal

11

 

Company conveyed its undivided 1/2 interest in Tracts No. 028 -  033 to Sentry Royalty
Company by deed dated December 1, 1956, recorded in Deed Book 154, page 573; of record in
the Ohio County Clerk’s office.

	 	 	 	 	 

	44.

	 	028 -  C -  36
	 	133 acres
	45.

	 	028 -  C -  74
	 	16 acres
	46.

	 	028 - C - 45
	 	36 acres
	47.

	 	028 -  C -  65
	 	80 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company by Hattie
B. Speed, et al., by deed dated March 15,1916, recorded in Deed Book 51, page 135, in the
Ohio County Clerk’s office.

	 
	48.

	 	028 -  033, T.32, P.2
	 	5 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company and Rough
River Coal Company by deed from W. G. Parrott, et ux., dated December 17, 1946, recorded in
Deed Book 103, page 394, in the Ohio County Clerk’s office. Rough River Coal Company
conveyed its undivided 1/2 interest in Tracts No. 028 -  033 to The Alston Coal Company by
deed dated November 21, 1947, recorded in Deed Book 105, page 621; and The Alston Coal
Company conveyed its undivided 1/2 interest in Tracts No. 028 -  033 to Sentry Royalty
Company by deed dated December 1, 1956, recorded in Deed Book 154, page 573; of record in
the Ohio County Clerk’s office.

	 
	49.

	 	028 -  C -  73
	 	50 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company by Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the
Ohio County Clerk’s office.

	 
	50.

	 	028 -  033, T.32, P.1
	 	60 acres
	51.

	 	028 - 033, T.31, P.2
	 	124.50 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company and Rough
River Coal Company by deed from W. G. Parrott, et ux., dated December 17, 1946, recorded in
Deed Book 103, page 394, in the Ohio County Clerk’s office. Rough River Coal Company
conveyed its undivided 1/2 interest in Tracts No. 028 -  033 to The Alston Coal Company by
deed dated November 21, 1947, recorded in Deed Book 105, page 621; and The Alston Coal
Company conveyed its undivided 1/2 interest in Tracts No. 028 -  033 to Sentry Royalty
Company by deed dated December 1, 1956, recorded in Deed Book 154, page 573; of record in
the Ohio County Clerk’s office.

	 
	52.

	 	028 -  C -  127
	 	30 acres
	53.

	 	028 - C - 128
	 	29 acres
	54.

	 	028 - C - 126
	 	60 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company by Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 
	55.

	 	028 -  033, T.42
	 	71.5 acres

12

 

AND BEING a portion of the property conveyed to Beaver Dam Coal Company and
Rough River Coal Company by deed from W. G. Parrott, et ux., dated December 17, 1946, recorded
in Deed Book 103, page 394, in the Ohio County Clerk’s office. Rough River Coal Company
conveyed its undivided 1/2 interest in Tracts No. 028 - 033 to The Alston Coal Company by
deed dated November 21, 1947, recorded in Deed Book 105, page 621; and The Alston Coal
Company conveyed its undivided 1/2 interest in Tracts No. 028 - 033 to Sentry Royalty
Company by deed dated December 1, 1956, recorded in Deed Book 154, page 573; of record in
the Ohio County Clerk’s office.

	 	 	 	 	 

	56.

	 	028 - C - 34
	 	22.5 acres
	57.

	 	028 - C - 113
	 	230 acres Less 1 acre Cemetery
	58.

	 	028 - C - 63
	 	62.5 acres
	59.

	 	028 - C - 64
	 	25 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company by
Hattie B. Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page
135, in the Ohio County Clerk’s office.

	 	 	 	 	 

	60.

	 	028 - 033, T.54
	 	110.5 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company and
Rough River Coal Company by deed from W. G. Parrott, et ux., dated December 17, 1946,
recorded in Deed Book 103, page 394, in the Ohio County Clerk’s office. Rough River
Coal Company conveyed its undivided 1/2 interest in Tracts No. 028 - 033 to The Alston
Coal Company by deed dated November 21, 1947, recorded in Deed Book 105, page 621; and
The Alston Coal Company conveyed its undivided 1/2 interest in Tracts No. 028 - 033 to
Sentry Royalty Company by deed dated December 1, 1956, recorded in Deed Book 154, page
573; of record in the Ohio County Clerk’s office.

	 	 	 	 	 

	61.

	 	028 - C - 60
	 	80 Less 20 acres, and Less 15 acres
	62.

	 	028 - C - 61
	 	40.25 acres
	63.

	 	028 - C - 70
	 	36 acres
	64.

	 	028  - C  - 66
	 	90.5 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company by
Hattie B. Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page
135, in the Ohio County Clerk’s office.

	 	 	 	 	 

	65.   

	 	028 - 033, T.13
	 	102.45 acres
	66.

	 	028  - 033, T.49, P.1
	 	81 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company and
Rough River Coal Company by deed from W. G. Parrott, et ux., dated December 17, 1946,
recorded in Deed Book 103, page 394, in the Ohio County Clerk’s office. Rough River
Coal Company conveyed its undivided 1/2 interest in Tracts No. 028  - 033 to The Alston
Coal Company by deed dated November 21, 1947, recorded in Deed Book 105, page 621; and
The Alston Coal Company conveyed its undivided 1/2 interest in Tracts No. 028  - 033 to
Sentry Royalty Company by deed dated December 1, 1956, recorded in Deed Book 154, page
573; of record in the Ohio County Clerk’s office.

	 	 	 	 	 

	67.

	 	028  - C  - 67
	 	   31 acres

13

 

AND BEING a portion of the property conveyed to Beaver Dam Coal Company by Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the
Ohio County Clerk’s office.

	 	 	 	 	 

	68.

	 	028 - 033, T.43
	 	25 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company and Rough
River Coal Company by deed from W. G. Parrott, et ux., dated December 17, 1946, recorded in
Deed Book 103, page 394, in the Ohio County Clerk’s office. Rough River Coal Company
conveyed its undivided 1/2 interest in Tracts No. 028  -  033 to The Alston Coal Company by
deed dated November 21, 1947, recorded in Deed Book 105, page 621; and The Alston Coal
Company conveyed its undivided 1/2 interest in Tracts No. 028  -  033 to Sentry Royalty
Company by deed dated December 1, 1956, recorded in Deed Book 154, page 573; of record in
the Ohio County Clerk’s office.

	 	 	 	 	 

	69.

	 	028 - C - 71
	 	20 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company by Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office. Also being a portion of the property in which Beaver Dam Coal
Company conveyed all coal above the # 9 seam of coal to Blue Diamond Mining Company by deed
dated November 15, 1921, recorded in Deed Book 62, page 381, in the Office of the Ohio
County Clerk.

	 	 	 	 	 

	70.

	 	028 - E - 81
	 	13.5 Less 0.07 Acres

AND BEING the same property conveyed to Beaver Dam Coal Company by Robert Snodgrass,
et ux., by deed dated December 18, 1974, recorded in Deed Book 210, page 654, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	71.

	 	028 - C - 123
	 	69.5 acres
	72.

	 	028 - C - 122
	 	50 acres
	73.

	 	028 - C - 111
	 	42 acres and 74 poles

AND BEING a portion of the property conveyed to Beaver Dam Coal Company by Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office. Also being a portion of the property in which Beaver Dam Coal
Company conveyed all coal above the # 9 seam of coal to Blue Diamond Mining Company by deed
dated November 15, 1921, recorded in Deed Book 62, page 381, in the Ohio County Clerk’s
Office.

	 	 	 	 	 

	74.

	 	028 - 195
	 	42 acres and 74 poles

AND BEING the same property conveyed to Peabody Coal Company and Beaver Dam Coal
Company by J. William Bassett, Trustee, by deed dated March 12, 1971, recorded in Deed Book
192, page 385, in the Ohio County Clerk’s office.

	 	 	 	 	 

	75.

	 	038 - 121
	 	42 acres and 74 poles

AND BEING the same property conveyed to Peabody Coal Company by Robert Snodgrass, et
ux., by deed dated February 26, 1979, recorded in Deed Book 231, page 661, in the Ohio
County Clerk’s office.

14

 

	 	 	 	 	 

	76.

	 	028 - C - 112
	 	42 acres and 74 poles
	77.

	 	028 - C - 108
	 	15 acres
	78.

	 	028 - C - 110
	 	43 acres and 77 poles, except 2.5 acres
	79.

	 	028 - C - 109
	 	42 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company by
Hattie B. Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51,
page 135, in the Ohio County Clerk’s office.

	 
	80.

	 	028 - D - 87
	 	156.875 acres Except 1 acre cemetery
	81.

	 	028 - D - 82
	 	138.50 acres
	82.

	 	028 - D - 84
	 	55 acres
	 

	 	 	 	38/40 Interest; and 2/40 Interest Adversely Possessed
	83.

	 	028 - D - 19
	 	33.33 acres
	84.

	 	028 - D - 81
	 	61.50 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company by I.
P. Barnard, et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page
101, in the Ohio County Clerk’s office.

	 
	85.

	 	028 - 250(2), P.2
	 	LEASEHOLD RESERVED HEREIN
	 
	86.

	 	028 - D - 50
	 	31 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company by I.
P. Barnard, et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 101,
in the Ohio County Clerk’s office.

	 
	87.

	 	028 - 202
	 	17 acres      Undivided 2/7 Interest
	 

	 	028 - 220
	 	 17 acres      Undivided 5/7 Interest
	 
	AND BEING the same property from which Katie Ball, widow, et al., conveyed an
undivided 2/7 interest to Peabody Coal Company by deed dated January 28, 1972,
recorded in Deed Book 197, page 345; and from which Ernest Duncan, et ux., conveyed
an undivided 5/7 interest to Peabody Coal Company by deed dated December 7, 1972,
recorded in Deed Book 216, page 604; both in the Ohio County Clerk’s office.

	 
	88.

	 	028 - D - 56
	 	50 acres
	89.

	 	028 - D - 80
	 	38 acres
	90.

	 	028  - D - 49
	 	38 acres
	91.

	 	028 - D - 48
	 	77 acres and 23 poles
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company by I.
P. Barnard, et ux., by deed dated March 15, 1916, recorded in
Deed Book 51, page
101, in the Ohio County Clerk’s office.

	 
	92.

	 	028 - C - 1
	 	92 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company by
Hattie B. Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51,
page 135, in the Ohio County Clerk’s office.

15

 

	 	 	 	 	 

	93.

	 	028 - 250(2), P.1, T.2 and T.3
	 	   LEASEHOLD RESERVED HEREIN
	94.

	 	028 - 250(2), P.1, T.1
	 	   LEASEHOLD RESERVED HEREIN
	95.

	 	028 - 250(2), P.1, T.4
	 	   LEASEHOLD RESERVED HEREIN
	96.

	 	028 - 250(2), P.1, T.5 and T.6
	 	   LEASEHOLD RESERVED HEREIN
	 
	97.

	 	028 - C - 62 	 	139 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company by Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 
	98.

	 	028 - 185, P.5
	 	279 acres
	 
	AND BEING the same property, conveyed to Peabody Coal Company by BB Mining Company by
deed dated August 24, 1970, recorded in Deed Book 191, page 280,
in the Ohio County Clerk’s
office.

	 
	99.

	 	028 - 137, T.1
	 	75 acres
	 

	 	028 - 137, T.2
	 	56 acres
	 

	 	028 - 137, T.3, P.1
	 	64.75 acres
	 

	 	028 - 137, T.3, P.2
	 	76 acres
	 

	 	028 - 137, T.4, P.1
	 	29.25 acres
	 

	 	028 - 137, T.4, P.2
	 	27.20 acres
	 

	 	028 - 137, T.5
	 	75 acres
	 

	 	028 - 137, T.6
	 	64 acres
	 
	AND BEING the same property conveyed to Beaver Dam Coal Company and Sentry Royalty
Company by Deed from Grace Addington, et al., dated November 7, 1964, recorded in Deed Book
163, page 241, in the Ohio County Clerk’s office.

	 
	100.

	 	028 - C - 129
	 	20 acres and 62 poles
	101.

	 	028 - C - 16
	 	56 acres
	102.

	 	028 - C - 43
	 	25 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 
	103.

	 	028 - O - 6
	 	15 acres
	 
	AND BEING the same property conveyed to The Ohio County Land & Mining Company, a
Kentucky corporation, by Louis Brown, et ux., by deed dated September 21, 1907, recorded in
Deed Book 85, page 314, in the Ohio County Clerk’s office. Beaver Dam Coal Company became the
owner of all of the stock, mineral tracts, and property of the Ohio County Land & Mining
Company, which was composed of the same shareholders as the Beaver Dam Coal Company.

	 
	104.

	 	028 - 033, T.41
	 	25 acres also known as 028 - 092, T.4
	 

	 	028 - 092, T.4
	 	25 acres also known as 028 - 033, T.41

16

 

AND BEING
a portion of Tracts No. 028 -  033 conveyed to Beaver Dam Coal Company and
Rough River Coal Company by Deed from W. G. Parrott, et ux., dated
December 17, 1946, recorded
in Deed Book 103, page 394, in the Ohio County Clerk’s office. Rough River Coal Company
conveyed its undivided 1/2 interest in Tracts No. 028 - 033 to
The Alston Coal Company by deed
dated November 21, 1947, recorded in Deed Book 105, page 621; and The Alston Coal Company
conveyed its undivided 1/2 interest in Tracts No. 028 - 033 to Sentry Royalty Company by deed
dated December 1, 1956, recorded in Deed Book 154, page 573; of record in the Ohio County
Clerk’s office.

FURTHER
BEING a portion of Tracts No. 028 -  092 conveyed to Beaver Dam Coal Company and
Sentry Royalty Company from Gertrude Igleheart, widow, et al., by deed dated December 24,
1957, recorded in Deed Book 135, page 400; and by deed of correction dated January 3, 1959,
recorded in Deed Book 139, page 338, in the Ohio County Clerk’s office.

	 	 	 	 	 

	105.

	 	028 - C - 38
	 	23 acres
	106.

	 	028 - C - 22
	 	28.375 acres
	 
	AND BEING
a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 
	107.

	 	028 - 033, T.31, P.1
	 	39.5 acres
	108.

	 	028 - 033, T.30
	 	2.2 acres
	 
	AND BEING a portion of the property conveyed to Beaver Dam Coal Company and Rough River
Coal Company by Deed from W. G. Parrott, et ux., dated December 17, 1946, recorded in Deed
Book 103, page 394, in the Ohio County Clerk’s office. Rough River Coal Company conveyed its
undivided 1/2 interest in Tracts No. 028 - 033 to The Alston Coal Company by deed dated
November 21, 1947, recorded in Deed Book 105, page 621; and The Alston Coal Company conveyed
its undivided 1/2 interest in Tracts No. 028 - 033 to Sentry Royalty Company by deed dated
December 1, 1956, recorded in Deed Book 154, page 573; of record in the Ohio County Clerk’s
office.

	 
	109.

	 	028 - C - 40
	 	18 acres
	110.

	 	028 - C - 37
	 	63 Less 6 acres
	111.

	 	028 - C - 29
	 	100.25 acres
	112.

	 	028 - C - 31
	 	27 acres
	113.

	 	028 - C - 30
	 	130 acres
	114.

	 	028 - C - 28
	 	60 acres
	115.

	 	028 - C - 33
	 	2.5 acres
	116.

	 	028 - C - 32
	 	40 acres
	117.

	 	028 - C - 21
	 	68.75 acres
	118.

	 	028 - C - 20
	 	133 Less 68.75 acres
	119.

	 	028 - C - 18
	 	50 acres Except 0.75 acre school lot
	120.

	 	028 - C - 19
	 	26.80 acres
	 
	AND BEING
a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 
	121.

	 	028 - 111, P.1, T.1
	 	1 acre

17

 

AND BEING the same property conveyed to Sentry Royalty Company and Beaver Dam Coal Company
from Ray Ward, et ux., by deed dated July 25, 1960, recorded in Deed Book 145, page 479, in the
Ohio County Clerk’s office.

	 	 	 	 	 

	122.

	 	028 - 092, T.1
	 	15.75 acres
	 

	 	028 - 092, T.2
	 	53 acres
	 

	 	028 - 092, T.3
	 	68 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company and Sentry Royalty
Company from Gertrude Igleheart, widow, et al., by deed dated December 24, 1957, recorded in Deed
Book 135, page 400; and by deed of correction dated January 3, 1959, recorded in Deed Book 139,
page 338, in the Ohio County Clerk’s office.

	 	 	 	 	 

	123.

	 	028 - C - 39
	 	65 acres
	124.

	 	028 - C - 17
	 	80 acres
	125.

	 	028 - C - 50
	 	80 acres
	126.

	 	028 - C - 10
	 	64.75 acres
	127.

	 	028 - C - 27
	 	59 acres
	128.

	 	028 - C - 26
	 	40 acres
	129.

	 	028 - C - 114
	 	51 acres
	130.

	 	028 - C - 115
	 	182 Less 51 acres
	131.

	 	028 - C - 11
	 	156 Less 7 acres
	132.

	 	028 - C - 23
	 	7 acres
	133.

	 	028 - C - 24
	 	1 acre
	134.

	 	028 - C - 125
	 	156.25 acres
	135.

	 	028 - C - 44
	 	10 acres
	136.

	 	028 - C - 42
	 	70 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	137.

	 	028 - 095
	 	26.875 acres

AND BEING the same property conveyed to Beaver Dam Coal Company and Sentry Royalty Company
from John W. Fulkerson, single, by deed dated December 30, 1957, recorded in Deed Book 135, page
445, in the Ohio County Clerk’s office.

	 	 	 	 	 

	138.

	 	028 - 091
	 	67.1 acres

AND BEING the same property conveyed to Beaver Dam Coal Company and Sentry Royalty Company
from Elmer L. Fulkerson, et ux., by deed dated December 23, 1957, recorded in Deed Book 135, page
391, in the Ohio County Clerk’s office.

	 	 	 	 	 

	139.

	 	028 - 094
	 	67.1 acres

AND BEING the same property conveyed to Beaver Dam Coal Company and Sentry Royalty Company
from O. D. Fulkerson, et ux., by deed dated December 24, 1957, recorded in Deed Book 135, page
406, in the Ohio County Clerk’s office.

	 	 	 	 	 

	140.

	 	028 - 093, T.1
	 	129.25 acres

18

 

AND BEING the same property conveyed to Beaver Dam Coal Company and Sentry Royalty
Company in the following deeds of record in the Ohio County Clerk’s office:

	 	 	 

	(a)

	 	Gertrude Igleheart, widow, by deed
dated December 24, 1957, recorded in Deed Book 135, page 397;
	 
	(b)

	 	Leslie K. Grimes, et ux., by deed
dated January 2, 1958, recorded in Deed Book 135, page 504;
	 
	(c)

	 	Charles M. Grimes, et ux., by deed dated January 13, 1958, recorded in Deed Book 135, page 523; 
	 
	(d)

	 	Mayme Jane Grimes Holland, et vir.,
by deed dated January 15, 1958, recorded in Deed Book 135, page 572;
	 
	(e)

	 	David E. Grimes, et ux., by deed
dated January 21, 1958, recorded in Deed Book 135, page 587.
	 

	 	

	 	 	 	 	 

	141.

	 	028 - 185, P.4
	 	151.875 acres

AND BEING the same property conveyed to Peabody Coal Company from BB Mining Company by
deed dated August 24, 1970, recorded in Deed Book 191, page 280,
in the Ohio County Clerk’s
office.

	 	 	 	 	 

	142.

	 	028 - 126, T.1
	 	35 acres
	 

	 	028 -  126, T.2
	 	3 acres
	 

	 	028 - 126, T.3
	 	148 acres
	 

	 	028 - 126, T.4
	 	71.5 acres

AND BEING the same tracts conveyed to Beaver Dam Coal Company and Sentry Royalty
Company from Ross Morton, et ux., by deed dated January 20, 1962, recorded in Deed Book 151,
page 180, in the Ohio County Clerk’s office.

	 	 	 	 	 	 	 

	143.

	 	028 - D - 38
	 	73 acres	 	 
	144.

	 	028 - D - 63
	 	54 Less 2 acres and
	 	100% Interest
	 

	 	 	 	2-acre portion of 54 acres
	 	  80% Interest
	145.

	 	028 - D - 22
	 	53.33 acres	 	 
	146.

	 	028 - D - 39
	 	52.50 acres	 	 
	 

	 	028 - D - 40
	 	52 acres	 	 
	147.

	 	028 - D - 40A
	 	3.50 acres	 	 
	148.

	 	028 - D - 53
	 	40 acres	 	 
	149.

	 	028 - D - 47
	 	83 acres	 	 

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P.
Barnard, et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 101, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	150.

	 	028 - C - 151
	 	106 acres and 69.25 poles

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	151.

	 	1928 - 300
	 	1.5 acres and 10.75 poles 50% Interest
	 

	 	1928 - 300 - 01
	 	1.5 acres and 10.75 poles 40% Interest

19

 

AND BEING the same property from which an undivided 1/2 interest was conveyed from
Morgan Duncan, et ux., to Peabody Development Company, LLC, by deed dated February 1, 2005,
recorded in Deed Book 353, page 38; and from which an undivided 2/5 interest was conveyed
from Joseph S. Allen, et ux., to Peabody Development Company, LLC, by deed dated February 10,
2005, recorded in Deed Book 353, page 42; both in the Ohio County Clerk’s office.

	 	 	 	 	 	 	 

	152.

	 	1928 - 302
	 	7 acres
	 	60% Interest

AND BEING the same property conveyed to Peabody Development Company, LLC, in the Ohio
County Clerk’s office, as follows:

	 	 	 

	(a)

	 	Fanny M. Curtis by deed dated March 17, 2005, recorded in Deed Book 354, page 341;
	 
	(b)

	 	Lillian Finley Bassett by deed dated April 25, 2005, recorded in Deed Book 354, page 350;
	 
	(c)

	 	Hubert Ashby by deed dated April 18, 2005, recorded in Deed Book 354, page 358.

	 	 	 	 	 

	153.

	 	028 - D - 78
	 	141.50 acres Except 15 acres
	154.

	 	028 - D - 1
	 	52.75 acres
	155.

	 	028 - D - 23
	 	243.33 acres
	156.

	 	028 - D - 77
	 	40 acres
	157.

	 	028 - D - 76
	 	160 acres Except 6 acres and 20 poles

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P.
Barnard, et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 101, in the
Ohio County Clerk’s office.

	 	 	 	 	 

	158.

	 	028 - C - 77
	 	50 acres
	159.

	 	028 - C - 76
	 	78 acres
	160.

	 	028 - C - 52
	 	50 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	161.

	 	028 - D - 42
	 	60 Less 5 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P.
Barnard, et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 101, in the
Ohio County Clerk’s office.

	 	 	 	 	 

	162.

	 	028 - C - 53
	 	5 acres
	163.

	 	028 - C - 54
	 	137 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	164.

	 	028 - D - 46
	 	25 acres

20

 

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P. Barnard,
et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 101, in the Ohio County
Clerk’s office.

	 	 	 	 	 

	165.

	 	028 - C - 154
	 	71 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	166.

	 	028 - D - 37
	 	23 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P.
Barnard, et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 101, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	167.

	 	028 - C - 55
	 	60 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	168.

	 	028 - D - 79
	 	102.50 acres and 22 poles

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P. Barnard,
et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 101, in the Ohio County
Clerk’s office.

	 	 	 	 	 

	169.

	 	028 - 083, T.5
	 	80 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company and Sentry Royalty
Company from Ross Morton, et ux., et al., by deed dated February 18, 1957, recorded in Deed Book
131, page 492, in the Ohio County Clerk’s office.

	 	 	 	 	 

	170.

	 	028 - C - 105
	 	40 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	171.

	 	028 - D - 65
	 	57 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P. Barnard,
et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 101, in the Ohio County
Clerk’s office.

	 	 	 	 	 

	172.

	 	028 - 146
	 	30 acres

AND BEING the same tract conveyed to Beaver Dam Coal Company and Sentry Royalty Company
from Elzoria Stearman Bishop, et al., by Master Commissioner Deed dated April 14, 1966, recorded
in Commissioner’s Deed Book M, page 201, in the Ohio County Clerk’s office.

21

 

	 	 	 	 	 

	173.

	 	028 - 081, T.1
	 	130 acres
	 

	 	028 - 081, T.2
	 	100 acres

AND BEING the same tracts conveyed to Beaver Dam Coal Company and Sentry Royalty
Company from R. H. Morris, et ux., by deed dated February 13, 1957, recorded in Deed Book 131,
page 351; in the Ohio County Clerk’s office.

	 	 	 	 	 

	174.

	 	028 - C - 5
	 	38 acres
	175.

	 	028 - C - 8
	 	105 acres except 1 acre school lot

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	176.

	 	028 - 096
	 	35 acres

AND BEING the same property conveyed to Beaver Dam Coal Company and Sentry Royalty
Company from Ethel Morton, et al., by Master Commissioner Deed dated April 19, 1958, recorded
in Commissioner’s Deed Book L, page 391, in the Ohio County Clerk’s office.

	 	 	 	 	 

	177.

	 	028 - C - 6
	 	40 acres
	178.

	 	028 - C - 7
	 	10 acres
	179.

	 	028 - C - 155
	 	90 acres
	180.

	 	028 - C - 58
	 	55 acres
	181.

	 	028 - C - 118
	 	80 acres
	182.

	 	028 - C - 13
	 	86 acres
	183.

	 	028 - C - 15
	 	85.75 acres
	184

	 	028 - C - 14
	 	2 acres
	185.

	 	028 - C - 12
	 	100 Less 2 acres except cemetery
	186.

	 	028 - C - 131
	 	100 acres
	187.

	 	028 - C - 132
	 	69.5 Less 31.25 acres
	188.

	 	028 - C - 130
	 	31.25 acres
	189.

	 	028 - C - 47
	 	50.5 acres except 0.5 acre cemetery
	190.

	 	028 - C - 48
	 	55 acres
	191.

	 	028 - C - 157
	 	87.35 less 5 acres
	192.

	 	028 - C - 9
	 	166 acres
	193.

	 	028 - C - 149
	 	47.25 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	194.

	 	1123 - 005, T.1, P.1
	 	100 acres except portion of 47.5 acres
	 

	 	1123 - 005, T.1, P.2
	 	9 acres, 2 roods
	 

	 	 	 	& 38 poles except portion of 47.5 acres
	 

	 	1123 - 005, T.1, P.3
	 	9 acres, 1 rood
	 

	 	 	 	& 23 poles except portion of 47.5 acres
	 

	 	1123 - 005, T.1, P.4
	 	30 acres, 3 roods
	 

	 	 	 	& 19 poles except portion of 47.5 acres
	 

	 	1123 - 005, T.2
	 	19 acres

22

 

AND BEING the same property conveyed to Peabody Development Company, LLC, from Wallace
L. Loyd, et ux., et al. (heirs of O. J. Loyd) by deed dated October 14, 2004, recorded in Deed
Book 351, page 240, in the Ohio County Clerk’s office.

	 	 	 	 	 

	195.

	 	028 - C - 159
	 	45.40 acres
	196.

	 	028 - C - 158
	 	65 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 	 	 

	197.

	 	028  - 125, T.1
	 	10.66 acres
	 	100% Interest
	 

	 	028 - 125, T.2
	 	31.80 acres
	 	Approx. 93.3% Interest
	 

	 	028  -  125, T.3
	 	44.20 acres
	 	Approx. 93.3% Interest

AND BEING the same property conveyed to Beaver Dam Coal Company and Sentry Royalty
Company by the following deeds of record in the Ohio County Clerk’s office:

(a) Altha Addington Morton, widow, et al., by deed dated January 20, 1962, recorded in Deed
Book 151, page 184;

(b) Orhal Smith, single, by deed dated March 9, 1965, recorded in Deed Book 164, page 415;

(c) Alice Addington, widow, et al., by deed dated March 24, 1965, recorded in Deed Book 164,
page 591;

(d) Esther Addington, widow, et al., by deed dated March 13, 1965, recorded in Deed Book 165, page 641; and

(e) Esther Addington, widow, et al., by deed dated April 7, 1966, recorded in Deed Book 168,
page 609.

	 	 	 	 	 

	198.

	 	028  -  C  -  56
	 	91 less 2 acres
	199.

	 	028  -  C  -  49
	 	140 less 30 acres
	200.

	 	028  -  C  -  51
	 	68 acres
	201.

	 	028  -  C  -  25
	 	30 acres
	202.

	 	028  -  C  -  135
	 	70 acres
	203.

	 	028  -  C  -  46
	 	62.5 less 12 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 	 	 

	204.

	 	028 - 083, T.1
	 	62.5 acres
	 	80% Interest
	 

	 	028  -  083, T.2
	 	75 acres
	 	100% Interest
	 

	 	028  -  083, T.3
	 	102 acres
	 	100% Interest
	 

	 	028  -  083, T.4
	 	12 acres
	 	100% Interest

AND BEING a portion of the property conveyed to Beaver Dam Coal Company and Sentry
Royalty Company from Ross Morton, et ux., et al., by deed dated February 18, 1957, recorded in
Deed Book 131, page 492, in the Ohio County Clerk’s office.

	 	 	 	 	 

	205.

	 	028  - C  -   136
	 	15.25 less 2.50 acres
	206.

	 	028  - C -  137
	 	1.75 acres
	207.

	 	028  - C -  138
	 	16.50 acres
	208.

	 	028  - C -  119
	 	4.40 acres

23

 

	 	 	 	 	 

	209.

	 	028  -  C  -  140
	 	17 acres
	210.

	 	028 - C - 139
	 	0.75 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 	 	 

	211.

	 	028 - 138
	 	135.5 acres
	 	Approx. 58.432% Interest

AND BEING the same property conveyed to Beaver Dam Coal Company and Sentry Royalty
Company by the following deeds of record in the Ohio County Clerk’s office:

(a) Ida Hicks, et vir., by deed dated December 14, 1964, recorded in Deed Book 163, page
535;

(b) O. D. Fulkerson by deed dated December 18, 1964, recorded in Deed Book 163, page
577;

(c) Athel Danks, et vir., et al., by deed dated December 15, 1964, recorded in Deed Book 163,
page 582;

(d) C. O. Hunter, et ux., by deed dated December 24, 1964, recorded in Deed Book 163, page
585;

(e) Willie E. Henry, et vir., by deed dated August 17, 1967, recorded in Deed Book 175,
page 560;

(f) Austin C. Hunter, et ux., by deed dated September 19, 1967, recorded in Deed Book 176,
page 235;

(g) Roy Hunter Trunnell, et ux., by deed dated March 25, 1968, recorded in Deed Book 178,
page 527;

(h) Martha Barnard Hess, et vir., by deed dated April 10, 1968, recorded in Deed
Book 179, page 37; and

(i) Ernest B. Trunnell, et ux., by deed dated February 3, 1976, recorded in
Deed Book 217, page 313.

	 	 	 	 	 	 	 

	212.

	 	028  -  C  -  120
	 	57.50 acres
	 	100% Interest
	213.

	 	028  -  C  -  121
	 	40 acres
	 	100% Interest
	214.

	 	028  -  C  -  59
	 	88 acres
	 	50% Interest

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	215.

	 	028  -  147, T.1
	 	40 acres

AND BEING the same property conveyed to Peabody Coal Company and Beaver Dam Coal
Company from Pauline Johnson, et ux., by deed dated April 28, 1966, recorded in Deed Book 169,
page 130; from Fannie White, et ux., by deed dated September 20, 1968, recorded in Deed Book
181, page 63; and from Ellen Bellew by deed dated October 1, 1968, recorded in Deed Book 181,
page 155; all in the Ohio County Clerk’s office.

	 	 	 	 	 

	216.

	 	028 - C  - 57
	 	115 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

24

 

	 	 	 	 	 

	217.

	 	028 - 100, T.2
	 	59 acres

AND BEING the same property conveyed to Sentry Royalty Company and Beaver Dam Coal
Company from Icelean Bennett Young by deed dated May 12, 1959, recorded in Deed Book 141, page
115, in the Ohio County Clerk’s office.

	 	 	 	 	 

	218.

	 	028  -  070
	 	86.5 acres

AND BEING the same property conveyed to Homestead Coal Company and Beaver Dam Coal
Company from Herbert Martin, et ux., by deed dated September 22, 1955, recorded in Deed Book
126, page 245, in the Ohio County Clerk’s office.

	 	 	 	 	 

	219.

	 	028  -  053
	 	175 Less 7 acres

AND BEING the same property conveyed to Homestead Coal Company and Beaver Dam Coal
Company from O. E. Allen, et ux., by deed dated March 30, 1955, recorded in Deed Book 124,
page 73; and from Margaret Gill, et vir., et al., by deed dated May 23, 1955, recorded in
Deed Book 124, page 443; both in the Ohio County Clerk’s office.

	 	 	 	 	 

	220.

	 	028 - 069
	 	145 acres

AND BEING the same property conveyed to Homestead Coal Company and Beaver Dam Coal
Company from Mary Lee Drake, et vir., by deed dated September 22, 1955, recorded in Deed Book
126, page 213, in the Ohio County Clerk’s office.

	 	 	 	 	 

	221.

	 	028 - 100, T.1
	 	30.75 acres

AND BEING the same property conveyed from Icelean Bennett Young to Sentry Royalty
Company and Beaver Dam Coal Company by deed dated May 12, 1959, recorded in Deed Book 141,
page 115, in the Ohio County Clerk’s office.

	 	 	 	 	 

	222.

	 	028 - 102, T.1
	 	12 acres
	 

	 	028 - 102, T.2
	 	37.5 acres

AND BEING the same property conveyed to Sentry Royalty Company and Beaver Dam Coal
Company in the following deeds, all in the Ohio County Clerk’s office:

a) Ed Bennett, et ux., dated September 15, 1959, recorded in Deed Book 142, page 512;

b) Stella Russell dated September 19, 1959, recorded in Deed Book 142, page 516;

c) Minnie Perry, et al., dated September 25, 1959, recorded in Deed Book 142, page 514;

d) Augusta Miller, et al., dated October 14, 1959, recorded in Deed Book 142, page 635;

e) Seward Bennett, et al., dated September 21, 1959, recorded in Deed Book 143, page 26;

f) Pauline Hampton, et al., dated October 14, 1959, recorded in Deed Book 143, page 28;

g) Ariee Bennett Taylor, et al., dated October 22, 1959, recorded in Deed Book 143, page 80;

h) Wilbert Bennett dated November 16, 1959, recorded in Deed Book 143, page 207;

i) Louise Anderson dated November 16, 1959, recorded in Deed Book 143, page 205.

	 	 	 	 	 

	223.

	 	028  -  101
	 	76.1 acres

25

 

AND BEING the same property conveyed to Sentry Royalty Company and Beaver Dam Coal
Company from Ed Bennett, et ux., by deed dated July 15, 1959, recorded in Deed Book 142, page
83, in the Ohio County Clerk’s office.

	 	 	 	 	 

	224.

	 	1123 - 004, T.1
	 	58.5 acres
	 

	 	123 - 004, T.2
	 	88.6 acres

AND BEING the same property conveyed to Peabody Development Company from Virginia Sue
Campbell, et al. (heirs of Charles E. Wolcott), by deed dated January 30, 1998, recorded in
Deed Book 311, page 79, in the Ohio County Clerk’s office.

	 	 	 	 	 

	225.

	 	028  -  099, T.1
	 	150 acres

AND BEING the same property conveyed to Sentry Royalty Company and Beaver Dam Coal
Company from Render Bradshaw, et al., by deed dated April 6, 1959, recorded in Deed Book 140,
page 279, in the Ohio County Clerk’s office.

	 	 	 	 	 

	226.

	 	028  -  080
	 	186 acres

AND BEING the same property conveyed to Homestead Coal Company and Beaver Dam Coal
Company from Roxie P. Gish, et al., by deed dated September 8, 1956, recorded in Deed Book
130, page 189, in the Ohio County Clerk’s office.

	 	 	 	 	 

	227.

	 	028  -  C  -  148
	 	131.5 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	228.

	 	028  -  056, T.1
	 	115 less 2 acres
	 

	 	028  -  056, T.2
	 	Approx. 103 acres

AND BEING the same property conveyed to Homestead Coal Company and Beaver Dam Coal
Company from Lucy Taylor, et vir., by deed dated April 7, 1955, recorded in Deed Book 124,
page 179, in the Ohio County Clerk’s office.

	 	 	 	 	 

	229.

	 	028 - C - 141
	 	392.3 acres
	230.

	 	028 - C - 147
	 	51 less 2 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	231.

	 	028  -  099, T.2
	 	2 acres

AND BEING the same property conveyed to Sentry Royalty Company and Beaver Dam Coal
Company from Render Bradshaw, et al., by deed dated April 6, 1959, recorded in Deed Book 140,
page 279, in the Ohio County Clerk’s office.

	 	 	 	 	 

	232.

	 	028  -  169, T.7
	 	“100 to 120 acres” (per deed)
	 

	 	028 - 169, T.8
	 	115 1/4 acres Less 40 1/4 acres

26

 

AND BEING the same property conveyed to Sentry Royalty Company and Beaver Dam Coal
Company from Farm Enterprises, Inc., by deed dated November 22, 1967, recorded in Deed Book
177, page 105, in the Ohio County Clerk’s office.

	 	 	 	 	 

	233.

	 	028 - C - 146
	 	70 acres
	234.

	 	028 - C - 143
	 	40 acres and 1 acre
	235.

	 	028 - C - 145
	 	95 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	236.

	 	1123 - 002 - 0A
	 	Undivided 1/2 Interest 152.1 acres

AND BEING the same property from which an undivided 1/2 interest was conveyed to
Peabody Development Company by Master Commissioner’s Deed dated February 10, 1999, recorded in
Deed Book 316, page 697, of the Ohio County Clerk’s office.

	 	 	 	 	 

	237.

	 	028 - C - 142
	 	135 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from Hattie B.
Speed, et al., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	238.

	 	028 - 068, T.1
	 	93.5 acres
	 

	 	028 - 068, T.2
	 	76.8 acres
	 

	 	028 - 068, T.3
	 	0.5 acres
	 

	 	028 - 068, T.4
	 	20 acres
	 

	 	028 - 068, T.5
	 	17.48 acres
	 

	 	028 - 068, T.6
	 	21.25 acres
	 

	 	028 - 068, T.7
	 	94.5 acres

AND BEING the same property conveyed to Homestead Coal Company and Beaver Dam Coal
Company by deed from Wallace Roe, et ux., et al., dated September 15, 1955, recorded in Deed
Book 126, page 152; and by deed from Gussie C. Roe, et vir., dated September 22, 1955, recorded
in Deed Book 126, page 215; both in the Ohio County Clerk’s office.

	 	 	 	 	 

	239.

	 	028 - 086
	 	50 acres

AND BEING the same property conveyed to Sentry Royalty Company and Beaver Dam Coal
Company from Walter Withrow, et ux., by deed dated July 9, 1957, recorded in Deed Book 133, page
315, in the Ohio County Clerk’s office.

	 	 	 	 	 

	240.

	 	028 - 090
	 	178 acres

AND BEING the same property conveyed to Sentry Royalty Company and Beaver Dam Coal
Company from Bertie Eudaley, et al., by the following deeds of record in the Ohio County
Clerk’s office:

a) Opia Coin, et vir., dated December 14, 1957, recorded in Deed Book 135, page 351;

b) George Erwin dated December 16, 1957, recorded in Deed Book 135, page 353;

c) Sudie Boone dated December 13, 1957, recorded in Deed Book 135, page 355;

27

 

d) William Eudaley dated November 7, 1957, recorded in Deed Book 135, page 357;

e) Bertie Eudaley, et al., dated December 13, 1957, recorded in Deed Book 135, page 359;

f) Ruth Brennick, et ux., dated December 30, 1957, recorded in Deed Book 135, page 443;

g) Mary Elizabeth Craft dated January 8, 1958, recorded in Deed Book 135, page 487;

h) Luvina Reid dated January 18, 1958, recorded in Deed Book 135, page 555; and

i) Rodney Chinn, Guardian for E. Robert and Erma Lee, dated December 28, 1957, recorded in Deed
Book 136, page 350.

	 	 	 	 	 

	241.

	 	028 - 082
	 	189 acres

AND BEING the same property conveyed to Sentry Royalty Company and Beaver Dam Coal Company
by the following deeds of record in the Ohio County Clerk’s office:

a) Eva Morton Vance, et vir., dated February 15, 1957, recorded in Deed Book 131, page 363;

b) Jean Morton Sherrill, et vir., dated February 22, 1957, recorded in Deed Book 131, page 425;

c) Ethyl Morton dated February 22, 1957, recorded in Deed Book 131, page 436.

	 	 	 	 	 

	242.

	 	028 - 215
	 	LEASEHOLD RESERVED HEREIN
	 
	243.

	 	028 - D - 64
	 	56 acres and 40 poles

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P.
Barnard, et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 101, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	244.

	 	028 - 210
	 	45 Less 3 acres

AND BEING the same property conveyed to Peabody Coal Company and Beaver Dam Coal Company
from Martha M. Marsh, et vir., by deed dated April 10, 1972, recorded in Deed Book 198, page 241,
in the Ohio County Clerk’s office.

	 	 	 	 	 

	245.

	 	028 - C - 150
	 	50 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P. Barnard,
et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the Ohio County
Clerk’s office.

	 	 	 	 	 

	246.

	 	028 - D - 70
	 	40 acres
	247.

	 	028 - D - 69
	 	47.60 acres
	248.

	 	028 - D - 71
	 	60 acres 3 rods and 4 poles except 6 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P.
Barnard, et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 101, in the Ohio
County Clerk’s office.

	 	 	 	 	 	 	 

	249.

	 	028 - D - 74
	 	45 acres
	 	25% Interest
	 

	 	028 - 211
	 	45 acres
	 	75% Interest

AND BEING a portion of the property conveyed to
Beaver Dam Coal Company from I. P.
Barnard, et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 101; and the same
45-acre tract conveyed to Beaver Dam Coal Company and Peabody Coal Company from

28

 

Ben Kimmel, et ux., by deed dated May 2, 1972, recorded in Deed Book 198, page 383; both in
the Ohio County Clerk’s office.

	 	 	 	 	 	 	 

	250.

	 	028 - 204
	 	           63.50 less 19.75 acres
	 	66% Interest

AND BEING the same property conveyed to Beaver Dam Coal Company and Peabody Coal
Company from heirs of Druzilla Barnard in the following deeds of record in the Ohio County
Clerk’s office:

a) Margret Everly, et al., by deed dated August 11, 1971, recorded in Deed Book 195, page 18;

b) Margaret D. Barnard, et al., by deed dated April 1, 1972, recorded in Deed Book 198,
page 130;

c) Jessie B. Woodward, et vir., by deed dated August 20, 1971, recorded in Deed Book 195, page 145.

	 	 	 	 	 	 	 

	251.

	 	028 - D - 75
	 	           19.75 acres
	 	25% Interest
	252.

	 	028 - D - 74
	 	           202 acres and 10 acres	 	 
	 

	 	 	 	           except 60 acres
	 	25% Interest
	253.

	 	028 - D - 41
	 	           66 less 30 acres	 	 
	254.

	 	028 - D - 68
	 	           30 acres	 	 
	255.

	 	028 - D - 67
	 	           64 acres	 	 

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P.
Barnard, et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 101, in the
Ohio County Clerk’s office.

	 	 	 	 	 

	256.

	 	028 - C - 153
	 	18.375 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P.
Barnard, et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the
Ohio County Clerk’s office.

	 	 	 	 	 

	257.

	 	028 - D - 51
	 	133.60 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P.
Barnard, et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 101, in the
Ohio County Clerk’s office.

	 	 	 	 	 

	258.

	 	028 - C - 152
	 	40 acres

AND BEING a portion of the property conveyed to Beaver Dam Coal Company from I. P.
Barnard, et ux., by deed dated March 15, 1916, recorded in Deed Book 51, page 135, in the
Ohio County Clerk’s office.

	 	 	 	 	 

	259.

	 	028 - 185, P.3, T.1
	 	120 acres
	 

	 	028 - 185, P.3, T.2
	 	74 acres

AND BEING a portion of the property conveyed to Peabody Coal Company from BB Mining
Company by deed dated August 24, 1970, recorded in Deed Book 191, page 280, in the Ohio
County Clerk’s office.

	 	 	 	 	 	 

	260.

	 	Part of 2699-000006-00-
	formerly: K-128-018, G. 6, T. 2	 	50 acres
	 

	 	 	 formerly: K-128-018, G. 6, T. 3
	 	0.50 acres

29

 

AND BEING a portion of the property conveyed to Cyprus Creek Land Resources, LLC, from CNX
Gas Company, LLC, by deed dated October 9, 2007, of record in Deed Book 370, page 657, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	261.

	 	Part of 2699-000006-00 - formerly: K-128-018, G.4
	 	55 acres

AND BEING a portion of the property conveyed to Cyprus Creek Land Resources, LLC, from CNX
Gas Company, LLC, by deed dated October 9, 2007, of record in Deed Book 370, page 657, in the
Ohio County Clerk’s office.

Common Sources of Title

1. By Quitclaim Deed dated September 30, 1957, recorded in Deed Book 134, page 219, Homestead Coal
Company, a Kentucky corporation, conveyed all of the land it owned in Ohio County to Sentry Royalty
Company, a Nevada corporation. (Also see the Quitclaim Deed dated December 1, 1967, recorded in Deed
Book 177, page 236; both in the Ohio County Clerk’s office.)

2. By Merger approved by the Illinois Secretary of State on February 5, 1968, recorded July 28,
1972, in Miscellaneous Book 6, page 375, in the Ohio County Clerk’s office, Sentry Royalty Company
merged with Peabody Coal Company. The merger occurred pursuant to Illinois law, and the instrument
recites that Peabody Coal Company, an Illinois corporation, owned all of the stock of the
non-surviving corporation.

3. By Deed dated March 29, 1968, recorded in Deed Book 178, page 395, in the Ohio County Clerk’s
office, Peabody Coal Company, an Illinois corporation, conveyed all of the property it owned in Ohio
County, Kentucky, to Peabody Coal Company, a Delaware corporation.

4. By Deed dated September 12, 1989, recorded in Deed Book 271, page 109, in the Ohio County Clerk’s
office, Peabody Coal Company, a Delaware corporation, conveyed all of the property it owned in Ohio
County, Kentucky, to Peabody Development Company, a Delaware corporation.

5. Pursuant to Section 266 of the Delaware General Corporation Law, Peabody Development
Company, a Delaware corporation, converted and changed its name to Peabody Development Company, LLC,
a Delaware limited liability company, effective December 16, 2003, recorded April 27, 2004, in
Miscellaneous Book 52, pages 627 - 630, in the Ohio County Clerk’s office.

6. Pursuant to Section 266 of the Delaware General Corporation Law, Peabody Coal Company, a Delaware
corporation, converted and changed its name to Peabody Coal Company, LLC, a Delaware limited
liability company, effective July 11, 2005, of record August 25, 2005, in Miscellaneous Book 55,
pages 147 -152, in the Ohio County Clerk’s office.

7. By instrument effective September 12, 1989, dated December 20, 2005, and recorded in Deed Book
358, page 226, in the Ohio County Clerk’s office, Peabody Coal Company, LLC, and Peabody Development
Company, LLC, confirmed the reserves transfer of September 12, 1989, at Deed Book 271, page 109.

30

 

8. By Corporate Special Warranty Deed dated and recorded on December 20, 2005, in Deed Book 358,
page 301, in the Ohio County Clerk’s office, Peabody Coal Company, LLC, conveyed all of the
property it owned in Ohio County, Kentucky, to Peabody Development Company, LLC.

9. By Corporate Special Warranty Deed dated and recorded December 20, 2005, in Deed Book 358, page
308, in the Ohio County Clerk’s office, Peabody Development Company, LLC, conveyed all of the
property it owned in Ohio County, Kentucky, to Central States Coal Reserves of Kentucky, LLC, a
Delaware limited liability company.

10. By Deed of Confirmation effective December 20, 2005, dated December 27, 2005, and recorded
January 17, 2006, in Deed Book 358, page 583, in the Ohio County Clerk’s office, Peabody Development
Company, LLC, confirmed the conveyance of the surface only of certain property previously conveyed
at Deed Book 358, page 308, to Central States Coal Reserves of Kentucky, LLC.

11. By instrument effective December 20, 2005, dated August 23, 2006, recorded August 24, 2006, in
Deed Book 362, page 558, in the Ohio County Clerk’s office, Peabody Coal Company, LLC, confirmed
that it had conveyed certain tracts to Peabody Development Company, LLC.

12. By instrument effective December 20, 2005, dated August 23, 2006, recorded August 24, 2006, in
Deed Book 362, page 563, in the Ohio County Clerk’s office, Peabody Development Company, LLC,
confirmed that it had conveyed certain tracts to Central States Coal Reserves of Kentucky, LLC.

13. Pursuant to Section 266 of the Delaware General Corporation Law, Beaver Dam Coal Company, a
Delaware corporation, converted and changed its name to Beaver Dam Coal Company, LLC, a Delaware
limited liability company, effective May 16, 2007, recorded May 21, 2007, in Miscellaneous Book 58,
pages 499 - 503, in the Ohio County Clerk’s office.

14. All of the foregoing is a portion of the same property conveyed by Beaver Dam Coal Company, LLC,
and Central States Coal Reserves of Kentucky, LLC, to Cyprus Creek Land Resources, LLC, by deed
dated September 13, 2007, of record in Deed Book 370, page 144, in the office of the Ohio County
Clerk.

15. All of the foregoing is a portion of the same property conveyed by Beaver Dam Coal
Company, LLC and Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC
by Correction Special Warranty Deed effective September 13, 2007, recorded March 18, 2008, in Deed
Book 373, page 43, in the Office of the Ohio County Clerk.

Schedule of Known

Exceptions and Prior Conveyances

1. Subject to the conveyance to A. J. Early of “all the gases, and all rights thereto”
underlying all property owned by Beaver Dam Coal Company within a boundary containing
33,925.37 acres, by deed dated March 22, 1928, recorded in Deed Book 74, page 103, in the
Office of the Ohio County Clerk.

31

 

2. Subject to the Notice of Royalty interest in favor of William G. Parrott, et al., dated December
19, 1983, recorded in Miscellaneous Book 16, pages 452 - 459, in the Ohio County Clerk’s office,
concerning the First, Third, and Fourth Boundaries described therein.

3. Subject to the overriding royalty Agreement dated June 1, 1967, recorded in Deed Book 179, page
259, in the Ohio County Clerk’s office, between Sentry Royalty Company and W. B. Dozier, Hellen
Dozier and Lula Hickman, concerning the Third Boundary described therein; additionally, all Tracts
designated “028 – 033” herein.

4. Subject to the Easement Agreement among Peabody Development Company, Beaver Dam Coal Company,
and Big Rivers Electric Corporation dated April 12, 1996, recorded in Deed Book 302, page 142, in
the Office of the Ohio County Clerk.

5. Subject to the Easement Agreement between Peabody Coal Company and Big Rivers Electric
Corporation dated March 13, 1996, recorded in Deed Book 302, page 150, in the Office of the Ohio
County Clerk.

6. Subject to the Transmission Line Easements from Peabody Coal Company, Peabody Development
Company, and Beaver Dam Coal Company to Kentucky Utilities Company, dated September 18, 1996,
recorded in Deed Book 304, pages 39 - 89, in the Office of the Ohio County Clerk.

7. Subject to the Utility Easement from Central States Coal Reserves of Kentucky, LLC, to Cyprus
Creek Land Company by instrument dated November 5, 2006, recorded in Deed Book 364, page 352, in the
Office of the Ohio County Clerk.

8. Item 3: Subject to the Easement from Beaver Dam Coal Company to Big Rivers Electric
Corporation dated August 17, 1982, recorded in Deed Book 245, page 600, in the Ohio County Clerk’s
office.

9. Item 74: Subject to the Unrecorded 1957 Trust Agreement in which certain beneficiaries
designated J. William Bassett as trustee on their behalf, to purchase the real estate of Chandler
Brothers, Inc. The Agreement empowered Bassett to sell, convey, lease, or dispose of the trust
estate on behalf of the beneficiaries without their personal execution of instruments; and further
empowered Bassett to pay all necessary and actual expenses incident to the acquisition, ownership,
and disposal of the subject real estate on behalf of the beneficiaries.

10. Item 78: Subject to the exception of a church and cemetery described in the Commissioner’s
deed to John S. Dexter dated March 24, 1894, recorded in Commissioner’s Deed Book E, page 434, in
the Office of the Ohio County Clerk.

11. Item 140: Subject to the highway right-of-way from Beaver Dam Coal Company and Sentry Royalty
Company to Ohio County, Kentucky, dated July 17, 1961, recorded in Deed Book 156, page 45, in the
Office of the Ohio County Clerk.

12. Item 142: Subject to the pipeline easement from Ross Morton, et ux., to Ashland
Oil Transportation Company, by instrument dated October 13, 1955, recorded in Deed Book 127, page 33,
in the Office of the Ohio County Clerk;

32

 

13. Item 144: A two (2) acre portion of the 54-acre tract is subject to an undivided
1/5 interest outstanding in the unknown heirs, unknown successors and/or assigns of Samuel K. Bishop
and Catherine Ellis Bishop, husband and wife, who last appear of record in Ohio County in 1886
(Deed Book 5, page 356, in the Ohio County Clerk’s Office) as residents of Muhlenberg County,
Kentucky.

14. Item 145: Subject to an undivided 1/5 interest outstanding in the unknown heirs, unknown
successors and/or assigns of Samuel K. Bishop and Catherine Ellis Bishop, his wife, who last appear
of record in Ohio County in 1886 (Deed Book 5, page 356, in the Ohio County Clerk’s Office) as
residents of Muhlenberg County, Kentucky.

15. Item 151: Subject to an undivided interest in all coal owned by Gladys Marie Burgess 5%,
Sherry Ann Maddox 1.666%, Jim V. Maddox 1.666%, and Geneva Maddox Fulkerson 1.666%.

16. Item 155: Subject to the deed from John Maddox, et al., to the United Baptist Church of West
Providence dated May 7, 1855, recorded in Deed Book O, page 537, in the Ohio County Clerk’s office.

17. Items 172 and 173: Subject to the pipeline easement from Ross Morton, et ux., to Ashland Oil
Transportation Company by instrument dated October 13, 1955, recorded in Deed Book 127, page 33, in
the Ohio County Clerk’s office.

18. Item 150: Subject to the conveyance by J. W. Chancellor, et ux., to the Trustees of Lone Star
Church by deed dated February 3, 1904, recorded in Deed Book 26, page 89, which tract description
cited the existence of a graveyard in 1904.

19. Item 175: Subject to the exception of a one (1) acre school tract as stated in the
tract description. The parent tract chain of title reveals no recorded conveyance of one (1) acre
for a school; however, the Beaver Dam Coal Company map indicates some type of exception within the
bounds of Coal Tract No. 028 - C - 8.

20. Item 185: Subject to (a) the cemetery conveyance from William L. Barnard, et ux., to trustees
of Equality Church, by deed dated March 7, 1889, recorded in Deed Book 8, page 305; and (b) the
exception of two (2) acres conveyed from C. M. Igleheart, et ux., to Andrew Addington, by deed dated
December 12, 1899, recorded in Deed Book 24, page 452; both conveyances recorded in the Office of
the Ohio County Clerk. The two (2) acre tract is designated Item 184 herein.

21. Items 193 and 194: Tract 1, and Parcels 1 through 4, are subject to an undivided 1/8 fee
simple interest outstanding in the unknown heirs of Martha Tichenor Bennett and Timothy Bennett,
husband and wife in 1850 (Ohio County Marriage Book F, page 90).

22. Item 196: Subject to the Transmission Line Easement from Beaver Dam Coal Company to
Kentucky Utilities Company dated March 1, 1977, recorded in Deed Book 226, page 174, in the Ohio
County Clerk’s office.

23. Item 197: Grantors possess no information to substantiate the ownership interest purportedly
conveyed from these three tracts.

24. Item 197: Subject to outstanding partial interests in 028-125, T2 and T3.

33

 

25. Item 204:

     (a) Tract 1 (62 1/2 acres) is subject to the life estate in an undivided 1/30 interest
in coal of Fannie E. Bullock, widow of W. C. Bullock who died in 1940. (See Deed Book 89, page 354.)
No Affidavit of Death of Fannie E. Bullock appears of record in Ohio County.

     (b) Tract 1 (62 1/2 acres) is subject to an outstanding undivided 20% interest in all
coal arising under the Will of Samuel Morton, recorded July 7, 1913, in Will Book E, page 28, in
the Office of the Ohio County Clerk. In 2003, the outstanding 20% interest in all coal was owned
by Hulan L. Bullock (13.33 percent), William M. Overhults (3.333 percent), and the Effie D.
Everly heirs (3.333 percent).

26. Item 205: Subject to a 2 1/2-acre fee simple exception, severed from J. R. Hunter, et ux., to
Sam Morton by deed dated January 20, 1902, recorded in Deed Book 24, page 343, in the Office of the
Ohio County Clerk. The 2 1/2-acre tract is a southwest portion of PVA Tract No. 126-19.

27. Item 211: Subject to the following, according to instruments of record in the Ohio
County Clerk’s office:

(a) Execution and recording of an Affidavit of Death in order to extinguish the dower interest
of Virgie Hunter Vincent (wife of Ben. T. Vincent) in all coal underlying the 135 1/2-acre tract.

(b) Approximately an undivided 41.568% interest in all coal underlying the 135 1/2-acre tract was
owned in 2003 by William M. Overhults, W. C. Overhuls, O. W. Overhuls, Susie Yeiser, Robert D.
Hunter, William M. Hunter, Margaret Ethel Hunter, and the unknown heirs, successors and/or assigns
of Howard H. Hunter, deceased.

(c) Pipeline right-of-way easement from Kenneth Geary, et ux., to Ashland Oil & Transportation
Company by instrument dated October 21, 1955, recorded in Deed Book 127, page 28, in the Office of
the Ohio County Clerk.

28. Items 215, 217 218, 220, 225 and 226: Subject to the Easement Agreement dated April 12, 1996,
from Peabody Development Company and Beaver Dam Coal Company to Big Rivers Electric Corporation
recorded in Deed Book 302, page 142, in the Ohio County Clerk’s office.

29. Item 215: Subject to the Easement granted to Kentucky Utilities Company by Carl Addington, et
ux., dated October 4, 1977, recorded in Deed Book 226, page 168, in the Ohio County Clerk’s office.

30. Items 217 and 219: Subject to the Easement granted to Kentucky Utilities Company by Peabody Coal
Company and Beaver Dam Coal Company dated March 1, 1977, recorded in Deed Book 226, page 162, in the
Ohio County Clerk’s office.

31. Item 216: Subject to the following instruments of record in the Ohio County Clerk’s office:

	a)	 	Highway right-of-way granted to the Commonwealth of Kentucky by Nancy E. Spicer, by
instrument dated April 12, 1934, recorded in Deed Book 89, page 102;

34

 

	b)	 	Easement granted to Kentucky Utilities Company by Elwood Cundiff, et ux., dated
April 12, 1934, recorded in Deed Book 111, page 247;
	 
	c)	 	Pipeline Easement granted to Ashland Oil & Transportation Company by Elwood Cundiff, et ux.,
in the undated instrument recorded in Deed Book 127, page 81;
	 
	d)	 	Easement granted to Kentucky Utilities Company by Delphine Addington dated October 11, 1977,
recorded in Deed Book 226, page 166.

32. Items 218 and 220: Subject to the following instruments of record in the Ohio County Clerk’s
office:

(a) Easement granted to Kentucky Utilities Company by Herbert Martin, et ux., dated January
9, 1948, recorded in Deed Book 106, page 379;

(b) Easement granted to Kentucky Utilities Company by Fosteen Burden dated October 5, 1977,
recorded in Deed Book 226, page 160; and

(c) Pipeline Easement granted to Ashland Oil & Transportation Company by Herbert Martin, et ux.,
in an undated instrument recorded in Deed Book 127, page 81.

33. Item 219: Subject to the following instruments of record in the Ohio County Clerk’s office:

(a) Highway right-of-way granted to the Commonwealth of Kentucky by R. H. Bennett, et ux., in the
instrument dated April 11, 1934, recorded in Deed Book 89, page 112;

(b) Easement granted to Kentucky Utilities Company by lcelean B. Young dated January 8, 1948,
recorded in Deed Book 106, page 405; and

(c) Pipeline Easement granted to Ashland Oil & Transportation Company by Ernest Burden, et ux., in
the instrument dated October 4, 1955, recorded in Deed Book 127, page 80, in the Ohio County Clerk’s
office.

34. Item 223: Subject to the 15 foot private road Easement granted to H. P. Addington by Robert
Bennett, et ux., in the deed dated September 18, 1906, recorded in Deed Book 29, page 607, in the
Ohio County Clerk’s office, now possessed by owners of PVA Tract No. 148 - 4B.

35. Item 225: Subject to the Easement granted to Kentucky Utilities Company by Peabody Coal Company
and Beaver Dam Coal Company dated March 1, 1977, recorded in Deed Book 226, page 158, in the Ohio
County Clerk’s office.

36. Item 230: Subject to the Pipeline Easement granted to Ashland Oil & Transportation Company by
Herman Jones, et ux., in the instrument dated September 12, 1955, recorded in Deed Book 127, page 9,
in the Ohio County Clerk’s office.

37. Items 224 and 226: Subject to the Pipeline Easement granted to Ashland Oil & Transportation
Company by J. J. Wolcott, et ux., and P. M. Wolcott, et ux., in the instrument dated September 29,
1955, recorded in Deed Book 127, page 1, in the Ohio County Clerk’s office.

38. Item 238: (a) Tract No. 028 - 068, T.2, is subject to the Oil and Gas Lease dated March 27,
1992, recorded in Lease Book 180, page 385, in the Ohio County Clerk’s office, from

35

 

Warren C. Roe (trustee for Richard Wallace Hughes, II, and Jonathan Todd Hughes) to Refuge
Exploration Company, Inc. of 734 Carlton Drive, Owensboro, Kentucky, 42303, for a primary term of
three (3) years, or so long thereafter as production occurred on the premises; and (b) Tract No.
028 - 068, T.2 and T.4 are subject to the Oil and Gas Lease dated March 27, 1992, recorded in
Lease Book 180, page 387, in the Office of the Ohio County Clerk, from Warren C. Roe, et ux., to
Refuge Exploration Company, Inc. of 734 Carlton Drive, Owensboro, Kentucky, 42303, for a primary
term of three (3) years, or so long thereafter as production occurred from the premises.

39. Items 229 and 230: Subject to the highway right-of-way granted to the Commonwealth of Kentucky
by C. A. Liter in the deed dated April 10, 1934, recorded in Deed Book 89, page 97, in the Office of
the Ohio County Clerk; and (b) C. D. Kessinger executed a similar conveyance in 1939 which cannot be
reviewed due to erroneous recording information in the indices of the Ohio County Clerk.

40. Items 235 and 236: Subject to the highway right-of-way granted to the Commonwealth of Kentucky
by H. G. Barnard, et ux., in the deed dated April 10, 1934, recorded in Deed Book 89, page 100, in
the Ohio County Clerk’s office.

41. Items 234, 235, 236 and 237: Subject to the Pipeline Easement granted to Ashland Oil &
Transportation Company by the H. G. Barnard heirs by instrument dated September 12, 1955, recorded
in Deed Book 127, page 5, in the Ohio County Clerk’s office.

42. Items 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 226, 227, 228, 229, 230, 231,
232, 233, 234, 235, 236, 237, 238 and 239: Subject to the Reciprocal Mining Agreement dated May
31, 2007, between Beaver Dam Coal Company, LLC and Central States Coal Reserves of Kentucky, LLC and
Western Land Company, LLC, recorded in Deed Book 368, page 1, in the Office of the Ohio County
Clerk.

43. Items 216, 219, 221, 222 and 232: Subject to the Utility Easement from Western Land Company, LLC,
to Central States Coal Reserves of Kentucky, LLC, dated December 12, 2006, recorded in Deed Book
365, page 66, in the Office of the Ohio County Clerk.

44. Items 113, 115, 116, 126, 127 and 128: Subject to the Transmission Line Easement from Western
Land Company, LLC, to Central States Coal Reserves of Kentucky, LLC, dated December 27, 2006, recorded in Deed Book 365, page 397, in the Office of the Ohio County Clerk.

45. Items 249 and 252: Subject to Correction Deed by Central States Coal Reserves of Kentucky, LLC
and Beaver Dam Coal Company, LLC, both Delaware limited liability companies, to Western Diamond,
LLC, a Nevada limited liability company, dated September 11, 2007, of record in Deed Book 369, page
759, in the Office of the Ohio County Clerk.

46. Items 260 and 261: Subject to the limitation on grant of deeded assets, Grantor’s reservation
of rights, and Grantee’s assumed liabilities contained in the Special Warranty Deed, Assignment,
Assumption and Bill of Sale from CNX Gas Company, LLC, as Grantor, to Cyprus Creek Land Resources,
LLC, as Grantee, dated October 9, 2007, of record in Deed Book 370, page 657, in the Office of the
Ohio County Clerk.

END OF EXHIBIT A-1

36

 

 

 

EXHIBIT B-1

Surface and Surface Coal Mining Rights Only

	 	 	 	 	 
	Item	 	Orig. L.C. No.	 	Acreage
	1.

	 	028 - 181(2)
	 	103 acres

AND BEING a portion of the property conveyed to Peabody Coal Company and Beaver Dam
Coal Company from William I. Brown, et ux., by deed dated March 13, 1970, recorded in Deed
Book 201, page 381, in the Ohio County Clerk’s office.

	 	 	 	 	 

	2.

	 	028  -  242
	 	32 acres

AND BEING the same property conveyed to Peabody Coal Company and Beaver Dam Coal
Company from Ella B. Bell, unmarried widow, by deed dated February 24, 1976, recorded in
Deed Book 217, page 447, in the Ohio County Clerk’s office.

	 	 	 	 	 

	3.

	 	028 - 296
	 	220.09 acres

AND BEING the same property conveyed to Peabody Coal Company from Big Rivers Electric
Corporation by deed dated May 13, 1988, recorded in Deed Book 265, page 418, in the Ohio
County Clerk’s office.

	 	 	 	 	 

	4.

	 	028 - 161, T.1
	 	60.25 acres
	 

	 	 	 	(except portion conveyed at Deed Book 237, page 90)
	 
	 	 	 	 
	 

	 	028 - 161, T.2
	 	75.00 acres
	 

	 	 	 	(except portion conveyed at Deed Book 237, page 90)

AND BEING a portion of the property conveyed to Sentry Royalty Company and Beaver Dam
Coal Company from Foster James, et ux., by deed dated December 15, 1966, recorded in Deed
Book 177, page 317, in the Ohio County Clerk’s office.

	 	 	 	 	 

	5.

	 	028  -  108, T.2
	 	258 acres
	 

	 	 	 	(except portion conveyed at Deed Book 237, page 90)

AND BEING a portion of the property conveyed to Sentry Royalty Company and Beaver Dam
Coal Company from John Lindley, et ux., by deed dated May 17, 1960, recorded in Deed Book
155, page 151, in the Ohio County Clerk’s office.

	 	 	 	 	 

	6.

	 	028  -  122
	 	168 acres
	 

	 	 	 	(except portion conveyed at Deed Book 237, page 90)

AND BEING a portion of the property conveyed to Sentry Royalty Company and Beaver Dam
Coal Company from Raymond T. Nall, widower, by deed dated February 14, 1961, recorded in Deed
Book 178, page 18; and also being the same property in which Peabody Coal Company conveyed
its undivided 1/2 interest to Beaver Dam Coal Company, expressly reserving all

38

 

underlying coal, by deed dated December 27, 1974, recorded in Deed Book 210, page 657; both
in the Ohio County Clerk’s office.

	 	 	 	 	 

	7.

	 	028  -  252
	 	0.55 acres

AND BEING the same property conveyed to Peabody Coal Company from Edwin Brown, et ux., by
deed dated June 8, 1977, recorded in Deed Book 224, page 227, in the Ohio County Clerk’s office.

	 	 	 	 	 

	8.

	 	028 - 251
	 	1.25 acres

AND BEING the same property conveyed to Peabody Coal Company from Earl Powers, et ux., by
deed dated June 8, 1977, recorded in Deed Book 224, page 229, in the Ohio County Clerk’s office.

Common Sources of Title

(All recorded references are to the Ohio County, Kentucky, Clerk’s Office)

1. By Quitclaim Deed dated September 30, 1957, recorded in Deed Book 134, page 219, Homestead Coal
Company, a Kentucky corporation, conveyed all of the land it owned in Ohio County to Sentry Royalty
Company, a Nevada corporation. Also see the Quitclaim Deed dated December 1, 1967, recorded in Deed
Book 177, page 236.

2. By Merger approved by the Illinois Secretary of State
on February 5, 1968, recorded July 28, 1972, in Miscellaneous Book 6, page 375, Sentry Royalty Company merged with Peabody Coal Company.
The merger occurred pursuant to Illinois law, and the instrument recites that Peabody Coal Company,
an Illinois corporation, owned all of the stock of the non-surviving corporation.

3. By Deed dated March 29, 1968, recorded in Deed Book 178, page 395, Peabody Coal Company, an
Illinois corporation, conveyed all of the property it owned in Ohio County, Kentucky, to Peabody
Coal Company, a Delaware corporation.

4. By Deed dated September 12, 1989, recorded in Deed Book 271, page 109, Peabody Coal Company, a
Delaware corporation, conveyed all of the property it owned in Ohio County, Kentucky, to Peabody
Development Company, a Delaware corporation.

5. Pursuant to Section 266 of the Delaware General Corporation Law, Peabody Development
Company, a Delaware corporation, converted and changed its name to Peabody Development Company, LLC,
a Delaware limited liability company, effective December 16, 2003, recorded April 27, 2004, in
Miscellaneous Book 52, pages 627  -  630.

6. Pursuant to Section 226 of the Delaware General Corporation Law, Peabody Coal Company, a Delaware
corporation, converted and changed its name to Peabody Coal Company, LLC, a Delaware limited
liability company, effective July 11, 2005, of record August 25, 2005, in Miscellaneous Book 55,
pages 147 - 152.

7. By instrument effective September 12, 1989, dated December 20, 2005, and recorded in Deed Book
358, page 226, Peabody Coal Company, LLC, and Peabody Development Company, LLC, confirmed the
reserves transfer of September 12, 1989, at Deed Book 271, page 109.

39

 

8. By Corporate Special Warranty Deed dated and recorded December 20, 2005, in Deed Book 358, page
301, Peabody Coal Company, LLC, conveyed all of the property it owned in Ohio County, Kentucky, to
Peabody Development Company, LLC.

9. By Corporate Special Warranty Deed dated and recorded December 20, 2005, in Deed Book 358, page
308, Peabody Development Company, LLC, conveyed all of the property it owned in Ohio County,
Kentucky, to Central States Coal Reserves of Kentucky, LLC, a Delaware limited liability company.

10. By Deed of Confirmation effective December 20, 2005, dated December 27, 2005, and recorded
January 17, 2006, in Deed Book 358, page 583, Peabody Development Company, LLC, confirmed the
conveyance of the surface only of certain property previously conveyed at Deed Book 358, page 308,
to Central States Coal Reserves of Kentucky, LLC.

11. By instrument effective December 20, 2005, dated August 23, 2006, recorded August 24, 2006, in
Deed Book 362, page 558, Peabody Coal Company, LLC, confirmed that it had conveyed certain tracts to
Peabody Development Company, LLC.

12. By instrument effective December 20, 2005, dated August 23, 2006, recorded August 24, 2006, in
Deed Book 362, page 563, Peabody Development Company, LLC, confirmed that it had conveyed certain
tracts to Central States Coal Reserves of Kentucky, LLC.

13. Pursuant to Section 266 of the Delaware General Corporation Law, Beaver Dam Coal Company, a
Delaware corporation, converted and changed its name to Beaver Dam Coal Company, LLC, a Delaware
limited liability company, effective May 16, 2007, recorded May 21, 2007, in Miscellaneous Book 58,
pages 499 - 503.

14. And being a portion of the same property conveyed by Beaver Dam Coal Company, LLC and Central
States Coal Reserves of Kentucky, LLC, to Cyprus Creek Land Resources, LLC, by deed dated September
13, 2007, of record in Deed Book 370, page 144.

15. And being a portion of the same property conveyed by Cyprus Creek Land Resources, LLC to Cyprus
Creek Land Company by deed dated September 13, 2007, recorded in Deed Book 370, page 199.

16. And being a portion of the same property conveyed by Beaver Dam Coal Company, LLC and Central
States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC, by Correction Special
Warranty Deed of Conveyance effective September 13, 2007, recorded March 28, 2008, in Deed Book 373,
page 43.

Schedule of Known

Exceptions and Prior Conveyances

1. Subject to the Notice of Royalty Interest in favor of William G. Parrott, et al., dated
December 19, 1983, recorded in Miscellaneous Book 16, page 452, concerning the Third Boundary
described therein.

2. Subject to the Overriding Royalty Agreement dated June 1, 1967, recorded in Deed Book 179,
page 259, between Sentry Royalty Company and W. B. Dozier, Helen Dozier, and Lula Hickman,
concerning the Third Boundary described therein.

40

 

3. Subject to the conveyance to A. J. Early of “all the gases, and all rights thereto”
underlying all property owned by Beaver Dam Coal Company within a boundary containing
33,925.37 acres, by deed dated March 22, 1928, recorded in Deed Book 74, page 103.

4. Item 4: Subject to the following instruments of record:

     (a) The 1/4-acre cemetery
excepted by heirs of John Howell in the deed dated and recorded
April 8, 1833, in Deed Book F, page 393;

     (b) Highway right-of-way to
Ohio County, Kentucky, dated February 13, 1931, recorded in
Deed Book 78, page 194;

     (c) Highway right-of-way to
the Commonwealth of Kentucky dated September 9, 1933, recorded
in Deed Book 81, page 595;

     (d) Highway right-of-way
to the Commonwealth of Kentucky dated September 19, 1933, recorded
in Deed Book 81, page 596;

     (e) Conveyance of Raymond Nall Road by Big Rivers Electric Corporation, et al., to Ohio
County, Kentucky, dated January 10, 1984, recorded in Deed Book 249, page 599; and

     (f) Pole Line Agreement from Bernie Tichenor, et ux., to Kentucky Utilities Company dated
March 17, 1947, recorded in Deed Book 104, page 331. The cited utility easement has been
relocated but no instrument appears of record to this effect. See the plat of record in
Deed Book 237, page 102, which depicts the power line easement as located in 1980.

5. Item 5: Subject to the following instruments of record:

     (a) The undivided 1/8 interest in the Alney Tichenor estate (179 acres)
outstanding in the heirs of Maria Tichenor and Squire W. Tichenor, wife and husband. Maria
Tichenor last appears of record in 1903 (Deed Book 30, page 453). The Affidavit of Descent
dated April 17, 1950, recorded April 22, 1950, in Deed Book 111, page 120, states that S. W.
Tichenor died intestate circa 1945, an unmarried resident of Ohio County, survived by the
following persons who constitute his sole heirs:

	 	 	 	 	 	 	 	 	 	 	 

	Clyde Tichenor

	 	Son
	 	 	64	 	 	Centertown, Ky.
	 	1/4
	Gerda M. Tichenor

	 	Daughter
	 	 	72	 	 	Centertown, Ky.
	 	1/4
	Melissa A. James

	 	Daughter
	 	 	64	 	 	Centertown, Ky.
	 	1/4
	Willie L. Myers

	 	Daughter
	 	 	68	 	 	Alcoa, Tn.
	 	1/4

     (b) Road reservation described in the deed dated September 19, 1919, recorded
in Deed Book 57, page 639, in which C. A. Lindley, et ux., and John Lindley, et ux., conveyed
the 258 acre parent tract to Homer Nation and Bert Nation. The road is located within
Surface Tract No. 028 - 197, T. 1, as the same was conveyed to Theodore Hill, et ux., in 1919
(Deed Book 61, page 525).

     (c) Agreement of Right of Way dated November 2, 1936, recorded in Deed Book 85, page 97, in
which Bert Nation, et ux., et al., granted a right-of-way across the subject tract to Kentucky
Natural Gas Corporation of Owensboro, Kentucky.

6. Item 6: Subject to the following instruments of record:

     (a) The 168 acre tract is erroneously described in all instruments of record from
1875 to the present, which description fails to account for an 18 3/4 acre parcel described in
1830 at Deed Book F, page 242, comprising a northeastern portion of the 168 acre parent tract.

41

 

     (b) The highway right-of-way deed dated September 6, 1933, recorded in Deed Book 81, page 593,
by James N. Nall, et ux., to the Commonwealth of Kentucky, State Highway Commission.

     (c) Pole Line Agreement dated May 13, 1947, recorded in Deed Book 104, page 392, by Raymond T.
Nall to Kentucky Utilities Company.

7. Item 8: Subject to the following highway rights-of-way of record:

     (a) Deed dated February 3, 1931, recorded in Deed Book 78, page 191, by J. N. Nall, et ux., to
Ohio County, Kentucky;

     (b) Deed dated August 22, 1931, recorded in Deed Book 78, page 216, by J. N. Nall, et ux., to
Ohio County, Kentucky; and

     (c) Deed dated September 6, 1933, recorded in Deed Book 81, page 593, by J. N. Nall, et ux., to
the Commonwealth of Kentucky, State Highway Commission.

END OF EXHIBIT B-1

42

 

 

 

SCHEDULE B

Leased Property

All of Lessor’s right, title and interest in and to the following surface and/or coal tracts
situated in Ohio County, Kentucky: all of the #9 vein or seam of coal and the coal mining rights
and privileges appurtenant thereto, in, on and underlying the real property more particularly
described on Exhibit A attached hereto and depicted on the map attached as Exhibit B, both of the
aforesaid Exhibits are incorporated herein by reference and made a part hereof, together with all
appurtenants thereunto belonging or in anywise appertaining, and being subject to the known
exceptions and prior conveyances more particularly set forth herein.

BEING the same property acquired by Ceralvo Holdings, LLC from Cyprus Creek Land Resources, LLC by
Assignment and Assumption of Mineral Leasehold Estate (Danks and Ray #9 Coal Only), dated March
31, 2008, a Memorandum of which being of record in Deed Book 373, Page 199, in the office of the
Clerk of Ohio County, Kentucky.

Underlying lease: Agreement between Athel W. Danks and Richard A. Danks and Amy Ray and Ed Ray in
favor of Peabody Coal Company dated August 25, 1972, a short form of which is of record in Deed
Book 200, Page 215, in the office of the Clerk of Ohio County, Kentucky.

2

 

EXHIBIT A

Tract No. 028 - 215, Parcels 1 - 6

Parcel 1: Beginning at two beeches on the bank of Green River, thence N. 12-1/2 E. 167
poles and 13 links to a stone; thence 

S. 68-1/4 E. 143 poles to a stone, thence S. 28 W. 76 poles
and 23 links to a stone; thence S. 57-1/2 E. 30 poles and 8 links to a stone; thence S. 20-1/2 W.
66 poles to a hickory bush and stone on the bank of Green River; thence down the river to the
beginning, containing 131 acres.

Parcel 2: Beginning at a stone; thence N. 12-1/2 E. 58 poles and 12 links to a small ash
and stone; thence S. 68-1/4 E. 141 poles to a stone, thence South 2 West 38 poles and 5 links to a
stone; thence South 28 West 21 poles and 12 links to a stone; thence North 68-1/4 West 143 poles
to the beginning, containing 52 acres.

Parcel 3: Beginning at a stone; thence South 57-1/2 E. 30 poles and 8 links to a stone;
thence South 66 East 49 poles and 5 links to a stone; thence North 48-1/2 E. 20 poles and 7 links
to a stone in the Hartford and Ceralvo Road; thence North 65-1/2 East 43 poles and 16 links to a
stone in said road; thence North 50-3/4 E. 24 poles and 20 links to a stone; thence South 69 East
20 poles to two black oaks and a stone; thence North 36-3/4 East 8 poles and 17 links to a black
oak and stone; thence North 11 W. 33 poles and 5 links to a down poplar, black gum and stone;
thence North 9-1/2 East 38 poles and 20 links to a poplar and hickory; thence North 72-1/2 W. 32
poles to a black oak stump, hickory and stone; thence North 68-1/4 W. 113 poles and 20 links to a
stone; thence South 2 West 38 poles and 5 links to a stone; thence S. 28 W. 98 poles and 10 links
to the beginning, containing 115-1/2 acres.

Parcel 4: Beginning at a stone in the original line between Presley L. Wood and D. W.
Kimmel on the West side of the Hartford and Ceralvo road; thence with said road N. 36 1/4 E. 31
rods and 8 links to a stone, thence with said road N. 26 E. 11 rods and 20 links to a stone,
thence with the road that connects the Hartford and Ceralvo road with the Hartford and South
Carrollton road, 

N. 42 1/4 W. 35 rods and 16 links to a stone; thence S. 9 1/2 W. 34 rods to a
black gum down poplar and stone; thence S. 11 E. 30 rods to the beginning, containing Six acres
more or less.

Parcel 5: Beginning at a black gum, the South west corner of J. O. Kimbley’s land, thence North
104-8/11 poles to a stone in the original line thence North 70 West 91 poles to a stone in a
branch, thence North 3 East 57 1/2 poles to a stone on bank of branch in M. F. Kimbley’s line,
thence with his line North 87 1/2 West 27 poles to a poplar tree and stone, E. W. Smith’s corner in
M. F. Kimbley’s line, thence with E. W. Smith’s line South 152 8/11 poles to a gum tree and stone
in V. B. Morton’s line, thence South 70 East 121 poles to the beginning and containing 81 acres
more or less.

Parcel 6: Beginning at a stone in Hartford and Ceralvo Road; thence South 63-1/2 East 30
rods and 23 links to a stone; thence South 17-3/4 West 12 rods and 15 links to a stone in the
back line of the Town Plat of Ceralvo; thence South 64-1/2 East 23 rods and 17 links to a stone
in Mrs. Druzilla Barnard’s line; thence North [28 E] 76-1/2 rods to a stone and two black oaks,
P.

-6-

 

L. Wood’s corner; thence N. 69 W. 20 rods to a stone; thence South 50-3/4 West 24 rods and
20 links to a stone in the Hartford and Ceralvo road; thence S. 65-1/2 W. with said road 50
rods and 10 links to the beginning, containing 16 acres more or less.

AND BEING the same property in which the No. 9 seam of coal was leased to Peabody Coal Company
by Athel W. Danks, et vir., and Ama W. Ray, et vir., by Agreement dated August 25, 1972,
recorded in Deed Book 200, page 215, in the Ohio County Clerk’s office.

Common Sources of Title

     All recording references are to the Office of the Ohio County Clerk:

1. By Deed dated September 12, 1989, recorded in Deed Book 271, page 109, Peabody Coal Company, a
Delaware corporation, conveyed all of the property it owned in Ohio County, Kentucky, to Peabody
Development Company, a Delaware corporation.

2. Pursuant to Section 266 of the Delaware General Corporation Law, Peabody Development
Company, a Delaware corporation, converted and changed its name to Peabody Development Company,
LLC, a Delaware limited liability company, effective December 16, 2003, recorded April 27, 2004,
in Miscellaneous Book 52, pages 627 - 630.

3. Pursuant to Section 226 of the Delaware General Corporation Law, Peabody Coal Company, a
Delaware corporation, converted and changed its name to Peabody Coal Company, LLC, a Delaware
limited liability company, effective July 11, 2005, of record August 25, 2005, in Miscellaneous
Book 55, pages 147 - 152.

4. By instrument effective September 12, 1989, dated December 20, 2005, and recorded in Deed Book
358, page 226, Peabody Coal Company, LLC, and Peabody Development Company, LLC, confirmed the
reserves transfer of September 12, 1989, at Deed Book 271, page 109.

5. By Corporate Special Warranty Deed dated and recorded December 20, 2005, in Deed Book 358, page
301, Peabody Coal Company, LLC, conveyed all of the property it owned in Ohio County, Kentucky, to
Peabody Development Company, LLC.

6. By Corporate Special Warranty Deed dated and recorded December 20, 2005, in Deed Book 358, page
308, Peabody Development Company, LLC, conveyed all of the property it owned in Ohio County,
Kentucky, to Central States Coal Reserves of Kentucky, LLC, a Delaware limited liability company.

7. By Deed of Confirmation effective December 20, 2005, dated December 27, 2005, and
recorded January 17, 2006, in Deed Book 358, page 583, Peabody Development Company, LLC,
confirmed the conveyance of the surface only of certain property previously conveyed at Deed
Book 358, page 308, to Central States Coal Reserves of Kentucky, LLC.

8. By instrument effective December 20, 2005, dated August 23, 2006, recorded August 24, 2006,
in Deed Book 362, page 558, Peabody Coal Company, LLC, confirmed that it had conveyed certain
tracts to Peabody Development Company, LLC.

-7-

 

9. By instrument effective December 20, 2005, dated August 23, 2006, recorded August 24,
2006, in Deed Book 362, page 563, Peabody Development Company, LLC, confirmed that it had conveyed
certain tracts to Central States Coal Reserves of Kentucky, LLC.

10. By Assignment and Assumption of Mineral Leasehold Estate dated September 10, 2007, of record in
Deed Book 370, page 368, Central States Coal Reserves of Kentucky, LLC assigned to Cyprus Creek Land
Resources, LLC, a Delaware limited liability company, all of its right, title and interest in and to
the Dank/Ray Agreement.

Schedule of Known

Exceptions and Prior Conveyances

1. Subject to an overriding royalty interest referred to in the Notice of Royalty Interest in favor
of William G. Parrott, et al, dated December 19, 1983, recorded in Miscellaneous Book 16, page 452,
in the Office of the Ohio County Clerk, concerning the Fourth Boundary described therein.

2. Parcels 2, 5 and 6 are subject to the unrecorded Affidavit of Descent of E. B. Wood executed by
Athel W. Danks in 1972, which is in the possession of the grantors herein.

3. Parcels 3 and 4 are subject to the coal reservation by Athel Wood Danks, et vir., et al., by deed
dated August 15, 1946, recorded in Deed Book 102, page 304.

4. Parcel 5 is subject to the coal reservation by E. B. Wood by deed dated May 22,
1917, recorded in Deed Book 53, page 249.

- 8 -

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