Document:

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                                                                    Exhibit 4.47

                                SHARE OPTION PLAN

                                OPTION COMMITMENT
                                (SENIOR OFFICER)

Notice is hereby given that, effective this 17th day of March, 2005 (the
"Effective Date") Pine Valley Mining Corporation (the "Company") has granted to
Samuel K.C. Yik (the "Service Provider"), an Option to acquire 300,000 Common
Shares ("Optioned' Shares") up to 5:00 p.m. Vancouver Time on the 17th day of
March, 2010 (the "Expiry Date") at a Exercise Price of Cdn$5.31 per share.

At the date of grant of the Option, the Company is classified as a Tier 1
company under TSX Venture Policies.

Optioned Shares will vest and may be exercised as follows:

(a)  37,500 shares on June 16, 2005; and

(b)  37,500 shares every three months thereafter until fully vested.

The grant of the Option evidenced hereby is made subject to the terms and
conditions of the Company's Share Option Plan, the terms and conditions of which
are hereby incorporated herein.

To exercise your Option, deliver a written notice specifying the number of
Optioned Shares you wish to acquire, together with cash or a certified cheque
payable to the Company for the aggregate Exercise Price, to the Company. A
certificate for the Optioned Shares so acquired will be issued by the transfer
agent as soon as practicable thereafter.

PINE VALLEY MINING CORPORATION

/s/ Samuel K. C. Yik
-------------------------------------
Authorized Signatory<PAGE>
                                                                    EXHIBIT 4.48

                         AGREEMENT OF PURCHASE AND SALE

THIS AGREEMENT dated the 1st day of April, 2005.

BETWEEN:

         FALLS MOUNTAIN COAL INC. ("Falls Mountain"), a British Columbia
         corporation with its principal place of business in Vancouver, British
         Columbia, Canada

AND:

         SEDGMAN CANADA LTD. ("Sedgman"), a Pennsylvania corporation with
         principal place of business in Pittsburgh, Pennsylvania, United States

AND:

         SEDGMAN, L.L.C. ("Sedgman USA"), a Pennsylvania Limited Liability
         Company with its principal place of business in Pittsburgh,
         Pennsylvania

WHEREAS Falls Mountain wishes to purchase, and Sedgman wishes to provide,
certain Equipment (as defined below) to be incorporated into the Preparation
Plant (the "Plant"), located at Willow Creek Mine in Chetwynd, British Columbia,
Canada;

THEREFORE in consideration of the promises and of the mutual agreements
hereinafter contained, the parties hereto do hereby agree as follows:

1.   SCHEDULES

1.1  The following attached Schedules are a part of this agreement:

     Schedule 1 - Equipment

     Schedule 2 - Fees and Payment
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2.   EQUIPMENT

2.1  Sedgman will perform all work, including design and engineering work,
     necessary to procure, size, specify, select, supply and deliver the
     equipment specified in Schedule 1 (the "Equipment").

2.2  Sedgman will ensure that Sedgman Canada Company enters into a separate
     agreement with Falls Mountain to install and commission the Equipment in
     accordance with the Agreement dated the 15th day of April, 2005 (the
     "Services Agreement"). Sedgman will guarantee the performance of Sedgman
     Canada Company under the Services Agreement.

2.3  Sedgman represents and warrants with respect to the Equipment that:

     (a)  Sedgman has the necessary experience and expertise to perform the work
          necessary to procure, size, specify, select, supply and deliver the
          Equipment in accordance with this Agreement;

     (b)  the Equipment will be:

          (i)  free of defects in design and shall be fit for the purpose for
               which the Equipment has been procured and supplied; and

          (ii) free of defects in materials and workmanship.

     (c)  Sedgman has informed itself of conditions at the Plant, and the
          Equipment is of a design and quality suitable for cleaning coal as
          intended by Falls Mountain as part of its Plant and achieving the
          Performance Standard (as defined in the Services Agreement);

     (d)  the Equipment, when installed and operated in accordance with the
          Operating and Maintenance Manuals, shall be capable of achieving the
          Performance Standard; and

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     (e)  all engineering and design work will be performed in accordance with
          generally accepted engineering and design standards.

3.   DELIVERY OF THE EQUIPMENT

3.1  Sedgman will deliver the Equipment in a timely manner to ensure the
     "SCHEDULE OF SERVICES" described in the Services Agreement is adhered to,
     including the Project Completion date.

3.2  Sedgman will attach to all Equipment identification "Tags" in accordance
     with the reference numbers outlined in Sedgman's information to identify
     each element of Equipment.

4.   PLANS, SPECIFICATIONS AND MANUALS

4.1  Sedgman will provide all plans, specifications, parts lists, instructions
     and manuals (both operating and maintenance) of the Equipment in a detail
     and quality in accordance with industry standards, to the reasonable
     satisfaction of Falls Mountain, and so as to permit Falls Mountain to
     operate and maintain the Equipment in a proper and prudent manner.

4.2  Sedgman will provide:

     (a)  three copies of the latest design drawings and an AutoCAD CD of these
          drawings; and

     (b)  four copies of the Operating and Maintenance Manuals (prepared to the
          reasonable satisfaction of Falls Mountain) and spare parts list for
          all Equipment; including any updates necessary as a result of
          commissioning, upon Project Completion as defined in the Services
          Agreement; Falls Mountain shall not be required to make payment of any
          amount specified in an invoice submitted by

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          Sedgman in accordance with Schedule 2 unless such invoice is
          accompanied by the documents described in this section 4.2.

5.   TITLE AND INSURANCE

5.1  Sedgman warrants that it has or will have good and marketable title to the
     Equipment, including all components of the Equipment, free and clear of any
     and all liens, restrictions, reservations or claims of any kind and that it
     will defend the title to Falls Mountain.

5.2  Title to the Equipment or components of the Equipment will pass to Falls
     Mountain upon delivery of the Equipment or components of the Equipment to
     Sedgman's shipper at the Equipment suppliers' U.S. location. Sedgman shall
     bear all risk of damage to the Equipment during shipping and delivery to
     the Plant, and the Equipment shall remain at Sedgman's risk during
     installation under the Services Agreement through until Project Completion.

5.3  Sedgman will, at Falls Mountain's Expense, obtain, or cause to be obtained,
     insurance for the benefit of Falls Mountain on terms standard in the
     industry covering the risks identified above, satisfactory to Falls
     Mountain acting reasonably, on all the Equipment for its full replacement
     value.

5.4  Sedgman warrants and represents that the Equipment does not infringe,
     directly or indirectly, and patent, copyright, trademark or proprietary
     information right. Sedgman will at its cost defend, indemnify and hold
     harmless Falls Mountain for all costs, expenses or damages of any kind,
     including actual legal costs and disbursements, arising or relating to any
     claim that the Equipment is an infringement of any such right. With respect
     to any intellectual property rights held by third parties with respect to
     the

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     Equipment, Sedgman will obtain such rights and will provide and transfer to
     Falls Mountain any and all such rights, including intellectual property
     licenses, reasonably required by Falls Mountain with respect to the
     Equipment.

6.   PAYMENT

6.1  Falls Mountain will pay for the Equipment provided by Sedgman under this
     Agreement in accordance with the terms of Schedule 2.

6.2  Falls Mountain shall be responsible for and pay all provincial sales taxes,
     goods and services taxes and transfer taxes, if any, eligible in respect of
     the purchase of the equipment by the Falls Mountain from Sedgman hereunder
     and in addition shall reimburse Sedgman in respect of any brokerage fees
     incurred by Sedgman to the extent such taxes and fees are not reflected in
     the price of the equipment hereunder, provided that such brokerage fees do
     not exceed X% per cent of the price of the equipment purchased hereunder.
     Sedgman further agrees that it will register for GST purposes under the
     Excise Tax Act (Canada) before importing into Canada any of the equipment
     to be purchased hereunder and will promptly apply for and use its best
     efforts to obtain an input tax credit under the Excise Tax Act in respect
     of any goods and services tax paid by it or by Falls Mountain on its behalf
     in respect of the importation of the equipment referred to herein into
     Canada. Sedgman will reimburse Fall Mountain for any amount paid by Falls
     Mountain to the extent of any input tax credit successfully claimed by
     Sedgman.

6.3  Falls Mountain shall indemnify and save harmless Sedgman from any and all
     costs, demands, claims, liabilities, actions and other obligations of any
     nature whatsoever arising from Falls Mountain's breach of section 6.2.

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7.   WARRANTY

7.1  Sedgman warrants that: the Equipment shall be free from defects in
     workmanship and materials for a period of 12 months commencing from Project
     Completion (the "Warranty Period"); except that the warranty provided by
     Sedgman under this agreement shall not extend to:

     (a)  repairs required normal wear and tear; or

     (b)  repairs or failure caused by Falls Mountain failing to operate the
          Equipment in accordance with Sedgman's Operating and Maintenance
          Manuals.

7.2  If any defects or deficiencies specified in section 7.1 are discovered
     during the Warranty Period then, on written notice from Falls Mountain,
     Sedgman shall promptly, at its own expense, remedy the defect or
     deficiency, and with respect to any replaced or repaired components of the
     Equipment an extended warranty of 12 months shall run, commencing from the
     date such component is placed into normal service or use. This extended
     warranty shall also apply to any parts of the Equipment that are repaired
     or replaced in order to meet the performance guarantees. Notwithstanding
     the foregoing, Sedgman's obligations contained in this Article 7 --
     Warranty shall in no event extend beyond 24 months from Project Completion.

7.3  If Sedgman fails or refuses to remedy any defect as required by the
     previous section, then Falls Mountain may, but is not obligated to, upon
     five days written notice to Sedgman repair the defect and all costs
     arising, including costs of Falls Mountain's own staff, shall be due and
     payable by Sedgman.

7.4  Sedgman will assign all of its rights in any warranties or guarantees
     provided by any manufacturers, suppliers, contractors or subcontractors
     with respect to the Equipment or

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     components of the Equipment, such assignment to be in a form to the
     reasonable satisfaction of Falls Mountain. Where obtainable, such
     warranties or guarantees will be made directly to Falls Mountain.

7.5  Sedgman's obligation to repair or replace the Equipment or compensate Falls
     Mountain for repairs or replacements, in accordance with sections 7.2 and
     7.3, shall be Falls Mountain's exclusive remedy for a breach of the
     warranties contained in this Article 7 -- Warranty.

7.6  Sedgman disclaims all warranties as to the merchantability or fitness of
     the Equipment for any particular purpose other than as expressly set forth
     in this Agreement.

8.   CONSEQUENTIAL DAMAGES

8.1  Notwithstanding any other provision in this Agreement, Sedgman shall not be
     liable to Falls Mountain, and Falls Mountain shall not be liable to
     Sedgman, for any consequential or indirect damages, including but not
     limited to overhead of any kind, loss of use, lost opportunity, loss of
     profits, loss of product and loss of reputation.

9.   GENERAL

9.1  GUARANTEE. Sedgman USA hereby absolutely, irrevocably and unconditionally
     guarantees to Falls Mountain, its successor and assigns, the full
     performance and observation of all the terms, covenants, conditions and
     provisions to be performed or observed by Sedgman under this Agreement.
     Such guarantee shall be as primary obligor and not merely as surety.

9.2  ARBITRATION. All matters in dispute under this Agreement may, with the
     concurrence of both Falls Mountain and Sedgman, be submitted to arbitration
     by a single arbitrator,

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     pursuant to the Commercial Arbitration Act of British Columbia. Any
     arbitration will take place in Vancouver, British Columbia, unless both
     parties expressly agree otherwise.

9.3  ENTIRE AGREEMENT. This Agreement, including the Schedules and any other
     documents expressly referred to in this Agreement as being a part of this
     Agreement, together with the Services Agreement, contains the entire
     agreement of the parties regarding the supply and installation of the
     Equipment and no understandings or agreements, oral or otherwise, exist
     between the parties except as expressly set out in this Agreement.

9.4  COUNTERPARTS. This Agreement and all documents contemplated by or delivered
     under or in connection with this Agreement may be executed and delivered in
     any number of counterparts with the same effect as if all Parties had all
     signed and delivered the same document and all counterparts will be
     construed together to be an original and will constitute one and the same
     agreement.

9.5  AMENDMENT. This Agreement may be amended only by agreement in writing,
     signed by both parties.

9.6  NOTICES. Any notice, report or other document that either party may be
     required or may wish to give to the other must be in writing, unless
     otherwise provided for, and will be deemed to be validly given to and
     received by the addressee, if served personally, on the date of such
     personal service or, if delivered by mail, or facsimile, when received. The
     addresses for delivery will be as follows:

               FALLS MOUNTAIN:

                    Falls Mountain Coal Inc.
                    c/o Pine Valley Mining Corporation 501 - 535 Thurlow Street
                    Vancouver, British Columbia, Canada V6E 3L2
                    Fax: (604) 682-4698

                                        8
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               ATTENTION: Graham Mackenzie

               With a copy to:

               Bull, Housser & Tupper

                    Barristers and Solicitors
                    3000 Royal Centre
                    1055 West Georgia Street
                    PO Box 11130
                    Vancouver BC V6E 3R3
                    Fax: (604) 646-2514

               ATTENTION: Grant Weaver

               SEDGMAN:

                    Sedgman Canada Ltd.
                    2090 Greentree Road
                    Pittsburgh, Pennsylvania, United States
                    15220
                    Fax: (412) 429 - 9800

               ATTENTION: Michael F. Placha

9.7  UNENFORCEABILITY. If any provision of this Agreement is invalid or
     unenforceable, it shall be severed from the Agreement and will not affect
     the enforceability or validity of the remaining provisions of the
     Agreement.

9.8  HEADINGS. The headings in this Agreement are inserted for convenience of
     reference only and shall not form part of nor affect the interpretation of
     this Agreement.

9.9  WAIVER. No waiver by either party of any breach by the other party of any
     of its covenants, obligations and agreements shall be a waiver of any
     subsequent breach or of any other covenant, obligation or agreement, nor
     shall any forbearance to seek a remedy for any breach be a waiver of any
     rights and remedies with respect to such or any subsequent breach.

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9.10 FORCE MAJEURE. If, because of an event or circumstance beyond the
     reasonable control of either party, Sedgman is unable to meet or is delayed
     in meeting its obligations under this Agreement, and if Sedgman promptly
     gives Falls Mountain written notice of such event or circumstance, then the
     time of performance will be extended as reasonably required as a result of
     the circumstance or event. The parties will each bear their own costs as a
     result of the circumstance or event. Nothing in this paragraph shall be
     construed as relieving or suspending Falls Mountain from its obligations to
     pay for work performed to the date of such circumstance or event.

9.11 GOVERNING LAW. This Agreement and its application and interpretation will
     be governed exclusively by the laws prevailing in British Columbia which
     will be deemed to be the proper law hereof.

9.12 COMPLIANCE WITH LAWS. Sedgman will design the Equipment so that it is in
     compliance with all laws, codes, bylaws and regulations, including safety
     regulations, applicable to the Equipment at the Plant. Without limiting the
     generality of the foregoing, Sedgman will ensure that the Equipment
     complies with standards and codes normally associated with this type of
     project, including but are not limited to: NEC; ASTM; AISC; CEMA; and NCA.

9.13 LIMITATION OF LIABILITY. Subject to amounts recoverable under policies of
     insurance required to be maintained under this Agreement, Sedgman's
     aggregate liability under this Agreement shall not exceed 10% of the sum of
     the fees payable to Sedgman under this Agreement. The limitation of
     liability set forth herein and in Article 8 -- Consequential Damages, shall
     not apply in respect of liability of Sedgman arising from, or connected to,
     its gross negligence or willful misconduct.

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9.14 ASSIGNMENT. No party will assign this Agreement, or any part of this
     Agreement, without the consent of the other party, such consent not to be
     unreasonably withheld, provided that Sedgman acknowledges and agrees that
     Falls Mountain may assign this contract to an institutional lender, by way
     of security, without consent and Sedgman agrees that it will execute and
     deliver such consents and other agreements as such lender may reasonably
     request in connection therewith.

IN WITNESS WHEREOF the parties hereto have executed this Agreement the day and
year first above written.

FALLS MOUNTAIN COAL INC.

Per: /s/ Graham Mackenzie
     -----------------------------------
     Authorized Signatory

SEDGMAN CANADA LTD.

Per: /s/ Michael F. Placha
     -----------------------------------
     Authorized signatory

SEDGMAN, L.L.C.

Per: /s/ Larry A. Walter
     -----------------------------------
     Authorized signatory

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                             SCHEDULE 1 -- EQUIPMENT

The Equipment includes the following components:

PROCESS EQUIPMENT:

RAW COAL SINGLE DECK BANANA SCREEN

     -    Furnish one (1) new raw coal screen feed chute lined with 3/8 in.
          AR400.

     -    Furnish one (1) new raw coal screen feed boxes lined with 3/8 in
          AR400.

     -    Furnish new structural steel, decking and concrete to support the new
          10 ft. x 20 ft. single deck raw coal banana screen

     -    Furnish one (1) new 10 ft. by 20 ft. single deck banana raw coal
          screen, complete with motor, drive, belts, guards and screen panels.

     -    Furnish handrail and toe plate around open areas as required by code.

     -    Furnish one (1) new underflow chute lined with 3/8 in. AR400 under the
          new raw coal screen. The underflow chute shall be designed such that a
          portion of the flow can be bypassed to clean coal while the remainder
          is wetted and directed to the feed box of the deslime sieve bend.

     -    Furnish one (1) new raw coal screen discharge chute lined with 1 in.
          ceramic.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

DESLIME SIEVE BEND

     -    Furnish one (1) new deslime sieve bend feed box lined with 1/2 in
          ceramic.

     -    Furnish one (1) new 7 ft wide by 80 in radius by 45 degrees arc
          deslime sieve bend, complete with sieve panel, hold downs, and reverse
          turning mechanism.

     -    Furnish new structural steel as required to support the sieve bend on

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     -    Furnish new discharge and underflow chutes for the sieve bend. The
          discharge chute will be lined with in ceramic and the underflow chute
          will be lined with 1 in Stonhard.

DESLIME SCREEN

     -    Furnish new structural steel, decking and concrete to support the new
          8 ft. x 16 ft. single deck horizontal deslime screen

     -    Furnish one (1) new 8 ft. by 16 ft. single deck horizontal deslime
          screen, complete with motor, drive, belts, guards and screen panels.

     -    Furnish handrail and toe plate around open areas as required by code.

     -    Furnish one (1) new underpan lined with 1 in. Stonhard under the new
          raw coal screen.

     -    Furnish extra strong steel pipe and fittings from the underpan to the
          water only cyclone sump.

     -    Furnish one (1) new deslime screen discharge chute lined with 1 in.
          ceramic.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

HEAVY MEDIA CYCLONE SUMP

     -    Furnish one (1) new heavy media cyclone sump, lined with 1" Stonhard.
          Furnish one (1) new center tube for the heavy media cyclone sump,
          lined on the inside with 1 in ceramic tile and on the outside with 1
          in. Stonhard. Sump shall be equipped with in. thick protective
          screens.

     -    Furnish one (1) new poured concrete sump base

     -    Furnish one (1) diaphragm protected, flange mounted differential
          pressure sensor.

     -    Furnish steel pipe and fittings for overflow, density control and sump
          drain.

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HEAVY MEDIA CYCLONE PUMP

     -    Furnish one (1) new Millmax 12 x 10 pump, complete with motor, drive
          and guards.

     -    Furnish one (1) new poured concrete pump base

     -    Furnish new basalt lined steel pipe and fittings for pump suctions and
          discharges.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

HEAVY MEDIA CYCLONE

     -    Furnish one (1) new 33 in diameter Krebs heavy media cyclones.

     -    Furnish one (1) diaphragm protected pressure gauges on the heavy media
          cyclone inlet.

     -    Furnish new basalt lined steel pipe and fittings for the feed,
          overflow and underflow.

     -    Furnish new structural steel to support the new heavy media cyclone

HEAVY MEDIA CYCLONE OVERFLOW BOX

     -    Furnish one (1) heavy media cyclone overflow box, lined with 1 in
          thick ceramic tile on the bottom and 1/2 in thick ceramic on the sides
          and top.

HEAVY MEDIA CYCLONE CLEAN COAL SCREEN

     -    Furnish one (1) new 10 ft wide by 20 ft. long double deck banana heavy
          media cyclone clean coal drain and rinse screens, complete with motor,
          drive, belts, guards and screen panels.

     -    Furnish new structural steel as required to support the new heavy
          media cyclone clean coal drain and rinse screen

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     -    Furnish new heavy media cyclone clean coal drain and rinse screen
          discharge chute lined with 1 in. ceramic.

     -    Furnish one (1) new split underflow pan lined with 1 in. Stonhard
          under the new heavy media cyclone clean coal drain and rinse screen.

     -    Furnish extra strong steel pipe and fittings from the new heavy media
          cyclone clean coal drain and rinse screen under flow pan to the heavy
          media cyclone sump, the heavy media cyclone bleed box and the dilute
          media sump.

     -    Furnish two (2) new spray bars for each new heavy media cyclone clean
          coal drain and rinse screen. Furnish steel pipe and fittings from the
          new spray bars to tie in to the clarified water system.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

HEAVY MEDIA CYCLONE UNDERFLOW BOX

     -    Furnish one (1) heavy media cyclone underflow box, lined with 1 in
          thick ceramic tile on the bottom and 1/2 in thick ceramic on the sides
          and top. The box will be equipped with ceramic lined splash skirt for
          the cyclone apex.

HEAVY MEDIA CYCLONE REFUSE SIEVE BENDS

     -    Furnish one (1) new heavy media cyclone refuse sieve bend feed box
          lined with 1/2 in ceramic.

     -    Furnish one (1) new 5 ft wide by 80 in radius by 45 degrees arc refuse
          sieve bend, complete with sieve panel, hold downs, and reverse turning
          mechanism.

     -    Furnish new structural steel as required to support the sieve bend

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     -    Furnish new discharge and underflow chutes for each sieve bend. The
          discharge chute will be lined with 1/2 in ceramic and the underflow
          chute will be line with 1 in Stonhard.

HEAVY MEDIA CYCLONE REFUSE SCREEN

     -    Furnish one (1) new 6 ft wide by 16 ft long single deck horizontal
          heavy media cyclone refuse drain and rinse screen.

     -    Furnish new structural steel as required to support the new heavy
          media cyclone refuse drain and rinse screen

     -    Furnish new heavy media cyclone refuse drain and rinse screen
          discharge chute lined with in ceramic.

     -    Furnish one (1) new split underflow pan lined with 1 in. Stonhard
          under the new heavy media cyclone refuse drain and rinse screen.

     -    Furnish extra strong steel pipe and fittings from the new heavy media
          cyclone refuse drain and rinse screen under flow pan to the heavy
          media cyclone sump and the dilute media sump.

     -    Furnish two (2) new spray bars for each new heavy media cyclone refuse
          drain and rinse screen. Furnish steel pipe and fittings from the new
          spray bars to tie in to the clarified water system.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

HEAVY MEDIA CYCLONE BLEED BOX

     -    Furnish new structural steel as required to support the new heavy
          media cyclone bleed box

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     -    Furnish one (1) "Elephant Trunk" style bleed box. Box to be fabricated
          from in. mild steel and lined with 1 in Stonhard.

     -    Furnish one (1) air cylinder actuator to position the bleed diverter.

     -    Furnish extra strong steel pipe from the bleed box to the heavy media
          cyclone sump and the dilute media sump.

     -    Furnish steel pipe for compressed air feed to air cylinder.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

DILUTE MEDIA SUMP

     -    Furnish one (1) new dilute media sump, lined with 1" Stonhard. Sump
          shall be equipped with 1/4 in. thick protective screens.

     -    Furnish one (1) new poured concrete sump base

     -    Furnish one (1) diaphragm protected, flange mounted differential
          pressure sensor.

     -    Furnish steel pipe and fittings for overflow, density control and sump
          drain.

DILUTE MEDIA PUMP

     -    Furnish one (1) new Millmax 6 x 4 pump, complete with motor, drive and
          guards.

     -    Furnish one (1) new poured concrete pump base

     -    Furnish new extra strong steel pipe and fittings for pump suctions and
          discharges.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

MAGNETIC SEPARATORS

     -    Furnish one (1) new 48 in diameter by 8 ft long single drum, self
          leveling magnetic separator.

     -    Furnish new structural steel as required to support the new magnetic
          separator

     -    Furnish new magnetic separator tailings collection chute lined with 1
          in Stonhard.

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<PAGE>
     -    Furnish new overdense media collection chute fabricated from stainless
          steel.

     -    Furnish extra strong steel pipe and fittings from the tailings
          collection chute to the deslime screen.

     -    Furnish extra strong steel pipe and fittings from the overdense
          collection chute to the heavy media cyclone sump.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

MAGNETITE TRANSFER SUMP

     -    Furnish one new pored concrete transfer sump on El. 0'-0". Sump shall
          be sloped to pump suction. Sump shall be equipped with two layers of
          overlapping grating to prevent oversize material from entering sump.

     -    Furnish steel pipe and fittings to add clarified water to magnetite
          transfer sump.

MAGNETITE TRANSFER PUMP

     -    Furnish one (1) new submersible magnetite transfer pump.

     -    Furnish new extra strong steel pipe and fittings from the magnetite
          transfer pump to the overdense magnetic separator.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

OVERDENSE MAGNETIC SEPARATOR

     -    Furnish one (1) new 36 in diameter by 2 ft long single drum, self
          leveling magnetic separator.

     -    Furnish new structural steel as required to support the new magnetic
          separator

     -    Furnish new magnetic separator tailings collection chute lined with 1
          in Stonhard.

     -    Furnish new overdense media collection chute fabricated from stainless
          steel.

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<PAGE>
     -    Furnish extra strong steel pipe and fittings from the tailings
          collection chute to the dilute media sump.

     -    Furnish extra strong steel pipe and fittings from the overdense
          collection chute to the heavy media cyclone sump.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

NUCLEAR DENSITY GAUGES

     -    Furnish four (4) nuclear density gauges for the heavy media cyclone,
          water only cyclone, dilute media and thickener underflow pump
          discharge lines.

WATER ONLY CYCLONE SUMP

     -    Furnish one (1) new water only cyclone sump, lined with 1" Stonhard.
          Sump shall be equipped with 1/4 in. thick protective screens.

     -    Furnish one (1) new poured concrete sump base

     -    Furnish one (1) diaphragm protected, flange mounted differential
          pressure sensor.

     -    Furnish steel pipe and fittings for overflow, density control and sump
          drain.

WATER ONLY CYCLONE PUMP

     -    Furnish one (1) new Millmax 12 x 10 pump, complete with motor, drive
          and guards.

     -    Furnish one (1) new poured concrete pump base

     -    Furnish new extra strong steel pipe and fittings for pump suctions and
          discharges.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

WATER ONLY CYCLONES

     -    Furnish one (1) new 6-way cyclone distributors lined with 'A in
          ceramic.

     -    Furnish overflow and underflow collection plate work, lined with 1 in.
          Stonhard.

                                       19
<PAGE>
     -    Furnish new structural steel as required to support the new water only
          cyclones

     -    Furnish six (6) new 15 in diameter Krebs water only cyclones.

     -    Furnish one (1) diaphragm protected pressure gauge on each cyclone
          distributor.

SPIRAL CONCENTRATORS

     -    Furnish one (1) bank of four triple start spirals, complete with
          distributors and feed piping.

     -    Furnish new structural steel as required to support the new spirals

     -    Furnish new collection launders for clean coal, middlings and refuse
          lined with 1 in Stonhard.

     -    Furnish new extra strong steel pipe and fittings from the launders to
          the corresponding sumps and screens.

CLEAN COAL CLASSIFYING CYCLONE SUMP

     -    Furnish one (1) new clean coal classifying cyclone sump, lined with 1"
          Stonhard. Sump shall be equipped with '/4 in. thick protective
          screens.

     -    Furnish one (1) new poured concrete sump base

     -    Furnish one (1) diaphragm protected, flange mounted differential
          pressure sensor.

     -    Furnish steel pipe and fittings for overflow, density control and sump
          drain.

CLEAN COAL CLASSIFYING CYCLONE PUMP

     -    Furnish one (1) new Millmax 12 x 10 pump, complete with motor, drive
          and guards.

     -    Furnish one (1) new poured concrete pump base

     -    Furnish new extra strong steel pipe and fittings for pump suctions and
          discharges.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

                                       20
<PAGE>
CLEAN COAL CLASSIFYING CYCLONES

     -    Furnish one (1) new four-way cyclone distributors lined with '/2 in
          ceramic.

     -    Furnish overflow and underflow collection plate work, lined with 1 in.
          Stonhard.

     -    Furnish new structural steel as required to support the new clean coal
          cyclones

     -    Furnish four (4) 15 in diameter Krebs clean coal cyclones.

     -    Furnish one (1) diaphragm protected pressure gauge on each cyclone
          distributor.

FINE CLEAN COAL SIEVE BEND

     -    Furnish one (1) new 7 ft wide sieve bend feed boxes lined with 1/2 in
          ceramic.

     -    Furnish one (1) new 7 ft wide by 80 in radius by 45 degrees arc clean
          coal sieve bend, complete with sieve panel, hold downs and reverse
          turning mechanism.

     -    Furnish new structural steel as required to support the sieve bend

     -    Furnish new discharge chute work lined with 1/2 in ceramic.

     -    Furnish new effluent collection chute work lined with 1 in Stonhard.

     -    Furnish new extra strong steel pipe from the sieve bend discharge
          chute to the fine coal centrifuge and from the sieve bend effluent pan
          to the thickener feed.

FINE COAL CENTRIFUGE

     -    Furnish one (1) H900 centrifuge, complete with basket, motors, drives,
          and guards.

     -    Furnish new structural steel as required to support the fine coal
          centrifuge

     -    Furnish new centrifuge discharge chutes. Chutes to be lined with 3/8
          in UHMW.

     -    Furnish new effluent collection box lined with 1 in Stonhard.

     -    Furnish extra strong steel pipe and fittings from the effluent
          collection box to the clean coal classifying cyclone sump.

                                       21
<PAGE>
     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

HIGH RATE STATIC REFUSE THICKENER

     -    Furnish poured concrete foundation for one (1) 70 ft diameter high
          rate refuse thickener.

     -    Furnish one (1) 70 ft diameter high rate refuse thickener tank. Tank
          to be rolled steel plate, welded water-tight construction or poured
          concrete.

     -    Furnish one (1) 70 ft diameter high rate refuse thickener mechanism,
          complete with bridge, feed flume, feed well, rakes, drive, rake lift,
          torque monitoring, launder, and drop box.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

THICKENER UNDERFLOW PUMP

     -    Furnish one (1) new Millmax 6 x 4 pump, complete with motor, drive and
          guards.

     -    Furnish one (1) new poured concrete pump base

     -    Furnish new extra strong steel pipe and fittings for pump suction and
          discharge.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

BELT PRESSES

     -    Furnish two (2) new 3.0m wide belt presses, compete with belts, motor,
          drive, guards.

     -    Each press shall have a low shear mix tank ahead of the feed inlet.

     -    Furnish new structural steel as required to support the belt presses

     -    Furnish poured concrete tubs around each press.

     -    Furnish steel pipe and fittings for compressed air feed to each press.

                                       22
<PAGE>
     -    Furnish extra strong steel pipe and fittings from the enclosure drains
          to the thickener feed.

     -    Furnish extra strong steel pipe from the thickener underflow pump to
          the mow shear mix tanks and from the mix tanks to the belt presses.

CLARIFIED WATER SUMP

     -    Furnish one new clarified water sump constructed of rolled mild steel
          plate, welded water-tight construction.

     -    Furnish poured concrete slab to support the new sump.

     -    Furnish one new differential pressure sensor.

CLARIFIED WATER PUMP

     -    Furnish one (1) new Millmax 12 x 10 pump, complete with motor, drive
          and guards.

     -    Furnish one (1) new poured concrete pump base

     -    Furnish new extra strong steel pipe and fittings for pump suction.
          Furnish new steel pipe and fittings for pump discharge.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

PLANT CLEANUP SUMP AND PUMP

     -    Furnish one (1) poured concrete cleanup sump below ground floor
          elevation.

     -    Furnish one (1) new Warman 100 QVSP pump, complete with motor, drive
          and guards.

     -    Furnish one (1) new structural steel frame to support the pumps

     -    Furnish new extra strong steel pipe and fittings for pump discharge.

     -    Furnish electrical components, remote stop, conduit, wiring, and PLC
          control.

                                       23
<PAGE>
PLANT AIR COMPRESSORS

     -    Furnish air compressors suitable for operating air actuated valves,
          actuators, positioners, belt presses, etc.

FLOCCULANT SYSTEM

     -    Furnish one (1) anionic flocculant system for the plant.

     -    Furnish one (1) cationic flocculant system for the plant.

15 TON OVERHEAD CRANE

     -    Furnish one (1) 15 ton overhead crane.

ELECTRICAL EQUIPMENT:

     -    Furnish a "turn key" electrical installation including primary wiring
          from the owner's termination point transformers, primary conduit and
          weather head, primary wiring, secondary wiring, conduit, motor control
          centers, power supplies, wire, field devices, etc.

     -    Furnish all materials for a "turn key" installation.

     -    Design and furnish, power and control conduit and wire to all
          motorized units as listed on the motor list.

     -    Design and furnish, starter, conduit, wire and jog/stop station for
          the new refuse screen in the plant as required for successful
          operation and monitoring of the machine.

     -    Coordinate control wiring and physical I/O changes with plant
          personnel for their PLC program revisions.

                                       24
<PAGE>
                         SCHEDULE 2 -- FEES AND PAYMENT

1.   Subject to the provisions of this Schedule, Falls Mountain shall pay
     Sedgman for the Equipment on a progress basis in accordance with the
     following table (U.S. Dollars):

<TABLE>
<CAPTION>
Date                 3/31/05   4/30/05   5/31/05   6/30/05   7/31/05   8/31/05   9/30/05      TOTAL
----                 -------   -------   -------   -------   -------   -------   -------   ----------
<S>                  <C>       <C>       <C>       <C>       <C>       <C>       <C>       <C>
PROCUREMENT

Process Equipment      30%       30%       20%       10%        5%        5%               $1,814,591

Structural Steel                 10%       55%       15%       10%       10%                  816,567

Platework/Piping                 10%       50%       10%       10%       10%       10%      1,088,755

Materials Handling               10%       10%       40%       15%       15%       10%        468,049

Electrical                       15%       40%       30%       10%        5%                  453,648

TOTAL                                                                                      $4,641,610
</TABLE>

2.   It is expected that the Equipment will be supplied in accordance with the
     percentages set out in the above table. If the actual percentage of
     Equipment supplied by the date indicated is different from the percentage
     shown in the above table, Falls Mountain shall pay Sedgman based on the
     actual percentage.

3.   On a monthly basis, Sedgman shall submit invoices to Falls Mountain.
     Invoice payment shall be made by Falls Mountain within 30 calendar days
     following receipt.

                                       25

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