Document:

EX-10.47

 Exhibit 10.47 
 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 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: 

  
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 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. 

  
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 ARTICLE 3 
 CLOSING AND POST CLOSING 
 3.1 Transactions at Closing. At the Closing the following
transactions shall take place: 
 (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 

  
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	 	(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.

  
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 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. 

  
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 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. 

  
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 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: 
 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. 

  
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 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 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 

  
 13 

 (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. 

  
 14 

 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 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. 

  
 15 

 10.2 Termination of Agreement. This Agreement and the transactions contemplated hereby may be
terminated only as follows: 
 (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 underlying coal, by deed dated December 27, 1974,
recorded in Deed Book 210, page 657; both in the Ohio County Clerk’s office.

  
 38 

					
			
	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. 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. 

  
 -6-

 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-

 

 

 EXHIBIT A 
 TO 
 ASSET PURCHASE AGREEMENT 

Corporation Special Warranty Deed – Tracts 209 and 199 

 CORPORATION SPECIAL WARRANTY DEED 

THIS CORPORATION SPECIAL WARRANTY DEED (“Deed”) is made and entered into on this the
             day of             , 2011, by and between: 
 CYPRUS CREEK LAND RESOURCES, LLC 
 A Delaware limited liability company

 701 Market Street, Suite 798 
 St. Louis, Missouri 63101 
 (hereinafter called “GRANTOR”) 

-and- 

ARMSTRONG COAL COMPANY, INC. 
 A Delaware corporation 
 407 Brown Road 

Madisonville, Kentucky 42431 
 (hereinafter called “GRANTEE”). 
 WITNESSETH: That for and in
consideration of the total sum of EIGHT MILLION, THREE HUNDRED FOUR THOUSAND, TWO HUNDRED FIFTY DOLLARS ($8,304,250.00), cash-in-hand paid by Grantee to Grantor upon the date hereof, the receipt of which is hereby acknowledged, and the payment by
Grantee to Grantor of an overriding royalty upon coal mined and sold from the following defined #9 Coal Property as stated in a certain Overriding Royalty Agreement between the parties of even date herewith; and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor does hereby GRANT, BARGAIN, SELL, CONVEY, and WARRANT SPECIALLY, as hereinafter recited, unto Grantee its successors and assigns forever, two tracts of the
Kentucky Number 9 seam of coal only together with the Kentucky Number 9 coal mining rights and privileges only, subject to a certain restrictive covenant running with land set forth below, situated in Muhlenberg County, State of Kentucky, and
generally situated within the boundaries depicted on the map attached hereto as Exhibit A and more particularly described on Exhibit B attached hereto, incorporated herein by reference and made a part hereof (hereinafter the “#9 Coal
Property”) together with all the hereditaments and appurtenances thereunto belonging, and with all the estate, right, title, interest, claim or demand whatsoever, of the Grantor, either in law or equity, of, in and to the #9 Coal Property.

  

			
	 Tracts 199 and 209
	  	12/12/11
	 #9 Coal & #9 Coal Mining Rights
	  	
	 N of S ROW of Parkway
	  	
	 Muhlenberg Co., Ky.
	  	

  
 1 

 RECORD NOTICE OF OVERRIDING ROYALTY AGREEMENT. The #9 Coal Property is subject
to an Overriding Royalty Agreement granted by Armstrong Coal Company, Inc., Grantee herein, to Cyprus Creek Land Resources, LLC, Grantor herein, of even date herewith which grants an overriding royalty of a certain percentage of the Gross Sales
Price, as defined in the Overriding Royalty Agreement, which shall be deemed a covenant running with the land. This Deed is intended to serve as record notice of the Overriding Royalty Agreement, as it relates to the two tracts of #9 Coal Property
conveyed herein, and the parties’ respective interest in and to that Agreement and this Deed shall not be construed as a change, modification, amendment, or enlargement of the Overriding Royalty Agreement, a short form memorandum of which has
also been filed of record. 
 The Grantor, for itself, and for its successors, does represent, warrant, promise and agree, to
and with the Grantee, its successors and assigns, that Grantor has not done, or suffered to be done, anything whereby Grantor’s title in said #9 Coal Property hereby granted is, or has been, in any manner encumbered or charged, except as herein
recited; and that Grantor will warrant and forever defend Grantor’s title in the #9 Coal Property against all persons claiming, or to claim the same, by, through or under Grantor and against none else. The Grantor does not warrant title
generally. Grantor shall not be responsible for or liable to Grantee or its successors and assigns for defects in title existing, attaching, or accruing prior to Grantor’s acquisition of the #9 Coal Property. 

This conveyance is subject to all 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, to the lien of real property taxes and special assessments, if any, upon the #9 Coal Property which taxes and assessments are not yet due and payable, 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 #9 Coal Property. Grantor agrees to pay the 2011 Unmined Minerals (Coal) taxes. 

RESTRICTIVE CONVENANT RUNNING WITH THE LAND. The #9 Coal Property hereby conveyed shall be subject to a restrictive
covenant running with the land prohibiting the Grantee, its successors and assigns, and any subsequent owner, lessee and other holders of the #9 Coal Property from entering upon or mining any portion of Tract 209, depicted on Exhibit A,
situated within the “No Mining Boundary” depicted on Exhibit A, and described on Exhibit B hereto. This restrictive covenant shall be to the benefit of the Grantor, its affiliated company, Cyprus Creek Land Company, Inc., a
Delaware corporation (the present surface owner), and their respective successors and assigns. Grantor and Grantee agree the boundary of the no mining area need not be surveyed and that they are familiar with the location of the no mining area
located within the “No Mining Boundary” depicted on Exhibit A hereto. To ensure compliance with this restrictive covenant, Grantee shall be obligated to furnish Grantor copies of its projected mine plans affecting Tract 209 prior to
mining upon that tract and upon completion of mining of that tract. 
 Grantee represents that it has inspected the Property and
agrees to accept the same “AS IS.”  
 TO HAVE AND TO HOLD the #9 Coal Property unto the Grantee, its
successors and assigns, forever; provided, however, that this conveyance is made and accepted upon the following covenants which shall be binding upon and enforceable against Grantee and Grantee’s successors and assigns and shall be deemed
covenants running with the land: (1) Grantee assumes all risks and responsibility for any injuries or damages sustained by any 

  
 2 

 
person or to any property, in whole or in part, resulting from, arising out of, or in any way connected with, the possession or use of the #9 Coal Property by Grantee; (2) Grantor does not
warrant or represent subjacent or lateral support of the surface or sub-surfaces of the #9 Coal Property and does hereby reserve and except from its conveyance herein all rights and interests to same unto Grantor, its successors and assigns;
(3) Grantor does not warrant or represent that the #9 Coal Property is safe, habitable or otherwise suitable for the purposes for which it is intended to be used by Grantee or for any other purpose whatsoever; and (4) Grantee takes the #9
Coal Property subject to the restrictive covenant running with the land, set forth herein above, prohibiting entry upon or mining any portion of Tract 209 that is situated within the “No Mining Boundary” depicted on Exhibit A hereto.

 The ability to mine such coal seam is not warranted by Grantor and Grantee recognizes and accepts that the coal seam may be
unsuitable for either surface and/or underground mining for reasons including, but not limited to, rough unnatural and unstable surface, inadequate subjacent or lateral support, circumstances related to the environmental quality of the #9 Coal
Property or other conditions arising out of the prior use of the #9 Coal Property. 
 The parties do hereby certify and affirm
under oath that the true and actual consideration paid for transfer of the real property herein is $8,304,250.00. 
 The Unmined
Minerals (Coal) Tax bill for 2011 shall be sent to Cyprus Creek Land Resources, LLC at its address of 701 Market Street, Suite 798, St. Louis, Missouri 63101. For tax years 2012 and thereafter, such bills shall be sent to Armstrong Coal
Company, Inc., at its address of 407 Brown Road, Madisonville, Kentucky 42431. 
 This Deed may be executed in one or more
identical counterparts which may be combined into one or more identical documents, but all of which together shall constitute one and the same instrument, each of which shall be deemed an original. 

Grantor and Grantee, by their execution hereof, hereby certify, pursuant to KRS 382.135 that the amount stated hereinabove is the full
consideration given for the real property described above. 
 -REMAINDER OF PAGE INTENTIONALLY LEFT BLANK- 

  
 3 

 IN WITNESS WHEREOF, said Grantor and Grantee have caused this instrument to be
executed by their respective duly authorized officers, who represent and certify that they are the duly elected officers of the Grantor and Grantee, respectively, and have full authority on behalf of their respective corporations to execute and
deliver this Corporation Special Warranty Deed; that Grantor represents that it has full corporate capacity to convey the real estate hereby conveyed and that all necessary action for the making of such conveyance has been taken and done.

  

							
	GRANTOR:	 		 	CYPRUS CREEK LAND RESOURCES, LLC
				
		 		 	By:	 	 
		 		 		 	James C. Sevem, Vice President

  

			
	 STATE OF MISSOURI
                    )
	  	
	                              
                              ) SS:	  	
	CITY OF ST. LOUIS                         )	  	

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by James C. Sevem as Vice
President for and on behalf of Cyprus Creek Land Resources, LLC, a Delaware limited liability company, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority
to so execute on its behalf as its free act and deed in due form of law, for the purposes set forth herein, on this the              day of
            , 2011. 
  

					
	 (SEAL)
	 	  

		 	Notary Public,	 	  

 My commission expires:
                     

  
 4 

 WITNESS, the execution of: 
  

							
	GRANTEE:	 		 	ARMSTRONG COAL COMPANY, INC.
				
		 		 	By:	 	 
		 		 		 	Martin D. Wilson, President

  

			
	 STATE OF MISSOURI
                    )
	  	
	                              
                              ) SS:	  	
	CITY OF ST. LOUIS                         )	  	

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Martin D. Wilson as
President for and on behalf of Armstrong Coal Company, Inc., a Delaware corporation, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority to so execute on
its behalf as its free act and deed in due form of law, for the purposes set forth herein, on this the              day of
            , 2011. 
  

					
	 (SEAL)
	 	  

		 	Notary Public,	 	  

 My commission
expires:                      

THIS INSTRUMENT PREPARED BY: 

							
	  
	 		 		 	

 M. Kirby Gordon II 
 GORDON & GORDON, P.S.C. 
 6357 KY Hwy 405 

P.O. Box 398 
 Owensboro, Kentucky 42302-0398

 (270) 281-0398 

  
 5 

 EXHIBIT A 
 TO 
 CORPORATION SPECIAL WARRANTY DEED 

MAP 

  
 6 

 

 

  
 7 

 EXHIBIT B 
 TO 
 CORPORATION SPECIAL WARRANTY DEED 

All recording references are to the Office of the Muhlenberg County Clerk. 

TRACT 199 – LC#016-745 P16 and P17 
 Parcel 16 
 A strip of land of even width, 100 feet on each side of the following described
centerline; beginning at an iron pipe, 4 feet E of a 30 inch gum in the East — West property line between Ayrshire Collieries Corporation’s 126.5 acre Roy Johnson tract and Katie B. Reneer, which iron pipe is N 88-20 W 3231 feet (old call
S 86 W) from a 1-1/4 inch iron axle at a root wad, corner to Rogers, Ayrshire Collieries Corporation and Katie B. Reneer; thence N 02-14 W 858.4 feet across the lands of Katie B. Reneer to another iron pipe near a 10-inch elm and 18-inch gum on the
S side of a ditch in the East — West property line between Ayrshire Collieries Corporation’s 77-acre Luther Faught tract and Katie B. Reneer, which iron pipe is approximately 477 feet East of Katie B. Reneer’s Northwest corner. Said
tract of land contains 3.94 acres and extends from the Roy Johnson tract on the South to the Luther Faught tract on the North. 

Parcel17 
 Tract
#1: Beginning at an old corner, gum and maple, corner to Joseph Milligan; thence N 4 W 52 poles to a rock marked “BB”; thence N 86 E 154 poles to a rock marked “BB”; thence S 4 E 52 poles to a small dogwood, black gum and
hickory in Milligan’s line; thence with same S 86 W 150 poles to the beginning, containing 50 acres, more or less. 
 Tract #2:
Beginning at a rock near a maple and beech corner to John Brinkman’s survey running N 86 E about 70 poles to the old line, a red oak, elm and hickory marked; thence S 4 E 52 poles to the old corner of original survey, a mulberry; thence S 86 W
about 70 poles to Brinkman’s corner in the old line, dogwood, black gum and hickory; thence with Brinkman’s line to the beginning 

LESS AND EXCEPTED: 
 “There is excepted
3.94 acres of surface heretofore conveyed to the party of the second part by the party of the first part”. 

  
 8 

 Source Of Title 
 1. And being Parcels 16 and 17, Tract 1 and 2 conveyed by AMAX INC to Peabody Coal Company by deed dated October 19, 1987, recorded October 22, 1987 in Deed Book 384, page 652 at recorded page
668. 
 2. And being a portion of the property conveyed by Peabody Coal Company, a Delaware Corporation, to Peabody Development Company, a
Delaware Corporation, by deed dated September 12, 1989, recorded October 22, 1987 in Deed Book 398, page 37, as Item 235. 
 3.
Effective December 16, 2003, in 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 Corporation, as shown in Articles of Incorporation Book 14, pages 635 – 638. 
 4. And further being a portion of the property
conveyed by Peabody Development Company, LLC to Central States Coal Reserves of Kentucky, LLC by deed dated December 20, 2005, recorded in Deed Book 516, page 599, as corrected by Deed of Confirmation between Peabody Development Company, LLC
and Central States Coal Reserves of Kentucky, LLC by deed dated December 27, 2005, effective December 20, 2005 and recorded in Deed Book 516, page 716. 
 5. Being a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by deed dated September 13, 2007 recorded in Deed Book 530, page 620,
as Tract 199 
 TRACT 209 – LC#1304-001 T1A 
 Only that portion of the following tract as lies North of the South Right-of-Way of the Western Kentucky Parkway (now Wendell Ford Parkway). 

Beginning at an iron axle the Southeast corner of the “Heck” tract, thence S 81° 47’ W with the south line of
“Heck” for 3637.4 feet to a stump; thence N 70° 32’ W for 923.8 feet to a gum; thence N 24° 57’ W for 678.3 feet to a rock; thence N 72° 26’ w for 3,438.3 feet; thence S 17° 04’ W for 2714.6 feet; thence
S 71° 08’ E for 1011.3 feet; thence S 39° 56’ W for 1151.6 feet to an iron axle; thence S 23° 19’ E for 63.2 feet; thence S. 35° 50’ E for 1677.5 feet; thence S 35° 47’ E for 2,159.7 feet; thence N
53° 13’ E for 1725.5 feet to a 3” iron axle; thence S 14° 01’ E for 2547.8 feet to a 3” iron axle; thence N 71° 56’ E for 2,163.7 feet, to a 2” iron axle; thence N 12° 15’ W for 2663.7 feet to a
road; thence N 69° 53’ E for 342.9 feet, S 67° 35’ E for 401.3 feet, s 49° 37’ E for 228.4 feet, thence N 15° 46’ W for 1000.6 feet, thence S 83° 45’ E for 1514.0 feet; thence N 13° 42’ E for
2,573.3 feet to the southeast corner of the church lot, thence N 80° 00’ W for 289.0 feet to a point which is 30 feet east 

  
 9 

 
of the center line of U. S. Highway 62, thence parallel with Highway 62 and 30 feet east of its center line N 36° 10’ E for 70.0 feet, N 28° 50’ E for 75.0 feet, N 21°
25’ E for 95.0 feet, thence leaving the highway s 80° 00’ E for 230.0 feet to a point in the old line, thence with the old line N 13° 42’ E for 370.0 feet to the place of beginning. Containing 916.71 acres more or less.

 Source Of Title 
 1. And being a portion of a 916.71 acre tract identified as “Martwick Tract ‘A’ Minerals” conveyed by Peabody Coal Company to Peabody Development Company by deed dated July 19,
1984, recorded August 31, 1984, in Deed Book 363, page 420. 
 2. Effective December 16, 2003, in 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 Corporation, as shown in Articles of Incorporation Book 14, pages
635 – 638. 
 3. And further being a portion of the property conveyed by Peabody Development Company, LLC to Central States Coal Reserves
of Kentucky, LLC by deed dated December 20, 2005, recorded in Deed Book 516, page 599, as corrected by Deed of Confirmation between Peabody Development Company, LLC and Central States Coal Reserves of Kentucky, LLC by deed dated
December 27, 2005, effective December 20, 2005 and recorded in Deed Book 516, page 716. 
 4. Being a portion of the property conveyed
by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by deed dated September 13, 2007 recorded in Deed Book 530, page 620, as Tract 209 
 END OF EXHIBIT B 

  
 10 

 EXHIBIT B 
 TO 
 ASSET PURCHASE AGREEMENT 

Promissory Note 

 NEGOTIABLE PROMISSORY NOTE 

ARMSTRONG COAL COMPANY, INC. 
  

			
	 $4,435,495.83
	  	                          
               , 2011
		  	St. Louis, Missouri             

 FOR VALUE RECEIVED, ARMSTRONG COAL COMPANY, INC., a Delaware corporation (the “Maker”) with
an address at 407 Brown Rd., Madisonville, KY 42431, unconditionally promises to pay to the order of CYPRUS CREEK LAND RESOURCES, LLC, a Delaware limited liability company, its successors or assigns (the “Holder”), with an address at 701
Market Street, Suite 798, St. Louis, Missouri 63101, or at such other place as the Holder of this Note may from time to time designate, the principal sum of FOUR MILLION FOUR HUNDRED THIRTY-FIVE THOUSAND FOUR HUNDRED NINETY-FIVE AND 83/100
DOLLARS ($4,435,495.83) (the “Principal Amount”). The Principal Amount shall be due and payable on June 30, 2012 (“Due Date”). The Principal Amount shall not bear interest provided the payment is made by the Due Date as
hereinafter set forth. 
 In the event the wire transfer of good funds does not occur on or before the Due Date, then
interest in the amount of twelve percent (12%) per annum compounded quarterly and calculated on a 360 day per year basis (“Interest”), shall accrue from the date of this
Note,             , 2011, on the unpaid Principal Amount, until paid in full. All payments hereunder shall be made in lawful money of the United States of America and in immediately
available funds without any offset, reduction, deduction or diminution. 
 Failure to pay any of the
Principal Amount or Interest payments when due and payable shall constitute an event of default hereunder in addition to any of the events deemed events of default under the Mortgage executed and delivered by the Maker to secure the full and timely
payment and performance of this Note, each being an event of default hereunder (“Event of Default”). Upon the occurrence of an Event of Default hereunder, the entire unpaid Principal Amount hereof and all accrued and unpaid Interest
thereon, shall be immediately due and payable, at the option of the Holder, without demand or any notice whatever, and in addition thereto, and not in substitution therefore, the Holder shall be entitled to exercise any right or remedy as provided
at law or in equity. Notwithstanding the above, upon the occurrence of any event deemed an event of default under the Mortgage, the Holder shall be entitled to terminate and/or cancel a certain Underground Coal Mining Lease, a certain Underground
Coal Mining Lease and Sublease and a certain Underground Coal Mining Sublease (collectively the “Leasehold Estates”), all dated December 29th, 2011 between the Maker and Holder; provided, that Holder provides Maker with written notice of such Event of Default
and allows Maker thirty (30) days from the date of Maker’s receipt of the notice to cure the default by satisfying the entire outstanding unpaid Principal Amount and any Interest payments owed under this Note in full. Failure to exercise
said option or to pursue such option or such other rights and remedies shall not constitute a waiver of such option or such other rights and remedies or 
  

			
	 Muhlenberg Co., Ky.
	  	12/26/11

  
 1 

 of the right to exercise any of the same in the event of any subsequent Event of Default. The Maker
promises to pay all costs and expenses (including, without limitation, reasonable attorney’s fees and expenses) incurred in connection with the collection of any and all amounts due and payable hereunder. 

The Maker hereby waives presentment, protest, demand, notice of dishonor, and all other notices, and all defenses and pleas on the
grounds of any extension or extensions of the time of payments or the due dates of this Note, in whole or in part, before or after maturity with or without notice. No renewal or extension of this Note, no release or surrender of any collateral given
as security for this Note, and no delay in enforcement of this Note shall affect the liability of the Maker.  
 Whenever
used herein, the words “Maker” and “Holders” shall be deemed to include their respective successors and assigns.  
 This Note is intended to be performed in the Commonwealth of Kentucky and shall be governed by and construed under and in accordance with the laws of the Commonwealth of Kentucky.  

IN WITNESS WHEREOF, the undersigned has caused this Note to be duly executed on its behalf as of the day and year first hereinabove
set forth.  
  

			
	ARMSTRONG COAL COMPANY, INC.
		
	By:	 	 
		
	Title:	 	 

  
 2 

 EXHIBIT C 
 TO 
 ASSET PURCHASE AGREEMENT 

Rogers #9 Sublease 

 NOT TO BE RECORDED 

UNDERGROUND COAL MINING SUBLEASE 
 (Deep #9 Coal Lying North of the South ROW Line of Wendell Ford Parkway) 

This UNDERGROUND COAL MINING SUBLEASE (“Sublease”), is made and entered into on this the
             day of             , 201    , (“Lease Date”), by and between CYPRUS CREEK LAND
RESOURCES, LLC (“Cyprus Creek” or “Sublessor”), Delaware limited liability company with an address of 701 Market Street, Suite 798, St. Louis, Missouri 63101 and ARMSTRONG COAL COMPANY, INC., a Delaware
corporation with an address of 407 Brown Road, Madisonville, Kentucky 42431 (“Armstrong Coal” or “Sublessee”), collectively hereinafter the “Parties”. 

W I T N E S S E T H: 
 WHEREAS, SUBLESSOR by and through its predecessors in title became the Lessee to a certain coal properties and coal mining rights located in Muhlenberg County, Kentucky by Mineral Lease dated
December 4, 1947, of record in Deed Book 164, page 525, in the Office of the Muhlenberg County Clerk, as amended, supplemented, and extended from time to time (“Rogers 1947 Mineral Lease”) including the deep #9 vein or seam of Coal
lying north of the south right-of-way line of the Wendell Ford Parkway in Muhlenberg County, Kentucky, as more particularly described in the 1947 Mineral Lease, incorporated herein by reference and made a part hereof; 

WHEREAS, the Rogers 1947 Mineral Lease is subject to (i) that certain unrecorded Agreement Relating to Additional Advance Royalties
“Deep #9 Coal North of Western Kentucky Parkway” dated May 3, 2007 (hereinafter called the “Additional Advance Royalties Agreement”), and (ii) that certain unrecorded Agreement Relating to Additional Earned Royalties
“Deep #9 Coal North of South ROW Line of Wendell Ford Parkway” dated             , 201     (hereinafter called the “Additional Earned Royalty
Agreement”), both regarding additional royalties due under the terms and conditions of the Rogers 1947 Mineral Lease with respect to the Deep #9 Coal lying north of the south right-of-way line of the Wendell Ford Parkway, all of which are
incorporated herein by reference and made a part hereof; and, 
 WHEREAS, SUBLESSOR desires to sublease to SUBLESSEE and
SUBLESSEE desires to accept SUBLESSOR’s grant of a sublease of SUBLESSOR’s right, title and leasehold interest in and to that portion of the Rogers 1947 Mineral Lease being all of the #9 vein or seam of Coal lying north of the south
right-of-way line of the Wendell Ford Parkway in Muhlenberg County, Kentucky (the “Coal”), as more particularly depicted on Exhibit A attached hereto and described on the attached Exhibit B, incorporated herein by reference and
made a part hereof (the “Property”); and, 
 WHEREAS, SUBLESSOR warrants and represents that it has provided true and
actual copies of the Additional Advance Royalties Agreement and the Additional Earned Royalty Agreement to SUBLESSEE; and, 

WHEREAS, SUBLESSOR and SUBLESSEE have obtained the consents of the respective Lessors under the Rogers 1947 Mineral Lease to the sublease
thereof to SUBLESSEE, as hereinafter set forth. 
  

			
	Rogers #9 Sublease	  	12/20/11
	Deep #9 Coal N of Pkwy.	  	
	Muhlenberg Co., Ky.	  	

  
 1 

 NOW, THEREFORE, in consideration of the payment of the first installment of the Earned
Royalty (defined below) by Armstrong Coal to Cyprus Creek, and in consideration of all other obligations of Armstrong Coal stated in this Sublease, Cyprus Creek does hereby grant, let, sublet, and sublease unto Armstrong Coal all of its RIGHT,
TITLE and LEASEHOLD INTEREST, but only to the extent held by Cyprus Creek in the deep #9 vein or seam of Coal lying north of the south right-of-way line of the Wendell Ford Parkway in Muhlenberg County, Kentucky (the “Coal”), as more
particularly depicted on the map attached as Exhibit A and described on the attached Exhibit B, incorporated herein by reference and made a part hereof, subject to the Additional Royalty Agreements (the “Property”). 

1. SPECIAL RIGHTS OF ARMSTRONG COAL. In addition to whatever rights Armstrong Coal may have by implication of law hereunder, Armstrong Coal shall
have the following exclusive rights (“Rights”) to the extent in fact owned or held by Cyprus Creek: 
  

	 	(a)	To drill, take core samples, survey, map and otherwise evaluate the Coal and to perform environmental research. 

 

	 	(b)	To mine, extract or remove the Coal and other substances which are necessarily removed in the underground coal mining process by any and all underground mining methods
now or hereafter in existence, including the right to disturb, cast, and pile all strata without regard to mineral content and for preparing and marketing coal; such rights, including, without limitation, to the extent permitted by applicable
statutes and regulations and to the extent Cyprus Creek has the right to grant the same, the right to install and maintain railroad and truck loading facilities, storage areas, railroad tracks and switches, pumping stations, pole lines and wires; to
dig ditches for the drainage of water; to lay pipe lines; to erect towers; to provide for the storage of materials and supplies; to construct and use roadways; to erect and use buildings, plants and structures of every kind; and, in general, and
without limitation, to do any and all things incident to Armstrong’s mining, processing, and marketing of coal produced from the Property; provided, however, that Armstrong Coal has, by its execution of this Sublease, accepted all liability
which may arise at any time after the execution hereof for any and all damage to surface and/or structures situated in, on or under the surface, where such damage was caused by Armstrong Coal’s operations under this Sublease. It is the express
intent of the Parties hereto that by the language of this Section 1(b), Armstrong Coal shall have accepted all responsibility and liability for any and all subsidence and damage caused thereby as it relates to the Property and/or Coal from and
after the date of execution hereof. 

  

	 	(c)	A free access to, in, from and across the Property and the Coal and the right to undertake any other thing or use necessary or convenient for the underground mining of
the Coal. 

  

	 	(d)	To utilize underground tunnels, entries, passageways, rooms, haulage ways, pumping stations, pipelines, conveyors, storage facilities, drains and other surface and
underground facilities, all with respect to the mining of Coal and for the purpose of mining of coal in, on or under the Property. 

  
 2 

 2. TERM. 
 (a) This term of this Sublease (the “Term”) shall be for the longer of: (i) five (5) years commencing on the effective date of this Sublease; or (ii) until such time as all
of the mineable and merchantable coal has been mined and removed; provided that Armstrong Coal is engaged in mining coal on the Property by no later than five (5) years from the effective date of this Sublease and further provided that
Armstrong Coal has continuously mined such Coal and is actively mining and removing such Coal from the Property. Notwithstanding any provision to the contrary, Armstrong Coal may terminate this Sublease at any time during the term upon thirty
(30) days written notice to Cyprus Creek. In the event that Armstrong Coal completes its mining activities prior to the expiration of the Term, this Sublease shall terminate and Armstrong Coal shall provide written notice to Cyprus Creek within
five (5) days of the date on which Armstrong Coal last loads Coal from the Property for shipment to customers. This Sublease shall expire on the date of such written notice. 

(b) Upon expiration or termination of this Sublease, Armstrong Coal shall, at Cyprus Creek’s request, execute a Release of this
Sublease for purposes of recording. After expiration or termination of this Sublease, Armstrong Coal shall have the right to re-enter the Property and remove all of Armstrong Coal’s mining equipment and related property from the Property, and
thereafter, as and when required by Federal, state or local law or regulation, as a result of Armstrong Coal’s operations under this Sublease, Armstrong Coal shall perform reclamation and environmental work on and respecting the Property.

 (c) If, at any time, Armstrong Coal shall fail to perform reclamation and environmental work on and respecting the
Property, as and when required by law, Cyprus Creek, at its option, shall have the right to: 
  

	 	(i)	seek specific performance of this obligation from a court of competent jurisdiction; and/or, 

 

	 	(ii)	re-enter the Property and perform such reclamation and environmental work as may be required at the expense of Armstrong Coal, which expense Armstrong Coal shall be
obligated to pay without legal recourse. 

  

	 	(iii)	Notwithstanding the foregoing, Cyprus Creek shall provide Armstrong Coal thirty (30) days prior written notice of its intent to proceed under (i) or
(ii) above and allow Armstrong Coal a reasonable time within which to perform reclamation work as set forth above. 

 3.
ROYALTIES. Armstrong Coal shall pay to Cyprus Creek, in full payment for all of the benefits secured by Armstrong Coal under or in connection with the mining of coal pursuant to this Sublease, the following Royalties (“Royalties”),
when and to the extent stated: 
  

	 	(a)	 Advance Royalty; Recoupments. Armstrong Coal shall pay to Cyprus Creek the amount of advance royalty as provided under the Rogers 1947

  
 3 

	 	
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. Cyprus Creek shall also be paid any and all 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 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. 

  

	 	(b)	Earned Royalty. Armstrong Coal shall pay to Cyprus Creek as an Earned Royalty (“Earned Royalty”) on each ton of Coal mined and sold from the Property
five percent (5%) of Armstrong Coal’s per ton royalty basis per ton, as provided in the Rogers 1947 Mineral Lease plus the additional royalties of one percent (1%) of Armstrong Coal’s per ton royalty basis as provided for in the
Additional Earned Royalty Agreement affecting the Coal mined and sold hereunder. 

  

	 	(c)	Payment. All Earned Royalty shall be payable on the 25th day of each month for all coal mined and sold by Armstrong Coal from the Property during the preceding
calendar month. No Earned Royalty shall be payable on or with respect to gob, slurry, tailings or other residue resulting from the processing, including washing of Coal for sale from the Property, and Armstrong Coal shall have clear title to all
such material from the Property, provided that all such material is removed from the Property prior to the expiration or termination of this Sublease. 

  

	 	(d)	Additional Expenses. Armstrong Coal shall be responsible for the payment of all costs and expenses resulting from or related to the mining, removal, and sale of
the Coal, all reporting costs, taxes, and all engineering fees. It shall be solely responsible for all additional costs including costs relating to the Lessors and the leasehold estate herein subleased. 

 

	 	(e)	Reports. Beginning with the month following the month in which coal is first mined from the Property, and for each month thereafter, Armstrong Coal shall furnish
to Cyprus Creek a report stating for that month the number of coal acres mined and the tons of coal mined and sold from each parcel as depicted on Exhibit A and described on Exhibit B, the per ton Royalty Basis (defined below) showing all
adjustments made to the monthly invoice sales price; the calculated royalty rate per ton; and credits, if any. 

  

	 	(f)	Delinquent Payments. Delinquent payments shall bear interest from their due date at a per annum rate which is one percent (1%) above the prime interest rate
as reported in the Wall Street Journal, as quoted on the first day of the month in which payment is due. 

 4. ROYALTY
BASIS. Royalty Basis hereunder shall mean the invoice sales price of the coal, F.O.B. mine, without any deduction for taxes, fees or any other amounts whatsoever. Except as otherwise restricted or prohibited by the Rogers 1947 Mineral Lease,
Armstrong Coal may commingle the Coal with other coal from Armstrong Coal’s mine(s). The payment of royalties, when and as due hereunder, shall be construed as full payment of Armstrong Coal’s right to retain the leasehold estate and all
of the rights granted by Cyprus Creek under this Sublease. 

  
 4 

 5. MINE PLANS. Armstrong Coal shall make available for inspection by Cyprus Creek a copy of Armstrong
Coal’s Mine Plan map and any revisions thereto and of Armstrong Coal’s Coal Mining and Reclamation Operations Permit to Mine the Coal, including the application for such permit, and all maps and diagrams submitted therewith. Cyprus Creek
shall not interfere with Armstrong Coal’s permitting activities, provided that Armstrong Coal shall have complied with the terms and conditions of this Sublease. In addition, Cyprus Creek shall have the right to review such mine plans on no
less than an annual basis to determine for itself whether appropriate steps are being taken by Armstrong Coal to protect all accessible coal reserves from unnecessary damage. Armstrong Coal shall furnish to Cyprus Creek on January 25 and
July 25 of each year a map showing the area mined in the previous six (6) months and showing the area projected to be mined in the following six (6) months. These maps shall be certified by a Registered Professional Engineer,
Certified Professional Geologist or Registered Land Surveyor and shall be at scale of not more than 1” = 100’, showing a minimum, by month, the actual extent of Coal extracted and thickness of each of the Coal seams mined. 

6. CYPRUS CREEK’S RIGHT TO INSPECT. Cyprus Creek or its representatives at reasonable times, and upon at least forty-eight (48) hours
advance written notice, shall have the right to make surveys of the workings in the Coal herein leased to determine the accuracy of Armstrong Coal’s surveys of such workings; and at reasonable times, and upon at least forty-eight
(48) hours advance written notice, to examine the maps and engineering records of Armstrong Coal with reference to said surveys. Armstrong Coal shall keep records of all coal mined and sold from the Property and Cyprus Creek shall have the
right to inspect the records at all reasonable times. Cyprus Creek or its representatives shall also have the right at reasonable times, and upon at least forty-eight (48) hours advance written notice, to examine and check the invoices, sales
records and other directly relevant records of Armstrong Coal to determine the accuracy of Armstrong Coal’s reports to Cyprus Creek. Cyprus Creek agrees to treat Armstrong Coal’s invoices and sales records as confidential and not to
disclose such records to Cyprus Creek’s or its affiliates’ sales representatives. Armstrong Coal shall not be responsible for any injury, loss or damages suffered by Cyprus Creek’s representatives that enter the Property, except for
any injury, loss or damages caused in whole or in part by the material negligence of Armstrong Coal, its agents or employees. 
 7. TITLE.
Cyprus Creek does not warrant its title to the Coal or the Property generally and shall have no liability to Armstrong Coal for any impairment of or interference with the exchange of Armstrong Coal’s rights under this Sublease by any person
claiming title superior to Cyprus Creek’s. During the term of this Sublease, however, Cyprus Creek shall not impair or suffer by act or omission any impairment of its title to the Property which would interfere with Armstrong Coal’s
exercise of its rights under this Sublease, except as otherwise restricted or prevented by the Rogers 1947 Mineral Lease. Defects in Cyprus Creek’s title may be corrected by Armstrong Coal at Armstrong Coal’s sole discretion and cost, and
Cyprus Creek agrees to cooperate with Armstrong Coal in such corrective activity in the event it is requested to do so. Cyprus Creek agrees to furnish Armstrong Coal all title information in its possession or readily available to Cyprus Creek,
including abstracts of title, commitments for title insurance and title insurance policies. The Parties agree to execute necessary releases as to any property to which Armstrong Coal notifies Cyprus Creek of tile defects to which it elects not to
cure. 

  
 5 

 8. NO MINING BOUNDARY. A portion of Tract 237-2 hereby subleased shall be subject to a restrictive
covenant prohibiting Armstrong Coal, its successors and assigns, from entering upon or mining any portion of Tract 237-2, described on Exhibit B and depicted on Exhibit A, situated within the area depicted on the attached Exhibit A as
the “No Mining Boundary.” This restrictive covenant shall be to the benefit of Cyprus Creek, its affiliated company, Cyprus Creek Land Company, Inc., a Delaware corporation (the present surface owner), and their respective successors and
assigns. Cyprus Creek and Armstrong Coal agree the boundary of the no mining area need not be surveyed and that they are familiar with the location of the no mining area located within the “No Mining Area” depicted on Exhibit A
hereto. To ensure compliance with this restrictvie covenant, Armstrong Coal shall be obligated to furnish Cyprus Creek copies of its projected mine plans affecting Tract 237-2 prior to mining upon that tract and upon completion of mining that tract.

 9. COMPLIANCE WITH LAWS. 
 (a) Armstrong Coal shall perform all legally required reclamation and comply with all applicable Federal, state and local laws, rules and regulations; obtain all necessary permits; pay all employment
and other taxes required in connection herewith, and shall indemnify and defend Cyprus Creek against all actions, including penalties and fines, resulting from Armstrong Coal’s failure to do so. 

(b) Armstrong Coal shall secure and keep in force a reclamation bond. Armstrong Coal shall not continue its mining operations,
without the written permission of Cyprus Creek, if it should fail to keep in force such bond, or if for any other reason, including the failure of the bonding company, the bond fails. 
 10. INDEMNIFICATION. Except as provided in Section 6 above, Armstrong Coal shall indemnify, defend and save harmless Cyprus Creek and the Lessors against any and all claims, loss and expense
by reason of liability imposed or claimed to be imposed by law for damage due to bodily injuries, (including death) and property damage sustained by any person(s), including the employees of Armstrong Coal, arising out of or in consequence of
Armstrong Coal’s exercise of its rights, whether same arise in whole or in part from negligence (or from any other legal basis) of Armstrong Coal, its employees or agents. Cyprus Creek shall indemnify, defend and save harmless Armstrong Coal
against any and all claims, loss and expense by reason of liability imposed or claimed to be imposed by law for damage due to bodily injuries, (including death) and property damage sustained by any person(s), including the employees of Cyprus Creek,
arising out of or in consequence of Cyprus Creek’s exercise of its rights, whether same arise in whole or in part from negligence (or from any other legal basis) of Cyprus Creek, its employees or agents. This provision shall survive any
termination or cancellation of this Sublease. 
 11. INSURANCE. Armstrong Coal shall obtain and continue in force, during the term of this
Sublease, the following insurance coverages: 
  

	 	(a)	Employer’s Liability insurance with limits of $500,000 each occurrence, unless the laws of the State in which the work is to be performed preclude an independent
right of action by an employee against an employer under common law. 

  
 6 

	 	(b)	Comprehensive Automobile Liability insurance with Bodily Injury and Property Damage both with $1,000,000 combined single limit. 

 

	 	(c)	Comprehensive General Liability insurance, including Contractual Liability coverages with Bodily Injury, and Property Damage both with $1,000,000 combined single limit.

  

	 	(d)	Workers’ Compensation coverage with statutory limits. All insurance policies must contain an unqualified provision that the insurance carrier will give Cyprus
Creek thirty (30) days prior notice in writing of any cancellation, change or lapse of such policy. Prior to occupancy or use of the Property, Armstrong Coal shall furnish to Cyprus Creek (in form satisfactory to Cyprus Creek) a certificate of
insurance showing that the requirements of this paragraph have been satisfied. The certificate of insurance shall name Cyprus Creek as an additional insured and certificate holder on all aforementioned policies. The liability assumed by Armstrong
Coal under this Sublease is not limited by the amount of insurance which Armstrong Coal is required to provide under this paragraph. 

 12. DEFAULT AND TERMINATION. In the event of the failure on the part of Armstrong Coal to make any payment hereunder when due, or failure of Armstrong Coal to make any payment due and payable under
that certain Promissory Note between Armstrong Coal and Cyprus Creek of even date herewith, or in the event a Party fails to observe and perform any other agreement or undertaking as herein provided, then the other Party shall have the right
immediately to give the defaulting Party a written notice designating the particular default or defaults of which complaint is made and notifying the defaulting Party of its intention and election to terminate the Sublease by reason of such default
or defaults, and unless the defaulting Party shall make the payment in default within TEN (10) days after giving of said notice and remove any other default complained of within THIRTY (30) days after the giving of said notice (except any
default not susceptible of being cured within such THIRTY (30) day period, in which event the time permitted to the defaulting Party to complete the same, provided the defaulting Party commences promptly and proceeds diligently to complete such
performance), then without further notice this Sublease and the rights of the defaulting Party hereunder shall be forfeited, canceled and terminated. Such termination of this Sublease shall not, however, relieve the obligation for any Royalty due
under this Sublease to date of such termination or liability of the defaulting Party for any other damage resulting to the other Party from said default. Armstrong Coal shall have the right, and the obligation should Cyprus Creek so demand, to
remove any of its property from the Property for a period of one (1) year after expiration or termination of this Sublease, subject to Armstrong Coal’s rights under Section 1(d) hereof. 

13. TAXES. At all times during the term of this Sublease and any extension hereof, Armstrong Coal shall be responsible for and shall pay all state
and local real property taxes imposed upon the interests subleased hereunder. Such taxes shall include, but not be limited to, real estate taxes upon the mineral interest subleased hereunder, severance taxes, production taxes, business taxes and
personal property taxes. The intent of this provision is to make clear that while this Sublease is in effect, Cyprus Creek 

  
 7 

 
shall have no liability for any taxes or government impositions whatsoever which may be imposed upon the Property, or the Coal, or upon the operations of Armstrong Coal as they relate to the
Property, or the Coal subleased hereunder or the rights granted to Armstrong Coal hereunder. However, it is the understanding of the Parties that Cyprus Creek shall pay all real estate taxes only, which may be imposed upon the Property to the
appropriate taxing authority; thereafter, Armstrong Coal shall reimburse Cyprus Creek for the full amount of all such paid taxes immediately upon its receipt of an invoice from Cyprus Creek evidencing same. 

14. ANCILLARY PROVISIONS OF THIS SUBLEASE. This Sublease, and the attached Exhibits A and B (made a part hereof) constitute the entire agreement
between the Parties, supersede all representations, 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 state of Kentucky. No amendment or
modification of this Sublease shall be binding unless made by a written instrument of equal formality with this Sublease. Waiver by either party of performance by the other party of any of the provisions of this Sublease shall not be construed as a
waiver of any further right to insist upon full performance of the terms of this Sublease. Each Party shall be entitled to insist strictly upon timeliness of performance by the other Party of the other Party’s obligations. 

15. FORCE MAJEURE. Except for the failure to pay money due and payable to Cyprus Creek, Armstrong Coal shall not be deemed to be in default for any
failure to perform or observe any of the terms, conditions, provisions, obligations or covenants to be performed or observed by it hereunder during periods in which such performance or observance is prevented by any event reasonably beyond Armstrong
Coal’s control including, but not by way of limitation, any order, decree, direction, inaction, or denial of permit by any governmental law, executive order, rule, regulation, or request enacted or promulgated under color of authority; by
scarcity or inability to obtain equipment, material, power or fuel; by lack of satisfactory market in the sole opinion and discretion of Armstrong Coal for Coal mined from the Property; by riot, strike, lockout, insurrection or industrial
disturbance; by failure of carriers to transport or furnish facilities for transportation; by any act of God (including, with limitation, lightning, earthquake, cave-in, fire, storm, flood, washout); or by breakage or accident to machinery or
facilities; fires or explosions; provided that Armstrong Coal shall exercise reasonable diligence to resume mining operations. Armstrong Coal shall have the right to determine and settle any strikes, lockouts or industrial disputes in its sole
discretion, and the aforesaid requirement of exercising reasonable diligence to resume mining shall not require Armstrong Coal to accede to any demand or position of any other party involved in such strike, lockout or industrial dispute. 

16. PRESERVATION OF TITLE. During the term of this Sublease, Cyprus Creek shall not do anything or fail to do anything, which would prevent or
obstruct Armstrong Coal’s rights hereunder. Nothing herein shall create or be interpreted to create a hindrance of any kind whatsoever to Cyprus Creek’s freedom to dispose of its interest in this Sublease, the Property, or the Coal
provided such proposal is made subject to this Sublease. 
  

	17.	RECORDING. Neither Party shall record this Sublease without the prior written consent of the other Party. 

  
 8 

 18. ASSIGNMENT. Armstrong Coal shall not assign this Sublease or any part of its right hereunder,
without the prior written consent of Cyprus Creek, which shall not be unreasonably withheld. Absent Cyprus Creek’s prior written consent, any assignment or attempted or purported assignment shall be void as to Cyprus Creek and, moreover, shall
constitute a material breach of this Sublease. 
 19. NOTICES. Any notice or communication required by this Lease shall be in writing
addressed to the address of each of the Parties respectively as follows: 
  

			
	To CYPRUS CREEK	  	To Armstrong
		
	Cyprus Creek Land Resources, LLC	  	Armstrong Coal Mining Company, Inc.
	701 Market Street, Ste. 798	  	407 Brown Road
	St. Louis, MO 63101-1826	  	Madisonville, Kentucky 42431
	ATTN: President	  	ATTN: Vice President of Operations

 At any time, either Party may specify in writing a new address for notification hereunder. 

20. MEMORANDUM OF SUBLEASE. The Parties hereby agree to execute a memorandum or notice of this Sublease in form suitable for recording. 

IN WITNESS WHEREOF, the Parties have executed this Underground Coal Mining Sublease in duplicate, as of the effective date first above
written, by their own hand and deed, and/or by their duly authorized representatives, each of which representative, by signing this Underground Coal Mining Sublease, personally represents and guarantees his authority to sign for the Party indicated.

  

							
	Cyprus Creek:	 		 	CYPRUS CREEK LAND RESOURCES, LLC
				
		 		 	By:	 	  

		 		 		 	James C. Sevem, Vice President

  

							
	STATE OF MISSOURI	  	)	  		  	
		  	) SS:	  		  	
	CITY OF ST. LOUIS	  	)	  		  	

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by James C. Sevem as Vice
President of Cyprus Creek Land Resources, LLC, a Delaware limited liability company, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority to so execute on
its behalf as its free act and deed in due form of law for the purposes stated herein, on this the              day of
            , 201    . 
  

			
	(SEAL)	  	  

		  	Notary Public,                          
                                         
            
		
	My commission expires:                        
                                         
  	  	

  
 9 

 WITNESS, the execution of: 

 

							
	Armstrong Coal:	 		 	ARMSTRONG COAL COMPANY, INC.
				
		 		 	By:	 	  

		 		 		 	Martin D. Wilson, President

  

							
	STATE OF MISSOURI	  	)	  		  	
		  	) SS:	  		  	
	CITY OF ST. LOUIS	  	)	  		  	

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Martin D. Wilson as
President of Armstrong Coal Company, Inc., a Delaware corporation, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority to so execute on its behalf as its
free act and deed in due form of law for the purposes stated herein, on this the              day of             ,
201    . 
  

			
	(SEAL)	  	  

		  	Notary Public,                          
                                         
            
		
	My commission expires:                        
                                         
  	  	

  
 10 

 EXHIBIT A 
 TO 
 UNDERGROUND COAL MINING SUBLEASE 

Map 

  
 11 

  
 

 

  
 12 

 EXHIBIT B 
 TO 
 UNDERGROUND COAL MINING SUBLEASE 

All recording references are to the Office of the Muhlenberg County Clerk. 

Rogers #9 Subleased Coal 
  

															
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote	  	 Comment

								
	1	  	R200	  	2699-011Rogers 200	  	UNK	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2	  	
								
	2	  	R202	  	2699-011Rogers 202	  	265.2	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
								
	3	  	R203	  	2699-011Rogers 203	  	4.6	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
								
	4	  	R204	  	2699-011Rogers 204	  	UNK	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2	  	
								
	5	  	R205	  	2699-011Rogers 205	  	158.8	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
								
	6	  	R206	  	2699-011Rogers 206	  	24	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
								
	7	  	R207	  	2699-011Rogers 207	  	198	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
								
	8	  	R208	  	2699-011Rogers 208	  	36.1	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
								
	9	  	R212	  	2699-011Rogers 212	  	110.7	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
								
	10	  	NONE	  	2699-011Rogers 214	  	UNK	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2	  	Coal under R242 and R241
								
	11	  	R217	  	2699-011Rogers 217	  	235	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
								
	12	  	R225	  	2699-011Rogers 225	  	60	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
								
	13	  	R227	  	2699-011Rogers 227	  	28	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
								
	14	  	R228	  	2699-011Rogers 228	  	71.82	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
								
	15	  	R229	  	2699-011Rogers 229	  	68.58	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
								
	16	  	R237-2	  	2699-011Rogers 237-2	  	329	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	

  
 13 

															
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote	  	 Comment

								
	17	  	R238	  	2699-011Rogers 238	  	40	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	4	  	
								
	18	  	R241	  	2699-011Rogers	  	14.2	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2,4	  	See also R214
								
	19	  	R242	  	2699-011Rogers 242	  	22	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2,4	  	See also R214
								
	20	  	R316	  	2699-011Rogers 316	  	139.5	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
								
	21	  	R317	  	2699-011Rogers 317	  	142.8	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	

 Schedule of Known Exception 

 

			
	 Footnote
	  	 Description

	1	  	Less and except that portion lying south of the south Right of Way of the Wendell Ford Parkway, formerly the Western Kentucky Parkway, assigned by Central States Coal Reserves of
Kentucky, LLC to Western Land Company, LLC by Assignment dated December 12, 2006, of record in Deed Book 524, page 523.
		
	2	  	Subject to Right of Way and/or ownership in the Commonwealth of Kentucky for the Wendell Ford Parkway, formerly the Western Kentucky Parkway, dated December 10, 1962, of record
in Deed Book 232, page 558.
		
	3	  	Subject to Right of Way for the P&L Railroad, formerly I. C. Railroad
		
	4	  	Tract also lies within the boundary of Rogers Tract 214.

 Source of Title 
 Rogers Tracts LC#2699-011 
  

	 	1.	AND BEING a portion of the property assigned by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by Deed dated August 31, 2007, of
record in Deed Book 531, page 227. 

  

	 	2.	By unrecorded Consent to Assignment and Assumption of Lease dated October 3, 2007, Martha Rogers Haas 1996 Revocable Trust, Talmage G. Rogers, et al, consented to
the partial assignment and assumption by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC. 

 END OF EXHIBIT B 

  
 14 

 EXHIBIT D 
 TO 
 ASSET PURCHASE AGREEMENT 

Memo of Rogers #9 Sublease 

 EXHIBIT D TO CONTRACT 

MEMORANDUM OF 
 UNDERGROUND COAL MINING SUBLEASE 
 (Deep #9 Coal Lying North of the South
ROW Line of Wendell Ford Parkway) 
 This MEMORANDUM OF UNDERGROUND COAL MINING SUBLEASE (“Memorandum”), is
made and entered into on this the              day of             , 201    , (“Lease Date”), by and
between CYPRUS CREEK LAND RESOURCES, LLC, Delaware limited liability company with an address of 701 Market Street, Suite 798, St. Louis, Missouri 63101 (“Cyprus Creek” or “Sublessor”) and ARMSTRONG COAL COMPANY,
INC., a Delaware corporation with an address of 407 Brown Road, Madisonville, Kentucky 42431 (“Armstrong Coal” or “Sublessee”), collectively hereinafter the “Parties”. 

W I T N E S S E T H: 
 WHEREAS, by separate Underground Coal Mining Sublease of even date herewith between Cyprus Creek as Sublessor and Armstrong Coal as Sublessee, Cyprus Creek did grant, let, sublet, and sublease unto
Armstrong Coal all of its right, title, and leasehold interest in and to a portion of the Rogers 1947 Mineral Lease being all of the #9 vein or seam of Coal lying north of the south right-of-way line of the Wendell Ford Parkway in Muhlenberg County,
Kentucky (the “Coal”), as more particularly depicted on the map attached as Exhibit A and described on Exhibit B attached thereto (the “Property”) (the “Rogers #9 Sublease”); 

WHEREAS, Sublessor and Sublessee have obtained the consents of the respective Lessors under the Rogers 1947 Mineral Lease to the Rogers
#9 Sublease to Sublessee as more particularly set forth in said Rogers #9 Sublease; 
 WHEREAS, the Parties desire to have
recorded a Memorandum for the purpose of filing record notice thereof, and for that purpose, have executed this Memorandum. 
  

			
	 Rogers #9 Sublease

Deep #9 Coal N of Pkwy.
 Muhlenberg
Co., Ky.
	  	12/14/11

  
 1 

 NOW, THEREFORE, for and in consideration of the execution of the Underground Coal Mining
Sublease (“Rogers #9 Sublease”) between the Parties and the mutual covenants and agreements set forth therein, Sublessor does hereby sublet and sublease unto Sublessee all of its right, title and leasehold interest in and to that portion
of the Rogers 1947 Mineral Lease being all of the #9 vein or seam of Coal lying north of the south right-of-way line of the Wendell Ford Parkway in Muhlenberg County, Kentucky, and the coal mining rights and privileges thereto, more particularly
depicted on the map attached hereto as Exhibit A and described on the attached Exhibit B, incorporated herein by reference and made a part hereof (Deed Book 164, page 525). 

(a) The term of the Rogers #9 Sublease (the “Term”) shall be for the longer of: (i) five (5) years commencing on
the effective date of this Lease; or (ii) until such time as all of the mineable and merchantable coal has been mined and removed; provided that Armstrong Coal is engaged in mining coal on the Property by no later than five (5) years from
the effective date of the Rogers #9 Sublease and further provided that Armstrong Coal has continuously mined such Coal and is actively mining and removing such Coal from the Property. Notwithstanding any provision to the contrary, Armstrong Coal may
terminate the Rogers #9 Sublease at any time during the term upon thirty (30) days written notice to Cyprus Creek. In the event that Armstrong Coal completes its mining activities prior to the expiration of the Term, the Rogers #9 Sublease
shall terminate and Armstrong Coal shall provide written notice to Cyprus Creek within five (5) days of the date on which Armstrong Coal last loads Coal from the Property for shipment to customers. The Rogers #9 Sublease shall expire on the
date of such written notice. 
 (b) Upon expiration or termination of the Rogers #9 Sublease, Armstrong Coal shall, at
Cyprus Creek’s request, execute a Release of the Rogers #9 Sublease for purposes of recording. After expiration or termination of this Sublease, Armstrong Coal shall have the right to re-enter the Property and remove all of Armstrong
Coal’s mining equipment and related property from the Property, and thereafter, as and when required by Federal, state or local law or regulation, as a result of Armstrong Coal’s operations under the Rogers #9 Sublease, Armstrong Coal
shall perform reclamation and environmental work on and respecting the Property. 
 (c) If, at any time, Armstrong Coal
shall fail to perform reclamation and environmental work on and respecting the Property, as and when required by law, Cyprus Creek, at its option, shall have the right to: 

 

	 	(i)	seek specific performance of this obligation from a court of competent jurisdiction; and/or, 

 

	 	(ii)	re-enter the Property and perform such reclamation and environmental work as may be required at the expense of Armstrong Coal, which expense Armstrong Coal shall be
obligated to pay without legal recourse. 

  

	 	(iii)	Notwithstanding the foregoing, Cyprus Creek shall provide Armstrong Coal thirty (30) days prior written notice of its intent to proceed under (i) or
(ii) above and allow Armstrong Coal a reasonable time within which to perform reclamation work as set forth above. 

 This Memorandum is executed solely for the purpose of providing record notice only, and is not intended, nor shall it be deemed, to modify any of the provisions of the Rogers #9 Sublease. Reference should
be made to the Underground Coal Mining Sublease to ascertain all of the terms, conditions, and covenants thereof, a true and complete copy of which is in the possession of both SUBLESSOR and SUBLESSEE. 

  
 2 

 This Memorandum may be executed in one or more identical counterparts which may be combined
into one or more identical documents, but all of which together shall constitute one and the same instrument, each of which shall be deemed an original. 
 IN WITNESS WHEREOF, the Parties have executed this Memorandum of Underground Coal Mining Sublease as of the effective date first above written. 

 

							
	Cyprus Creek:	 		 	CYPRUS CREEK LAND RESOURCES, LLC
				
		 		 	By:	 	  

		 		 		 	James C. Sevem, Vice President

  

							
	STATE OF MISSOURI	  	)	  		  	
		  	) SS:	  		  	
	CITY OF ST. LOUIS	  	)	  		  	

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by James C. Sevem as Vice
President of Cyprus Creek Land Resources, LLC, a Delaware limited liability company, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority to so execute on
its behalf as its free act and deed in due form of law for the purposes stated herein, on this the             day of
            , 201    . 
  

			
	(SEAL)	  	  

		  	Notary Public,                          
                                         
            
		
	My commission expires:                        
                                         
    	  	

  
 3 

 WITNESS, the execution of: 

 

							
	Armstrong Coal:	 		 	ARMSTRONG COAL COMPANY, INC.
				
		 		 	By:	 	  

		 		 		 	Martin D. Wilson, President

  

							
	STATE OF MISSOURI	  	)	  		  	
		  	) SS:	  		  	
	CITY OF ST. LOUIS	  	)	  		  	

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Martin D. Wilson as
President of Armstrong Coal Company, Inc., a Delaware corporation, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority to so execute on its behalf as its
free act and deed in due form of law for the purposes stated herein, on this the              day of             ,
201    . 
  

			
	(SEAL)	  	  

		  	Notary Public,                          
                                         
            
		
	My commission expires:                        
                                         
  	  	

  

					
	 THIS INSTRUMENT PREPARED BY:
  
	 		 	
	M. Kirby Gordon, II	 		 	
	GORDON & GORDON, P.S.C.	 		 	
	6357 KY Hwy 405	 		 	
	P.O. Box 398	 		 	
	Owensboro, Kentucky 42302-0398	 		 	
	(270) 281-0398	 		 	

  
 4 

 EXHIBIT A 
 TO 
 UNDERGROUND COAL MINING SUBLEASE 

MAP 

  
 5 

 

 

  
 6 

 EXHIBIT B 
 TO 
 UNDERGROUND COAL MINING SUBLEASE 

All recording references are to the Office of the Muhlenberg County Clerk. 

Rogers #9 Subleased Coal 
  

															
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote	  	 Comment

								
	1	  	R200	  	2699-011Rogers 200	  	UNK	  	4/18/97
518/343	  	1/6/93
2/27/06	  	1,2	  	
								
	2	  	R202	  	2699-011Rogers 202	  	265.2	  	4/18/97
518/343	  	1/6/93
2/27/06	  	2	  	
								
	3	  	R203	  	2699-011Rogers 203	  	4.6	  	4/18/97
518/343	  	1/6/93
2/27/06	  	3	  	
								
	4	  	R204	  	2699-011Rogers 204	  	UNK	  	4/18/97
518/343	  	1/6/93
2/27/06	  	1,2	  	
								
	5	  	R205	  	2699-011Rogers 205	  	158.8	  	4/18/97
518/343	  	1/6/93
2/27/06	  		  	
								
	6	  	R206	  	2699-011Rogers 206	  	24	  	4/18/97
518/343	  	1/6/93
2/27/06	  	2	  	
								
	7	  	R207	  	2699-011Rogers 207	  	198	  	4/18/97
518/343	  	1/6/93
2/27/06	  	3	  	
								
	8	  	R208	  	2699-011Rogers 208	  	36.1	  	4/18/97
518/343	  	1/6/93
2/27/06	  	3	  	
								
	9	  	R212	  	2699-011Rogers 212	  	110.7	  	4/18/97
518/343	  	1/6/93
2/27/06	  		  	
								
	10	  	NONE	  	2699-011Rogers 214	  	UNK	  	4/18/97
518/343	  	1/6/93
2/27/06	  	1,2	  	Coal under R242 and R241
								
	11	  	R217	  	2699-011Rogers 217	  	235	  	4/18/97
518/343	  	1/6/93
2/27/06	  	3	  	
								
	12	  	R225	  	2699-011Rogers 225	  	60	  	4/18/97
518/343	  	1/6/93
2/27/06	  	2	  	
								
	13	  	R227	  	2699-011Rogers 227	  	28	  	4/18/97
518/343	  	1/6/93
2/27/06	  	2	  	
								
	14	  	R228	  	2699-011Rogers 228	  	71.82	  	4/18/97
518/343	  	1/6/93
2/27/06	  		  	
								
	15	  	R229	  	2699-011Rogers 229	  	68.58	  	4/18/97
518/343	  	1/6/93
2/27/06	  		  	
								
	16	  	R237-2	  	2699-011 Rogers 237-2	  	329	  	4/18/97
518/343	  	1/6/93
2/27/06	  	3	  	

  
 7 

															
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote	  	 Comment

								
	17	  	R238	  	2699-011Rogers 238	  	40	  	4/18/97
518/343	  	1/6/93
2/27/06	  	4	  	
								
	18	  	R241	  	2699-011Rogers	  	14.2	  	4/18/97
518/343	  	1/6/93
2/27/06	  	1,2,4	  	See also R214
								
	19	  	R242	  	2699-011Rogers 242	  	22	  	4/18/97
518/343	  	1/6/93
2/27/06	  	1,2,4	  	See also R214
								
	20	  	R316	  	2699-011Rogers 316	  	139.5	  	4/18/97
518/343	  	1/6/93
2/27/06	  	2	  	
								
	21	  	R317	  	2699-011Rogers 317	  	142.8	  	4/18/97
518/343	  	1/6/93
2/27/06	  		  	

 Schedule of Known Exception 

 

			
	 Footnote
	  	 Description

	1	  	Less and except that portion lying south of the south Right of Way of the Wendell Ford Parkway, formerly the Western Kentucky Parkway, assigned by Central States Coal Reserves of
Kentucky, LLC to Western Land Company, LLC by Assignment dated December 12, 2006, of record in Deed Book 524, page 523.
		
	2	  	Subject to Right of Way and/or ownership in the Commonwealth of Kentucky for the Wendell Ford Parkway, formerly the Western Kentucky Parkway, dated December 10, 1962, of record
in Deed Book 232, page 558.
		
	3	  	Subject to Right of Way for the P&L Railroad, formerly I. C. Railroad
		
	4	  	Tract also lies within the boundary of Rogers Tract 214.

 Source of Title 
 Rogers Tracts LC#2699-011 
  

	 	1.	AND BEING a portion of the property assigned by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by Deed dated August 31, 2007, of
record in Deed Book 531, page 227. 

  

	 	2.	By unrecorded Consent to Assignment and Assumption of Lease dated October 3, 2007, Martha Rogers Haas 1996 Revocable Trust, Talmage G. Rogers, et al, consented to
the partial assignment and assumption by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC. 

 END OF EXHIBIT B 

  
 8 

 EXHIBIT E 
 TO 
 ASSET PURCHASE AGREEMENT 

Rogers Consent to #9 Sublease 

 EXHIBIT E TO CONTRACT 

NOT TO BE RECORDED 
 CONSENT TO PARTIAL SUBLEASE 
 (Deep #9 Coal Lying North of the South ROW
Line of Wendell Ford Parkway) 
 This CONSENT TO PARTIAL SUBLEASE (“Consent”) is made and entered into on this the
            day of             , 201    , by and between: 

TALMAR, LLC 
 A Florida limited liability company authorized to 
 transact and conduct business
in the 
 Commonwealth of Kentucky under the name of 
 TALMAR OF FL, LLC, with mailing address of 
 3975
20th Street, Suite J 

Vero Beach, Florida 32960 
 Talmage G. Rogers, Jr., Manager 
 -and- 

J. L. ROGERS FAMILY, LLC 
 A Florida limited liability company authorized to 
 transact and conduct business
in the 
 Commonwealth of Kentucky, with mailing address of 

200 Coconut Palm Road 
 Vero Beach, Florida 32963 
 James L. Rogers, III, Manager 

-and- 
 JAMES
L. ROGERS, III and MARY M. ROGERS, His Wife 
 200 Coconut Palm Road 

Vero Beach, Florida 32963 
 -and- 
 SUE ROGERS JOHNSON, a Single Woman 

7380 Wildercliff Drive 
 Atlanta, Georgia 30328 
 (collectively referred to as “LESSORS”)

 -AND- 
  

			
	 Rogers 1947 Lease
 #9
Vein or Seam of Coal
 N of the S ROW line of Wendell Ford Parkway
 Muhlenberg Co., Ky.
	  	12/20/11

  
 1 

 CYPRUS CREEK LAND RESOURCES, LLC 

a Delaware limited liability company authorized 
 to transact and conduct business in the 
 Commonwealth of Kentucky, with offices
and 
 principal place of business at 
 701 Market Street, Suite 798 
 St. Louis, Missouri 63102-1826 

(hereinafter called “LESSEE/SUBLESSOR”) 
 -AND- 
 ARMSTRONG COAL COMPANY, INC. 

A Delaware corporation 
 407 Brown Road 
 Madisonville, Kentucky 42431 

(hereinafter called “SUBLESSEE”). 
 W I T N E S S E T H: 
 WHEREAS, LESSORS and LESSEE/SUBLESSOR, by and
through their respective predecessors in title more particularly set forth on Addendum 1 and 2 attached hereto and incorporated herein by referenced, are parties to a certain Mineral Lease of coal properties and coal mining rights located in
Muhlenberg County, Kentucky (“Leased Premises”), dated December 4, 1947, of record in Deed Book 164, page 525, in the Office of the Muhlenberg County Clerk, as amended, supplemented, and extended from time to time (“1947 Mineral
Lease”); 
 WHEREAS, by Underground Coal Mining Sublease dated
            , 201    (“Rogers #9 Sublease”), LESSEE/SUBLESSOR desires to partially sublease to SUBLESSEE a portion of its leasehold estate under the 1947
Mineral Lease only insofar as it relates to the #9 vein or seam of Coal lying north of the south right-of-way line of the Wendell Ford Parkway in Muhlenberg County, Kentucky, as more particularly described in the 1947 Mineral Lease, incorporated
herein by reference and made a part hereof (“#9 Subleased Premises”), and subject to that certain unrecorded Agreement Relating to Additional Advance Royalties “Deep #9 Coal North of Western Kentucky Parkway” dated May 3,
2007 (“Additional Advance Royalties Agreement”), and unrecorded Agreement Relating to Additional Earned Royalty “Deep #9 Coal North of the South ROW Line of the Wendell Ford Parkway” dated
            , 201    (“Additional Earned Royalty Agreement”), both regarding additional royalties due under the terms and conditions of the 1947 Mineral Lease
with respect to the Deep #9 Coal lying north of the south right-of-way line of the Western Kentucky Parkway (now Wendell Ford Parkway) upon the terms and conditions more particularly set forth therein; and, 

WHEREAS, LESSORS desire to grant their consent to the proposed Rogers #9 Sublease, upon the terms and conditions hereinafter set forth.

 NOW, THEREFORE, for and in consideration of the mutual covenants and promises of the parties hereto and in exchange for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the LESSORS, LESSEE/SUBLESSOR, and SUBLESSEE do hereby covenant and agree as follows: 

  
 - 2 -

 1. Recitals. The foregoing recitals and the instruments referenced therein are
incorporated herein by reference and made a part hereof. 
 2. Consent. LESSORS do hereby grant their consent to the
partial sublease of the 1947 Mineral Lease by a certain Underground Coal Mining Sublease dated             , 201    (“Rogers #9 Sublease”), by and between
LESSEE/SUBLESSOR and SUBLESSEE, and the assumption by SUBLESSEE of the duties as Lessee under the 1947 Mineral Lease, but only insofar as they relate to the #9 vein or seam of Coal lying north of the south right-of-way line of the Wendell Ford
Parkway (formerly the Western Kentucky Parkway) in Muhlenberg County, Kentucky depicted on exhibit A and described on Exhibit B to the Rogers #9 Sublease, incorporated herein by reference and made a part hereof, subject to that certain
unrecorded Agreement Relating to Additional Advance Royalties “Deep #9 Coal North of Western Kentucky Parkway” dated May 3, 2007 (“Additional Advance Royalties Agreement”), and unrecorded Agreement Relating to Additional
Earned Royalty “Deep #9 Coal North of South ROW Line of Wendell Ford Parkway” dated             , 201    (“Additional Earned Royalty Agreement”),
regarding additional royalties due under the terms and conditions of the 1947 Mineral Lease with respect to the Deep #9 Coal lying north of the Western Kentucky Parkway (now Wendell Ford Parkway) upon the terms and conditions more particularly set
forth therein. 
 3. No Alteration of 1947 Mineral Lease. Nothing in this Consent nor in the Rogers #9 Sublease shall
be construed to alter or amend the terms of the 1947 Mineral Lease or alter, amend or diminish the LESSEE’S/SUBLESSOR’S duties and obligations thereunder. Notwithstanding the Rogers #9 Sublease, LESSEE/SUBLESSOR shall remain responsible
for the full and faithful performance of the 1947 Mineral Lease. Without limiting the foregoing, LESSORS, LESSEE/SUBLESSOR and SUBLESSEE agree that the Earned Royalty, together with the additional one percent (1%) per ton royalty provided for
in the Additional Earned Royalty Agreement, shall be paid on any mineable and merchantable Coal within the “No Mining Boundary” area affecting Rogers Tract R237-2 depicted on Exhibit A to the Rogers #9 Sublease which is bypassed,
abandoned or otherwise left unmined by reason of the restrictive covenant in the Rogers #9 Sublease (“Bypassed Coal”), which payment shall be made at such time as the Bypassed Coal would have otherwise been mined in the normal course of
mining operations. Upon payment for Bypassed Coal, LESSOR shall be obligated to quitclaim its entire right, title and interest in and to the Bypassed Coal to LESSEE/SUBLESSOR, or its designee. 

4. Binding Effect. This Consent shall inure to the benefit of and be of full and binding effect upon the parties hereto, their
respective heirs, successors, and assigns, including, without limitation, Armstrong Coal Company, Inc., if and to the extent of that portion of the 1947 Mineral Lease relating to the #9 Subleased Premises. 

5. Governing Law. This Consent shall be construed in accordance with the laws of the Commonwealth of Kentucky. 

6. Multiple Counterparts. This Consent may be executed in multiple counterparts, each of which shall be considered an original
or which may be conformed into a single document. 
 [remainder of page intentionally left blank] 

  
 - 3 -

 IN WITNESS WHEREOF, the parties hereto have executed this Consent to Partial Sublease as of
the effective date first hereinabove written. 
  

							
	LESSORS:	 		 	TALMAR, LLC
				
		 		 	By:	 	  

	 	 	 	 	 	 	Talmage G. Rogers, Jr., Manager
				
	STATE OF FLORIDA	 	)	 		 	
		 	)	 		 	
	COUNTY OF INDIAN RIVER	 	)	 		 	

 The foregoing instrument was SUBSCRIBED, SWORN TO, AND ACKNOWLEDGED before me by Talmage G. Rogers, Jr,
Manager, of Talmar, LLC, a Florida limited liability company authorized to transact and conduct business in the Commonwealth of Kentucky under the name of TALMAR OF FL, LLC, personally known to me to be the person whose name is subscribed above, and
having represented to me that he has full power and authority to so execute on its behalf as its free act and deed in due form of law, for the purposes herein stated, on this the
            day of             , 201    . 

 

							
			
	(SEAL)	 		  	
		 		  	  

		 		  	Notary Public,                        
                                         
                 
			
	My commission expires:                      
                                         
               	  		  	

  
 - 4 -

 WITNESS, the execution of:  

 

									
	LESSORS:	 		 		 	J. L. ROGERS FAMILY, LLC
					
		 		 		 	By:	 	  

	 	 	 	 	 	 	 	 	James L. Rogers, III, Manager
					
	STATE OF FLORIDA	 	)	 		 		 	
		 	)	 		 		 	
	COUNTY OF ST LUCIE	 	)	 		 		 	

 The foregoing instrument was SUBSCRIBED, SWORN TO, AND ACKNOWLEDGED before me by James L. Rogers, III,
Manager of the J. L. Rogers Family, LLC, a Florida limited liability company authorized to transact and conduct business in the Commonwealth of Kentucky, personally known to me to be the person whose name is subscribed above, and having represented
to me that he has full power and authority to so execute on its behalf as its free act and deed in due form of law, for the purposes herein stated, on this the             day of
            , 201    . 
  

							
			
	(SEAL)	 		  	
		 		  	  

		 		  	Notary Public,                        
                                         
                 
			
	My commission expires:                      
                                         
               	  		  	

  
 - 5 -

 WITNESS, the execution of:  

 

							
	 LESSORS:
  
	 		 		 	
		 		 		 	James L. Rogers, III
		 		 		 	  

		 		 		 	Mary M. Rogers, His Wife
				
	STATE OF FLORIDA	 	)	 		 	
		 	)	 		 	
	COUNTY OF ST LUCIE	 	)	 		 	

 The foregoing instrument was SUBSCRIBED, SWORN TO, AND ACKNOWLEDGED before me by James L. Rogers, III,
and Mary M. Rogers, his wife, personally known to me to be the persons whose names are subscribed above, as their free act and deed in due form of law, for the purposes herein stated, on this the
            day of             , 201    . 

 

							
			
	(SEAL)	 		  	
		 		  	  

		 		  	Notary Public,                        
                                         
                 
			
	My commission expires:                      
                                         
               	  		  	

  
 - 6 -

 WITNESS, the execution of:  

 

					
	LESSORS:	 		 	
			
		 		 	
		 		 	  

Sue Rogers Johnson

			
	STATE OF GEORGIA	 	)	 	
		 	)	 	
	COUNTY OF COBB	 	)	 	

 The foregoing instrument was SUBSCRIBED, SWORN TO, AND ACKNOWLEDGED before me by Sue Rogers Johnson, a
single woman, personally known to me to be the person whose name is subscribed above, as her free act and deed in due form of law, for the purposes herein stated, on this the
            day of             , 201    . 

 

							
			
	(SEAL)	 		  	
		 		  	  

		 		  	Notary Public,                        
                                         
                 
			
	My commission expires:                      
                                         
               	  		  	

  
 - 7 -

 WITNESS, the execution of:  

 

									
	LESSEE/SUBLESSOR:	 		 		 	CYPRUS CREEK LAND RESOURCES, LLC
					
		 		 		 	By:	 	  

					
		 		 		 	Title:	 	  

					
	STATE OF MISSOURI	 	)	 		 		 	
		 	) SS:	 		 		 	
	CITY OF ST. LOUIS	 	)	 		 		 	

 The foregoing instrument was SUBSCRIBED, SWORN TO, AND ACKNOWLEDGED before me by as of Cyprus Creek Land
Resources, LLC, a Delaware limited liability company authorized to transact and conduct business in the Commonwealth of Kentucky,, personally known to me to be the person whose name is subscribed above, and having represented to me that he has full
power and authority to so execute on its behalf as its free act and deed in due form of law, for the purposes herein stated, on this the             day of
            , 201    . 
  

							
			
	(SEAL)	 		  	
		 		  	  

		 		  	Notary Public,                        
                                         
                 
			
	My commission expires:                      
                                         
               	  		  	

  
 - 8 -

									
	SUBLESSEE:	 		 		 	ARMSTRONG COAL COMPANY, INC.
					
		 		 		 	By:	 	 
		 		 		 		 	
		 		 		 	Title:	 	  

					
	STATE OF	 	)	 		 		 	
		 	) SS:	 		 		 	
	CITY OF	 	)	 		 		 	

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by as of Armstrong Coal
Company, Inc., a Delaware corporation, personally known to me to be the person whose name is subscribed above, and having represented to me that he has full power and authority to so execute on its behalf as its free act and deed in due form of law,
on this the             day of             , 201    . 

 

							
			
	(SEAL)	 		  	
		 		  	  

		 		  	Notary Public,                        
                                         
                 
			
	My commission expires:                      
                                         
               	  		  	

  
 - 9 -

 ADDENDUM 1 
 TO 
 CONSENT TO PARTIAL SUBLEASE 

Lessors’ Source of Title 
 1. By deed dated September 11, 1937, recorded in Deed Book 142, page 3, at page 11, Hite H Huffaker, Special Master in Chancery, U.S. District Court for the Western District of Kentucky in Cause
No. 715 entitled “20 South Main Street Corporation v. Gibraltar Coal Mining Company” conveyed on behalf of the parties to this lawsuit and J. A Smith and D. B. Cornett, coal receivers of Gibraltar Coal Mining Company in
bankruptcy numerous tracts and estates (less oil & gas) to James L. Rogers. 
 2. James L. Rogers died testate a
resident of Muhlenberg County, Kentucky where his will was proven on January 27, 1945 and is recorded in Will Book 5, page 617. Pursuant to the terms of his will, he devised his property to his sons, T, G. Rogers and J. L. Rogers, Jr., equally.

 3. By lease dated December 7, 1947, recorded December 20,1947, in Deed Book 164, page 525, James L Rogers, Jr,
and Anne F. Rogers, his wife, and Talmage G. Rogers and Martha F. Rogers, his wife, demised to Ayrshire Collieries Corporation numerous tracts and estates. 
 T. G. Rogers’ 1/2 Interest 
 4. As proven by Affidavit of Descent
dated February 9, 1948, recorded in Deed Book 165, page 205, T. G. Rogers died intestate on January 29, 1948 and left surviving him his wife, Martha F. Rogers, who inherited a dower interest, which terminated at her death on
January 1, 1976, and two children: Martha Ann Rogers (Poulos) Haas and Talmage G. Rogers, Jr., each of whom inherited an undivided 1/2 interest of 1/2. By unrelated document, it is determined that Martha F. Rogers died January 1,1976, thus
terminating her dower interest. 
 5. Martha Ann (Rogers) Haas, a widow, by deed dated May 8, 2003, recorded
June 4, 2003, in Deed Book 496, page 501, conveyed her interest in the subject tract to Martha Rogers Haas, Trustee of the Martha Rogers Haas 1996 Revocable Trust dated September 14,1996. 

6. By deed dated May 3, 2011, recorded in Deed Book 553, page 92, Martha Rogers Haas, Trustee of the Martha Rogers Haas 1996
Revocable Trust conveyed to Talmar, LLC, a Florida limited liability company, doing business in Kentucky as TALMAR OF FL, LLC, all of their combined right, title and interest in and to coal and coal mining rights and privileges in Muhlenberg County,
Kentucky. 
 7. By deed dated May 3, 2011, recorded in Deed Book 553, page 57, and Talmage G. Rogers, Jr. and Jean M.
Rogers, His Wife, conveyed to Talmar, LLC, a Florida limited liability company, doing business in Kentucky as TALMAR OF FL, LLC, all of their combined right, title and interest in and to the coal and coal mining rights and privileges in Muhlenberg
County, Kentucky. 

  
 - 10 -

 J. L. Rogers, Jr’s 1/2 Interest 

8. By deed dated April 30, 1956, recorded December 14, 1956, in Deed Book 200, page 45, J. L. Rogers, Jr. and wife, Anne F
Rogers, conveyed to Wm. P. Donan, Trustee: 
 “an undivided 1/2 interest in an undivided 1/2 interest (being an undivided
1/4 interest thereof)” 
 of “all the coal and minerals” in 4 descriptions, one of which is described as that real estate conveyed
(Tract 2) to J,, L. Rogers, Trustee, by Hite K Huffaker, Special Master in Chancery, for Gibraltar Coal Mining Company by deed dated September 11,1937, recorded in Deed Book 143, page 3. This deed and trust instrument is for the benefit of
their children, James L. Rogers, III, and Sue Rogers, until they each reach the age of 21 years at which time they take free of trust. 
 This instrument contains the following mineral reservation: 
 There is reserved
from Parcel II, Tracts #1, 2, 3 and 4, all of the coal except the #9 vein of coal. There is also reserved and not conveyed herein, all the #9 coal that is strippable and covered in the coal lease from Talmage G Rogers, et al to Ayrshire Collieries
Corporation, dated December 4, 1947 and of record in Deed Book 164, page 525, in the office aforesaid, to which reference is hereby made for a more specific description of the #9 coal excluded from this conveyance. 

26. By identically worded deeds: 
 (a) Dated November 25, 1958, recorded October 2, 1859, in Deed Book 212, page 175; 
 (b) Dated October 1, 1959, recorded October 2, 1859, in Deed Book 212, page 177; 
 (c) Dated January 1, 1960, recorded January 12, 1960, in Deed Book 213, page 430; and 
 (d) Dated January 1, 1961, recorded January 11, 1961, in Deed Book 221, page 421, 
 26. L. Rogers, Jr. and wife, Anne F Rogers, conveyed to Wm. P. Donan, Trustee: 

“an undivided 1/8 interest in an undivided 1/2 (being an undivided 1/16 interest thereof)” 

in those real estate interests acquired by J. L. Rogers from Hite H. Huffaker, Special Master, by deed dated September 11, 1937, recorded in Deed
Book 143, page 3. Each of these four conveyances contains the identical reservation set forth in paragraph 6. 
 10. By
deed dated June 13, 1962, recorded June 19, 1962, in Deed Book 229, page 302, Wm P. Donan, Trustee, conveyed to James L. Rogers, III, and Sue Ford Grable (nee Rogers) an undivided 1/4 interest each of the interest he held as Trustee.

  
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 11. James Lloyd Rogers, Jr. died testate July 6, 1968 a resident of Florida. On
July 13, 1968, daughter, Sue R, Grable, filed an authenticated copy of the will and the Muhlenberg County Court ordered an ancillary probate in Muhlenberg County. The Will is of record in Will Book 10, page 116. William P Donan was appointed
ancillary administrator on July 13, 1968, County Court Order Book 36, page 254. On June 30, 1971, County Court Order Book 38, page 254, the estate was settled. 

 

	 	26.	By deed dated June 18, 1971, recorded June 22, 1971, in Deed Book 283, page 168, William Donan, Ancillary Administrator with the will annexed of the estate of
James L. Rogers, Jr. conveyed to James L. Rogers, III, Testamentary Trustee under the will of James L Rogers, Jr. an undivided 1/2 interest of the 1/2 interests owned by the decedent James L. Rogers, Jr at the time of his death. In this conveyance,
page 175, heading “Brownie Holt, Brownsville and Mercer”, the parcels acquired from Gibraltar Coal Mining Company are conveyed to Grantee, subject to the following exceptions: 

“(16) An undivided % interest in an to the deep coal of the #9 vein of coal and all the minerals except coal as set out in Parcel II
(2) in the deed from J. L. Rogers, Jr., et ux, to Wm., P. Donan, Trustee, dated April 30,1956, and of record in Deed Book 200, page 45 
 (17) An undivided 1/16 interest in and to the deep coal of the #9 vein of coal and all the minerals except coal as set out in Parcel I (2) in the deed from J. L. Rogers, Jr., et ux, to Wm. P.
Donan, Trustee, dated November 25, 1958, and of record in Deed Book 212, p. 175. 
 (18) An undivided 1/16 interest in
and to the deep coal of the #9 vein of coal and all the minerals except coal as set out in Parcel I (2) in the deed from J. L Rogers, Jr, et ux, to Wm P Donan, Trustee, dated October 1, 1959, and of record in Deed Book 212, page 177.

 (19) An undivided 1/16 interest in and to the deep coal of the #9 vein of coal and all the minerals except coal as set
out in Parcel I (2) in the deed from J. L. Rogers, Jr., et ux, to Wm P. Donan, Trustee, dated January 1, 1960, and of record in Deed Book 213, page 430 
 (20) An undivided 1/16 interest in and to the deep coal of the #9 vein of coal and all the minerals except coal as set out in Parcel I (2) in the deed from J. L Rogers, Jr., et ux, to Wm. P.
Donan, Trustee, dated January 1, 1961 and of record in Deed Book 221, page 421.” 
 13. By deed dated
June 18, 1971, recorded in Deed Book 283, page 204, William P. Donan, Ancillary Administrator with the will annexed of the estate of James L. Rogers, Jr. conveyed to Anne F. Rogers an undivided 1/2 interest of the 1/2 interests owned by the
decedent James L Rogers, Jr. at the time of his death. This instrument contains the identical exceptions set forth in the preceding paragraph. 
 14. Anne F. Rogers died testate April 22, 1988 a resident of Indian River County, Florida, where her November 15, 1976 will was proven on May 18, 1988 and subsequently filed in
Muhlenberg County on June 13, 1988, recorded in Will Book 24, page 1. Pursuant to Item 3, her real property was divided equally between her children, James L. Rogers, III, and Sue Rogers Johnson. 

15. By deed dated May 8, 1991, recorded in Deed Book 407, page 64, James R. Rogers, III, et ux; Sue R. Johnson, et vir; James
L, Rogers, HI; and Sue R. Johnson as ancillary administrator/trix of the Estate of Anne F. Rogers, deceased, conveyed to James L Rogers, III, Trustee of the James L Rogers, Jr Testamentary Trust: 

“all of the surface, and mineral interests Anne F. Rogers had received by deed from Wm. P Donan, ancillary administrator of the
Estate of James L. Rogers, Jr.” 

  
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 16. By deed dated April 29, 2011, of record in Deed Book 552, page 778, James L.
Rogers, III, Trustee of the James L. Rogers, Jr. Testamentary Trust conveyed to J. L. Rogers Family, LLC, a Florida limited liability company authorized to transact business in Kentucky, all of its right, title and interest in and to coal and coal
mining rights and privileges in Muhlenberg County, Kentucky. 
 END OF ADDENDUM 1 

  
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 ADDENDUM 2 
 TO 
 CONSENT TO PARTIAL SUBLEASE 

Lessee/Sublessor’s Source of Title 
 1. By Mineral Lease dated December 4, 1947, recorded in Deed Book 164, page 525, Talmage G. Rogers, et al, leased to Ayrshire Collieries Corp. numerous tracts of properties consisting of both
surface and mineral, surface only, coal only, and partial interests in such estates. By mesne instruments, the mineral lease dated December 4, 1947 has been amended and supplemented (“1947 Mineral Lease”). 

2. By “Notice” dated February             , 1950, recorded
September 30, 1969, in Deed Book 273, page 269, J. L. Rogers, Jr., et al, gave notice to Ayrshire Collieries that certain properties were being added to the demised premises of the 1947 Mineral Lease. 

3. By “Third Supplement” dated January 1, 1966, recorded September 25, 1974, in Deed Book
304, page 439, Martha F. Rogers, widow; Martha R. Poulos, et vir; T. G. Rogers, Jr., et ux; J. L. Rogers, III, et ux; and Sue Grable, et vir leased to Ayrshire Collieries “the deep #9 vein of coal excepted by Rogers, et al, under the 3rd paragraph on page 2 of the original lease owned by Lessors contained
in the demised premises”. 
 4. By unrecorded instrument entitled “Notice of Extension of Lease” dated
November 1, 1967, Ayrshire Collieries Corporation gave notice to J. L. Rogers, et al, “pursuant to the provisions of said Third Supplemental Agreement has elected to elected to exercise its right to extend said lease for one
(1) additional 20-year period or term, that is, until December 3, 1987.” 
 5. By “Supplemental
Agreement” dated November 30, 1967, recorded September 25, 1974, in Deed Book 304, page 453, the initial term of the “deep #9 vein of coal” as demised by Deed Book 304, page 439, was extended until December 3, 1987, and
was to run concurrent with the term of the 1947 Mineral Lease. 
 6. By instrument dated October 20, 1969, recorded
December 18, 1969, in Articles of incorporation Book 6, page 211, Ayrshire Collieries Corporation was merged into American Metal Climax, Inc. 
 7. By instrument dated June 15, 1974, recorded October 4, 1974, in Articles of Incorporation Book 8, page 73, American Metal Climax, Inc. changed its name to Amax, Inc. 

8. By “Partial Release of Coal Mining Lease” dated October 16, 1987, recorded in Deed Book 386, page 127, Talmage G.
Rogers, Jr., et al, and Ayrshire Collieries Corporation mutually released a portion of the 1947 Mineral Lease by metes and bounds description of 768.11 acres and 15.56 acres. The Release terminated approximately 11.1 acres of Rogers Parcel 227; 16
acres of Rogers Parcel 238 and 25.7 acres of Rogers Parcel 239. 
 9. By Assignment dated October 19, 1987, recorded
in Deed Book 384, page 712, Amax, Inc., assigned to Peabody Coal Company, a partial interest in the 1947 Mineral Lease (“Partial Interest in Mineral Lease”). 

  
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 10. By deed dated September 12, 1989, recorded in Deed Book 389, page 37, Peabody
Coal Company, a Delaware corporation, assigned to Peabody Development Company, a Delaware corporation, the Partial Interest in Mineral Lease. See also Deed of Confirmation dated December 20, 2005, effective September 12, 1989, Deed Book
516, page 502. 
 11. By instrument dated August 30, 1991, recorded October 21, 1991, in Deed Book 410, page 98,
Martha Haas, et al, consented to the assignment by Peabody Coal Company, a Delaware corporation, of the Partial Interest in Mineral Lease to Peabody Development Company, a Delaware corporation. 

12. By unrecorded instrument dated October 26, 1992, entitled “Amendment to Leases”, Martha Anne Rogers Haas, et al,
contracted with Peabody Development Company, a Delaware corporation, for an amendment to the Partial Interest in 1947 Lease as previously amended by “Third Supplement Agreement” dated January 8, 1957 to define gross sales realization
to include amounts received by lessee from its customers and payment of state severance tax, federal black lung and federal reclamation or SMCRA taxes imposed on the coal removed from the demised premises. 

13. Effective December 16, 2003, Peabody Development Company, a Delaware corporation, converted and changed its name to Peabody
Development Company, LLC, a Delaware limited liability corporation, as shown in Articles of Incorporation Book 15, page 635. 

14. Effective July 11, 2005, Peabody Coal Company, a Delaware corporation, pursuant to Section 266 of the Delaware General
Corporation Law, converted and changed its name to Peabody Coal Company, LLC, a Delaware limited liability company, as shown in Articles of Incorporation Book 15, page 59. 
 15. By “Deed of Confirmation” dated December 20, 2005, effective September 12, 1989, recorded December 28, 2005, in Deed Book 516, page 502, Peabody Coal Company, LLC, a
Delaware limited liability company, confirmed the assignment of the Partial Interest in 1947 Mineral Lease to Peabody Development Company, LLC, a Delaware limited liability company. 

16. By deed dated December 20, 2005, recorded December 28, 2005, in Deed Book 516, page 590, Peabody Coal Company, LLC, a
Delaware limited liability company, assigned to Peabody Development Company, LLC, a Delaware limited liability company, the Partial Interest in the 1947 Mineral Lease. 
 17. By deed dated December 20, 2005, recorded December 28, 2005, in Deed Book 516, page 599, Peabody Development Company, LLC, a Delaware limited liability company, conveyed to Central
States Coal Reserves of Kentucky, LLC, a Delaware limited liability company, all of its real property located in Muhlenberg County, Kentucky, to include the Partial Interest in the 1947 Mineral Lease. 

18. By “Deed of Confirmation” dated December 27, 2005, effective December 20, 2005, recorded December 28,
2005, in Deed Book 516, page 527, Peabody Development Company, LLC, a Delaware limited liability company, confirmed its conveyance to Central States Coal Reserves of Kentucky, LLC, a Delaware limited liability company, dated December 20, 2005,
recorded in Deed Book 516, page 599. 

  
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 19. By “Consent to Assignment and Assumption” dated February 27, 2006,
recorded in Deed Book 518, page 331, Talmage G. Rogers, Jr., et al, consented to the assignment and assumption by Peabody Development Company, LLC of the Partial Interest in the 1947 Mineral Lease to Central States Coal Reserves of Kentucky, LLC, a
Delaware limited liability company. 
 20. By “Mutual Partial Release” effective February 27, 2006, recorded
in Deed Book 518, page 355, Talmage G. Rogers, Jr., et al, and Central States Coal Reserves of Kentucky, LLC, a Delaware limited liability company, mutually released “the strippable #9 vein of coal and all coals lying above the strippable #9
vein and all mining rights relating thereto” of Rogers Coal Parcel 214 from its Partial Interest in the 1947 Mineral Lease. 
 21. By “Mutual Partial Release” effective February 27, 2006, recorded in Deed Book 518, page 365, Talmage G. Rogers, Jr., et al, and Central States Coal Reserves of Kentucky, LLC,
mutually released in its entirety Rogers Coal Parcel 308 and a 16.9 acre portion of Rogers Parcel 209 and a 5.3 acre portion of Rogers Parcel 310 from Central States Coal Reserves of Kentucky’s Partial Interest in the 1947 Mineral Lease.

 22. By “Partial Assignment and Assumption of Mineral Lease” dated December 12, 2006, recorded in Deed
Book 524, page 523, and by “Amended and Restated Partial Assignment of Leasehold Estate” dated April 17, 2007, effective December 12, 2006, recorded in Deed Book 527, page 186, Central States Coal Reserves of Kentucky, LLC,
assigned to Western Land Company, LLC, and Western Land Company, LLC, a part of Central States Coal Reserves of Kentucky’s Partial Interest in 1947 Mineral Lease, such assignment being “the deep #9 Coal and coal mining rights” to
portions of Rogers Tracts 237, 200, 204 and 214 and all of Rogers Tracts 213, 221, 201, 223 and 222. 
 23. By
“Amendment and Extension of Mineral Lease” dated April 25, 2007, a Memorandum of which is recorded in Deed Book 527, page 410, Talmage G. Rogers, Jr., at al, and Central States Coal Reserves of Kentucky, LLC, amended and extended its
Partial Interest in 1947 Mineral Lease, inter alia, to extend the initial term through December 3, 2027. 

24. By unrecorded Agreement Relating to Additional Advance Royalties “Deep #9 Coal North of Western Kentucky Parkway”
dated May 3, 2007, the Rogers and Central States Coal Reserves of Kentucky, LLC agreed to additional monthly minimum advance royalties under the terms and conditions of the 1947 Mineral Lease with respect to the Deep #9 Coal lying north of the
Western Kentucky Parkway (now Wendell Ford Parkway) upon the terms and conditions more particularly set forth therein. 

25. By “Assignment and Assumption of Partial Interest In Mineral Lease” dated August 31, 2007, of record in Deed Book
531, page 227, 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 its Partial Interest in the 1947 Mineral Lease.

 26. By unrecorded Consent to Assignment and Assumption of Partial Interest in Mineral Lease dated October 3, 2007,
between Talmage G. Rogers, Jr., et al, as “LESSORS” consented to the assignment of a partial interest in the 1947 Mineral Lease by Central States Coal Reserves of Kentucky to Cyprus Creek Land Resources, LLC. 

END OF ADDENDUM 2 

  
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 EXHIBIT F 
 TO 
 ASSET PURCHASE AGREEMENT 

Cyprus Creek & Duncan #9 Lease and Sublease 

 NOT TO BE RECORDED 

UNDERGROUND COAL MINING LEASE AND SUBLEASE 
 (#9 Coal Lying North of the South ROW Line of Wendell Ford Parkway) 
 This
UNDERGROUND COAL MINING LEASE AND SUBLEASE (“Lease and Sublease”), is made and entered into on this the             day of
                    , 201    , (“Lease Date”), by and between CYPRUS CREEK LAND RESOURCES, LLC, Delaware limited
liability company with an address of 701 Market Street, Suite 798, St. Louis, Missouri 63101 (“Cyprus Creek” or “Sublessor”) and ARMSTRONG COAL COMPANY, INC., a Delaware corporation with an address of 407 Brown Road,
Madisonville, Kentucky 42431 (“Armstrong Coal” or “Sublessee”), collectively hereinafter the “Parties”. 
 W I T N E S S E T H: 
 WHEREAS, by and through its predecessors in title,
Cyprus Creek became the owner of the #9 vein or seam of coal and coal mining rights in and to owned partial interest tracts lying north of the south right-of-way of the Wendell Ford Parkway located in Muhlenberg County, Kentucky, and more
particularly described on Exhibit B-1 and depicted on Exhibit A hereto (“#9 Owned Partial Interest Tracts”); 
 WHEREAS, by an unrecorded Assignment and Assumption of Leasehold Interest in Coal Lease dated February 12, 2008, Cyprus Creek became the exclusive holder of the “Remainder of the Leased
Premises”, which is a portion of the leasehold estate demised by an instrument entitled “Indenture” dated June 10, 1967 (“Duncan Coal Lease”), a short form Notice of which is of record in Deed Book 258, page 488, in the
Office of the Muhlenberg County Clerk (“Duncan Lease”), relating to an undivided one-half (1/2) interest in and to the approximately 2,142 acres of coal and coal mining rights lying below the top of the #9 vein or seam of coal north
of the south right-of-way line of the Wendell Ford Parkway (“#9 Leased Premises”) located in Muhlenberg County, Kentucky, more particularly depicted on the map attached hereto as Exhibit A and described on Exhibit B-2 hereto,
which is subject to unrecorded Agreement Relating to Advance Royalties and Recoupment dated October 31, 2007 (“Advance Royalty Agreement”); 
 WHEREAS, SUBLESSOR desires to lease to SUBLESSEE and SUBLESSEE desires to accept SUBLESSOR’s grant of a lease of SUBLESSOR’s right, title and ownership interest in and to the that portion of the
#9 Owned Partial Interest Tracts lying north of the south right-of-way of the Wendell Ford Parkway located in Muhlenberg County, Kentucky, and more particularly depicted on the map attached as Exhibit A and described on Exhibit B-1
incorporated herein by reference and made a part hereof (the “Property”); and, 
 WHEREAS, SUBLESSOR desires to
sublease to SUBLESSEE and SUBLESSEE desires to accept SUBLESSOR’s grant of a sublease of SUBLESSOR’s right, title and leasehold interest in and to that portion of the Remainder of the Leased Premises being all of the #9 vein or seam of
Coal lying north of the south right-of-way line of the Wendell Ford Parkway in Muhlenberg County, Kentucky (the “Coal”), as more particularly depicted on the map attached hereto as Exhibit A and described on the attached
Exhibit B-2, incorporated herein by reference and made a part hereof (the “Property”); and, 
  

					
	 Cyprus Creek #9 Owned Partial Interest Tracts
	  	 	12/28/11	  
	 Duncan #9 Remainder Leased Premises
	  			
	 N of S ROW of Wendell Ford Pkwy.
	  			
	 Muhlenberg Co., Ky.
	  			

  
 1 

 WHEREAS, SUBLESSOR warrants and represents that it has provided a true and actual copy of
the Advance Royalty Agreement to SUBLESSEE. 
 NOW, THEREFORE, in consideration of the payment of the first installment of the
Earned Royalty (defined below) by Armstrong Coal to Cyprus Creek, and in consideration of all other obligations of Armstrong Coal stated in this Lease and Sublease, Cyprus Creek does hereby grant, let, lease, sublet, and sublease unto Armstrong Coal
all of its RIGHT, TITLE, and LEASEHOLD INTEREST, but only to the extent owned or leased Cyprus Creek in the #9 vein or seam of Coal lying north of the south right-of-way line of the Wendell Ford Parkway in Muhlenberg County, Kentucky (the
“Coal”), as more particularly depicted on the map attached hereto as Exhibit A and described in Exhibits B-1 and B-2 attached hereto, incorporated herein by reference and made a part hereof (the “Property”). 

1. SPECIAL RIGHTS OF ARMSTRONG COAL. In addition to whatever rights Armstrong Coal may have by implication of law hereunder, Armstrong Coal shall
have the following exclusive rights (“Rights”) to the extent in fact owned or held by Cyprus Creek: 
  

	 	(a)	To drill, take core samples, survey, map and otherwise evaluate the Coal and to perform environmental research. 

 

	 	(b)	To mine, extract or remove the Coal and other substances which are necessarily removed in the underground coal mining process by any and all underground mining methods
now or hereafter in existence, including the right to disturb, cast, and pile all strata without regard to mineral content and for preparing and marketing coal; such rights, including, without limitation, to the extent permitted by applicable
statutes and regulations and to the extent Cyprus Creek has the right to grant the same, the right to install and maintain railroad and truck loading facilities, storage areas, railroad tracks and switches, pumping stations, pole lines and wires; to
dig ditches for the drainage of water; to lay pipe lines; to erect towers; to provide for the storage of materials and supplies; to construct and use roadways; to erect and use buildings, plants and structures of every kind; and, in general, and
without limitation, to do any and all things incident to Armstrong’s mining, processing, and marketing of coal produced from the Property; provided, however, that Armstrong Coal has, by its execution of this Lease and Sublease, accepted all
liability which may arise at any time after the execution hereof for any and all damage to surface and/or structures situated in, on or under the surface, where such damage was caused by Armstrong Coal’s operations under this Lease and
Sublease. It is the express intent of the Parties hereto that by the language of this Section 1(b), Armstrong Coal shall have accepted all responsibility and liability for any and all subsidence and damage caused thereby as it relates to the
Property and/or Coal from and after the date of execution hereof only. 

  
 2 

	 	(c)	A free access to, in, from and across the Property and the Coal and the right to undertake any other thing or use necessary or convenient for the underground mining of
the Coal. 

  

	 	(d)	To utilize underground tunnels, entries, passageways, rooms, haulage ways, pumping stations, pipelines, conveyors, storage facilities, drains and other surface and
underground facilities, all with respect to the mining of Coal and for the purpose of mining of coal in, on or under the Property. 

2. TERM. 
 (a) This
term of this Lease and Sublease (the “Term”) shall be for the longer of: (i) five (5) years commencing on the effective date of this Lease and Sublease; or (ii) until such time as all of the mineable and merchantable coal
has been mined and removed; provided that Armstrong Coal is engaged in mining coal on the Property by no later than five (5) years from the effective date of this Lease and Sublease. Notwithstanding any provision to the contrary, Armstrong Coal
may terminate this Lease and Sublease at any time during the term upon thirty (30) days written notice to Cyprus Creek. In the event that Armstrong Coal completes its mining activities prior to the expiration of the Term, this Lease and
Sublease shall terminate and Armstrong Coal shall provide written notice to Cyprus Creek within thirty (30) days of the date on which Armstrong Coal last loads Coal from the Property for shipment to customers. This Lease and Sublease shall
expire on the date of such written notice. 
 (b) Upon expiration or termination of this Lease and Sublease, Armstrong Coal
shall, at Cyprus Creek’s request, execute a Release of this Lease and Sublease for purposes of recording. After expiration or termination of this Lease and Sublease, Armstrong Coal shall have the right to re-enter the Property and remove all of
Armstrong Coal’s mining equipment and related property from the Property, and thereafter, as and when required by Federal, state or local law or regulation, as a result of Armstrong Coal’s operations under this Lease and Sublease,
Armstrong Coal shall perform reclamation and environmental work on and respecting the Property. 
 (c) If, at any time,
Armstrong Coal shall fail to perform reclamation and environmental work on and respecting the Property, as and when required by law, Cyprus Creek, at its option, shall have the right to: 

 

	 	(i)	seek specific performance of this obligation from a court of competent jurisdiction; and/or, 

 

	 	(ii)	re-enter the Property and perform such reclamation and environmental work as may be required at the expense of Armstrong Coal, which expense Armstrong Coal shall be
obligated to pay without legal recourse. 

  

	 	(iii)	Notwithstanding the foregoing, Cyprus Creek shall provide Armstrong Coal thirty (30) days prior written notice of its intent to proceed under (i) or
(ii) above and allow Armstrong Coal a reasonable time within which to perform reclamation work as set forth above. 

  
 3 

 3. ROYALTIES. Armstrong Coal shall pay to Cyprus Creek, in full payment for all of the benefits
secured by Armstrong Coal under or in connection with the mining of coal pursuant to this Lease and Sublease, the following Royalties (“Royalties”), when and to the extent stated: 

 

	 	(a)	Advance Royalty; Recoupments. Armstrong Coal shall pay to Cyprus Creek the amount of advance royalty as provided for under the Duncan Lease plus the amount of
the additional advance royalty as provided for in the Advance Royalty Agreement of $9,000.00 per year, and Cyprus Creek shall promptly pay such amounts to the Lessors, so long as this Lease and Sublease remains in effect. In accordance with the
Advance Royalty Agreement, upon the termination or expiration of Western Diamond, LLC mining, Armstrong Coal shall increase the amount of advance royalty paid to Cyprus Creek to the total of $10,000.00 per year. Cyprus Creek shall pay all advance
royalty amounts due to Lessors from the amounts received from Armstrong Coal hereunder. Armstrong Coal 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 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. 

 

	 	(b)	Earned Royalty. Armstrong Coal shall pay to Cyprus Creek as an Earned Royalty (“Earned Royalty”) for each ton of Coal mined and sold from the Property
five percent (5%) of Armstrong Coal’s per ton royalty basis per ton, as provided in the Duncan Lease affecting each ton of Coal mined and sold hereunder for the one-half (1/2) interest of the Lessors thereunder. Armstrong Coal’s
payment of the five percent (5%) per ton royalty shall completely satisfy the Earned Royalty obligations owed for both Cyprus Creek’s #9 Owned Partial Interest Tracts being leased herein and the #9 Leased Premises being subleased herein.

  

	 	(c)	Obligation to Pay Royalties to Lessors. Should Cyprus Creek fail to remit to Lessors any advance royalties as set forth in subsection (a) above or any
Earned Royalty as set forth in subsection (b) above, then Armstrong Coal shall have the right to cure any such non-payment or default, and such right to cure shall include, without limitation, the right to make any payment required under the
Duncan Coal Lease directly to the Lessors and to deduct such payment from any payment owed to Cyprus Creek under this Sublease or any other agreement between the parties. 

 

	 	(d)	Payment. All Earned Royalty shall be payable on the 25th day of each month for all coal mined and sold by Armstrong Coal from the Property during the preceding
calendar month. No Earned Royalty shall be payable on or with respect to gob, slurry, tailings or other residue resulting from the processing, including washing of Coal for sale from the Property, and Armstrong Coal shall have clear title to all
such material from the Property, provided that all such material is removed from the Property prior to the expiration or termination of this Sublease. 

  
 4 

	 	(e)	Additional Expenses. Armstrong Coal shall be responsible for the payment of all costs and expenses resulting from or related to the mining, removal, and sale of
the Coal, all reporting costs, taxes, and all engineering fees. It shall be solely responsible for all additional costs including costs relating to the Lessors and the leasehold estate herein subleased. 

 

	 	(f)	Reports. Beginning with the month following the month in which coal is first mined from the Property, and for each month thereafter, Armstrong Coal shall furnish
to Cyprus Creek a report stating for that month the number of coal acres mined and the tons of coal mined and sold from each parcel depicted on Exhibit A and described on Exhibits B-1 and B-2, the per ton Royalty Basis (defined below) showing
all adjustments made to the monthly invoice sales price; the calculated royalty rate per ton; and credits, if any. 

  

	 	(g)	Delinquent Payments. Delinquent payments shall bear interest from their due date at a per annum rate which is one percent (1%) above the prime interest rate
as reported in the Wall Street Journal, as quoted on the first day of the month in which payment is due. 

 4. ROYALTY
BASIS. Royalty Basis hereunder shall mean the invoice sales price of the coal, F.O.B. mine, without any deduction for taxes, fees or any other amounts whatsoever. Except as otherwise restricted or prohibited by the Duncan Lease, Armstrong Coal
may commingle the Coal with other coal from Armstrong Coal’s mine(s). The payment of royalties, when and as due hereunder, shall be construed as full payment of Armstrong Coal’s right to retain the leasehold estate and all of the rights
granted by Cyprus Creek under this Lease and Sublease. 
 5. MINE PLANS. Armstrong Coal shall make available for inspection by Cyprus
Creek upon reasonable advance request a copy of Armstrong Coal’s Mine Plan map and any revisions thereto and of Armstrong Coal’s Coal Mining and Reclamation Operations Permit to Mine the Coal, including the application for such permit, and
all maps and diagrams submitted therewith. Cyprus Creek shall not interfere with Armstrong Coal’s permitting activities. In addition, Cyprus Creek shall have the right to review such mine plans on no less than an annual basis. Armstrong Coal
shall furnish to Cyprus Creek on January 25 and July 25 of each year a map showing the area mined in the previous six (6) months and showing the area projected to be mined in the following six (6) months. These maps shall be
certified by a Registered Professional Engineer, Certified Professional Geologist or Registered Land Surveyor and shall be at scale of not more than 1” = 100’, showing a minimum, by month, the actual extent of Coal extracted and thickness
of each of the Coal seams mined. 
 6. CYPRUS CREEK’S RIGHT TO INSPECT. Cyprus Creek or its representatives at reasonable times, and
upon at least forty-eight (48) hours advance written notice, shall have the right to make surveys of the workings in the Coal herein leased to determine the accuracy of Armstrong Coal’s surveys of such workings; and at reasonable times,
and upon at least forty-eight (48) hours advance written notice, to examine the maps and engineering records of Armstrong Coal with reference to said surveys. Armstrong Coal shall keep records of all coal mined and sold from the Property for a
period of thirty-six (36) months and Cyprus Creek shall have the right to inspect the records at all reasonable times. Cyprus Creek or its representatives shall also have the right at 

  
 5 

 
reasonable times, and upon at least forty-eight (48) hours advance written notice, to examine and check the invoices, sales records and other directly relevant records of Armstrong Coal to
determine the accuracy of Armstrong Coal’s reports to Cyprus Creek. Cyprus Creek agrees to treat Armstrong Coal’s invoices and sales records as confidential and not to disclose such records to Cyprus Creek’s or its affiliates’
sales representatives or any other parties. Armstrong Coal shall not be responsible for any injury, loss or damages suffered by Cyprus Creek’s representatives that enter the Property, except for any injury, loss or damages caused in whole or in
part by the gross negligence of Armstrong Coal, its agents or employees. 
 7. TITLE. Cyprus Creek does not warrant its title to the Coal
or the Property generally and shall have no liability to Armstrong Coal for any impairment of or interference with the exchange of Armstrong Coal’s rights under this Lease and Sublease by any person claiming title superior to Cyprus
Creek’s; provided however, Cyprus Creek, for itself, and for its successors, does represent, warrant, promise and agree that it has not done, or suffered to be done, anything whereby Cyprus Creek’s right, title and interest in the Coal or
the Property is, or has been, in any manner encumbered or charged, and Cyprus Creek will warrant and forever defend its right, title and interest in the Coal and Property against all persons claiming, or to claim the same, by, through or under
Cyprus Creek. During the term of this Lease and Sublease, however, Cyprus Creek shall not impair or suffer by act or omission any impairment of its title to the Property which would interfere with Armstrong Coal’s exercise of its rights under
this Lease and Sublease. Except as otherwise restricted or prohibited in the Duncan Lease, defects in Cyprus Creek’s title may be corrected by Armstrong Coal at Armstrong Coal’s sole discretion and cost, and Cyprus Creek agrees to
cooperate with Armstrong Coal in such corrective activity in the event it is requested to do so. Cyprus Creek agrees to furnish Armstrong Coal all title information in its possession or readily available to Cyprus Creek, including abstracts of
title, commitments for title insurance and title insurance policies. The Parties agree to execute necessary releases as to any property to which Armstrong Coal notifies Cyprus Creek of tile defects to which it elects not to cure. 

8. COMPLIANCE WITH LAWS. 

(a) Armstrong Coal shall perform all legally required reclamation and comply with all applicable Federal, state and local laws, rules
and regulations; obtain all necessary permits; pay all employment and other taxes required in connection herewith, and shall indemnify and defend Cyprus Creek against all actions, including penalties and fines, resulting from Armstrong Coal’s
failure to do so. 
 (b) Armstrong Coal shall secure and keep in force a reclamation bond to the extent required by
applicable law. Armstrong Coal shall not continue its mining operations, without the written permission of Cyprus Creek, if it should fail to keep in force such bond. 
 9. INDEMNIFICATION. Except as provided in Section 6 above, Armstrong Coal shall indemnify, defend and save harmless Cyprus Creek against any and all claims, loss and expense arising or
accruing after the date of this Lease and Sublease by reason of liability imposed or claimed to be imposed by law for damage due to bodily injuries, (including death) and property damage sustained by any person(s), including the employees of
Armstrong Coal, arising out of or in consequence of Armstrong Coal’s exercise of its rights hereunder, whether same arise in whole or in part from negligence 

  
 6 

 
(or from any other legal basis) of Armstrong Coal, its employees or agents. Cyprus Creek shall indemnify, defend and save harmless Armstrong Coal against any and all claims, loss and expense by
reason of liability imposed or claimed to be imposed by law for damage due to bodily injuries, (including death) and property damage sustained by any person(s), including the employees of Cyprus Creek, arising out of or in consequence of Cyprus
Creek’s exercise of its rights, whether same arise in whole or in part from negligence (or from any other legal basis) of Cyprus Creek, its employees or agents. This provision shall survive any termination or cancellation of this Lease and
Sublease. 
 10. INSURANCE. Armstrong Coal shall obtain and continue in force, during the term of this Lease and Sublease, the following
insurance coverages: 
  

	 	(a)	Employer’s Liability insurance with limits of $500,000 each occurrence, unless the laws of the State in which the work is to be performed preclude an independent
right of action by an employee against an employer under common law. 

  

	 	(b)	Comprehensive Automobile Liability insurance with Bodily Injury and Property Damage both with $1,000,000 combined single limit. 

 

	 	(c)	Comprehensive General Liability insurance, including Contractual Liability coverages with Bodily Injury, and Property Damage both with $1,000,000 combined single limit.

  

	 	(d)	Workers’ Compensation coverage with statutory limits. All insurance policies must contain an unqualified provision that the insurance carrier will give Cyprus
Creek thirty (30) days prior notice in writing of any cancellation, change or lapse of such policy. Prior to occupancy or use of the Property, Armstrong Coal shall furnish to Cyprus Creek (in form satisfactory to Cyprus Creek) a certificate of
insurance showing that the requirements of this paragraph have been satisfied. The certificate of insurance shall name Cyprus Creek as an additional insured and certificate holder on all aforementioned policies. The liability assumed by Armstrong
Coal under this Lease and Sublease is not limited by the amount of insurance which Armstrong Coal is required to provide under this paragraph. 

 11. DEFAULT AND TERMINATION. In the event of the failure on the part of Armstrong Coal to make any payment hereunder when due, or failure of Armstrong Coal to make any payment due and payable under
that certain Promissory Note between Armstrong Coal and Cyprus Creek of even date herewith, or in the event a Party fails to observe and perform any other agreement or undertaking as herein provided, then the other Party shall have the right
immediately to give the defaulting Party a written notice designating the particular default or defaults of which complaint is made and notifying the defaulting Party of its intention and election to terminate the Lease and Sublease by reason of
such default or defaults, and unless the defaulting Party shall make the payment in default within TEN (10) days after giving of said notice and remove any other default complained of within THIRTY (30) days after the giving of said notice
(except any default not susceptible of being cured within such THIRTY (30) day period, in which event the time permitted to the defaulting Party to complete the same, provided the defaulting Party commences promptly and proceeds diligently to
complete such 

  
 7 

 
performance), then without further notice this Lease and Sublease and the rights of the defaulting Party hereunder shall be forfeited, canceled and terminated. Such termination of this Lease and
Sublease shall not, however, relieve the obligation for any Royalty due under this Lease and Sublease to date of such termination or liability of the defaulting Party for any other damage resulting to the other Party from said default. Armstrong
Coal shall have the right, and the obligation should Cyprus Creek so demand, to remove any of its property from the Property for a period of one (1) year after expiration or termination of this Lease and Sublease, subject to Armstrong
Coal’s rights under Section 1(d) hereof. 
 12. TAXES. At all times during the term of this Lease and Sublease and any extension
hereof, Armstrong Coal shall be responsible for and shall pay all state and local real property taxes imposed upon the interests Leased and Subleased hereunder. Such taxes shall include, but not be limited to, real estate taxes upon the mineral
interest hereunder, severance taxes, production taxes, business taxes and personal property taxes. The intent of this provision is to make clear that while this Lease and Sublease is in effect, Cyprus Creek shall have no liability for any taxes or
government impositions whatsoever which may be imposed upon the Property, or the Coal, or upon the operations of Armstrong Coal as they relate to the Property, or the Coal leased and subleased hereunder or the rights granted to Armstrong Coal
hereunder. However, it is the understanding of the Parties that Cyprus Creek shall pay all real estate taxes only, which may be imposed upon the Property to the appropriate taxing authority; thereafter, Armstrong Coal shall reimburse Cyprus Creek
for the full amount of all such paid taxes upon its receipt of an invoice from Cyprus Creek evidencing same. 
 13. ANCILLARY PROVISIONS OF
THIS LEASE AND SUBLEASE. This Lease and Sublease, and the attached Exhibits A, B-1, and B-2 (made a part hereof) constitute the entire agreement between the Parties, supersede all representations, 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 state of Kentucky. No amendment or modification of this Lease and Sublease shall be binding unless made by a written instrument of
equal formality with this Lease and Sublease. Waiver by either party of performance by the other party of any of the provisions of this Lease and Sublease shall not be construed as a waiver of any further right to insist upon full performance of the
terms of this Lease and Sublease. Each Party shall be entitled to insist strictly upon timeliness of performance by the other Party of the other Party’s obligations. 
 14. FORCE MAJEURE. Except for the failure to pay money due and payable to Cyprus Creek, Armstrong Coal shall not be deemed to be in default for any failure to perform or observe any of the terms,
conditions, provisions, obligations or covenants to be performed or observed by it hereunder during periods in which such performance or observance is prevented by any event reasonably beyond Armstrong Coal’s control including, but not by way
of limitation, any order, decree, direction, inaction, or denial of permit by any governmental law, executive order, rule, regulation, or request enacted or promulgated under color of authority; by scarcity or inability to obtain equipment,
material, power or fuel; by lack of satisfactory market in the sole opinion and discretion of Armstrong Coal for Coal mined from the Property; by riot, strike, lockout, insurrection or industrial disturbance; by failure of carriers to transport or
furnish facilities for transportation; by any act of God (including, with limitation, lightning, earthquake, cave-in, fire, storm, flood, washout); or by breakage or accident to machinery or facilities; fires or explosions; provided that Armstrong
Coal shall exercise reasonable diligence to 

  
 8 

 
resume mining operations. Armstrong Coal shall have the right to determine and settle any strikes, lockouts or industrial disputes in its sole discretion, and the aforesaid requirement of
exercising reasonable diligence to resume mining shall not require Armstrong Coal to accede to any demand or position of any other party involved in such strike, lockout or industrial dispute. 
 15. PRESERVATION OF TITLE. During the term of this Lease and Sublease, Cyprus Creek shall not do anything or fail to do anything, which would prevent or obstruct Armstrong Coal’s rights
hereunder. Nothing herein shall create or be interpreted to create a hindrance of any kind whatsoever to Cyprus Creek’s freedom to dispose of its interest in this Lease and Sublease, the Property, or the Coal provided such proposal is made
subject to this Lease and Sublease. 
  

	16.	RECORDING. Neither Party shall record this Lease and Sublease without the prior written consent of the other Party. 

17. ASSIGNMENT. Armstrong Coal shall not assign this Lease and Sublease or any part of its right hereunder, without the prior written consent of
Cyprus Creek, which shall not be unreasonably withheld. Absent Cyprus Creek’s prior written consent, any assignment or attempted or purported assignment shall be void as to Cyprus Creek and, moreover, shall constitute a material breach of this
Lease and Sublease. 
 18. NOTICES. Any notice or communication required by this Lease shall be in writing addressed to the address of
each of the Parties respectively as follows: 
  

	 	(a)	If to Armstrong Coal: 

 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- 
 Armstrong
Energy, Inc. 
 Attn: Martin D. Wilson, President 
 7733 Forsyth Blvd., Suite 1625 
 St. Louis, Missouri 63105 

 

	 	(b)	If to Cyprus: 

 Cyprus Creek Land
Resources, LLC 
 701 Market Street, Suite 798 
 St. Louis, Missouri 63101 

  
 9 

 With copy to: 
 J. Sale Gordon 
 Gordon Law Offices, PSC 

121 W. 2nd St. 

Owensboro, Kentucky 42301 
 At
any time, either Party may specify in writing a new address for notification hereunder. 
 19. MEMORANDUM OF LEASE AND SUBLEASE. The
Parties hereby agree to execute a memorandum or notice of this Lease and Sublease in form suitable for recording. 
 IN WITNESS
WHEREOF, the Parties have executed this Underground Coal Mining Lease and Sublease in duplicate, as of the effective date first above written, by their own hand and deed, and/or by their duly authorized representatives, each of which representative,
by signing this Underground Coal Mining Lease and Sublease, personally represents and guarantees his authority to sign for the Party indicated. 
  

									
	Cyprus Creek:	 		 		 	CYPRUS CREEK LAND RESOURCES, LLC
					
		 		 		 	By:	 	 
		 		 		 		 	James C. Sevem, Vice President
	STATE OF MISSOURI	 	)	 		 		 	
		 	) SS:	 		 		 	
	CITY OF ST. LOUIS	 	)	 		 		 	

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by James C. Sevem as Vice
President of Cyprus Creek Land Resources, LLC, a Delaware limited liability company, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority to so execute on
its behalf as its free act and deed in due form of law for the purposes stated herein, on this the             day of
            , 201    . 
  

							
			
	(SEAL)	 		  	
		 		  	  

		 		  	Notary Public,                        
                                         
                 
			
	My commission expires:                      
                                         
               	  		  	

  
 10 

 WITNESS, the execution of: 

 

							
	Armstrong Coal:	 		 	ARMSTRONG COAL COMPANY, INC.
				
		 		 	By:  	 	 
		 		 		 	Martin D. Wilson, President

  

					
	STATE OF MISSOURI	 	)	 	
		 	) SS:	 	
	CITY OF ST. LOUIS	 	)	 	

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Martin D. Wilson as
President of Armstrong Coal Company, Inc., a Delaware corporation, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority to so execute on its behalf as its
free act and deed in due form of law for the purposes stated herein, on this the             day of
                    , 201    . 
  

							
			
	(SEAL)	 		  	
		 		  	  

		 		  	Notary Public,                        
                                         
                 
			
	My commission expires:                      
                                         
               	  		  	

  
 11 

 EXHIBIT A 
 TO 
 UNDERGROUND COAL MINING LEASE AND SUBLEASE 

Map 

  
 12 

 

 

  
 13 

 EXHIBIT B-1 
 TO 
 COAL MINING LEASE AND SUBLEASE 

All references are to the Office of the Muhlenberg County Clerk. 

Leased #9 Owned Coal 
  

											
	 	  	MAP TR	  	 LC#
	  	DB/P	  	DATE	  	FOOTNOTE
	 1
	  	162	  	016-170 T22	  	192/405	  	8/12/1954	  	1
	 2
	  	163	  	016-170 T8	  	192/405	  	8/12/1954	  	1
	 3
	  	164	  	016-170 T12	  	192/405	  	8/12/1954	  	1
	 4
	  	165	  	016-170 T11	  	192/405	  	8/12/1954	  	1
	 5
	  	166	  	016-170 T16	  	192/405	  	8/12/1954	  	1
	 6
	  	167	  	016-170 T10	  	192/405	  	8/12/1954	  	1
	 7
	  	194	  	016-170 T6	  	192/405	  	8/12/1954	  	1
	 8
	  	195	  	016-170 T9	  	192/405	  	8/12/1954	  	1
	 9
	  	196	  	 016-170 T5
 016-655
QCD
	  	192/405
192/437	  	8/12/1954
12/31/1954	  	1
	 10
	  	197	  	016-170 T19	  	192/405	  	8/12/1954	  	1
	 11
	  	198	  	 016-170 T23

016-672
	  	192/405
272/169
272/174
272/179	  	8/12/1954
7/23/1969
7/23/1969
7/24/1969	  	1
	 12
	  	200	  	016-170 T14	  	192/405	  	8/12/1954	  	1
	 13
	  	201	  	016-170 T37	  	192/405	  	8/12/1954	  	1
	 14
	  	202	  	016-170 T24	  	192/405	  	8/12/1954	  	1
	 15
	  	203	  	016-170 T40	  	192/405	  	8/12/1954	  	1

 Schedule of Known Exceptions 

 

			
	 Footnote
	  	 Description

	1	  	50 Coal owned, 50% leased from Heirs of W. G. Duncan, dated October 31, 2007, recorded in Deed Book 533, page 345, Land Contract #2699-023-00.

 Source of Title 
 AND BEING a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC, by Deed dated September 13, 2007, of record in Deed Book 530, page
620. 
 END OF EXHIBIT B-1 

  
 14 

 EXHIBIT B-2 
 TO 
 UNDERGROUND COAL MINING LEASE AND SUBLEASE 

All recording references are to the Office of the Muhlenberg County Clerk. 

Subleased Duncan #9 Coal 
  

													
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote
	1	  	D5	  	 2699-023-00
 016-170
T5
 016-205 T5
	  	163.3	  	258/488
533/345
534/162	  	6/10/1967
10/31/2007
2/12/2008	  	1
	2	  	D6	  	 2699-023-00
 016-170
T6
 016-205 T6
	  	9.9	  	258/488
533/345
534/162
258/488	  	6/10/1967
10/31/2007
2/12/2008
6/10/1967	  	1
	3	  	D8	  	 2699-023
 016-205
T8
	  	175.8	  	533/345
534/162	  	10/31/2007
2/12/2008	  	1
	4	  	D9	  	 2699-023-00
 016-170 T
9
 016-205 T9
	  	175	  	258/488
533/345
534/162	  	6/10/1967
10/31/2007
2/12/2008	  	1
	5	  	D10	  	 2699-023-00
 016-170
T10
 016-205 T10
	  	126.9	  	258/488
533/345
534/162	  	6/10/1967
10/31/2007
2/12/2008	  	1
	6	  	D11	  	 2699-023-00
 016-170
T11
 016-205 T11
	  	113.25	  	258/488
533/345
534/162	  	6/10/1967
10/31/2007
2/12/2008	  	1
	7	  	D12	  	 2699-023-00
 016-170
T12
 016-205 T12
	  	125	  	258/488
533/345
534/162	  	6/10/1967
10/31/2007
2/12/2008	  	1
	8	  	D14	  	 2699-023-00
 016-170
T14
 016-205 T14
	  	101.5	  	258/488
533/345
534/162	  	6/10/1967
10/31/2007
2/12/2008	  	1
	9	  	D16	  	 2699-023-00
 016-170
T16
 016-205 T16
	  	30.25	  	258/488
533/345
534/162	  	6/10/1967
10/31/2007
2/12/2008	  	1
	10	  	D19	  	 2699-023-00
 016-170
T19
 016-205 T19
	  	214.8	  	258/488
533/345
534/162	  	6/10/1967
10/31/2007
2/12/2008	  	1
	11	  	D22	  	 2699-023
 016-205
T22
	  	102.47	  	285/488
533/345
534/162	  	6/10/1967
10/31/2007
2/12/2008	  	1
	12	  	D23	  	 2699-023-00
 016-170
T23
 016-205 T23
	  	126.3	  	258/488
533/345
534/162	  	6/10/1967
10/31/2007
2/12/2008	  	1

  
 15 

													
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote
	13	  	D24	  	 2699-023-00
 016-170
T24
 016-205 T24
	  	39	  	258/488
533/345
534/162	  	6/10/1967
10/31/2007
2/12/2008	  	1
	14	  	D37	  	 2699-023-00
 016-170
T37
 016-205 T37
	  	107.5	  	258/488
 533/345
534/162
	  	6/10/1967

10/31/2007
2/12/2008
	  	1
	15	  	D40	  	 2699-023-00
 016-170
T40
 016-205 T40
	  	39	  	258/488
533/345
534/162	  	6/10/1967
10/31/2007
2/12/2008	  	1

 Schedule of Known Exceptions 

 

			
	 Footnote
	  	 Description

	1	  	50% Coal leased from Heirs of W. G. Cuncan, dated October 31, 2007, recorded in Deed Book 533, page 345, Land Contract #2699-023

 Source of Title 
  

	1.	AND BEING a portion of the same property demised by Angus Fort Duncan, et al, ( W. G. Duncan Heirs) to Central States Coal Reserves of Kentucky, LLC, by instrument
dated October 1, 2007, recorded in Deed Book 533, page 345. 

  

	2.	AND BEING apportion of the same property assigned by Central States Coal Reserves of Kentucky, LLC and assumed by Cyprus Creek Land Resources, LLC, by instrument dated
February 12, 2008, recorded in Deed Book 534, page 162. 

 END OF EXHIBI T B-2 

  
 16 

 EXHIBIT G 
 TO 
 ASEET PURCHASE AGREEMENT 

Memo of Cyprus Creek & Duncan #9 Lease and Sublease 

 MEMORANDUM 
 OF 
 UNDERGROUND COAL MINING LEASE AND SUBLEASE 

(#9 Coal Lying North of the South ROW Line of Wendell Ford Parkway) 

This MEMORANDUM OF UNDERGROUND COAL MINING LEASE AND SUBLEASE (“Memorandum”), is made and entered into on this the
            day of             , 201    , (“Lease Date”), by and between CYPRUS CREEK
LAND RESOURCES, LLC, Delaware limited liability company with an address of 701 Market Street, Suite 798, St. Louis, Missouri 63101 (“Cyprus Creek” or “Sublessor”) and ARMSTRONG COAL COMPANY, INC., a Delaware
corporation with an address of 407 Brown Road, Madisonville, Kentucky 42431 (“Armstrong Coal” or “Sublessee”), collectively hereinafter the “Parties”. 

W I T N E S S E T H: 
 WHEREAS, by and through its predecessors in title, Cyprus Creek became the owner of the #9 vein or seam of coal and coal mining rights in and to owned partial interest tracts lying north of the south
right-of-way of the Wendell Ford Parkway located in Muhlenberg County, Kentucky, and more particularly described on Exhibit B-1 and depicted on Exhibit A hereto (“#9 Owned Partial Interest Tracts”); 

WHEREAS, by an unrecorded Assignment and Assumption of Leasehold Interest in Coal Lease dated February 12, 2008, Cyprus Creek became
the exclusive holder of the “Remainder of the Leased Premises”, which is a portion of the leasehold estate demised by an instrument entitled “Indenture” dated June 10, 1967 (“Duncan Coal Lease”), a short form
Notice of which is of record in Deed Book 258, page 488, in the Office of the Muhlenberg County Clerk (“Duncan Lease”), relating to an undivided one-half (1/2) interest in and to the approximately 2,142 acres of coal and coal mining
rights lying below the top of the #9 vein or seam of coal north of the south right-of-way line of the Wendell Ford Parkway (“#9 Leased Premises”) located in Muhlenberg County, Kentucky, more particularly described on Exhibit B-2
hereto and depicted on Exhibit A hereto, which is subject to unrecorded Agreement Relating to Advance Royalties and Recoupment dated October 31, 2007 (“Advance Royalty Agreement”); 

WHEREAS, by separate Underground Coal Mining Lease and Sublease of even date herewith, SUBLESSOR has leased to SUBLESSEE a lease of
SUBLESSOR’s right, title and ownership interest in and to the that portion of the #9 Owned Partial Interest Tracts lying north of the south right-of-way of the Wendell Ford Parkway located in Muhlenberg County, Kentucky, and more particularly
described on Exhibit B-1 and depicted on Exhibit A hereto (the “Property”); and, a sublease of SUBLESSOR’s right, 
  

			
	 Cyprus Creek #9 Owned Partial Interest Tracts
 Duncan #9 Remainder Leased Premises
 N of Wendell Ford Pkwy.

Muhlenberg Co., Ky.
	  	12/27/11

  
 1 

 title and leasehold interest in and to that portion of the Remainder of the Leased Premises being all of the
#9 vein or seam of Coal lying north of the south right-of-way line of the Wendell Ford Parkway in Muhlenberg County, Kentucky (the “Coal”), as more particularly depicted on Exhibit A attached hereto and described on the attached
Exhibit B-2, incorporated herein by reference and made a part hereof (the “Property”); and 
 WHEREAS, the
Parties desire to have a recorded Memorandum for the purpose of filing record notice thereof, and for that purpose, have executed this Memorandum. 
 NOW, THEREFORE, in consideration of the execution of the Underground Coal Mining Lease and Sublease of even date herewith between the Parties and mutual covenants and agreements set forth therein, Cyprus
Creek does hereby grant, let, lease, sublet, and sublease unto Armstrong Coal all of its RIGHT, TITLE, and LEASEHOLD INTEREST, but only to the extent owned or leased Cyprus Creek in the #9 vein or seam of Coal lying north of the south right-of-way
line of the Wendell Ford Parkway in Muhlenberg County, Kentucky (the “Coal”), as more particularly described in Exhibits B-1 and B-2 attached hereto and depicted on the map attached hereto as Exhibit A, incorporated herein by
reference and made a part hereof (the “Property”). 
 (a) This term of this Lease and Sublease (the
“Term”) shall be for the longer of: (i) five (5) years commencing on the effective date of this Lease and Sublease; or (ii) until such time as all of the mineable and merchantable coal has been mined and removed; provided
that Armstrong Coal is engaged in mining coal on the Property by no later than five (5) years from the effective date of this Lease and Sublease. Notwithstanding any provision to the contrary, Armstrong Coal may terminate this Lease and
Sublease at any time during the term upon thirty (30) days written notice to Cyprus Creek. In the event that Armstrong Coal completes its mining activities prior to the expiration of the Term, this Lease and Sublease shall terminate and
Armstrong Coal shall provide written notice to Cyprus Creek within thirty (30) days of the date on which Armstrong Coal last loads Coal from the Property for shipment to customers. This Lease and Sublease shall expire on the date of such
written notice. 
 (b) Upon expiration or termination of this Lease and Sublease, Armstrong Coal shall, at Cyprus
Creek’s request, execute a Release of this Lease and Sublease for purposes of recording. After expiration or termination of this Lease and Sublease, Armstrong Coal shall have the right to re-enter the Property and remove all of Armstrong
Coal’s mining equipment and related property from the Property, and thereafter, as and when required by Federal, state or local law or regulation, as a result of Armstrong Coal’s operations under this Lease and Sublease, Armstrong Coal
shall perform reclamation and environmental work on and respecting the Property. 
 (c) If, at any time, Armstrong Coal
shall fail to perform reclamation and environmental work on and respecting the Property, as and when required by law, Cyprus Creek, at its option, shall have the right to: 

 

	 	(i)	seek specific performance of this obligation from a court of competent jurisdiction; and/or, 

 

	 	(ii)	re-enter the Property and perform such reclamation and environmental work as may be required at the expense of Armstrong Coal, which expense Armstrong Coal shall be
obligated to pay without legal recourse. 

  
 2 

	 	(iii)	Notwithstanding the foregoing, Cyprus Creek shall provide Armstrong Coal thirty (30) days prior written notice of its intent to proceed under (i) or
(ii) above and allow Armstrong Coal a reasonable time within which to perform reclamation work as set forth above. 

 This Memorandum is executed solely for the purpose of providing record notice only, and is not intended, nor shall it be deemed, to modify any of the provisions of the Underground Mining Coal Lease and
Sublease. Reference should be made to the Underground Coal Mining Lease to ascertain all of the terms, conditions, and covenants thereof, a true and correct copy of which is in the possession of both Cyprus Creek and Armstrong Coal. 

IN WITNESS WHEREOF, the Parties have executed this Memorandum of Underground Coal Mining Lease and Sublease as of the effective date
first above written. 
  

							
	Cyprus Creek:	 		 	CYPRUS CREEK LAND RESOURCES, LLC
				
		 		 	By:  	 	 
		 		 		 	James C. Sevem, Vice President

  

					
	STATE OF MISSOURI                    	 	)	  	
		 	) SS:	  	
	CITY OF ST. LOUIS	 	)	  	

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by James C. Sevem as Vice
President of Cyprus Creek Land Resources, LLC, a Delaware limited liability company, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority to so execute on
its behalf as its free act and deed in due form of law for the purposes stated herein, on this the             day of
            , 201    . 
  

							
			
	(SEAL)	 		  	
		 		  	  

		 		  	Notary Public,                        
                                         
                 
			
	My commission expires:                      
                                         
               	  		  	

  
 3 

     WITNESS, the execution of: 
 Armstrong Coal: 
  

			
	ARMSTRONG COAL COMPANY, INC.
		
	By:	 	 
		 	Martin D. Wilson, President

  

					
	STATE OF MISSOURI             	  	)	  	
		  	) SS:	  	
	CITY OF ST. LOUIS	  	)	  	

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Martin D. Wilson as
President of Armstrong Coal Company, Inc., a Delaware corporation, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority to so execute on its behalf as its
free act and deed in due form of law for the purposes stated herein, on this the             day of             ,
201    . 
  

							
			
	(SEAL)	 		  	
		 		  	  

		 		  	Notary Public,                        
                                         
                 
			
	My commission expires:                      
                                         
               	  		  	

 THIS INSTRUMENT PREPARED BY: 

	
	
	  

 M. Kirby Gordon, II 
 GORDON & GORDON, P.S.C. 
 6357 KY Hwy 405 

P.O. Box 398 
 Owensboro, Kentucky 42302-0398

 (270) 281-0398 

  
 4 

 EXHIBIT A 
 TO 
 MEMORANDUM OF UNDERGROUND COAL MINING LEASE AND SUBLEASE

 Map 

  
 5 

 

 

  
 6 

 EXHIBIT B-1 
 TO 
 MEMORANDUM OF COAL MINING LEASE AND SUBLEASE 

All references are to the Office of the Muhlenberg County Clerk. 

Leased #9 Owned Coal 
  

											
	 	  	 MAP TR
	  	 LC#
	  	 DB/P
	  	 DATE
	  	 FOOTNOTE

	1	  	162	  	016-170 T22	  	192/405	  	8/12/1954	  	1
						
	2	  	163	  	016-170 T8	  	192/405	  	8/12/1954	  	1
						
	3	  	164	  	016-170 T12	  	192/405	  	8/12/1954	  	1
						
	4	  	165	  	016-170 T11	  	192/405	  	8/12/1954	  	1
						
	5	  	166	  	016-170 T16	  	192/405	  	8/12/1954	  	1
						
	6	  	167	  	016-170 T10	  	192/405	  	8/12/1954	  	1
						
	7	  	194	  	016-170 T6	  	192/405	  	8/12/1954	  	1
						
	8	  	195	  	016-170 T9	  	192/405	  	8/12/1954	  	1
						
	9	  	196	  	 016-170 T5
 016-655 QCD
	  	 192/405
 192/437
	  	 8/12/1954
 12/31/1954
	  	1
						
	10	  	197	  	016-170 T19	  	192/405	  	8/12/1954	  	1
						
	11	  	198	  	 016-170 T23
 016-672
	  	 192/405
 272/169
 272/174

272/179
	  	 8/12/1954
 7/23/1969
 7/23/1969

7/24/1969
	  	1
						
	12	  	200	  	016-170 T14	  	192/405	  	8/12/1954	  	1
						
	13	  	201	  	016-170 T37	  	192/405	  	8/12/1954	  	1
						
	14	  	202	  	016-170 T24	  	192/405	  	8/12/1954	  	1
						
	15	  	203	  	016-170 T40	  	192/405	  	8/12/1954	  	1

 Schedule of Known Exceptions 

 

			
	 Footnote
	  	 Description

	1	  	50 Coal owned, 50% leased from Heirs of W. G. Duncan, dated October 31, 2007, recorded in Deed Book 533, page 345, Land Contract #2699-023-00.

 Source of Title 
 AND BEING a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC, by Deed dated September 13, 2007, of record in Deed Book 530, page
620. 
 END OF EXHIBIT B-1 

  
 7 

 EXHIBIT B-2 
 TO 
 MEMORANDUM OF UNDERGROUND COAL MINING LEASE AND SUBLEASE

 All recording references are to the Office of the Muhlenberg County Clerk. 

Subleased Duncan #9 Coal 
  

													
	 	  	Map No	  	LC#	  	Acres	  	DB/P	  	Date	  	Footnote
	1	  	D5	  	2699-023-00
 016-170 T5

016-205 T5
	  	163.3	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
							
	2	  	D6	  	2699-023-00
 016-170 T6

016-205 T6
	  	9.9	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
							
	3	  	D8	  	2699-023
 016-205 T8
	  	175.8	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
							
	4	  	D9	  	2699-023-00
 016-170 T 9

016-205 T9
	  	175	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
							
	5	  	D10	  	2699-023-00
 016-170 T10

016-205 T10
	  	126.9	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
							
	6	  	D11	  	2699-023-00
 016-170 T11

016-205 T11
	  	113.25	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
							
	7	  	D12	  	2699-023-00
 016-170 T12

016-205 T12
	  	125	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
							
	8	  	D14	  	2699-023-00
 016-170 T14

016-205 T14
	  	101.5	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
							
	9	  	D16	  	2699-023-00
 016-170 T16

016-205 T16
	  	30.25	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
							
	10	  	D19	  	2699-023-00
 016-170 T19

016-205 T19
	  	241.8	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
							
	11	  	D22	  	2699-023
 016-205 T22
	  	102.47	  	285/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
							
	12	  	D23	  	2699-023-00

016-170 T23

016-205 T23
	  	126.3	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1

  
 8 

													
	 	  	 Map No
	  	 LC#
	  	 Acres
	  	 DB/P
	  	 Date
	  	 Footnote

	13	  	D24	  	 2699-023-00
 016-170 T24
 016-205

T24
	  	39	  	 258/488
 533/345
 534/162
	  	 6/10/1967
 10/31/2007
 2/12/2008
	  	1
							
	14	  	D37	  	 2699-023-00
 016-170 T37
 016-205

T37
	  	107.5	  	 258/488
 533/345
 534/162
	  	 6/10/1967
 10/31/2007
 2/12/2008
	  	1
							
	15	  	D40	  	 2699-023-00
 016-170 T40
 016-205

T40
	  	39	  	 258/488
 533/345
 534/162
	  	 6/10/1967
 10/31/2007
 2/12/2008
	  	1

 Schedule of Known Exceptions 

 

			
	 Footnote
	  	 Description

		
	1	  	50% Coal leased from Heirs of W. G. Cuncan, dated October 31, 2007, recorded in Deed Book 533, page 345, Land Contract #2699-023

 Source of Title 
  

	1.	AND BEING a portion of the same property demised by Angus Fort Duncan, et al, ( W. G. Duncan Heirs) to Central States Coal Reserves of Kentucky, LLC, by instrument
dated October 1, 2007, recorded in Deed Book 533, page 345. 

  

	2.	AND BEING apportion of the same property assigned by Central States Coal Reserves of Kentucky, LLC and assumed by Cyprus Creek Land Resources, LLC, by instrument dated
February 12, 2008, recorded in Deed Book 534, page 162. 

 END OF EXHIBI T B-2 

  
 9 

 EXHIBIT H 
 TO 
 ASSET PURCHASE AGREEMENT 

Duncan Consent to Sublease 

 NOT TO BE RECORDED 

CONSENT TO PARTIAL SUBLEASE 
 #9 Coal North of the South ROW Line of Wendell Ford Parkway 
 This CONSENT
TO PARTIAL SUBLEASE (“Consent”) is made and entered into on this the             day of             ,
201    , by and among: 
 ANGUS FORT DUNCAN and JUDITH H. DUNCAN, His Wife 

18 Pelican Point Drive 
 Newport Coast, California 92657 
 -and- 

CATHERINE D. KRESS, Single 
 1221 N. Barcelona Street 
 Pensacola, Florida 32501 

-and- 

ELIZABETH D. MULLIN and JOSEPH B. MULLIN, Her Husband 
 4313 Galax Trail 
 Greensboro, North Carolina 27410 

-and- 
 W.
GRAHAM DUNCAN, IV and MARY ALICE DUNCAN, His Wife 
 422 Cardinal Drive 

Hopkinsville, Kentucky 42240 
 -and- 
 BRENDAN A. MINISH and ANNIE MINISH, His Wife 

Raheen’s Castlebar 
 County Mayo 
 Republic of Ireland 

-and- 
 EMMA
MINISH O’TOOLE and GERARD PATRICK O’TOOLE, Her Husband 
 Carramore, Liscarney 

Newline Westport 

County Mayo 

Republic of Ireland 
 (hereinafter called “LESSOR”, whether one or more) 
 -AND- 

 

			
	 Duncan Coal Lease

Muhlenberg Co., Ky.
	  	12/14/11

  
 - 1 -

 CYPRUS CREEK LAND RESOURCES, LLC 

A Delaware limited liability company 
 701 Market Street, Suite 798 
 St. Louis, Missouri 63102-1826 

(hereinafter called “LESSEE/SUBLESSOR”) 
 -AND- 
 ARMSTRONG COAL COMPANY, INC. 

A Delaware corporation 
 407 Brown Road 
 Madisonville, Kentucky 42431 

(hereinafter called “SUBLESSEE”). 
 W I T N E S S E T H: 
 WHEREAS, LESSOR and LESSEE/SUBLESSOR, through their
respective predecessors in title, more particularly set forth on Addendum 1 hereto, are parties to a certain Indenture (“Coal Lease”) of an undivided one-half (1/2) interest in and to approximately 2,142 acres of coal and coal mining
rights located in Muhlenberg County, Kentucky (“Leased Premises”), dated June 10, 1967, a Notice of which is of record in Deed Book 258, page 488, in the Office of the Muhlenberg County Clerk (“Duncan Coal Lease”);

 WHEREAS, by Memorandum of Amendment and Extension of Coal Lease Agreement of record in Deed Book 533, page 345, in the Office
of the Muhlenberg County Clerk, the Duncan Coal Lease was, inter alia, amended to extend of the term thereof for 25 years through and including June 9, 2012; 
 WHEREAS, by unrecorded Assignment and Assumption of Leasehold Interest in Coal Lease dated February 12, 2008 (“Assignment and Assumption”), LESSEE/SUBLESSOR became the assignee of that
portion of the Leased Premises referred to under the Duncan Coal Lease not partially assigned by Central States Coal Reserves of Kentucky, LLC to Western Diamond, LLC by Partial Assignment and Assumption of Mineral Leasehold Estate dated
May 31, 2007, of record in Deed Book 528, page 330, in the Office of the Muhlenberg County Clerk; that is, an undivided one-half interest in and to approximately 2,142 acres of coal lying above the top of the Kentucky #9 seam of coal in, on,
and underlying the Leased Premises; referred to in the Assignment and Assumption as the “Remainder of the Leased Premises”, subject to an unrecorded Agreement Relating to Advance Royalties and Recoupment dated October 31, 2007
(“Advance Royalties Agreement”); and, 
 WHEREAS, LESSOR desires to grant their consent to the sublease by
LESSEE/SUBLESSOR to SUBLESSEE (“Duncan #9 Sublease”) of a portion of the #9 vein or seam of coal only of the Remainder of the Leased Premises, more particularly depicted on the map attached as Exhibit A and described on
Exhibit B-2 thereto, all of which are incorporated herein by reference and made a part hereof (“Subleased Premises”), upon the terms and conditions hereinafter set forth. 

  
 - 2 -

 NOW, THEREFORE, for and in consideration of the mutual covenants and promises of the parties
hereto and in exchange for other good and valuable consideration, the receipt, adequacy, and sufficiency of which are hereby acknowledged, the LESSOR does hereby consent to the partial sublease by LESSEE/SUBLESSOR to SUBLESSEE (“Duncan #9
Sublease”) of a portion of the #9 vein or seam of coal only of the Remainder of the Leased Premises, more particularly depicted on the map attached as Exhibit A thereto and more particularly described on Exhibit B-2 thereto, all of
which are incorporated herein by reference and made a part hereof (“Subleased Premises”) subject to the Advance Royalties Agreement. 
 The foregoing recitals and the instruments referenced therein are incorporated herein by reference and made a part hereof. 
 LESSEE/SUBLESSOR shall remain solely responsible to LESSOR for SUBLESSEE’s performance under the Duncan Coal Lease with respect to the Subleased Premises. 

This Consent shall be construed in accordance with the laws of the Commonwealth of Kentucky. 

This Consent may be executed in multiple counterparts, each of which shall be considered an original or which may be conformed into a
single document. 
 IN WITNESS WHEREOF, the parties hereto have executed this Consent to Partial as of the effective date first
hereinabove written. 
 LESSOR: 

	
	
	  
	Angus Fort Duncan
	
	  
	Judith H. Duncan, his wife

  

			
	 STATE OF CALIFORNIA
	  	)
		  	) SS:
	 COUNTY OF RIVERSIDE             
	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Angus Fort Duncan and
Judith H. Duncan, his wife, personally known to me to be the same persons whose names are subscribed in the forgoing instrument, as their free act and deed in due form of law, for the uses and purposes set forth therein, on this the
            day of             , 201    . 

 

			
	 	 	 
	
Notary Public,                     
                                         
            

 
			
	
My commission expires:                  
                                        

  
 - 3 -

 WITNESS, the execution of: 
 LESSOR: 

	
	
	  
	Catherine D. Kress, single

  

			
	 STATE OF FLORIDA
	  	)
		  	) SS:
	
COUNTY OF ESCAMBIA                
	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Catherine D. Kress, a
single woman, personally known to me to be the same person whose name is subscribed in the forgoing instrument, as her free act and deed in due form of law, for the uses and purposes set forth therein, on this the
            day of             , 201    . 

 

			
	 	 	 
	
Notary Public,                     
                                         
            

 
			
	
My commission expires:                  
                                        

  
 - 4 -

 WITNESS, the execution of:  
 LESSOR: 
  

	
	
	  
	Elizabeth D. Mullin
	
	  
	Joseph B. Mullin, her husband

  

			
	 STATE OF NORTH CAROLINA            
	  	)
		  	) SS:
	 COUNTY OF GUILFORD
	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Elizabeth D. Mullin and
Joseph B. Mullin, her husband, personally known to me to be the same persons whose names are subscribed in the forgoing instrument, as their free act and deed in due form of law, for the uses and purposes set forth therein, on this the
            day of             , 201    . 

 

			
	 	 	 
	
Notary Public,                     
                                         
            

 
			
	
My commission expires:                  
                                        

  
 - 5 -

 WITNESS, the execution of:  
 LESSOR: 

	
	
	  
	 W. Graham Duncan, IV, by and through
 his Attorney-in-Fact, Mary Alice Duncan

	
	  
	Mary Alice Duncan, his wife

  

			
	 COMMONWEALTH OF KENTUCKY            
	  	)
		  	) SS:
	 COUNTY OF CHRISTIAN
	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by W. Graham Duncan, IV, by
and through his Attorney-in-Fact, Mary Alice Duncan, and Mary Alice Duncan, his wife, personally known to me to be the same persons whose names are subscribed in the forgoing instrument, as their free act and deed in due form of law, for the uses
and purposes set forth therein, on this the             day of             , 201    .

			
	
	 Notary Public, KY State-at-Large

	
My commission expires:                  
                                        

  
 - 6 -

 WITNESS, the execution of:  
 LESSOR: 
  

	
	Brendan A. Minish
	  
	Annie Minish, his wife

  

			
	 REPUBLIC OF IRELAND             
	  	)
		  	) SS:
	 COUNTY OF MAYO
	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Brendan A. Minish and
Annie Minish, his wife, personally known to me to be the same persons whose names are subscribed in the forgoing instrument, as their free act and deed in due form of law, for the uses and purposes set forth therein, on this the
            day of             , 201    . 

 

			
	 	 	 
	
Notary Public,                     
                                         
            

 
			
	
My commission expires:                  
                                        

  
 - 7 -

 WITNESS, the execution of:  
 LESSOR: 
  

	
	Emma Minish O’Toole
	  
	Gerard Patrick O’Toole, her husband

  

			
	 REPUBLIC OF IRELAND            
	  	)
		  	) SS:
	 COUNTY OF MAYO
	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Emma Minish O’Toole
and Gerard Patrick O’Toole, her husband, personally known to me to be the same persons whose names are subscribed in the forgoing instrument, as their free act and deed in due form of law, for the uses and purposes set forth therein, on this
the             day of             , 201    . 

 

			
	 	 	 
	 Notary Public,  
	 	 

 
			
	 My commission expires:  
	 	 

  
 - 8 -

 WITNESS, the execution of:  
 LESSEE/SUBLESSOR: 
  

			
	CYPRUS CREEK LAND RESOURCES, LLC
		
	By:	 	  

		 	James C. Sevem, Vice President

  

			
	 STATE OF MISSOURI            
	  	)
		  	) SS:
	 CITY OF ST. LOUIS
	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by James C. Sevem as Vice
President of Cyprus Creek Land Resources, LLC, a Delaware limited liability company, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and authority to so execute on its behalf
as its free act and deed in due form of law, on this the             day of             , 201    .

  

			
	 	 	 
	 Notary Public,  
	 	 

 
			
	 My commission expires:  
	 	 

  
 - 9 -

 WITNESS, the execution of:  
 SUBLESSEE: 
  

			
	ARMSTRONG COAL COMPANY, INC.
		
	By:	 	  

	Title:	 	  

  

			
	
STATE OF                      
           
	  	)
		  	) SS:
	
CITY OF                     
              
	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by as of Armstrong Coal
Company, Inc., a Delaware corporation, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and authority to so execute on its behalf as its free act and deed in due form of law,
on this the             day of             , 201    . 

 

			
	 	 	 
	 Notary Public,  
	 	 

 
			
	 My commission expires:  
	 	 

 THIS INSTRUMENT PREPARED BY: 

	
	
	  

 M. Kirby Gordon II 
 GORDON & GORDON, P.S.C. 
 6357 KY Hwy 405 

P.O. Box 398 
 Owensboro, Kentucky 42302-0398

 (270) 281-0398 

  
 - 10 -

 ADDENDUM 1 
 TO 
 CONSENT TO SUBLEASE OF LEASEHOLD INTEREST 

IN PORTION OF COAL MINING LEASE 
 LESSOR’s Sources of Title 
 All References to Muhlenberg County
Clerk’s Office 
 AND BEING a part of the same undivided interest acquired by W. G. Duncan, Jr. from 5 J Coal Company
by deed dated March 28, 1934, recorded in Deed Book 137, page 541, which descended as follows: 
 1. W. G. Duncan, Jr. died
testate August 9, 1957. His Will was proven August 19, 1957 and is recorded in Will Book 7, page 87. Pursuant to the terms of his Will and Codicil, his ownership interest in these tracts was divided into two portions to be held in trust
for the lifetime benefit of his widow, Emma Richardson Duncan, his daughter, Virginia Duncan Minish, and his son, William G. Duncan, III. The remaindermen of this Trust was a class of “each grandchild of mine then living., or in representation
of, each grandchild of mine who may then be deceased leaving descendants surviving.” His Will also provided that the interest passing to the remaindermen was to be held in trust until each remainderman reached 27 years of age. 

2. As established by Affidavits dated January 12, 1987, recorded in Deed Book 378, page 670, and Deed Book 378, page 673: 

(a) Emma Richardson Duncan died January 18, 1978; and, 
 (b) William G. Duncan, III died July 22, 1986. 
 3. As established by
Affidavit of Descent of Virginia Duncan Minish dated November 26, 2007, recorded in Deed Book 533, page 341, Virginia Duncan Minish died on April 19, 1997. 
 4. As established by Affidavit of Descent of Lawrence T. Minish, III dated November 26, 2007, recorded in Deed Book 533, page 343, Lawrence T. Minish, III died on November 7, 1985, survived by
only two children, Brendan Andrew Nathaniel Minish born November 30, 1970 and Emma Belinda Minish born February 13, 1973. 
 5. Upon the death of W. G. Duncan, III and upon the death of Virginia Duncan Minish, and upon the death of her only child, Lawrence T. Minish, III, the class of remaindermen was closed with the following
persons owning the following interests: 
  

					
	 W. Graham Duncan, IV
	  	 	20	% 
	 Agnes Fort Duncan
	  	 	20	% 
	 Elizabeth D. Mullin
	  	 	20	% 
	 Katherine D. Kress
	  	 	20	% 
	 Brendan Andrew Nathaniel Minish
	  	 	10	% 
	 Emma Belinda Minish O’Toole
	  	 	10	% 

  
 - 11 -

 6. The aforesaid Affidavits of January 12, 1987, recorded in Deed Book 378, page 670,
and Deed Book 378, page 673, confirm that on January 12, 1987, W. Graham Duncan, IV, Agnes Fort Duncan, Elizabeth D. Mullin, and Katherine D. Kress were more than 27 years of age and their interest was free of the trust. 

7. By Affidavit dated June 4, 2007, of record in Miscellaneous Book 49, page 119, it is stated that the heirs of the deceased,
Lawrence T. Minish, III, being Brendan Andrew Nathaniel Minish and Emma Belinda Minish O’Toole are now over the age of 27 years and that Citi-Smith Barney is the authorized agent and payee on their behalf to receive payments from the
Lessee under the aforesaid W. G. Duncan, Jr. Lease. 
 Lessee/Sublessor’s Sources of Title 

1. Indenture to Sentry Royalty Company (“Coal Lease”) of an undivided one-half (1/2) interest in and to approximately 2,142
acres of coal and coal mining rights located in Muhlenberg County, Kentucky (“Leased Premises”), dated June 10, 1967, a short form Notice of which is of record in Deed Book 258, page 488; 

2. On September 1, 1967, recorded March 26, 1968, in Articles of Incorporation Book 5, page 593, Sentry Royalty Company was
merged into Peabody Coal Company, an Illinois corporation. 
 3. And being a portion of the real property interests conveyed by
Peabody Coal Company, an Illinois corporation, to Peabody Coal Company, a Delaware corporation, by deed dated March 29, 1968, recorded in Deed Book 264, page 1, as a part of Exhibit A, Division 7, Commonwealth of Kentucky, Subdivision 7.07
of that instrument. 
 4. And being a portion of the real property interests conveyed by Peabody Coal Company to Peabody
Development Company by deed dated September 12, 1989, Deed Book 398, page 37. 
 5. Effective December 16, 2003,
Peabody Development Company, a Delaware corporation, converted and changed its name to Peabody Development Company, LLC, a Delaware limited liability corporation, as shown in Articles of Incorporation Book 15, page 635. 

6. By deed dated December 20, 2005, recorded December 28, 2005, in Deed Book 516, page 599, Peabody Development Company, LLC
conveyed to Central States Coal Reserves of Kentucky, LLC all of its right, title and interest in and to all of its real property interests located in Muhlenberg County, Kentucky. 

7. By “Deed of Confirmation” dated December 27, 2005, effective December 20, 2005, recorded December 28, 2005, in
Deed Book 516, page 719, Peabody Development Company, LLC confirmed its conveyance of real property interests to Central States Coal Reserves of Kentucky, LLC dated December 20, 2005, recorded in Deed Book 516, page 599. 

8. By Amendment and Extension of Lease dated October 31, 2007, a Memorandum of which was recorded January 9, 2008, in Deed Book
533, page 343, the W. G. Duncan, Jr. Lease was amended to extend of the term thereof for 25 years through and including June 9, 2012. 

  
 - 12 -

 9. By Partial Assignment and Assumption of Mineral Leasehold Estate dated May 31, 2007,
of record in Deed Book 528, page 300, Central States Coal Reserves of Kentucky, LLC, a Delaware limited liability company, assigned to Western Diamond, LLC, a Nevada limited liability company, a portion of its interest in the Duncan Coal Lease only
insofar as it relates to an undivided one-half (1/2) interest in and to approximately 2,142 acres of all coal lying above the top of the Ky. #9 seam. 
 10. By unrecorded Assignment and Assumption of Leasehold Interest in Coal Lease dated February 12, 2008, Central States Coal Reserves of Kentucky, LLC, a Delaware limited liability company, assigned
to Cyprus Creek Land Resources, LLC, a Delaware limited liability company, all of that portion of the Leased Premises under Duncan Coal Lease not assigned in Deed Book 528, page 300 (above) referred to as the “ Remainder of the Leased
Premises” described on Exhibit A thereto and depicted on a map attached as Exhibit C thereto. 
 END OF
ADDENDUM 1 

  
 - 13 -

 EXHIBIT I 
 TO 
 ASSET PURCHASE AGREEMENT 

Cyprus Creek #9 Lease 

 UNDERGROUND COAL MINING LEASE 

(#9 Coal Lying North of the South ROW Line of Wendell Ford Parkway) 

This UNDERGROUND COAL MINING LEASE (“Lease “), is made and entered into on this the
        day of                     , 201    , (“Lease Date”), by and between
CYPRUS CREEK LAND RESOURCES, LLC, Delaware limited liability company with an address of 701 Market Street, Suite 798, St. Louis, Missouri 63101 (“Cyprus Creek” or “Lessor”) and ARMSTRONG COAL COMPANY, INC., a
Delaware corporation with an address of 407 Brown Road, Madisonville, Kentucky 42431 (“Armstrong Coal” or “Lessee”), collectively hereinafter the “Parties”. 

W I T N E S S E T H: 
 WHEREAS, by and through its predecessors in title, LESSOR became the owner of the #9 vein or seam of coal and coal mining rights in, on and underlying certain tracts or parcels, portions of which lie
north of the south right-of-way of the Wendell Ford Parkway located in Muhlenberg County, Kentucky, and more particularly depicted on the map attached as Exhibit A hereto and described on Exhibit B hereto, incorporated herein by reference
and made a part hereof (“#9 Owned Coal”); and, 
 WHEREAS, LESSOR desires to lease to LESSEE and LESSEE desires to
accept LESSOR’s grant of a lease of LESSOR’s right, title and interest in and to that portion of #9 Owned Coal being all of the #9 vein or seam of Coal lying north of the south right-of-way line of the Wendell Ford Parkway in Muhlenberg
County, Kentucky, as more particularly depicted on the map attached as Exhibit A and described on the attached Exhibit B, incorporated herein by reference and made a part hereof (the “Property”), upon the terms and conditions
hereinafter set forth. 
 NOW, THEREFORE, in consideration of TEN DOLLARS ($10.00) cash in hand paid, and other good and
valuable consideration including the mutual covenants and agreements of the Parties hereto more particularly set forth in a certain Overriding Royalty Agreement of even date herewith, and all other obligations of Armstrong Coal stated in this Lease,
Cyprus Creek does hereby grant, let, and lease unto Armstrong Coal all of its RIGHT, TITLE, and INTEREST, but only to the extent owned by Cyprus Creek in the #9 vein or seam of Coal lying north of the south right-of-way line of the Wendell Ford
Parkway in Muhlenberg County, Kentucky (the “#9 Owned Coal”), as more particularly depicted on the map attached as Exhibit A and described in Exhibit B attached hereto, incorporated herein by reference and made a part hereof (the
“Property”). 
 1. SPECIAL RIGHTS OF ARMSTRONG COAL. In addition to whatever rights Armstrong Coal may have by implication of
law hereunder, Armstrong Coal shall have the following exclusive rights (“Rights”) to the extent in fact owned or held by Cyprus Creek: 
  

	 	(a)	To drill, take core samples, survey, map and otherwise evaluate the #9 Owned and to perform environmental research. 

 

					
	 #9 Coal Owned Tracts

N of Wendell Ford Pkwy.

Muhlenberg Co., Ky.
	  	 	12/28/11	  

  
 1 

	 	(b)	To mine, extract or remove the #9 Owned Coal and other substances which are necessarily removed in the underground coal mining process by any and all underground mining
methods now or hereafter in existence, including the right to disturb, cast, and pile all strata without regard to mineral content and for preparing and marketing coal; such rights, including, without limitation, to the extent permitted by
applicable statutes and regulations and to the extent Cyprus Creek has the right to grant the same, the right to install and maintain railroad and truck loading facilities, storage areas, railroad tracks and switches, pumping stations, pole lines
and wires; to dig ditches for the drainage of water; to lay pipe lines; to erect towers; to provide for the storage of materials and supplies; to construct and use roadways; to erect and use buildings, plants and structures of every kind; and, in
general, and without limitation, to do any and all things incident to Armstrong Coal’s mining, processing, and marketing of #9 Owned Coal produced from the Property; provided, however, that Armstrong Coal has, by its execution of this Lease,
accepted all liability which may arise at any time after the execution hereof for any and all damage to surface and/or structures situated in, on or under the surface, where such damage was caused by Armstrong Coal’s operations under this
Lease. It is the express intent of the Parties hereto that by the language of this Section 1(b), Armstrong Coal shall have accepted all responsibility and liability for any and all subsidence and damage caused thereby as it relates to the
Property and/or #9 Owned Coal from and after the date of execution hereof only. 

  

	 	(c)	A free access to, in, from and across the Property and the #9 Owned Coal and the right to undertake any other thing or use necessary or convenient for the underground
mining of the Coal. 

  

	 	(d)	To utilize underground tunnels, entries, passageways, rooms, haulage ways, pumping stations, pipelines, conveyors, storage facilities, drains and other surface and
underground facilities, all with respect to the mining of #9 Owned Coal and for the purpose of mining of #9 Owned Coal in, on or under the Property. 

 2. TERM. 
 (a) This term of this Lease (the “Term”) shall be
for the longer of: (i) five (5) years commencing on the effective date of this Lease; or (ii) until such time as all of the mineable and merchantable #9 Owned Coal has been mined and removed; provided that Armstrong Coal is engaged in
mining #9 Owned Coal on the Property by no later than five (5) years from the effective date of this Lease. Notwithstanding any provision to the contrary, Armstrong Coal may terminate this Lease at any time during the term upon thirty
(30) days written notice to Cyprus Creek. In the event that Armstrong Coal completes its mining activities prior to the expiration of the Term, this Lease shall terminate and Armstrong Coal shall provide written notice to Cyprus Creek within
thirty (30) days of the date on which Armstrong Coal last loads #9 Owned Coal from the Property for shipment to customers. This Lease shall expire on the date of such written notice. 

  
 2 

 (b) Upon expiration or termination of this Lease, Armstrong Coal shall, at Cyprus
Creek’s request, execute a Release of this Lease for purposes of recording. After expiration or termination of this Lease, Armstrong Coal shall have the right to re-enter the Property and remove all of Armstrong Coal’s mining equipment and
related property from the Property, and thereafter, as and when required by Federal, state or local law or regulation, as a result of Armstrong Coal’s operations under this Lease, Armstrong Coal shall perform reclamation and environmental work
on and respecting the Property. 
 (c) If, at any time, Armstrong Coal shall fail to perform reclamation and environmental
work on and respecting the Property, as and when required by law, Cyprus Creek, at its option, shall have the right to: 
  

	 	(i)	seek specific performance of this obligation from a court of competent jurisdiction; and/or, 

 

	 	(ii)	re-enter the Property and perform such reclamation and environmental work as may be required at the expense of Armstrong Coal, which expense Armstrong Coal shall be
obligated to pay without legal recourse. 

  

	 	(iii)	Notwithstanding the foregoing, Cyprus Creek shall provide Armstrong Coal thirty (30) days prior written notice of its intent to proceed under (i) or
(ii) above and allow Armstrong Coal a reasonable time within which to perform reclamation work as set forth above. 

 3.
ROYALTIES. Armstrong Coal shall pay to Cyprus Creek, in full payment for all of the benefits secured by Armstrong Coal under or in connection with the mining of #9 Owned Coal pursuant to this Lease, an overriding royalty in an amount more
specifically set forth in a certain “Overriding Royalty Agreement” of even date herewith, a Memorandum of which is of record in Deed Book             , page
            , in the Office of the Muhlenberg County Clerk (“Royalty”). 
  

	 	(a)	Payment. All Royalty shall be payable pursuant to the terms of the Overriding Royalty Agreement. No Royalty shall be payable on or with respect to gob, slurry,
tailings or other residue resulting from the processing, including washing of #9 Owned Coal for sale from the Property, and Armstrong Coal shall have clear title to all such material from the Property, provided that all such material is removed from
the Property prior to the expiration or termination of this Lease. 

  

	 	(b)	Additional Expenses. Armstrong Coal shall be responsible for the payment of all costs and expenses resulting from or related to the mining, removal, and sale of
the #9 Owned Coal, all reporting costs, taxes, and all engineering fees. 

  

	 	(c)	Reports. Beginning with the month following the month in which #9 Owned Coal is first mined from the Property, and for each month thereafter, Armstrong Coal
shall furnish to Cyprus Creek a report stating for that month the number of coal acres mined and the tons of #9 Owned Coal mined and sold from each parcel depicted on Exhibit A and described on Exhibit B. 

 

	 	(f)	Delinquent Payments. Delinquent payments shall bear interest at the rate set forth in the Overriding Royalty Agreement. 

  
 3 

 4. MINE PLANS. Armstrong Coal shall make available for inspection by Cyprus Creek upon reasonable
advance request a copy of Armstrong Coal’s Mine Plan map and any revisions thereto and of Armstrong Coal’s Coal Mining and Reclamation Operations Permit to Mine the #9 Owned Coal, including the application for such permit, and all maps and
diagrams submitted therewith. Cyprus Creek shall not interfere with Armstrong Coal’s permitting activities. In addition, Cyprus Creek shall have the right to review such mine plans on no less than an annual basis. Armstrong Coal shall furnish
to Cyprus Creek on January 25 and July 25 of each year a map showing the area mined in the previous six (6) months and showing the area projected to be mined in the following six (6) months. These maps shall be certified by a
Registered Professional Engineer, Certified Professional Geologist or Registered Land Surveyor and shall be at scale of not more than 1” = 100’, showing a minimum, by month, the actual extent of #9 Owned Coal extracted and thickness of
each of the #9 Owned Coal seams mined. 
 5. CYPRUS CREEK’S RIGHT TO INSPECT. Cyprus Creek or its representatives at reasonable
times, and upon at least forty-eight (48) hours advance written notice, shall have the right to make surveys of the workings in the #9 Owned Coal herein leased to determine the accuracy of Armstrong Coal’s surveys of such workings; and at
reasonable times, and upon at least forty-eight (48) hours advance written notice, to examine the maps and engineering records of Armstrong Coal with reference to said surveys. Armstrong Coal shall keep records of all #9 Owned Coal mined and
sold from the Property for a period of thirty-six (36) months and Cyprus Creek shall have the right to inspect the records at all reasonable times. Cyprus Creek or its representatives shall also have the right at reasonable times, and upon at
least forty-eight (48) hours advance written notice, to examine and check the invoices, sales records and other directly relevant records of Armstrong Coal to determine the accuracy of Armstrong Coal’s reports to Cyprus Creek. Cyprus Creek
agrees to treat Armstrong Coal’s invoices and sales records as confidential and not to disclose such records to Cyprus Creek’s or its affiliates’ sales representatives or any other parties. Armstrong Coal shall not be responsible for
any injury, loss or damages suffered by Cyprus Creek’s representatives that enter the Property, except for any injury, loss or damages caused in whole or in part by the gross negligence of Armstrong Coal, its agents or employees. 

6. TITLE. Cyprus Creek does not warrant its title to the #9 Owned Coal or the Property generally and shall have no liability to Armstrong Coal for
any impairment of or interference with the exchange of Armstrong Coal’s rights under this Lease by any person claiming title superior to Cyprus Creek’s. During the term of this Lease, however, Cyprus Creek shall not impair or suffer by act
or omission any impairment of its title to the Property which would interfere with Armstrong Coal’s exercise of its rights under this Lease. Defects in Cyprus Creek’s title may be corrected by Armstrong Coal at Armstrong Coal’s sole
discretion and cost, and Cyprus Creek agrees to cooperate with Armstrong Coal in such corrective activity in the event it is requested to do so. Cyprus Creek agrees to furnish Armstrong Coal all title information in its possession or readily
available to Cyprus Creek, including abstracts of title, commitments for title insurance and title insurance policies. The Parties agree to execute necessary releases as to any property to which Armstrong Coal notifies Cyprus Creek of tile defects
to which it elects not to cure. 

  
 4 

 7. COMPLIANCE WITH LAWS. 
 (a) Armstrong Coal shall perform all legally required reclamation and comply with all applicable Federal, state and local laws, rules and regulations; obtain all necessary permits; pay all employment
and other taxes required in connection herewith, and shall indemnify and defend Cyprus Creek against all actions, including penalties and fines, resulting from Armstrong Coal’s failure to do so. 

(b) Armstrong Coal shall secure and keep in force a reclamation bond to the extent required by applicable law. Armstrong Coal shall
not continue its mining operations, without the written permission of Cyprus Creek, if it should fail to keep in force such bond. 
 8.
INDEMNIFICATION. Except as provided above, Armstrong Coal shall indemnify, defend and save harmless Cyprus Creek against any and all claims, loss and expense arising or accruing after the date of this Lease by reason of liability imposed or
claimed to be imposed by law for damage due to bodily injuries, (including death) and property damage sustained by any person(s), including the employees of Armstrong Coal, arising out of or in consequence of Armstrong Coal’s exercise of its
rights hereunder, whether same arise in whole or in part from negligence (or from any other legal basis) of Armstrong Coal, its employees or agents. Cyprus Creek shall indemnify, defend and save harmless Armstrong Coal against any and all claims,
loss and expense by reason of liability imposed or claimed to be imposed by law for damage due to bodily injuries, (including death) and property damage sustained by any person(s), including the employees of Cyprus Creek, arising out of or in
consequence of Cyprus Creek’s exercise of its rights, whether same arise in whole or in part from negligence (or from any other legal basis) of Cyprus Creek, its employees or agents. This provision shall survive any termination or cancellation
of this Lease. 
 9. INSURANCE. Armstrong Coal shall obtain and continue in force, during the term of this Lease, the following insurance
coverages: 
  

	 	(a)	Employer’s Liability insurance with limits of $500,000 each occurrence, unless the laws of the State in which the work is to be performed preclude an independent
right of action by an employee against an employer under common law. 

  

	 	(b)	Comprehensive Automobile Liability insurance with Bodily Injury and Property Damage both with $1,000,000 combined single limit. 

 

	 	(c)	Comprehensive General Liability insurance, including Contractual Liability coverages with Bodily Injury, and Property Damage both with $1,000,000 combined single limit.

  

	 	(d)	Workers’ Compensation coverage with statutory limits. All insurance policies must contain an unqualified provision that the insurance carrier will give Cyprus
Creek thirty (30) days prior notice in writing of any cancellation, change or lapse of such policy. Prior to occupancy or use of the Property, Armstrong Coal shall furnish to Cyprus Creek (in form satisfactory to Cyprus Creek) a certificate of
insurance showing that the requirements of this paragraph have been satisfied. The certificate of insurance shall name Cyprus Creek as an additional insured and certificate holder on all aforementioned policies. The liability assumed by Armstrong
Coal under this Lease is not limited by the amount of insurance which Armstrong Coal is required to provide under this paragraph. 

  
 5 

 10. DEFAULT AND TERMINATION. In the event of the failure on the part of Armstrong Coal to make any
payment under the Overriding Royalty Agreement when due, or failure of Armstrong Coal to make any payment due and payable under that certain Promissory Note between Armstrong Coal and Cyprus Creek of even date herewith, or in the event a Party fails
to observe and perform any other agreement or undertaking as herein provided, then the other Party shall have the right immediately to give the defaulting Party a written notice designating the particular default or defaults of which complaint is
made and notifying the defaulting Party of its intention and election to terminate the Lease by reason of such default or defaults, and unless the defaulting Party shall make the payment in default within TEN (10) days after giving of said
notice and remove any other default complained of within THIRTY (30) days after the giving of said notice (except any default not susceptible of being cured within such THIRTY (30) day period, in which event the time permitted to the
defaulting Party to complete the same, provided the defaulting Party commences promptly and proceeds diligently to complete such performance), then without further notice this Lease and the rights of the defaulting Party hereunder shall be
forfeited, canceled and terminated. Such termination of this Lease shall not, however, relieve the obligation for any Royalty due under this Lease to date of such termination or liability of the defaulting Party for any other damage resulting to the
other Party from said default. Armstrong Coal shall have the right, and the obligation should Cyprus Creek so demand, to remove any of its property from the Property for a period of one (1) year after expiration or termination of this Lease,
subject to Armstrong Coal’s rights under Section 1(d) hereof. 
 11. TAXES. At all times during the term of this Lease and any
extension hereof, Armstrong Coal shall be responsible for and shall pay all state and local real property taxes imposed upon the interests leased hereunder. Such taxes shall include, but not be limited to, real estate taxes upon the mineral interest
hereunder, severance taxes, production taxes, business taxes and personal property taxes. The intent of this provision is to make clear that while this Lease is in effect, Cyprus Creek shall have no liability for any taxes or government impositions
whatsoever which may be imposed upon the Property, or the #9 Owned Coal, or upon the operations of Armstrong Coal as they relate to the Property, or the #9 Owned Coal leased hereunder or the rights granted to Armstrong Coal hereunder. However, it is
the understanding of the Parties that Cyprus Creek shall pay all real estate taxes only, which may be imposed upon the Property to the appropriate taxing authority; thereafter, Armstrong Coal shall reimburse Cyprus Creek for the full amount of all
such paid taxes upon its receipt of an invoice from Cyprus Creek evidencing same. 
 12. ANCILLARY PROVISIONS OF THIS LEASE. This Lease,
the attached Exhibits A and B (made a part hereof), and the Overriding Royalty Agreement constitute the entire agreement between the Parties, supersede all representations, 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 state of Kentucky. No amendment or modification of this Lease shall be binding unless made by a written instrument of equal formality with this Lease. Waiver
by either party of performance by the other party of any of the provisions of this Lease shall not be construed as a waiver of any further right to insist upon full performance of the terms of this Lease. Each Party shall be entitled to insist
strictly upon timeliness of performance by the other Party of the other Party’s obligations. 

  
 6 

 13. FORCE MAJEURE. Except for the failure to pay the Royalty set forth in the Overriding Royalty
Agreement due and payable to Cyprus Creek, Armstrong Coal shall not be deemed to be in default for any failure to perform or observe any of the terms, conditions, provisions, obligations or covenants to be performed or observed by it hereunder
during periods in which such performance or observance is prevented by any event reasonably beyond Armstrong Coal’s control including, but not by way of limitation, any order, decree, direction, inaction, or denial of permit by any governmental
law, executive order, rule, regulation, or request enacted or promulgated under color of authority; by scarcity or inability to obtain equipment, material, power or fuel; by lack of satisfactory market in the sole opinion and discretion of Armstrong
Coal for #9 Owned Coal mined from the Property; by riot, strike, lockout, insurrection or industrial disturbance; by failure of carriers to transport or furnish facilities for transportation; by any act of God (including, with limitation, lightning,
earthquake, cave-in, fire, storm, flood, washout); or by breakage or accident to machinery or facilities; fires or explosions; provided that Armstrong Coal shall exercise reasonable diligence to resume mining operations. Armstrong Coal shall have
the right to determine and settle any strikes, lockouts or industrial disputes in its sole discretion, and the aforesaid requirement of exercising reasonable diligence to resume mining shall not require Armstrong Coal to accede to any demand or
position of any other party involved in such strike, lockout or industrial dispute. 
 14. PRESERVATION OF TITLE. During the term of this
Lease, Cyprus Creek shall not do anything or fail to do anything, which would prevent or obstruct Armstrong Coal’s rights hereunder. Nothing herein shall create or be interpreted to create a hindrance of any kind whatsoever to Cyprus
Creek’s freedom to dispose of its interest in this Lease, the Property, or the #9 Owned Coal provided such proposal is made subject to this Lease. 
  

	15.	RECORDING. Neither Party shall record this Lease without the prior written consent of the other Party. 

16. ASSIGNMENT. Armstrong Coal shall not assign this Lease or any part of its right hereunder, without the prior written consent of Cyprus Creek,
which shall not be unreasonably withheld. Absent Cyprus Creek’s prior written consent, any assignment or attempted or purported assignment shall be void as to Cyprus Creek and, moreover, shall constitute a material breach of this Lease.

 17. NOTICES. Any notice or communication required by this Lease shall be in writing addressed to the address of each of the Parties
respectively as follows: 
  

	 	(a)	If to Armstrong Coal: 

 Armstrong
Coal Company, Inc. 
 407 Brown Road 
 Madisonville, KY 42431 

  
 7 

 With copy to: 
 Mason L. Miller 
 Miller & Wells, PLLC 

300 East Main Street, Ste. 360 
 Lexington, Kentucky 40507 
 -and- 

Armstrong Energy, Inc. 
 Attn: Martin D. Wilson, President 
 7733 Forsyth Blvd., Suite 1625 

St. Louis, Missouri 63105 
  

	 	(b)	If to Cyprus: 

 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 

At any time, either Party may specify in writing a new address for notification hereunder. 
 18. MEMORANDUM OF LEASE. The Parties hereby agree to execute a memorandum or notice of this Lease in form suitable for recording. 

IN WITNESS WHEREOF, the Parties have executed this Underground Coal Mining Lease in duplicate, as of the effective date first above
written, by their own hand and deed, and/or by their duly authorized representatives, each of which representative, by signing this Underground Coal Mining Lease, personally represents and guarantees his authority to sign for the Party indicated.

  

							
	Cyprus Creek:	 		 	CYPRUS CREEK LAND RESOURCES, LLC
				
		 		 	By:  	 	 
		 		 		 	James C. Sevem, Vice President

							
	STATE OF MISSOURI	  	)
		  	) SS:
	CITY OF ST. LOUIS	  	)

  
 8 

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by James C.
Sevem as Vice President of Cyprus Creek Land Resources, LLC, a Delaware limited liability company, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority to
so execute on its behalf as its free act and deed in due form of law for the purposes stated herein, on this the         day of
                    , 201    . 
  

					
	(SEAL)	  	  

		  	Notary Public,  	  	 

 My commission
expires:                                      
        

  
 9 

 WITNESS, the execution of: 

 

							
	Armstrong Coal:	  		  	ARMSTRONG COAL COMPANY, INC.
				
		  		  	By:	  	  

		  		  		  	Martin D. Wilson, President
	STATE OF MISSOURI	  	)
		  	) SS:
	CITY OF ST. LOUIS	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Martin D. Wilson as
President of Armstrong Coal Company, Inc., a Delaware corporation, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority to so execute on its behalf as its
free act and deed in due form of law for the purposes stated herein, on this the         day of
                    , 201    . 
  

					
	(SEAL)	  	  

		  	Notary Public,  	  	 

 My commission expires:
                                        
     

  
 10 

 EXHIBIT A 
 TO 
 UNDERGROUND COAL MINING LEASE 

Map 

  
 11 

 

 

  
 12 

 EXHIBIT B 
 TO 
 UNDERGROUND COAL MINING LEASE 

All recording references are to the Office of the Muhlenberg County Clerk. 

Leased #9 Owned Coal 
  

											
	 	  	MAP TR	  	 LC#
	  	DB/P	  	DATE	  	FOOTNOTE
	1	  	168	  	016-034 T15 P11	  	192/385	  	12/20/1952	  	
	2	  	169	  	016-034 T15 P35	  	192/385	  	12/20/1952	  	
	3	  	171	  	016-034 T15 P12	  	192/385	  	12/20/1952	  	
	4	  	172	  	016-034 T15 P10	  	192/385	  	12/20/1952	  	
	5	  	176	  	016-034 T15 P18	  	192/385	  	12/20/1952	  	1
	6	  	204	  	016-034 T15 P11	  	192/385	  	12/20/1952	  	
	7	  	205	  	016-034 T15 P8	  	192/385	  	12/20/1952	  	
	8	  	206	  	016-034 T15 P9	  	192/385	  	12/20/1952	  	1
	9	  	207	  	1304-001 T1B	  	363/420	  	7/19/1984	  	1
	10	  	208	  	016-034 T15 P20	  	192/385	  	12/20/1952	  	1

 Source of Title 
  

			
	 Footnote
	  	 Description

	1	  	Subject to the Right of Way for P&L Railroad, formerly the I.C. Railroad

 Source of Title 
 AND BEING a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by deed dated September 13, 2007, of record in Deed Book 530, page
620. 
 END OF EXHIBIT B 

  
 13 

 EXHIBIT J 
 TO 
 ASSET PURCHASE AGREEMENT 

Memo of Cyprus Creek #9 Lease 

 MEMORANDUM OF 
 UNDERGROUND COAL MINING LEASE 
 (#9 Owned Coal Lying North of the South
ROW Line of Wendell Ford Parkway) 
 This MEMORANDUM OF UNDERGROUND COAL MINING LEASE (“Memorandum”), is
made and entered into on this the         day of                     , 201    ,
(“Lease Date”), by and between CYPRUS CREEK LAND RESOURCES, LLC, Delaware limited liability company with an address of 701 Market Street, Suite 798, St. Louis, Missouri 63101 (“Cyprus Creek” or “Sublessor”)
and ARMSTRONG COAL COMPANY, INC., a Delaware corporation with an address of 407 Brown Road, Madisonville, Kentucky 42431 (“Armstrong Coal” or “Sublessee”), collectively hereinafter the “Parties”. 

W I T N E S S E T H: 
 WHEREAS, by separate Underground Coal Mining Lease of even date herewith between Cyprus Creek as Lessor and Armstrong Coal as Lessee, Cyprus Creek did grant, let, and lease unto Armstrong Coal all of its
right, title, and interest in and to a portion of its owned #9 vein or seam of Coal lying north of the south right-of-way line of the Wendell Ford Parkway in Muhlenberg County, Kentucky (the “#9 Owned Coal”), as more particularly depicted
on the map attached as Exhibit A and described on Exhibit B attached thereto (the “Property”) (the “Cyprus Creek #9 Lease”); and, 
 WHEREAS, the Parties desire to have recorded a Memorandum for the purpose of filing record notice thereof, and for that purpose, have executed this Memorandum. 

NOW, THEREFORE, for and in consideration of the execution of the Underground Coal Mining Lease (“Cyprus Creek #9 Lease”)
between the Parties and the mutual covenants and agreements set forth therein, Lessor does hereby lease unto Lessee all of its right, title and interest in and to that portion of its owned #9 vein or seam of Coal lying north of the south
right-of-way line of the Wendell Ford Parkway in Muhlenberg County, Kentucky, and the coal mining rights and privileges thereto, more particularly depicted on the map attached hereto as Exhibit A and described on the attached Exhibit B,
incorporated herein by reference and made a part hereof. 
  

					
	 CCLR #9 Owned Coal

N of S ROW of Wendell Ford Pkwy.

Muhlenberg Co., Ky.
	  	 	12/27/11	  

  
 1 

 (a) This term of the Cyprus Creek #9 Lease(the “Term”) shall be for the
longer of: (i) five (5) years commencing on the effective date of the Lease; or (ii) until such time as all of the mineable and merchantable #9 Owned Coal has been mined and removed; provided that Armstrong Coal is engaged in mining
#9 Owned Coal on the Property by no later than five (5) years from the effective date of the Lease. Notwithstanding any provision to the contrary, Armstrong Coal may terminate the Cyprus Creek #9 Lease at any time during the term upon thirty
(30) days written notice to Cyprus Creek. In the event that Armstrong Coal completes its mining activities prior to the expiration of the Term, the Cyprus Creek #9 Lease shall terminate and Armstrong Coal shall provide written notice to Cyprus
Creek within thirty (30) days of the date on which Armstrong Coal last loads #9 Owned Coal from the Property for shipment to customers. The Cyprus Creek #9 Lease shall expire on the date of such written notice. 

(b) Upon expiration or termination of the Lease, Armstrong Coal shall, at Cyprus Creek’s request, execute a Release of the
Cyprus Creek #9 Lease for purposes of recording. After expiration or termination of the Lease, Armstrong Coal shall have the right to re-enter the Property and remove all of Armstrong Coal’s mining equipment and related property from the
Property, and thereafter, as and when required by Federal, state or local law or regulation, as a result of Armstrong Coal’s operations under the Lease, Armstrong Coal shall perform reclamation and environmental work on and respecting the
Property. 
 (c) If, at any time, Armstrong Coal shall fail to perform reclamation and environmental work on and respecting
the Property, as and when required by law, Cyprus Creek, at its option, shall have the right to: 
  

	 	(i)	seek specific performance of this obligation from a court of competent jurisdiction; and/or, 

 

	 	(ii)	re-enter the Property and perform such reclamation and environmental work as may be required at the expense of Armstrong Coal, which expense Armstrong Coal shall be
obligated to pay without legal recourse. 

  

	 	(iii)	Notwithstanding the foregoing, Cyprus Creek shall provide Armstrong Coal thirty (30) days prior written notice of its intent to proceed under (i) or
(ii) above and allow Armstrong Coal a reasonable time within which to perform reclamation work as set forth above. 

 This Memorandum is executed solely for the purpose of providing record notice only, and is not intended, nor shall it be deemed, to modify any of the provisions of the Cyprus Creek #9 Lease. Reference
should be made to the Cyprus Creek #9 Lease to ascertain all of the terms, conditions, and covenants thereof, a true and complete copy of which is in the possession of both LESSOR and LESSEE. 

This Memorandum may be executed in one or more identical counterparts which may be combined into one or more identical documents, but all
of which together shall constitute one and the same instrument, each of which shall be deemed an original. 

  
 2 

 IN WITNESS WHEREOF, the Parties have executed this Memorandum of Underground Coal Mining
Lease as of the effective date first above written. 
  

							
	Cyprus Creek:	  		  	CYPRUS CREEK LAND RESOURCES, LLC
				
		  		  	By:	  	  

		  		  		  	James C. Sevem, Vice President
	STATE OF MISSOURI	  	)
		  	) SS:
	CITY OF ST. LOUIS	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by James C. Sevem as Vice
President of Cyprus Creek Land Resources, LLC, a Delaware limited liability company, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority to so execute on
its behalf as its free act and deed in due form of law for the purposes stated herein, on this the         day of
                    , 201    . 
  

					
	(SEAL)	  	  

		  	Notary Public,  	  	 

 My commission
expires:                                      
        

  
 3 

 WITNESS, the execution of: 

 

							
	Armstrong Coal:	  		  	ARMSTRONG COAL COMPANY, INC.
				
		  		  	By:	  	  

		  		  		  	Martin D. Wilson, President
		
	STATE OF MISSOURI	  	)
		  	) SS:
	CITY OF ST. LOUIS	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Martin D. Wilson as
President of Armstrong Coal Company, Inc., a Delaware corporation, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and corporate authority to so execute on its behalf as its
free act and deed in due form of law for the purposes stated herein, on this the         day of
                    , 201    . 
  

					
	(SEAL)	  	  

		  	Notary Public,  	  	 

 My commission
expires:                                      
        
 THIS INSTRUMENT PREPARED BY: 

 

			
	 M. Kirby Gordon, II
 GORDON & GORDON, P.S.C.
 6357 KY Hwy 405

P.O. Box 398
 Owensboro, Kentucky
42302-0398
 (270) 281-0398
	  	

  
 4 

 EXHIBIT A 
 TO 
 MEMORANDUM OF UNDERGROUND COAL MINING LEASE 

MAP 

  
 5 

 

 

  
 6 

 EXHIBIT B 
 TO 
 MEMORANDUM OF UNDERGROUND COAL MINING LEASE 

All recording references are to the Office of the Muhlenberg County Clerk. 

Leased #9 Owned Coal 
  

											
	 	  	MAP TR	  	 LC#
	  	DB/P	  	DATE	  	FOOTNOTE
	1	  	168	  	016-034 T15 P11	  	192/385	  	12/20/1952	  	
	2	  	169	  	016-034 T15 P35	  	192/385	  	12/20/1952	  	
	3	  	171	  	016-034 T15 P12	  	192/385	  	12/20/1952	  	
	4	  	172	  	016-034 T15 P10	  	192/385	  	12/20/1952	  	
	5	  	176	  	016-034 T15 P18	  	192/385	  	12/20/1952	  	1
	6	  	204	  	016-034 T15 P11	  	192/385	  	12/20/1952	  	
	7	  	205	  	016-034 T15 P8	  	192/385	  	12/20/1952	  	
	8	  	206	  	016-034 T15 P9	  	192/385	  	12/20/1952	  	1
	9	  	207	  	1304-001 T1B	  	363/420	  	7/19/1984	  	1
	10	  	208	  	016-034 T15 P20	  	192/385	  	12/20/1952	  	1

 Source of Title 
  

			
	 Footnote
	  	 Description

	1	  	Subject to the Right of Way for P&L Railroad, formerly the I.C. Railroad

 Source of Title 
 AND BEING a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by deed dated September 13, 2007, of record in Deed Book 530, page
620. 
 END OF EXHIBIT B 

  
 7 

 EXHIBIT K 
 TO 
 ASSET PURCHASE AGREEMENT 

Overriding Royalty Agreement 

 NOT TO BE RECORDED 

OVERRIDING ROYALTY AGREEMENT 
 This OVERRIDING ROYALTY AGREEMENT is made and entered into on this the             day of
            , 2011 (“Agreement”), by and between, CYPRUS CREEK LAND RESOURCES, LLC, a Delaware limited liability company, with an address of 701 Market Street,
Suite 798, St. Louis, Missouri 63101 (“GRANTOR”) and ARMSTRONG COAL COMPANY, INC., a Delaware corporation, having its office address at 407 Brown Road, Madisonville, Kentucky 42431 (“GRANTEE”). 

W I T N E S S E T H: 
 WHEREAS, GRANTOR and GRANTEE are parties to a Corporation Special Warranty Deed of even date herewith of record in Deed Book
            , page             , in the Office of the Muhlenberg County Clerk, wherein certain #9 coal and #9 coal mining rights
and privileges have been granted by GRANTOR to GRANTEE as depicted on the map attached thereto as Exhibit A and more particularly described on Exhibit B thereto (the “#9 Coal Deed”); 

WHEREAS, GRANTOR and GRANTEE are parties to a Underground Coal Mining Lease of even date herewith, a Memorandum of which is of
record in Deed Book             , page             , in the Office of the Muhlenberg County Clerk, wherein certain owned #9 coal
and #9 coal mining rights and privileges, as depicted on the map attached thereto as Exhibit A thereto and more particularly described on the Exhibit B attached thereto, have been leased by GRANTOR (Lessor therein) to GRANTEE (Lessee
therein) (the “Cyprus Creek #9 Lease”); 
 WHEREAS, GRANTOR and GRANTEE are parties to a Underground Coal
Mining Sublease, of even date herewith, a Memorandum of which is of record in Deed Book             , page             , in the
Office of the Muhlenberg County Clerk, wherein certain leased #9 coal and #9 coal mining rights and privileges, as depicted on the map attached thereto as Exhibit A and more particularly described on the Exhibit B attached thereto, have been
subleased by GRANTOR (Sublessor therein) to GRANTEE (Sublessee therein) (the “Rogers #9 Sublease”); 
 WHEREAS,
GRANTOR and GRANTEE are parties to a Underground Coal Mining Lease and Sublease, of even date herewith, a Memorandum of which is of record in Deed Book             , page
            , in the Office of the Muhlenberg County Clerk, wherein certain owned #9 coal and leased #9 coal and coal mining rights and privileges, as depicted on the map attached thereto
as Exhibit A and more particularly described on the Exhibits B-1 and B-2 attached thereto, have been leased and subleased by GRANTOR (Lessor/Sublessor therein) to GRANTEE (Lessee/Sublessee therein) (the “Cyprus Creek & Duncan #9
Lease and Sublease”); 
 WHEREAS, the maps and the descriptions of the Properties referred to in the
above-referenced instruments subject to this Agreement are collectively attached hereto as Addendum 1, incorporated herein by reference and made a part hereof; and 
  

			
	 Overriding Royalty Agreement

Muhlenberg County, KY
	  	12/27/11

  
 1 

 WHEREAS, GRANTOR and GRANTEE desire to more particularly set forth the terms and
conditions of those certain overriding royalty interests granted by GRANTEE to GRANTOR in connection with and in consideration for the #9 Coal Deed, the Cyprus Creek #9 Lease, the Rogers #9 Sublease, and the Cyprus Creek & Duncan #9 Lease
and Sublease, as hereinafter set forth. 
 NOW, THEREFORE, for and in consideration of the #9 Coal Deed, the Cyprus Creek
#9 Lease, the Rogers #9 Sublease, the Cyprus Creek & Duncan #9 Lease and Sublease, and the mutual covenants and promises of the parties hereto, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as
follows: 
 1. RECITALS. All of the foregoing recitals, the definitions, and instruments referenced therein
are incorporated herein by reference and made a part hereof. 
 2 GRANT OF OVERRIDING ROYALTY. GRANTEE does hereby
GRANT, ASSIGN, TRANSFER, and SET OVER to GRANTOR free and clear of all costs, expenses, liens, and encumbrances created by GRANTEE, its parent and/or its affiliates, an overriding royalty interest in and to the fee, leased, and subleased coal, in
place, having been conveyed, leased, and subleased to GRANTEE under the instruments cited in the recitals herein above (herein the “Coal”). GRANTEE covenants and agrees that after the mining by GRANTEE and its successors and assigns of
Coal from the Property as depicted on the maps and the descriptions on the attached Addendum 1 (hereinafter the “Property”), GRANTEE, its successors and assigns, shall pay to GRANTOR, its successors and assigns, when such payments are due
without the necessity of prior demand: 
 (i) an overriding royalty payment for each ton (2,000 pounds) of Coal mined,
removed, and sold from the Property conveyed and leased to GRANTEE in and by (a) the #9 Coal Deed and (b) the Cyprus Creek #9 Lease, in the sum of FIVE DOLLARS AND NO CENTS ($5.00) per ton, in excess of ONE MILLION SIX HUNDRED SIXTY
THOUSAND EIGHT HUNDRED FIFTY (1,660,850) tons collectively mined, removed, and sold therefrom, said tracts being more particularly depicted on the consolidated map attached hereto as EXHIBIT A which is incorporated herein by
reference and made a part hereof; and, 
 (ii) an overriding royalty payment for each ton (2,000 pounds) of Coal mined,
removed, and sold from the Property leased and subleased to GRANTEE in and by (c) the Rogers #9 Sublease and (d) the Cyprus Creek & Duncan #9 Lease and Sublease, in the sum of THREE DOLLARS AND TWENTY-FIVE CENTS ($3.25) per ton in
excess of ONE MILLION FIVE HUNDRED THIRTY-NINE THOUSAND ONE HUNDRED FIFTY (1,539,150) tons collectively mined, removed, and sold therefrom, said tracts being more particularly depicted on the consolidated map attached hereto as EXHIBIT
B which is incorporated herein by reference and made a part hereof; 
 In the event of a conflict between any of the
descriptions and attached maps in Addendum 1 with regard to the Property or between the descriptions in Addendum 1 and the attached consolidated maps Exhibits A and B hereto, respectively, then the respective descriptions shall control. 

  
 2 

 3. REPORTS. Beginning with the month following the month in which coal is
sold from the Property, GRANTEE shall furnish to GRANTOR a report stating for that month the number of coal acres mined and the tons of coal mined and sold from portions of the Property described in #9 Coal Deed and the Cyprus Creek #9 Lease and
depicted on the consolidated map attached hereto as Exhibit A and from portions of the Property described in the Rogers #9 Sublease and the Cyprus Creek & Duncan #9 Lease and Sublease and depicted on the consolidated map attached hereto as
Exhibit B. 
 4. DELINQUENT PAYMENTS. Delinquent payments shall bear interest from their due date at a
per annum rate of five percent (5%) per annum. 
 5. GRANTOR’S RIGHT TO INSPECT. GRANTOR and its
successors and assigns and their representatives at reasonable times, and upon at least forty-eight (48) hours advance written notice, shall have the right to make surveys of the workings in the coal herein leased to determine the accuracy of
GRANTEE’s surveys of such workings at GRANTOR’s sole cost and expense; and at reasonable times, and upon at least forty-eight (48) hours advance written notice, to examine the maps and engineering records of GRANTEE with reference to
said surveys at GRANTOR’s sole cost and expense. GRANTEE shall keep records of all coal mined and sold from the Property for thirty-six (36) months and GRANTOR shall have the right to inspect the records at all reasonable times. GRANTOR or
its representatives shall also have the right at reasonable times, and upon at least forty-eight (48) hours advance written notice, to examine and inspect the invoices, sales records and other records related to the production and sale of the
coal from the Property described in #9 Coal Deed and the Cyprus Creek #9 Lease and described in the Rogers #9 Sublease and the Cyprus Creek & Duncan #9 Lease and Sublease to determine the accuracy of GRANTEE’s reports to GRANTOR at
GRANTOR’s sole cost and expense. GRANTOR agrees to treat GRANTEE’s invoices, sales and other records as confidential and not to disclose such records to GRANTOR’s sales representatives or those of its affiliates, or to any other
parties. GRANTEE shall not be responsible for any injury, loss or damages suffered by GRANTOR’s representatives that enter the Property, except for any injury, loss or damages caused solely by the gross negligence of GRANTEE, its agents or
employees. 
 6. LESSER INTEREST. If GRANTOR conveys, leases or subleases less than a 100% interest in and to
the Coal in, on, and underlying the tracts in question, the overriding royalty payments to GRANTOR shall be reduced in proportion to which any such partial undivided interest bears to the whole; provided, however, that GRANTEE agrees that any coal
mined under the Cyprus Creek & Duncan #9 Lease and Sublease shall be subject to the $3.25 per ton overriding royalty unless the combined leased and subleased interest in the Cyprus Creek & Duncan #9 Lease and Sublease shall be less
than a cumulative 100% interest in and to the Coal in, on and underlying the tracts described therein. In the event the Cyprus Creek & Duncan #9 Lease and Sublease leases and subleases less than a 100% interest in and to the Coal underlying
any tract, then the overriding royalty payments to GRANTOR hereunder for any such tract shall be reduced in proportion to which any such partial undivided interest bears to the whole. 

7. GRANTOR’s VESTED INTERESTS AND RIGHTS. GRANTOR’s overriding royalty interest and rights to payment
hereunder are vested as to the Coal, shall not be deemed violative of the rule against perpetuities, and shall continue to be vested to the extent that the Coal is covered by or subject to any renewal, extension, modification, substitution, or
amendment of any existing or new lease, sublease, deed, license, assignment, or other contract granting GRANTEE, its successors, assigns, subsidiaries, and/or affiliates (whether direct or indirect) and their respective successive successors,
assigns, and/or affiliates (whether direct or indirect) the right to mine, remove, and sell the Coal. 

  
 3 

 8. PAYMENT OF OVERRIDING ROYALTY. All monthly
royalty payments to GRANTOR shall be due and payable to GRANTOR on or before the twenty-fifth (25th) day of each month following the calendar month in which the Coal is sold and shall be accompanied by a statement reflecting the amount of Coal mined, removed, and sold in the preceding calendar
month and the respective areas of the Property as described in the described in #9 Coal Deed and the Cyprus Creek #9 Lease and depicted on the consolidated map attached hereto as Exhibit A and the Property described in the Rogers #9 Sublease
and the Cyprus Creek & Duncan #9 Lease and Sublease and depicted on the consolidated map attached hereto as Exhibit B and the respective overriding royalty payments due with respect thereto. 

9. GRANTEE’S ACCEPTANCE. GRANTEE accepts GRANTOR’s conveyance, leases and subleases of the Coal and agrees
for itself, its successors and assigns, and agrees to be bound by all the grants, covenants, conditions, restrictions, reservations, exceptions, and other terms set forth in this Overriding Royalty Agreement, as well as those more particularly set
forth in the #9 Coal Deed, incorporated herein by reference and made a part hereof, which such covenants, conditions, restrictions, reservations, exceptions, and other terms shall be covenants running with the land and shall be binding upon GRANTEE,
its successors and assigns, and their respective successive successors and assigns, forever. 
 10. AGREEMENT RELATES
TO FEE #9 COAL CONVEYANCE, LEASED #9 COAL AND SUBLEASED #9 COAL. This Overriding Royalty Agreement relates to those fee Coal tracts conveyed by GRANTOR to GRANTEE in the above-described #9 Coal Deed as well as those leased and subleased coal
tracts leased and subleased by GRANTOR to GRANTEE in the above-described Cyprus Creek #9 Lease, Rogers #9 Sublease, and Cyprus Creek & Duncan #9 Lease and Sublease. In the event any portion or all of the leasehold estates under the Cyprus
Creek #9 Lease, Rogers #9 Sublease, and Cyprus Creek & Duncan #9 Lease and Sublease should be terminated or extinguished, absent any underlying intentional breach by GRANTEE, the overriding royalty interest in such terminated or
extinguished portion of the leasehold estates shall be released, and the overriding royalty interest in any remainder of the Leased or Subleased Coal tracts or in those fee #9 Coal tracts described and depicted in Addendum 1 hereto shall remain in
full force and effect and the GRANTEE’s obligations hereunder will not be affected.The Parties agree that in the event GRANTOR, in its sole discretion, amends, revises or releases the existing restrictions and restrictive covenants prohibiting
GRANTEE from mining certain coal reserves from within the No Mining Boundary upon the fee Coal Tract 209 and the subleased #9 Rogers Coal Tract R237-2, then this Overriding Royalty Agreement shall also apply to any and all #9 coal mined from within
the No Mining Boundary described in the #9 Coal Deed and the Rogers #9 Sublease, respectively. 
 11. ANCILLARY
PROVISIONS OF THIS OVERRIDING ROYALTY AGREEMENT. This Overriding Royalty Agreement and the #9 Coal Deed constitute the entire agreement between the Parties; supersede all representations, bids, agreements, memoranda and correspondence
between, by or for the Parties. No amendment or modification of this Agreement shall be binding unless made by a written instrument of equal formality with this Agreement. Waiver by either Party of performance by the other 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. Each Party shall be entitled to insist strictly upon timeliness of performance by the other Party of
the other Party’s obligations. 
 12. RECORDING. The parties hereto agree to give notice of the existence
of this Overriding Royalty Agreement as it relates to the Property by recording both (i) the #9 Coal Deed and (ii) a Short Form Memorandum of this Overriding Royalty Agreement in the Office of the County Clerk of Muhlenberg County,
Kentucky. 

  
 4 

 13. NOTICES. Any notice or communication required by this Agreement shall
be in writing addressed to the address of each of the Parties respectively as follows: 
 To GRANTEE: 

Armstrong Coal Company, Inc. 
 407 Brown Rd.

 Madisonville, KY 42431 
 Attn: Vice
President 
 With required copy to: 

Mason L. Miller 
 Miller Wells PLLC 

300 East Main Street, Ste. 360 
 Lexington,
Kentucky 40507 
 Armstrong Energy, Inc. 

Attn: Martin D. Wilson, President 
 773 Forsyth
Blvd., Suite 1625 
 St. Louis, Missouri 63105 
 To GRANTOR: 
 Cyprus Creek Land Resources, LLC 

701 Market Street, Suite 798 
 St. Louis, MO
63101 
 Attn: President 
 With required
copy to: 
  
 J. Sale Gordon 

Gordon Law Offices, PSC 

121 W.
2nd St. 

Owensboro, Kentucky 42301 
 At any time, any
party may specify in writing a new address for notification hereunder. 
 14. BINDING EFFECT. The Parties
agree that the overriding royalty interest granted herein shall constitute an independent and enforceable obligation that shall run with the land and shall be binding upon GRANTEE, its successors and assigns, and any subsequent owner, lessee and
other holders of the Property and their respective successors and assigns. The parties hereto acknowledge and agree that all of the terms and conditions contained in the #9 Coal Deed and in this Overriding Royalty Agreement shall be of in full force
and binding effect upon the parties hereto, their successors and assigns. 

  
 5 

 15. TERM. This Overriding Royalty Agreement shall remain in effect and
the obligations hereunder shall continue until such time as all Coal has been mined and sold from the Property. 

16. GOVERNING LAW. This Overriding Royalty Agreement shall be construed in accordance with the substantive laws of the
Commonwealth of Kentucky. 
 17. MISCELLANEOUS.  

17.1 Modification and Waiver. No modification or waiver of any provision of this Overriding Royalty Agreement nor consent to any
departure therefrom, shall in any event be effective, unless the same shall be in writing and signed by the party to be charged therewith, and then such modification, waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given. 
 17.2 Construction. This Overriding Royalty Agreement has been arrived at after
thorough bargaining and negotiations, with attorneys advising each party. The language of this Overriding Royalty Agreement is a product of the mutual effort of the Parties. This Overriding Royalty Agreement shall be construed fairly as to all
Parties; it shall not be construed for or against any party on the basis or the extent to which that party participated as drafter. 
 17.3 Severability. In the event that any one or more of the provisions or parts of a provision contained in this Overriding Royalty Agreement shall, for any reason, be held to be invalid, illegal
or unenforceable in any respect, in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provisions or part of a provision of this Overriding Royalty Agreement, but this Overriding Royalty Agreement shall be
reformed and construed in any such jurisdiction as if such invalid or illegal or unenforceable provision or part of a provision had never been contained herein, and such provision or part shall be reformed so it would be valid, legal and enforceable
to the maximum extent permitted in such jurisdiction in a manner so as to preserve the bargain and agreement of the Parties hereto. 
 17.4 Authority to Execute. Each individual executing this Overriding Royalty Agreement on behalf of a party hereto represents and warrants that all actions necessary to authorize its execution on
behalf of that party have been duly performed; that such individual has authority to execute this Overriding Royalty Agreement on behalf of such party; and that such party shall be legally bound hereby. 

17.5 Recitals and Captions. The introductory factual recitals of this Overriding Royalty Agreement are an integral part hereof. The
captions of the paragraphs of this Overriding Royalty Agreement are for convenience only, and shall not be construed as impacting the covenants, conditions, terms and provisions hereof. 

17.6 In the event of any dispute or litigation between the Parties concerning the terms and conditions of this Overriding Royalty
Agreement or otherwise related to any party protecting or preserving their rights under this Overriding Royalty Agreement, the prevailing party shall be entitled to recovery of all costs and reasonable attorney fees actually incurred. 

  
 6 

 ATTACHMENTS: 
 Addendum 1 – Maps and Descriptions of Property 
 Exhibit A – Consolidated Map of
Owned #9 Coal and CCLR #9 Leased Coal 
 Exhibit B – Consolidated Map of Rogers #9 Lease and CCLR & Duncan #9 Lease &
Sublease Areas 
 IN WITNESS WHEREOF, the parties hereto have executed this Overriding Royalty Agreement as of the date first
hereinabove written, by their duly authorized representatives. 
  

							
	GRANTOR:	 		 	CYPRUS CREEK LAND RESOURCES, LLC
				
		 		 	By:	 	 
		 		 		 	James C. Sevem, Vice President

  

			
	
STATE OF MISSOURI                    
 
	  	)
		  	) SS:
	 CITY OF ST. LOUIS
	  	)

 The foregoing Agreement was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by James C. Sevem as Vice
President of Cyprus Creek Land Resources, LLC, a Delaware limited liability company, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and authority to so execute on its behalf
as its free act and deed in due form of law, on this the             day of             , 2011. 

 

			
	 	 	 
	 Notary Public,
	 	 

 
			
	 My commission expires:
	 	 

  
 7 

 WITNESS the execution of: 

 

							
	GRANTEE:	 		 	ARMSTRONG COAL COMPANY, INC.
				
		 		 	By:	 	 
		 		 		 	Martin D. Wilson, President

  

			
	
STATE OF                      
                           
	  	)
		  	) SS:
	
COUNTY OF                     
                        
	  	)

 The foregoing Agreement was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Martin D. Wilson as
President of Armstrong Coal Company, Inc., a Delaware corporation, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and authority to so execute on its behalf as its free act
and deed in due form of law, on this the             day of             , 2011. 

 

			
	 	 	 
	 Notary Public,
	 	 

 
			
	 My commission expires:
	 	 

  
 8 

 ADDENDUM 1 
 TO 
 OVERRIDING ROYALTY AGREEMENT 

All recording references are to the Office of the Muhlenberg County Clerk. 

Exhibit A map to #9 Coal Deed 
 Exhibit A map to Cyprus Creek #9 Lease 
 Exhibit A map to Rogers
#9 Sublease 
 Exhibit A map to Cyprus Creek & Duncan #9 Lease and Sublease 

-and- 

Exhibit B to #9 Coal Deed 
 Exhibit B to Cyprus Creek #9 Lease 
 Exhibit B to Rogers #9
Sublease 
 Exhibit B to Cyprus Creek & Duncan #9 Lease and Sublease 

  
 9 

 EXHIBIT A 
 TO 
 CORPORATION SPECIAL WARRANTY DEED 

Map — #9 Coal Deed 

  
 10 

 

 

  
 11 

 EXHIBIT A 
 TO 
 UNDERGROUND COAL MINING LEASE 

Map to Cyprus Creek #9 Lease 

  
 12 

 

 

  
 13 

 EXHIBIT A 
 TO 
 UNDERGROUND COAL MINING SUBLEASE 

Map to Rogers #9 Sublease 

  
 14 

 

 

  
 15 

 EXHIBIT A 
 TO 
 UNDERGROUND COAL MINING LEASE AND SUBLEASE 

Map to Cyprus Creek & Duncan #9 Lease and Sublease 

  
 16 

 

 

  
 17 

 EXHIBIT B 
 TO 
 CORPORATION SPECIAL WARRANTY DEED 

All recording references are to the Office of the Muhlenberg County Clerk. 

TRACT 199 – LC#016-745 P16 and P17 
 Parcel 16 
 A strip of land of even width, 100 feet on each side of the following described
centerline; beginning at an iron pipe, 4 feet E of a 30 inch gum in the East — West property line between Ayrshire Collieries Corporation’s 126.5 acre Roy Johnson tract and Katie B. Reneer, which iron pipe is N 88-20 W 3231 feet (old call
S 86 W) from a 1-1/4 inch iron axle at a root wad, corner to Rogers, Ayrshire Collieries Corporation and Katie B. Reneer; thence N 02-14 W 858.4 feet across the lands of Katie B. Reneer to another iron pipe near a 10-inch elm and 18-inch gum on the
S side of a ditch in the East — West property line between Ayrshire Collieries Corporation’s 77-acre Luther Faught tract and Katie B. Reneer, which iron pipe is approximately 477 feet East of Katie B. Reneer’s Northwest corner. Said
tract of land contains 3.94 acres and extends from the Roy Johnson tract on the South to the Luther Faught tract on the North. 

Parcel17 
 Tract
#1: Beginning at an old corner, gum and maple, corner to Joseph Milligan; thence N 4 W 52 poles to a rock marked “BB”; thence N 86 E 154 poles to a rock marked “BB”; thence S 4 E 52 poles to a small dogwood, black gum and
hickory in Milligan’s line; thence with same S 86 W 150 poles to the beginning, containing 50 acres, more or less. 
 Tract #2:
Beginning at a rock near a maple and beech corner to John Brinkman’s survey running N 86 E about 70 poles to the old line, a red oak, elm and hickory marked; thence S 4 E 52 poles to the old corner of original survey, a mulberry; thence S 86 W
about 70 poles to Brinkman’s corner in the old line, dogwood, black gum and hickory; thence with Brinkman’s line to the beginning 

LESS AND EXCEPTED: 
 “There is excepted
3.94 acres of surface heretofore conveyed to the party of the second part by the party of the first part”. 

  
 18 

 Source Of Title 
 1. And being Parcels 16 and 17, Tract 1 and 2 conveyed by AMAX INC to Peabody Coal Company by deed dated October 19, 1987, recorded October 22, 1987 in Deed Book 384, page 652 at recorded page
668. 
 2. And being a portion of the property conveyed by Peabody Coal Company, a Delaware Corporation, to Peabody Development Company, a
Delaware Corporation, by deed dated September 12, 1989, recorded October 22, 1987 in Deed Book 398, page 37, as Item 235. 
 3.
Effective December 16, 2003, in 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 Corporation, as shown in Articles of Incorporation Book 14, pages 635 – 638. 
 4. And further being a portion of the property
conveyed by Peabody Development Company, LLC to Central States Coal Reserves of Kentucky, LLC by deed dated December 20, 2005, recorded in Deed Book 516, page 599, as corrected by Deed of Confirmation between Peabody Development Company, LLC
and Central States Coal Reserves of Kentucky, LLC by deed dated December 27, 2005, effective December 20, 2005 and recorded in Deed Book 516, page 716. 
 5. Being a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by deed dated September 13, 2007 recorded in Deed Book 530, page 620,
as Tract 199 
 TRACT 209 – LC#1304-001 T1A 
 Only that portion of the following tract as lies North of the South Right-of-Way of the Western Kentucky Parkway (now Wendell Ford Parkway). 

Beginning at an iron axle the Southeast corner of the “Heck” tract, thence S 81° 47’ W with the south line of
“Heck” for 3637.4 feet to a stump; thence N 70° 32’ W for 923.8 feet to a gum; thence N 24° 57’ W for 678.3 feet to a rock; thence N 72° 26’ w for 3,438.3 feet; thence S 17° 04’ W for 2714.6 feet; thence
S 71° 08’ E for 1011.3 feet; thence S 39° 56’ W for 1151.6 feet to an iron axle; thence S 23° 19’ E for 63.2 feet; thence S. 35° 50’ E for 1677.5 feet; thence S 35° 47’ E for 2,159.7 feet; thence N
53° 13’ E for 1725.5 feet to a 3” iron axle; thence S 14° 01’ E for 2547.8 feet to a 3” iron axle; thence N 71° 56’ E for 2,163.7 feet, to a 2” iron axle; thence N 12° 15’ W for 2663.7 feet to a
road; thence N 69° 53’ E for 342.9 feet, S 67° 35’ E for 401.3 feet, s 49° 37’ E for 228.4 feet, thence N 15° 46’ W for 1000.6 feet, thence S 83° 45’ E for 1514.0 feet; thence N 13° 42’ E for
2,573.3 feet to the southeast corner of the church lot, thence N 80° 00’ W for 289.0 feet to a point which is 30 feet east 

  
 19 

 of the center line of U. S. Highway 62, thence parallel with Highway 62 and 30 feet east of
its center line N 36° 10’ E for 70.0 feet, N 28° 50’ E for 75.0 feet, N 21° 25’ E for 95.0 feet, thence leaving the highway s 80° 00’ E for 230.0 feet to a point in the old line, thence with the old line N 13°
42’ E for 370.0 feet to the place of beginning. Containing 916.71 acres more or less. 
 Source Of Title 

1. And being a portion of a 916.71 acre tract identified as “Martwick Tract ‘A’ Minerals” conveyed by Peabody
Coal Company to Peabody Development Company by deed dated July 19, 1984, recorded August 31, 1984, in Deed Book 363, page 420. 
 2. Effective December 16, 2003, in 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 Corporation, as shown in Articles of Incorporation Book 14, pages 635—638. 
 3. And further being a portion of the property conveyed by Peabody Development Company, LLC to Central States Coal Reserves of Kentucky, LLC by deed dated December 20, 2005, recorded in Deed
Book 516, page 599, as corrected by Deed of Confirmation between Peabody Development Company, LLC and Central States Coal Reserves of Kentucky, LLC by deed dated December 27, 2005, effective December 20, 2005 and recorded in Deed Book 516,
page 716. 
 4. Being a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek
Land Resources, LLC by deed dated September 13, 2007 recorded in Deed Book 530, page 620, as Tract 209 
 END OF EXHIBIT
B TO #9 COAL DEED 

  
 20 

 EXHIBIT B 
 TO 
 UNDERGROUND COAL MINING LEASE 

All recording references are to the Office of the Muhlenberg County Clerk. 

Leased #9 Owned Coal 
  

											
	 	  	MAP TR	  	 LC#
	  	DB/P	  	DATE	  	FOOTNOTE
	1	  	168	  	016-034 T15 P11	  	192/385	  	12/20/1952	  	
	2	  	169	  	016-034 T15 P35	  	192/385	  	12/20/1952	  	
	3	  	171	  	016-034 T15 P12	  	192/385	  	12/20/1952	  	
	4	  	172	  	016-034 T15 P10	  	192/385	  	12/20/1952	  	
	5	  	176	  	016-034 T15 P18	  	192/385	  	12/20/1952	  	1
	6	  	204	  	016-034 T15 P11	  	192/385	  	12/20/1952	  	
	7	  	205	  	016-034 T15 P8	  	192/385	  	12/20/1952	  	
	8	  	206	  	016-034 T15 P9	  	192/385	  	12/20/1952	  	1
	9	  	207	  	1304-001 T1B	  	363/420	  	7/19/1984	  	1
	10	  	208	  	016-034 T15 P20	  	192/385	  	12/20/1952	  	1

 Source of Title 
  

			
	 Footnote
	  	 Description

	1	  	Subject to the Right of Way for P&L Railroad, formerly the I.C. Railroad

 Source of Title 
 AND BEING a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by deed dated September 13, 2007, of record in Deed Book 530, page
620. 
 END OF EXHIBIT B TO CYPRUS CREEK #9 LEASE 

  
 21 

 EXHIBIT B 
 TO 
 UNDERGROUND COAL MINING SUBLEASE 

All recording references are to the Office of the Muhlenberg County Clerk. 

Rogers #9 Subleased Coal 
  

															
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote	  	Comment
	1	  	R200	  	2699-011Rogers 200	  	UNK	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2	  	
	2	  	R202	  	2699-011Rogers 202	  	265.2	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	3	  	R203	  	2699-011Rogers 203	  	4.6	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
	4	  	R204	  	2699-011Rogers 204	  	UNK	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2	  	
	5	  	R205	  	2699-011Rogers 205	  	158.8	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
	6	  	R206	  	2699-011Rogers 206	  	24	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	7	  	R207	  	2699-011Rogers 207	  	198	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
	8	  	R208	  	2699-011Rogers 208	  	36.1	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
	9	  	R212	  	2699-011Rogers 212	  	110.7	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
	10	  	NONE	  	2699-011Rogers 214	  	UNK	  	4/18/97
518/343	  	1/6/93
2/27/06	  	1,2	  	Coal under R242 and
R241
	11	  	R217	  	2699-011Rogers 217	  	235	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
	12	  	R225	  	2699-011Rogers 225	  	60	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	13	  	R227	  	2699-011Rogers 227	  	28	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	14	  	R228	  	2699-011Rogers 228	  	71.82	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
	15	  	R229	  	2699-011Rogers 229	  	68.58	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
	16	  	R237-2	  	2699-011 Rogers 237-2	  	329	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	

  
 22 

															
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote	  	Comment
	17	  	R238	  	2699-011Rogers 238	  	40	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	4	  	
								
	18	  	R241	  	2699-011Rogers	  	14.2	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2,4	  	See also R214
								
	19	  	R242	  	2699-011Rogers 242	  	22	  	4/18/97
518/343	  	1/6/93
2/27/06	  	1,2,4	  	See also R214
								
	20	  	R316	  	2699-011Rogers 316	  	139.5	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
								
	21	  	R317	  	2699-011Rogers 317	  	142.8	  	4/18/97
518/343	  	1/6/93
2/27/06	  		  	

 Schedule of Known Exception 

 

			
	 Footnote
	  	 Description

	1	  	Less and except that portion lying south of the south Right of Way of the Wendell Ford Parkway, formerly the Western Kentucky Parkway, assigned by Central States Coal Reserves of
Kentucky, LLC to Western Land Company, LLC by Assignment dated December 12, 2006, of record in Deed Book 524, page 523.
		
	2	  	Subject to Right of Way and/or ownership in the Commonwealth of Kentucky for the Wendell Ford Parkway, formerly the Western Kentucky Parkway, dated December 10, 1962, of record
in Deed Book 232, page 558.
		
	3	  	Subject to Right of Way for the P&L Railroad, formerly I. C. Railroad
		
	4	  	Tract also lies within the boundary of Rogers Tract 214.

 Source of Title 
 Rogers Tracts LC#2699-011 
  

	 	1.	AND BEING a portion of the property assigned by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by Deed dated August 31, 2007, of
record in Deed Book 531, page 227. 

  

	 	2.	By unrecorded Consent to Assignment and Assumption of Lease dated October 3, 2007, Martha Rogers Haas 1996 Revocable Trust, Talmage G. Rogers, et al, consented to
the partial assignment and assumption by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC. 

 END OF EXHIBIT B TO ROGERS #9 SUBLEASE 

  
 23 

 EXHIBIT B-1 
 TO 
 UNDERGROUND COAL MINING LEASE AND SUBLEASE 

All references are to the Office of the Muhlenberg County Clerk. 

Leased #9 Owned Coal 
  

											
	 	  	MAP TR	  	 LC#
	  	DB/P	  	DATE	  	FOOTNOTE
	1	  	162	  	016-170 T22	  	192/405	  	8/12/1954	  	1
	2	  	163	  	016-170 T8	  	192/405	  	8/12/1954	  	1
	3	  	164	  	016-170 T12	  	192/405	  	8/12/1954	  	1
	4	  	165	  	016-170 T11	  	192/405	  	8/12/1954	  	1
	5	  	166	  	016-170 T16	  	192/405	  	8/12/1954	  	1
	6	  	167	  	016-170 T10	  	192/405	  	8/12/1954	  	1
	7	  	194	  	016-170 T6	  	192/405	  	8/12/1954	  	1
	8	  	195	  	016-170 T9	  	192/405	  	8/12/1954	  	1
		  		  	016-170 T5	  		  		  	
	9	  	196	  	016-655 QCD	  	192/405
 192/437
	  	8/12/1954
 12/31/1954
	  	1
	10	  	197	  	016-170 T19	  	192/405	  	8/12/1954	  	1
		  		  		  	192/405	  	8/12/1954	  	
		  		  	016-170 T23	  	272/169	  	7/23/1969	  	
	11	  	198	  	016-672	  	272/174	  	7/23/1969	  	
		  		  		  	272/179	  	7/24/1969	  	1
	12	  	200	  	016-170 T14	  	192/405	  	8/12/1954	  	1
	13	  	201	  	016-170 T37	  	192/405	  	8/12/1954	  	1
	14	  	202	  	016-170 T24	  	192/405	  	8/12/1954	  	1
	15	  	203	  	016-170 T40	  	192/405	  	8/12/1954	  	1

 Schedule of Known Exceptions 

 

			
	 Footnote
	  	 Description

	1	  	50 Coal owned, 50% leased from Heirs of W. G. Duncan, dated October 31, 2007, recorded in Deed Book 533, page 345, Land Contract #2699-023-00.

 Source of Title 
 AND BEING a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC, by Deed dated September 13, 2007, of record in Deed Book 530, page
620. 
 END OF EXHIBIT B-1 TO LEASED CCLR #9 COAL 

  
 24 

 EXHIBIT B-2 
 TO 
 UNDERGROUND COAL MINING LEASE AND SUBLEASE 

All references are to the Office of the Muhlenberg County Clerk. 

Subleased Duncan #9 Coal 
  

													
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote
	1	  	D5	  	2699-023-00	  		  	258/488	  	6/10/1967	  	
		  		  	016-170 T5	  	163.3	  	533/345	  	10/31/2007	  	1
		  		  	016-205 T5	  		  	534/162	  	2/12/2008	  	
	2	  	D6	  	2699-023-00	  		  	258/488	  	6/10/1967	  	
		  		  	016-170 T6	  	9.9	  	533/345	  	10/31/2007	  	1
		  		  	016-205 T6	  		  	534/162	  	2/12/2008	  	
	3	  	D8	  	2699-023	  		  	258/488	  	6/10/1967	  	
		  		  	016-205 T8	  	175.8	  	533/345	  	10/31/2007	  	1
		  		  		  		  	534/162	  	2/12/2008	  	
	4	  	D9	  	2699-023-00	  		  	258/488	  	6/10/1967	  	
		  		  	016-170 T 9	  	175	  	533/345	  	10/31/2007	  	1
		  		  	016-205 T9	  		  	534/162	  	2/12/2008	  	
	5	  	D10	  	2699-023-00	  		  	258/488	  	6/10/1967	  	
		  		  	016-170 T10	  		  	533/345	  	10/31/2007	  	1
		  		  	016-205 T10	  	126.9	  	534/162	  	2/12/2008	  	
	6	  	D11	  	2699-023-00	  		  	258/488	  	6/10/1967	  	
		  		  	016-170 T11	  		  	533/345	  	10/31/2007	  	1
		  		  	016-205 T11	  	113.25	  	534/162	  	2/12/2008	  	
	7	  	D12	  	2699-023-00	  		  	258/488	  	6/10/1967	  	
		  		  	016-170 T12	  	125	  	533/345	  	10/31/2007	  	1
		  		  	016-205 T12	  		  	534/162	  	2/12/2008	  	
	8	  	D14	  	2699-023-00	  		  	258/488	  	6/10/1967	  	
		  		  	016-170 T14	  	101.5	  	533/345	  	10/31/2007	  	1
		  		  	016-205 T14	  		  	534/162	  	2/12/2008	  	
	9	  	D16	  	2699-023-00	  		  	258/488	  	6/10/1967	  	
		  		  	016-170 T16	  	30.25	  	533/345	  	10/31/2007	  	1
		  		  	016-205 T16	  		  	534/162	  	2/12/2008	  	
	10	  	D19	  	2699-023-00	  		  	258/488	  	6/10/1967	  	
		  		  	016-170 T19	  	241.8	  	533/345	  	10/31/2007	  	1
		  		  	016-205 T19	  		  	534/162	  	2/12/2008	  	
	11	  	D22	  	2699-023	  		  	285/488	  	6/10/1967	  	
		  		  	016-205 T22	  	102.47	  	533/345	  	10/31/2007	  	1
		  		  	2699-023-00	  		  	534/162	  	2/12/2008	  	
	12	  	D23	  	016-170 T23	  		  	258/488	  	6/10/1967	  	
		  		  	016-205 T23	  	126.3	  	533/345	  	10/31/2007	  	1
		  		  		  		  	534/162	  	2/12/2008	  	

  
 25 

													
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote
	13	  	D24	  	2699-023-00	  		  	258/488	  	6/10/1967	  	
		  		  	016-170 T24	  	39	  	533/345	  	10/31/2007	  	1
		  		  	016-205 T24	  		  	534/162	  	2/12/2008	  	
	14	  	D37	  	2699-023-00	  		  	258/488	  	6/10/1967	  	
		  		  	016-170 T37	  	107.5	  	533/345	  	10/31/2007	  	1
		  		  	016-205 T37	  		  	534/162	  	2/12/2008	  	
	15	  	D40	  	2699-023-00	  		  	258/488	  	6/10/1967	  	
		  		  	016-170 T40	  		  	533/345	  	10/31/2007	  	1
		  		  	016-205 T40	  	39	  	534/162	  	2/12/2008	  	

 Schedule of Known Exceptions 

 

			
	 Footnote
	  	 Description

	1	  	50% Coal leased from Heirs of W. G. Duncan, dated October 31, 2007, recorded in Deed Book 533, page 345, Land Contract #2699-023

 Source of Title 
  

	1.	AND BEING a portion of the same property demised by Angus Fort Duncan, et al, ( W. G. Duncan Heirs) to Central States Coal Reserves of Kentucky, LLC, by instrument
dated October 1, 2007, recorded in Deed Book 533, page 345. 

  

	2.	AND BEING apportion of the same property assigned by Central States Coal Reserves of Kentucky, LLC and assumed by Cyprus Creek Land Resources, LLC, by instrument dated
February 12, 2008, recorded in Deed Book 534, page 162. 

 END OF EXHIBIT B-2 TO SUBLEASED DUNCAN #9 COAL

 END OF ADDENDUM 1 TO OVERRIDING ROYALTY AGREEMENT 

  
 26 

 EXHIBIT A 
 TO 
 OVERRIDING ROYALTY AGREEMENT 

Consolidated Map of #9 Coal Deed and Cyprus Creek #9 Lease 

  
 27 

 

 

  
 28 

 EXHIBIT B 
 TO 
 OVERRIDING ROYALTY AGREEMENT 

Consolidated Map of Rogers #9 Sublease and CCLR & Duncan #9 Lease 

  
 29 

 

 

  
 30 

 EXHIBIT L 
 TO 
 ASEET PURACHASE AGREEMENT 

Short Form Overriding Royalty Agreement 

 MEMORANDUM OF 
 OVERRIDING ROYALTY AGREEMENT  
 This MEMORANDUM OF OVERRIDING
ROYALTY AGREEMENT is made and entered into on this the         day of                     , 2011
(“Memorandum”), by and between, CYPRUS CREEK LAND RESOURCES, LLC, a Delaware limited liability company, with an address of 701 Market Street, Suite 798, St. Louis, Missouri 63101 (“GRANTOR”) and ARMSTRONG COAL
COMPANY, INC., a Delaware corporation, having its office address at 407 Brown Road, Madisonville, Kentucky 42431 (“GRANTEE”). 
 W I T N E S S E T H: 
 WHEREAS, GRANTOR and GRANTEE are parties to a
Corporation Special Warranty Deed of even date herewith of record in Deed Book             , page             , in the Office of
the Muhlenberg County Clerk, wherein certain #9 coal and #9 coal mining rights and privileges have been granted by GRANTOR to GRANTEE as depicted on the map attached thereto as Exhibit A and more particularly described on Exhibit B thereto
(the “#9 Coal Deed”); 
 WHEREAS, GRANTOR and GRANTEE are parties to a Underground Coal Mining Lease of even
date herewith, a Memorandum of which is of record in Deed Book             , page             , in the Office of the Muhlenberg
County Clerk, wherein certain owned #9 coal and #9 coal mining rights and privileges, as depicted on the map attached thereto as Exhibit A thereto and more particularly described on the Exhibit B attached thereto, have been leased by
GRANTOR (Lessor therein) to GRANTEE (Lessee therein) (the “Cyprus Creek #9 Lease”); 
 WHEREAS, GRANTOR and
GRANTEE are parties to a Underground Coal Mining Sublease, of even date herewith, a Memorandum of which is of record in Deed Book             , page
            , in the Office of the Muhlenberg County Clerk, wherein certain leased #9 coal and #9 coal mining rights and privileges, as depicted on the map attached thereto as
Exhibit A and more particularly described on the Exhibit B attached thereto, have been subleased by GRANTOR (Sublessor therein) to GRANTEE (Sublessee therein) (the “Rogers #9 Sublease”); 

 

					
	 Overriding Royalty Agreement

Muhlenberg County, KY
	  	 	12/15/11	  

  
 1 

 WHEREAS, GRANTOR and GRANTEE are parties to a Underground Coal Mining Lease and
Sublease, of even date herewith, a Memorandum of which is of record in Deed Book             , page             , in the Office
of the Muhlenberg County Clerk, wherein certain owned #9 coal and leased #9 coal and coal mining rights and privileges, as depicted on the map attached thereto as Exhibit A and more particularly described on the Exhibits B-1 and B-2 attached
thereto, have been leased and subleased by GRANTOR (Lessor/Sublessor therein) to GRANTEE (Lessee/Sublessee therein) (the “Cyprus Creek & Duncan #9 Lease and Sublease”); 

WHEREAS, the GRANTOR and GRANTEE are parties to a certain Overriding Royalty Agreement of even date herewith with respect to
certain overriding royalties to be paid by GRANTEE to GRANTOR with regard to the #9 Coal Deed, the Cyprus Creek #9 Lease, the Rogers #9 Sublease, and the Cyprus Creek and Duncan #9 Lease and Sublease, upon the terms and conditions more particularly
set forth therein (“Overriding Royalty Agreement”); 
 WHEREAS, the maps and the descriptions of the Properties
referred to in the above-referenced instruments subject to the Overriding Royalty Agreement are collectively attached hereto as Addendum 1, incorporated herein by reference and made a part hereof; and 

WHEREAS, the Parties hereto desire to have a recorded Memorandum for the purpose of filing record notice thereof, and for that
purpose have executed this Memorandum. 
 NOW, THEREFORE, for and in consideration of the #9 Coal Deed, the Cyprus Creek
#9 Lease, the Rogers #9 Sublease, the Cyprus Creek & Duncan #9 Lease and Sublease, and the mutual covenants and promises of the Parties hereto, the receipt and sufficiency of which is hereby acknowledged, GRANTEE has granted, assigned,
transferred, and set over to GRANTOR free and clear of all costs, expenses, liens, and encumbrances created by GRANTEE, its parent or affiliates, an overriding royalty interest in and to the fee, leased, and subleased coal, in place, having been
conveyed, lease, and subleased to GRANTEE under the instrument cited in the recitals hereinabove (herein the “Coal”), more particularly set forth in the Overriding Royalty Agreement between the Parties hereto and more particularly
described on the Addendum 1 hereto. 
 GRANTEE accepts GRANTOR’s conveyance, leases and subleases of the Coal and agrees
for itself, its successors and assigns, and agrees to be bound by all the grants, covenants, conditions, restrictions, reservations, exceptions, and other terms set forth in the Overriding Royalty Agreement, as well as those more particularly set
forth in the #9 Coal Deed, incorporated herein by reference and made a part hereof, which such covenants, conditions, restrictions, reservations, exceptions, and other terms shall be covenants running with the land and shall be binding upon GRANTEE,
its successors and assigns, and their respective successive successors and assigns, forever. 
 The Overriding Royalty Agreement
shall remain in effect and the obligations thereunder shall continue until such time as all Coal has been mined and sold from the Property. 
 The Overriding Royalty Agreement shall be construed in accordance with the substantive laws of the Commonwealth of Kentucky. 
 In the event of a conflict between any of the descriptions and the attached maps in Addendum 1 with regard to the Property, then the respective descriptions shall control. 

GRANTEE covenants and agrees to reimburse GRANTOR for all of its costs and expenses, including reasonable attorneys’ fees, incurred
by GRANTOR in enforcing the Overriding Royalty Agreement in the event of a default, or in otherwise in protecting or preserving its rights under the Overriding Royalty Agreement. 

  
 2 

 This Memorandum is executed solely for the purpose of providing record notice only, and is
not intended, nor shall it be deemed, to modify any of the provisions of the Overriding Royalty Agreement. Reference should be made to the Overriding Royalty Agreement to ascertain all of the terms, conditions, and covenants thereof, a true and
complete copy of which is in the possession of both GRANTOR and GRANTEE. 
 This Memorandum may be executed in one or more
identical counterparts which may be combined into one or more identical documents, but all of which together shall constitute one and the same instrument, each of which shall be deemed an original. 

IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Overriding Royalty Agreement as of the date first hereinabove
written, by their duly authorized representatives. 
  

							
	GRANTOR:	  		  	CYPRUS CREEK LAND RESOURCES, LLC
				
		  		  	By:	  	  

		  		  		  	James C. Sevem, Vice President
		
	STATE OF MISSOURI	  	)
		  	) SS:
	CITY OF ST. LOUIS	  	)

 The foregoing Agreement was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by James C. Sevem as Vice
President of Cyprus Creek Land Resources, LLC, a Delaware limited liability company, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and authority to so execute on its behalf
as its free act and deed in due form of law, on this the         day of                     , 2011.

  

			
	Notary Public,  	 	 

 
			
	My commission expires:  	 	 

  
 3 

 WITNESS the execution of: 

 

							
	GRANTEE:	  		  	ARMSTRONG COAL COMPANY, INC.
				
		  		  	By:	  	  

		  		  		  	Martin D. Wilson, President
		
	STATE OF                           
                         	  	)
		  	) SS:
	COUNTY OF                           
                    	  	)

 The foregoing Agreement was SUBSCRIBED, SWORN TO AND ACKNOWLEDGED before me by Martin D. Wilson as
President of Armstrong Coal Company, Inc., a Delaware corporation, personally known to me to be the person whose name is subscribed above and having represented to me that he has full power and authority to so execute on its behalf as its free act
and deed in due form of law, on this the         day of                     , 2011. 

 

			
	Notary Public,  	 	 

 
			
	My commission expires:  	 	 

 ATTACHMENT: Addendum 1 — Maps and Descriptions of Property 

THIS INSTRUMENT PREPARED BY: 
  

			
	M. Kirby Gordon, II	 	
	GORDON & GORDON, P.S.C.	 	
	6357 KY Hwy 405	 	
	P.O. Box 398	 	
	Owensboro, Kentucky 42302-0398	 	
	(270) 281-0398	 	

  
 4 

 ADDENDUM 1 
 TO 
 MEMORANDUM OF OVERRIDING ROYALTY AGREEMENT 

All recording references are to the Office of the Muhlenberg County Clerk. 

Exhibit A map to #9 Coal Deed 
 Exhibit A map to Cyprus Creek #9 Lease 
 Exhibit A map to Rogers
#9 Sublease 
 Exhibit A map to Cyprus Creek & Duncan #9 Lease and Sublease 

-and- 

Exhibit B to #9 Coal Deed 
 Exhibit B to Cyprus Creek #9 Lease 
 Exhibit B to Rogers #9
Sublease 
 Exhibit B to Cyprus Creek & Duncan #9 Lease and Sublease 

  
 5 

 EXHIBIT A 
 TO 
 CORPORATION SPECIAL WARRANTY DEED 

Map — #9 Coal Deed 

  
 6 

 

 

  
 7 

 EXHIBIT A 
 TO 
 UNDERGROUND COAL MINING LEASE 

Map to Cyprus Creek #9 Lease 

  
 8 

 

 

  
 9 

 EXHIBIT A 
 TO 
 UNDERGROUND COAL MINING SUBLEASE 

Map to Rogers #9 Sublease 

  
 10 

 

 

  
 11 

 EXHIBIT A 
 TO 
 UNDERGROUND COAL MINING LEASE AND SUBLEASE 

Map to Cyprus Creek & Duncan #9 Lease and Sublease 

  
 12 

 

 

  
 13 

 EXHIBIT B 
 TO 
 CORPORATION SPECIAL WARRANTY DEED 

All recording references are to the Office of the Muhlenberg County Clerk. 

TRACT 199 — LC#016-745 P16 and P17 
 Parcel 16 
 A strip of land of even width, 100 feet on each side of the following described
centerline; beginning at an iron pipe, 4 feet E of a 30 inch gum in the East — West property line between Ayrshire Collieries Corporation’s 126.5 acre Roy Johnson tract and Katie B. Reneer, which iron pipe is N 88-20 W 3231 feet (old call
S 86 W) from a 1-1/4 inch iron axle at a root wad, corner to Rogers, Ayrshire Collieries Corporation and Katie B. Reneer; thence N 02-14 W 858.4 feet across the lands of Katie B. Reneer to another iron pipe near a 10-inch elm and 18-inch gum on the
S side of a ditch in the East — West property line between Ayrshire Collieries Corporation’s 77-acre Luther Faught tract and Katie B. Reneer, which iron pipe is approximately 477 feet East of Katie B. Reneer’s Northwest corner. Said
tract of land contains 3.94 acres and extends from the Roy Johnson tract on the South to the Luther Faught tract on the North. 

Parcel17 
 Tract
#1: Beginning at an old corner, gum and maple, corner to Joseph Milligan; thence N 4 W 52 poles to a rock marked “BB”; thence N 86 E 154 poles to a rock marked “BB”; thence S 4 E 52 poles to a small dogwood, black gum and
hickory in Milligan’s line; thence with same S 86 W 150 poles to the beginning, containing 50 acres, more or less. 
 Tract #2:
Beginning at a rock near a maple and beech corner to John Brinkman’s survey running N 86 E about 70 poles to the old line, a red oak, elm and hickory marked; thence S 4 E 52 poles to the old corner of original survey, a mulberry; thence S 86 W
about 70 poles to Brinkman’s corner in the old line, dogwood, black gum and hickory; thence with Brinkman’s line to the beginning 

LESS AND EXCEPTED: 
 “There is excepted
3.94 acres of surface heretofore conveyed to the party of the second part by the party of the first part”. 

  
 14 

 Source Of Title 
 1. And being Parcels 16 and 17, Tract 1 and 2 conveyed by AMAX INC to Peabody Coal Company by deed dated October 19, 1987, recorded October 22, 1987 in Deed Book 384, page 652 at recorded page
668. 
 2. And being a portion of the property conveyed by Peabody Coal Company, a Delaware Corporation, to Peabody Development Company, a
Delaware Corporation, by deed dated September 12, 1989, recorded October 22, 1987 in Deed Book 398, page 37, as Item 235. 
 3.
Effective December 16, 2003, in 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 Corporation, as shown in Articles of Incorporation Book 14, pages 635 — 638. 
 4. And further being a portion of the property
conveyed by Peabody Development Company, LLC to Central States Coal Reserves of Kentucky, LLC by deed dated December 20, 2005, recorded in Deed Book 516, page 599, as corrected by Deed of Confirmation between Peabody Development Company, LLC
and Central States Coal Reserves of Kentucky, LLC by deed dated December 27, 2005, effective December 20, 2005 and recorded in Deed Book 516, page 716. 
 5. Being a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by deed dated September 13, 2007 recorded in Deed Book 530, page 620,
as Tract 199 
 TRACT 209 — LC#1304-001 T1A 
 Only that portion of the following tract as lies North of the South Right-of-Way of the Western Kentucky Parkway (now Wendell Ford Parkway). 

Beginning at an iron axle the Southeast corner of the “Heck” tract, thence S 81° 47’ W with the south line of
“Heck” for 3637.4 feet to a stump; thence N 70° 32’ W for 923.8 feet to a gum; thence N 24° 57’ W for 678.3 feet to a rock; thence N 72° 26’ w for 3,438.3 feet; thence S 17° 04’ W for 2714.6 feet; thence
S 71° 08’ E for 1011.3 feet; thence S 39° 56’ W for 1151.6 feet to an iron axle; thence S 23° 19’ E for 63.2 feet; thence S. 35° 50’ E for 1677.5 feet; thence S 35° 47’ E for 2,159.7 feet; thence N
53° 13’ E for 1725.5 feet to a 3” iron axle; thence S 14° 01’ E for 2547.8 feet to a 3” iron axle; thence N 71° 56’ E for 2,163.7 feet, to a 2” iron axle; thence N 12° 15’ W for 2663.7 feet to a
road; thence N 69° 53’ E for 342.9 feet, S 67° 35’ E for 401.3 feet, s 49° 37’ E for 228.4 feet, thence N 15° 46’ W for 1000.6 feet, thence S 83° 45’ E for 1514.0 feet; thence N 13° 42’ E for
2,573.3 feet to the southeast corner of the church lot, thence N 80° 00’ W for 289.0 feet to a point which is 30 feet east 

  
 15 

 
of the center line of U. S. Highway 62, thence parallel with Highway 62 and 30 feet east of its center line N 36° 10’ E for 70.0 feet, N 28° 50’ E for 75.0 feet, N 21°
25’ E for 95.0 feet, thence leaving the highway s 80° 00’ E for 230.0 feet to a point in the old line, thence with the old line N 13° 42’ E for 370.0 feet to the place of beginning. Containing 916.71 acres more or less.

 Source Of Title 
 1. And being a portion of a 916.71 acre tract identified as “Martwick Tract ‘A’ Minerals” conveyed by Peabody Coal Company to Peabody Development Company by deed dated July 19,
1984, recorded August 31, 1984, in Deed Book 363, page 420. 
 2. Effective December 16, 2003, in 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 Corporation, as shown in Articles of Incorporation Book 14, pages
635 — 638. 
 3. And further being a portion of the property conveyed by Peabody Development Company, LLC to Central States Coal Reserves
of Kentucky, LLC by deed dated December 20, 2005, recorded in Deed Book 516, page 599, as corrected by Deed of Confirmation between Peabody Development Company, LLC and Central States Coal Reserves of Kentucky, LLC by deed dated
December 27, 2005, effective December 20, 2005 and recorded in Deed Book 516, page 716. 
 4. Being a portion of the property conveyed
by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by deed dated September 13, 2007 recorded in Deed Book 530, page 620, as Tract 209 
 END OF EXHIBIT B TO #9 COAL DEED 

  
 16 

 EXHIBIT B 
 TO 
 UNDERGROUND COAL MINING LEASE 

All recording references are to the Office of the Muhlenberg County Clerk. 

Leased #9 Owned Coal 
  

											
	 	  	MAP TR	  	 LC#
	  	DB/P	  	DATE	  	FOOTNOTE
	 1
	  	168	  	016-034 T15 P11	  	192/385	  	12/20/1952	  	
	 2
	  	169	  	016-034 T15 P35	  	192/385	  	12/20/1952	  	
	 3
	  	171	  	016-034 T15 P12	  	192/385	  	12/20/1952	  	
	 4
	  	172	  	016-034 T15 P10	  	192/385	  	12/20/1952	  	
	 5
	  	176	  	016-034 T15 P18	  	192/385	  	12/20/1952	  	1
	 6
	  	204	  	016-034 T15 P11	  	192/385	  	12/20/1952	  	
	 7
	  	205	  	016-034 T15 P8	  	192/385	  	12/20/1952	  	
	 8
	  	206	  	016-034 T15 P9	  	192/385	  	12/20/1952	  	1
	 9
	  	207	  	1304-001 T1B	  	363/420	  	7/19/1984	  	1
	 10
	  	208	  	016-034 T15 P20	  	192/385	  	12/20/1952	  	1

 Source of Title 
  

			
	 Footnote
	  	 Description

	1	  	Subject to the Right of Way for P&L Railroad, formerly the I.C. Railroad

 Source of Title 
 AND BEING a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by deed dated September 13, 2007, of record in Deed Book 530, page
620. 
 END OF EXHIBIT B TO CYPRUS CREEK #9 LEASE 

  
 17 

 EXHIBIT B 
 TO 
 UNDERGROUND COAL MINING SUBLEASE 

All recording references are to the Office of the Muhlenberg County Clerk. 

Rogers #9 Subleased Coal 
  

															
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote	  	 Comment

	 1
	  	R200	  	2699-011Rogers 200	  	UNK	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2	  	
	 2
	  	R202	  	2699-011Rogers 202	  	265.2	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	 3
	  	R203	  	2699-011Rogers 203	  	4.6	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
	 4
	  	R204	  	2699-011Rogers 204	  	UNK	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2	  	
	 5
	  	R205	  	2699-011Rogers 205	  	158.8	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
	 6
	  	R206	  	2699-011Rogers 206	  	24	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	 7
	  	R207	  	2699-011Rogers 207	  	198	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
	 8
	  	R208	  	2699-011Rogers 208	  	36.1	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
	 9
	  	R212	  	2699-011Rogers 212	  	110.7	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
	 10
	  	NONE	  	2699-011Rogers 214	  	UNK	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2	  	Coal under R242 and R241
	 11
	  	R217	  	2699-011Rogers 217	  	235	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
	 12
	  	R225	  	2699-011Rogers 225	  	60	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	 13
	  	R227	  	2699-011Rogers 227	  	28	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	 14
	  	R228	  	2699-011Rogers 228	  	71.82	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
	 15
	  	R229	  	2699-011Rogers 229	  	68.58	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
	 16
	  	R237-2	  	2699-011Rogers 237-2	  	329	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	

  
 18 

															
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote	  	 Comment

	 17
	  	R238	  	2699-011Rogers 238	  	40	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	4	  	
	 18
	  	R241	  	2699-011Rogers	  	14.2	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2,4	  	See also R214
	 19
	  	R242	  	2699-011Rogers 242	  	22	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2,4	  	See also R214
	 20
	  	R316	  	2699-011Rogers 316	  	139.5	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	 21
	  	R317	  	2699-011Rogers 317	  	142.8	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	

 Schedule of Known Exception 

 

			
	 Footnote
	  	 Description

	1	  	Less and except that portion lying south of the south Right of Way of the Wendell Ford Parkway, formerly the Western Kentucky Parkway, assigned by Central States Coal Reserves of
Kentucky, LLC to Western Land Company, LLC by Assignment dated December 12, 2006, of record in Deed Book 524, page 523.
		
	2	  	Subject to Right of Way and/or ownership in the Commonwealth of Kentucky for the Wendell Ford Parkway, formerly the Western Kentucky Parkway, dated December 10, 1962, of record
in Deed Book 232, page 558.
		
	3	  	Subject to Right of Way for the P&L Railroad, formerly I. C. Railroad
		
	4	  	Tract also lies within the boundary of Rogers Tract 214.

 Source of Title 
 Rogers Tracts LC#2699-011 
  

	 	1.	AND BEING a portion of the property assigned by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by Deed dated August 31, 2007, of
record in Deed Book 531, page 227. 

  

	 	2.	By unrecorded Consent to Assignment and Assumption of Lease dated October 3, 2007, Martha Rogers Haas 1996 Revocable Trust, Talmage G. Rogers, et al, consented to
the partial assignment and assumption by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC. 

 END OF EXHIBIT B TO ROGERS #9 SUBLEASE 

  
 19 

 EXHIBIT B-1 
 TO 
 UNDERGROUND COAL MINING LEASE AND SUBLEASE 

All references are to the Office of the Muhlenberg County Clerk. 

Leased #9 Owned Coal 
  

											
	 	  	MAP TR	  	 LC#
	  	DB/P	  	DATE	  	FOOTNOTE
	 1
	  	162	  	016-170 T22	  	192/405	  	8/12/1954	  	1
	 2
	  	163	  	016-170 T8	  	192/405	  	8/12/1954	  	1
	 3
	  	164	  	016-170 T12	  	192/405	  	8/12/1954	  	1
	 4
	  	165	  	016-170 T11	  	192/405	  	8/12/1954	  	1
	 5
	  	166	  	016-170 T16	  	192/405	  	8/12/1954	  	1
	 6
	  	167	  	016-170 T10	  	192/405	  	8/12/1954	  	1
	 7
	  	194	  	016-170 T6	  	192/405	  	8/12/1954	  	1
	 8
	  	195	  	016-170 T9	  	192/405	  	8/12/1954	  	1
	 9
	  	196	  	 016-170 T5
 016-655
QCD
	  	192/405
 192/437
	  	8/12/1954
 12/31/1954
	  	1
	 10
	  	197	  	016-170 T19	  	192/405	  	8/12/1954	  	1
	 11
	  	198	  	 016-170 T23

016-672
	  	192/405
 272/169

272/174

272/179
	  	8/12/1954
 7/23/1969

7/23/1969

7/24/1969
	  	1
	 12
	  	200	  	016-170 T14	  	192/405	  	8/12/1954	  	1
	 13
	  	201	  	016-170 T37	  	192/405	  	8/12/1954	  	1
	 14
	  	202	  	016-170 T24	  	192/405	  	8/12/1954	  	1
	 15
	  	203	  	016-170 T40	  	192/405	  	8/12/1954	  	1

 Schedule of Known Exceptions 

 

			
	 Footnote
	  	 Description

	1	  	50 Coal owned, 50% leased from Heirs of W. G. Duncan, dated October 31, 2007, recorded in Deed Book 533, page 345, Land Contract #2699-023-00.

 Source of Title 
 AND BEING a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC, by Deed dated September 13, 2007, of record in Deed Book 530, page
620. 
 END OF EXHIBIT B-1 TO LEASED CCLR #9 COAL 

  
 20 

 EXHIBIT B-2 
 TO 
 UNDERGROUND COAL MINING LEASE AND SUBLEASE 

All references are to the Office of the Muhlenberg County Clerk. 

Subleased Duncan #9 Coal 
  

													
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote
	 1
	  	D5	  	 2699-023-00
 016-170
T5
 016-205 T5
	  	163.3	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
	 2
	  	D6	  	 2699-023-00
 016-170
T6
 016-205 T6
	  	9.9	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
	 3
	  	D8	  	 2699-023
 016-205
T8
	  	175.8	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
	 4
	  	D9	  	 2699-023-00
 016-170 T
9
 016-205 T9
	  	175	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
	 5
	  	D10	  	 2699-023-00
 016-170
T10
 016-205 T10
	  	126.9	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
	 6
	  	D11	  	 2699-023-00
 016-170
T11
 016-205 T11
	  	113.25	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
	 7
	  	D12	  	 2699-023-00
 016-170
T12
 016-205 T12
	  	125	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
	 8
	  	D14	  	 2699-023-00
 016-170
T14
 016-205 T14
	  	101.5	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
	 9
	  	D16	  	 2699-023-00
 016-170
T16
 016-205 T16
	  	30.25	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
	 10
	  	D19	  	 2699-023-00
 016-170
T19
 016-205 T19
	  	241.8	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
	 11
	  	D22	  	 2699-023
 016-205
T22
	  	102.47	  	285/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
	 12
	  	D23	  	 2699-023-00
 016-170
T23
 016-205 T23
	  	126.3	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1

  
 21 

													
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote
	 13
	  	D24	  	 2699-023-00
 016-170
T24
 016-205 T24
	  	39	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
	 14
	  	D37	  	 2699-023-00
 016-170
T37
 016-205 T37
	  	107.5	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1
	 15
	  	D40	  	 2699-023-00
 016-170
T40
 016-205 T40
	  	39	  	258/488
 533/345

534/162
	  	6/10/1967
 10/31/2007

2/12/2008
	  	1

 Schedule of Known Exceptions 

 

			
	 Footnote
	  	 Description

	1	  	50% Coal leased from Heirs of W. G. Duncan, dated October 31, 2007, recorded in Deed Book 533, page 345, Land Contract #2699-023

 Source of Title 
  

	 	1.	AND BEING a portion of the same property demised by Angus Fort Duncan, et al, ( W. G. Duncan Heirs) to Central States Coal Reserves of Kentucky, LLC, by instrument
dated October 1, 2007, recorded in Deed Book 533, page 345. 

  

	 	2.	AND BEING apportion of the same property assigned by Central States Coal Reserves of Kentucky, LLC and assumed by Cyprus Creek Land Resources, LLC, by instrument dated
February 12, 2008, recorded in Deed Book 534, page 162. 

 END OF EXHIBIT B-2 TO SUBLEASED DUNCAN #9 COAL

 END OF ADDENDUM 1 TO MEMORANDUM OF OVERRIDING 

ROYALTY AGREEMENT 

  
 22 

 EXHIBIT M 
 TO 
 ASSET PURCHASE AGREEMENT 

Fee and Leasehold Mortgage 

 PREPARED BY AND WHEN RECORDED, 
 PLEASE RETURN TO: 
 Gordon Law Offices, PSC 

121 W.
2nd Street 

PO Box 1146 
 Owensboro, KY 42302 

Attn: J. Sale Gordon, Esq. 

Space above this line for recorder’s use only 
 FEE AND LEASEHOLD MORTGAGE, SECURITY AGREEMENT, 
 ASSIGNMENT OF RENTS AND
LEASES AND AS-EXTRACTED COLLATERAL, 
 FIXTURE FILING, AND FINANCING STATEMENT 

This FEE AND LEASEHOLD MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF RENTS AND LEASES AND AS-EXTRACTED COLLATERAL, FIXTURE FILING,
AND FINANCING STATEMENT dated as of                     , 2011 (as it may be amended, supplemented or otherwise modified, this
“Mortgage”), is made, delivered and executed by and from ARMSTRONG COAL COMPANY, INC., a Delaware corporation, having its residence, principle office, and place of business at 407 Brown Road, Madisonville, Kentucky 42431
(“Mortgagor”) to CYPRUS CREEK LAND RESOURCES, LLC, a Delaware limited liability company, having its residence, principle office and mailing address at 701 Market Street, Suite 798, St. Louis, Missouri 63101 (together
with its successors and assigns, “Mortgagee”). 
 NOW, THEREFORE, in consideration of the
premises and the agreements, provisions and covenants herein contained, Mortgagee and Mortgagor agree as follows: 
 SECTION 1. DEFINITIONS

 1.1 Definitions. Capitalized terms (including the recitals hereto) shall have the meanings defined herein. In
addition, as used herein, the following terms shall have the following meanings: 
 “Events of Default” Any of
the following events shall be deemed an event of default hereunder: 
 (a) Default shall be made in the payment
of any installment of principal or interest or any other sum secured hereby when due (including but not limited to any installment of principal or interest or any other sum due under the Note); 

 

					
	 Tracts 199 and 209
	  	 	12/27/11	  
	 Muhlenberg Co., Ky.
	  			

  
 1 

 (b) Mortgagor or any of its subsidiaries shall file a voluntary petition in
bankruptcy or shall be adjudicated bankrupt or insolvent, or shall file any petition or answer seeking or acquiescing in any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief for itself under any
present or future federal, state, or other statute, law, or regulation relating to bankruptcy, insolvency, or other relief for debtors; or shall seek, consent to, or acquiesce in the appointment of any trustee, receiver, or liquidator of itself or
of all or any of the Mortgaged Property, or shall make any general assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due or generally fails to pay its debts as they become due;

 (c) A court of competent jurisdiction shall enter an order, judgment, or decree approving a petition filed
against Mortgagor seeking any reorganization, dissolution, or similar relief under any present or future federal, state, or other statute, law, or regulation relating to bankruptcy, insolvency, or other relief for debtors, and such order, judgment,
or decree shall remain unvacated and unstayed for an aggregate of 60 days (whether or not consecutive) from the first date of entry thereof; or any trustee, receiver, or liquidator of Mortgagor, or of all or any part of the Mortgaged Property,
shall be appointed without its consent or acquiescence and such appointment shall remain unvacated and unstayed for an aggregate of 60 days (whether or not consecutive); 

(d) A writ of execution or attachment or any similar process shall be issued or levied against all or any part of or
interest in the Premises, or any judgment involving monetary damages shall be entered against Mortgagor that shall become a lien on the Premises or any portion thereof or interest therein and such execution, attachment, or similar process or
judgment is not released, bonded, satisfied, vacated, or stayed within 60 days after its entry or levy; 

(e) The Mortgagor fails to perform or observe any term, covenant or agreement contained in SECTION 3 herein and such
breach continues for a period beyond 30 days from the date Mortgagor receives written notice thereof or otherwise obtains actual knowledge of such breach; 
 (f) Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the Mortgagor herein or in the Note delivered shall be incorrect or misleading in any material
respect when made or deemed made; 
 (g) There is entered against the Mortgagor or any of its subsidiaries one or
more final judgments or orders for the payment of money (to the extent not covered by independent third-party insurance), and, such judgments or orders shall not have been vacated, discharged, stayed or bonded pending appeal within 60 days from
the entry thereof; or 
 (h) This Mortgage or the Note, at any time after execution and delivery and for any
reason other than the satisfaction in full of all the Secured Obligations, ceases to be in full force and effect; or the Mortgagor contests the validity or enforceability of this Mortgage or the Note. 

  
 2 

 “Material Adverse Effect” means a material adverse affect upon (a) the
business, assets, operations, property or condition (financial or otherwise) of the Mortgagor and its subsidiaries taken as a whole or (b) the validity or enforceability of this Mortgage or the rights of the Mortgagee hereunder. 

“Mortgaged Property” means all of Mortgagor’s right, title and interest in and to (i) any and all present
estates or interest of Mortgagor in the real property depicted on the maps attached Exhibit A and described on Exhibit B, together with all of Mortgagor’s rights in and to any and all easements, rights-of-way,
reversions, strips and gores of land, drives, roads, streets, ways, passages, passageways, sewer rights, waters, water courses, water rights, mineral, coal rights, gas and oil rights, mining and extraction rights, as-extracted collateral and all
power, air, light and other rights, estates, titles, interests, privileges, liberties, servitudes, licenses, tenements, hereditaments and appurtenances whatsoever, in any way belonging, relating or appertaining thereto, or any part thereof, or which
hereafter shall in any way belong, relate or be appurtenant thereto (the “Land”); (ii) only to the extent mortgageable and assignable, Mortgagor’s interest and estate in, to and under the leases and subleases depicted and
described in Exhibit A and Exhibit B (as such leases and subleases may be extended, amended, supplemented, modified or restated, collectively, the “Mortgaged Leases”) including all right, title and interest of the
lessee to the land demised under the Mortgaged Leases and more particularly depicted and described in Exhibit A and Exhibit B, together with any and all easements, rights-of-way, reversions, strips and gores of land, drives, roads,
streets, ways, passages, passageways, sewer rights, waters, water courses, water rights, mineral, coal rights, gas and oil rights, mining and extraction rights, as-extracted collateral and all power, air, light and other rights, estates, titles,
interests, privileges, liberties, servitudes, licenses, tenements, hereditaments and appurtenances whatsoever, in any way demised under the Mortgaged Leases or belonging, relating or appertaining to the land demised under the Mortgaged Leases which
hereafter shall in any way be demised under the Mortgaged Leases or belong, relate or be appurtenant to such land (collectively the “Leased Premises”); (iii) any and all estates or interests of Mortgagor in all tipples, loading
and coal washing facilities, railroad tracks, buildings, foundations, structures and other fixtures and improvements and any and all Alterations (as hereinafter defined) and all materials now or hereafter intended for construction, reconstruction or
repair thereof, in each case now or hereafter located or erected on, in or under the Land or the Leased Premises, including, attachments, walks and ways (collectively, the “Improvements”; together with the Land and the Leased
Premises, the “Premises”); (iv) only to the extent mortgageable or assignable, any and all permits, certificates, authorizations, consents, approvals, licenses, franchises, waivers or other instruments now or hereafter required
by any Governmental Authority (as hereinafter defined) to operate or use and occupy the Premises and the Fixtures and Personalty (as hereinafter defined) for its intended uses, including, building permits, certificates of occupancy, environmental
certificates, industrial permits or licenses and certificates of operation (collectively, the “Permits”); (v) all materials, supplies, equipment, apparatus and other items of personal property now owned or hereafter acquired by
Mortgagor and now or hereafter attached to, installed in or used in connection with any of the Improvements or the Land, and water, gas, electrical, telephone, storm and sanitary sewer facilities and all other utilities whether or not situated in
easements or used or useful in connection with mining coal or other minerals or in 

  
 3 

 
connection with any Related Activities (as hereinafter defined) or the maintenance or preservation thereof, including, all trade fixtures, plants, storage tanks, product transportation equipment,
utility systems, fire sprinkler and alarm systems, HVAC equipment, boilers, electronic data processing, telecommunications or computer equipment, refrigeration, electronic monitoring, water or lighting systems, power, sanitation, waste removal,
elevators, maintenance or other systems or equipment, and all other articles used or useful in connection with the use or operation of any part of the Premises (the “Fixtures”); (vi) all goods, accounts, inventory, equipment,
materials, supplies, as-extracted collateral and all other personal property of any kind or character, including such items of personal property as defined in the UCC (defined below), now owned or hereafter acquired by Mortgagor and now or hereafter
affixed to, placed upon, used in connection with, arising from or otherwise related to the Premises (the “Personalty”); (vii); only to the extent mortgageable and assignable, Mortgagor’s right, title and interest, if any, as
lessor, landlord, sublessor, sublandlord, franchisor, licensor or grantor, in all leases and subleases (excluding, without limitation, intercompany leases and subleases) of land or improvements, leases and subleases of space, oil, gas and mineral
leases, franchise agreements, licenses, occupancy or concession agreements or other agreements (written or oral, now or at any time in effect) which grant to any Person (other than Mortgagor) a possessory interest in, or the right to use, all or any
part of the Mortgaged Property, now existing or hereafter entered into relating in any manner to the Premises or the Fixtures and any and all amendments, modifications, supplements and renewals of any thereof (each such lease, sublease, license or
agreement, together with any such amendment, modification, supplement or renewal, a “Sublease”), whether now in effect or hereafter coming into effect, including, all rents, additional rents, royalties, cash, guaranties, letters of
credit, bonds, sureties or securities deposited thereunder to secure performance of the lessee’s, sublessee’s, franchisee’s, licensee’s or obligee’s obligations thereunder, revenues, earnings, profits and income, advance
rental or royalties, payments, payments incident to assignment, sublease or surrender of a Sublease, claims for forfeited deposits and claims for damages, now due or hereafter to become due, with respect to any Sublease, any indemnification against,
or reimbursement for, sums paid and costs and expenses incurred by Mortgagor under any Sublease or otherwise, and any award in the event of the bankruptcy of any tenant or lessee under or guarantor of a Sublease (collectively, the
“Rents”); (viii) to the extent mortgageable or assignable all other agreements, such as construction contracts, architects’ agreements, engineers’ contracts, utility contracts, maintenance agreements, management
agreements, service contracts, listing agreements, guaranties, warranties, permits, licenses, certificates and entitlements in any way relating to the construction, use, occupancy, operation, maintenance, enjoyment or ownership of the Mortgaged
Property (the “Property Agreements”); (ix) to the extent mortgageable or assignable all rights, privileges, tenements, hereditaments, rights-of-way, easements, appendages and appurtenances appertaining to the foregoing;
(x) all property tax refunds relating to the Premises and payable to Mortgagor (the “Tax Refunds”); (xi) all accessions, replacements and substitutions for any of the foregoing and all proceeds thereof (the
“Proceeds”); (xii) all insurance policies, unearned premiums therefor and proceeds from such policies covering any of the above property now or hereafter acquired by Mortgagor (the “Insurance”); and
(xiii) all of Mortgagor’s right, title and interest in and to any awards, damages, remunerations, reimbursements, settlements or compensation heretofore made or hereafter to be made by any governmental authority pertaining to the Land,
Improvements, Fixtures or Personalty (the “Condemnation Awards”). As used in this Mortgage, the term “Mortgaged Property” shall mean all or, where the context permits or

  
 4 

 
requires, any portion of the above or any interest therein; provided, however, that Mortgaged Property shall not include any items of the Leased Premises (including Improvements and
Fixtures located thereon), Permits, Subleases, Rents or Property Agreements, to the extent that Mortgagor is expressly prohibited from granting a Lien thereon or applicable law provides for the involuntary forfeiture of the property in the event
that a Lien is granted thereon without the consent of the appropriate Person or Governmental Authority (other than to the extent that any such term would be rendered ineffective pursuant to Section 9-406, 9-407, and 9-408 of the UCC (or any
successor provision or provisions) of any relevant jurisdiction or any other applicable state law or principles of equity); provided, however, that in the event of the termination or elimination of any prohibition or requirement for
any consent contained in any law, rule, regulation, lease, license, franchise, certificate, consent, approval, authorization or other document, or upon the granting of any consent, the items of property so excluded from the definition of Mortgaged
Property by virtue of this proviso shall (without any act or delivery by any Person) constitute Mortgaged Property hereunder. 
 “Note” means the Promissory Note dated as of even date herewith from Mortgagor (“Debtor”), which has been delivered to and is payable to the order of Mortgagee in the principle
amount of FOUR MILLION FOUR HUNDRED THIRTY-FIVE THOUSAND FOUR HUNDRED NINETY-FIVE AND 83/100 DOLLARS ($4,435,495.83) with interest thereon at the rate provided for therein, which has a Final Maturity Date of, if not paid sooner, June 30,
2012. 
 “Person” means any natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, governmental authority or other entity. 
 “Related Activities” shall mean
(i) exploration for and evaluation of deposits of coal and other minerals; (ii) development, operation, shutdown, and closure (temporary or permanent) of a mine (whether an underground or a surface mine); (iii) handling, processing,
refining and beneficiation of coal or other minerals, including, crushing, screening, non-screen classifying, grinding, flotation, washing, gravity separation, magnetic separation, chemical leaching, thickening, filtration, drying, and calcining;
(iv) storage of coal or other minerals; (v) transportation of coal or other minerals by any means, including, haulage within a mine and from a mine to any handling, processing, beneficiation, storage, or marketing location, haulage between
any of the foregoing locations, haulage of mine waste (including, waste rock and overburden) and tailings, slag, and other wastes resulting from handling, processing, and beneficiation, and loading in connection with any haulage;
(vi) marketing, and readying for market, coal or other minerals; (vii) disposal (temporary or permanent) of mine waste (including, waste rock and overburden) and tailings, slag, and other wastes from handling, processing, and
beneficiation; (viii) monitoring, maintaining, restoring, and improving environmental quality, including, elimination, treatment, and mitigation of air and water pollution; and (ix) reclamation of lands and other natural resources affected
by any of the foregoing activities. 
 “Secured Obligations” means the repayment of the principal amount of,
and the interest on, the indebtedness evidenced by the Note, charges, fees, and all other sums as provided in the Note in the principle amount of FOUR MILLION FOUR HUNDRED THIRTY-FIVE THOUSAND FOUR HUNDRED NINETY-FIVE AND 83/100 DOLLARS
($4,435,495.83) with interest thereon at the rate provided for therein, which has a Final Maturity Date of, if not 

  
 5 

 
paid sooner, June 30, 2012, and the principle of, and interest on, any future advances secured by this Mortgage, all without any relief whatever from valuation or appraisement laws and with
reasonable attorneys fees and costs and all charges, fees, expenses, commissions, reimbursements, premiums, indemnities and other payments or obligations of the Mortgagor with respect to this Mortgage or the Note, including or otherwise together
with all sums advanced or incurred by Mortgagee to protect the interests thereof in the Mortgaged Property or to foreclose upon or otherwise exercise remedies with respect thereto, together with interest thereon, without limitation all such amounts
referenced in SECTION 4 hereof. 
 “UCC” means the Uniform Commercial Code of Kentucky or, if the creation,
perfection and enforcement of any security interest herein granted is governed by the laws of a state other than Kentucky, then, as to the matter in question, the Uniform Commercial Code in effect in that state. 

1.2 Interpretation. References to “Sections” shall be to Sections of this Mortgage unless otherwise specifically
provided. Section headings in this Mortgage are included herein for convenience of reference only and shall not constitute a part of this Mortgage for any other purpose or be given any substantive effect. 

SECTION 2. GRANT 
 To
secure the full and timely payment and performance of the Secured Obligations, Mortgagor MORTGAGES, GRANTS, TRANSFERS, BARGAINS, ASSIGNS, SELLS and CONVEYS, to Mortgagee, the Mortgaged Property, TO HAVE AND TO HOLD the Mortgaged Property, and
Mortgagor does hereby bind itself, its successors and assigns to WARRANT SPECIALLY the title to the Mortgaged Property unto Mortgagee for so long as any of the Secured Obligations remain outstanding; provided that the Mortgaged Property shall be
released from the lien of this Mortgage in the manner and at the time provided in Section 9.9. 
 The Secured
Obligations secured by this Mortgage include the repayment of the principal amount of, and the interest on, the indebtedness evidenced by the Note, charges, fees, and all other sums as provided in the Note in the principle amount of FOUR MILLION
FOUR HUNDRED THIRTY-FIVE THOUSAND FOUR HUNDRED NINETY-FIVE AND 83/100 DOLLARS ($4,435,495.83) with interest thereon at the rate provided for therein, which has a Final Maturity Date of, if not paid sooner, June 30, 2012, and the principle of,
and interest on, any future advances secured by this Mortgage, all without any relief whatever from valuation or appraisement laws and with reasonable attorneys fees and costs and all charges, fees, expenses, commissions, reimbursements, premiums,
indemnities and other payments or obligations of the Mortgagor with respect to this Mortgage or the Note, including or otherwise together with all sums advanced or incurred by Mortgagee to protect the interests thereof in the Mortgaged Property or
to foreclose upon or otherwise exercise remedies with respect thereto, together with interest thereon, without limitation all such amounts referenced in SECTION 4 hereof. 

  
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 SECTION 3. WARRANTIES, REPRESENTATIONS AND COVENANTS 

3.1 Title. Mortgagor represents and warrants to Mortgagee that (a) Mortgagor is lawfully seized of and has title to, or valid
leasehold interests in, the Premises that is material to its business, free and clear of all claims, liabilities, obligations, charges of any kind or to any liens, (b) this Mortgage creates valid, enforceable first priority liens and security
interests against the Mortgaged Property, (c) Mortgagor has not received any notice of, nor has any knowledge of, the occurrence or pendency or contemplation of any Event of Default affecting all or any material portion of the Premises other
than those the existence of which will not, individually or in the aggregate, have a Material Adverse Effect, (d) each of the Mortgaged Leases is in full force and effect and no default (nor any event, which, with notice or lapse of time or
both, would constitute such a default) has occurred and is continuing thereunder, (e) there have been no material renewals or extensions of or material supplements, modifications or amendments to any of the Mortgaged Leases not previously
disclosed to Mortgagee, and (f) with respect to each Sublease relating to the Mortgaged Property, the existence of such Sublease will not, individually or in the aggregate, have a Material Adverse Effect. 

3.2 First Lien Status. Mortgagor shall preserve and protect the first priority lien and security interest status of this Mortgage
to the extent related to the Mortgaged Property. 
 3.3 Payment and Performance. Mortgagor shall pay and perform the
Secured Obligations in full when due and as required under this Mortgage and the Note. 
 3.4 Replacement of Fixtures and
Personalty. Mortgagor shall not, without the prior written consent of Mortgagee, permit any of the Fixtures or Personalty to be removed at any time from the Premises, unless (i) the removed item is removed temporarily for maintenance and
repair or (ii) if removed permanently, is replaced by an article of equal or better suitability and value, owned by Mortgagor subject to the liens and security interests of this Mortgage, and free and clear of any other lien or security
interest except such as may be first approved in writing by Mortgagee, or (iii) relocated to other Premises for the purpose of conducting the business and operations of Mortgagor. 

3.5 Covenants Running with the Land. To the extent permitted by applicable law, the liens created by this Mortgage and the
covenants hereunder are intended by Mortgagor and Mortgagee to be, and shall be construed as, covenants running with the Mortgaged Property. 
 3.6 Condemnation Awards and Insurance Proceeds Mortgagor hereby assigns all awards and compensation to which it is entitled for any condemnation or other taking, or any purchase in lieu thereof, to
Mortgagee and authorizes Mortgagee to collect and receive such awards and compensation and to give proper receipts and acquittances therefore; and Mortgagor hereby assigns to Mortgagee all proceeds of any insurance policies insuring against loss or
damage to the Mortgaged Property and authorizes Mortgagee to collect and receive such proceeds and authorizes and directs the issuer of each such insurance policy to make payment for all such losses directly to Mortgagee, instead of to Mortgagor and
Mortgagee jointly. 
 3.7 Change in Tax Law. Upon the enactment of or change in (including, a change in interpretation of)
any applicable law (i) deducting or allowing Mortgagor to deduct from the value of the Mortgaged Property for the purpose of taxation any lien or security interest thereon 

  
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or (ii) subjecting Mortgagee to any tax or changing the basis of taxation of mortgages, deeds of trust, or other liens or debts secured thereby, or the manner of collection of such taxes, in
each such case, so as to affect this Mortgage, the Secured Obligations or Mortgagee, and the result is to increase the taxes imposed upon or the cost to Mortgagee of maintaining the Secured Obligations, or to reduce the amount of any payments
receivable hereunder, then, and in any such event, Mortgagor shall, on demand, pay to Mortgagee additional amounts to compensate for such increased costs or reduced amounts, provided that if any such payment or reimbursement shall be unlawful, or
taxable to Mortgagee, or would constitute usury or render the Secured Obligations wholly or partially usurious under applicable law, then Mortgagor shall pay or reimburse Mortgagee for payment of the lawful and non-usurious portion thereof.

 3.8 Mortgage Tax. Mortgagor shall (i) pay when due any tax imposed upon it or upon Mortgagee pursuant to the tax
law of the state in which the Mortgaged Property is located in connection with the execution, delivery and recordation of this Mortgage, and (ii) prepare, execute and file any form required to be prepared, executed and filed in connection
therewith. 
 3.9 Mortgagor to Maintain Improvements. Mortgagor shall not (i) commit or suffer any waste on the
Premises or with respect to any Fixtures or (ii) make any change in the occupancy or use of all or any part of the Premises or any Fixtures which, in either case, would have a Material Adverse Effect. With respect to any active and any future
mining operations on the Premises, Mortgagor represents and warrants that (i) the Premises are or will be served by all utilities required or necessary for the current and planned use thereof and (ii) Mortgagor has or will have access to
the Premises from roads sufficient to allow Mortgagor and its tenants, lessees and invitees to conduct its and their businesses at the Premises in accordance with sound commercial practices, except to the extent the failure to be served by such
utilities or to have such access would not have a Material Adverse Effect. Mortgagor shall keep the Premises and systems useful and necessary in its business in good working order and condition, ordinary wear and tear excepted, and maintain with
financially sound and reputable insurance companies insurance against loss or damage to any buildings, structures and improvements on the Premises. Mortgagor shall not remove, demolish or alter, in any material respects, the design or structural
character of any Improvement now or hereafter erected upon all or any part of the Premises, or permit any such removal, demolition or alteration, without the prior written consent of Mortgagee, except that items constituting Fixtures may be
(i) removed temporarily for maintenance and repair or (ii) if removed permanently, replaced by an article of equal or better suitability and value, owned by Mortgagor subject to the liens and security interests of this Mortgage, and free
and clear of any other lien or security interest unless first approved in writing by Mortgagee, or (iii) relocated to other Premises for the purpose of conducting the business and operations of Mortgagor. 

3.10 Mortgagor’s Obligations With Respect to Subleases.  

3.10.1. Subject to the provisions of subsection 3.10.2, herein, Mortgagor will manage and operate the Mortgaged
Property in a reasonably prudent manner and will not enter into any Sublease of all or any part of the Premises that is inconsistent with the terms of Section 3.1 hereof. Mortgagor will not enter into any Sublease of all or any part of
the Premises without first receiving written consent from the Mortgagee and any such Sublease shall be subject to termination at the discretion of Mortgagee upon the occurrence of any Event of Default. 

  
 8 

 3.10.2. Mortgagor shall not: 

 

	 	a)	receive or collect, or permit the receipt or collection of, any rental or other payments under any Sublease more than one month in advance of the respective period in
respect of which they are to accrue, except that (i) in connection with the execution and delivery of any Sublease or of any amendment to any Sublease, rental payments thereunder may be collected and received in advance in an amount not in
excess of one month’s rent and/or a reasonable security deposit may be required thereunder; (ii) Mortgagor may receive and collect escalation and other charges in accordance with the terms of each Sublease; and (iii) Mortgagor may
receive and collect advance minimum royalty or rental payments in accordance with the terms of any Sublease (which Sublease shall have been entered into in the ordinary course of business of Mortgagor and shall be consistent with past practice and
on customary and reasonable business terms) for mining purposes, oil and gas development or timber harvesting; and 

  

	 	b)	assign, transfer or hypothecate (other than to Mortgagee hereunder) any rental or other payment under any Sublease whether then due or to accrue in the future, the
interest of Mortgagor as lessor under any Sublease or the Rents of the Mortgaged Property. 

 3.10.3. Mortgagor
shall (a) in a commercially prudent manner perform and observe in all material respects all the terms, covenants and conditions required to be performed and observed by Mortgagor under each Sublease and shall at all times do all things
necessary to require performance by the lessee, franchisee, licensee or grantee under each Sublease of all obligations, covenants and agreements by such party to be performed thereunder, and (b) in a commercially prudent manner notify Mortgagee
of the receipt of any notice from any lessee under any Sublease claiming that Mortgagor is in default in the performance or observance of any of the terms, covenants or conditions thereof to be performed or observed by Mortgagor and will cause a
copy of each such notice to be promptly delivered to Mortgagee. 
 3.11 Transfer Restrictions. Mortgagor may not, without
the prior written consent of Mortgagee (and the consent of any lessor of any Leased Premises if such consent shall be required under the provisions of the Mortgaged Lease relating to such Leased Premises), further mortgage, encumber, hypothecate,
sell, convey, lease, sublease, or assign all or any part of the Mortgaged Property or suffer any of the foregoing to occur by operation of law or otherwise; provided, however that, Mortgagee hereby consents to Mortgagee’s grant of second and
subordinate mortgage to PNC Bank, National Association, as Administrative Agent for the lenders pursuant to a Credit Agreement dated February 9, 2011, as amended (the “PNC Second Mortgage”). Any liens or other transfers permitted by
this Section 3.11, including but not 

  
 9 

 
limited to the PNC Second Mortgage, shall in all respects be subject and subordinate in priority to the lien and security interests created and evidenced hereby except if and to the extent the
law or regulation creating or authorizing such lien provides that such lien must be superior to the lien and security interest created and evidenced hereby. For the purposes of this Section, the foregoing prohibition shall include all encumbrances
by or on behalf of the Mortgagor or its owners or any Persons or entities owned or controlled by them. 
 3.12 Alterations.
Mortgagor shall not make any addition, modification or change (each, an “Alteration”) to the Premises except to the extent such Alterations would not reasonably be expected to have a Material Adverse Effect. 

3.13 Utility Services. Except where the failure to do so would not reasonably be expected to have a Material Adverse Effect
Mortgagor shall pay (except to the extent that pursuant to the terms of any Sublease, such obligation to pay is not the obligation of Mortgagor), or cause to be paid, when due all charges for all public or private utility services, all public or
private rail and highway services, all public or private communication services, all sprinkler systems, all protective services and any other services of whatever kind or nature at any time rendered to or in connection with the Premises and shall
comply with all contracts relating to any such services and shall do all other things required for the maintenance and continuance of all such services to the extent required to fulfill the obligations set forth in Section 3.09.

 3.14 Mortgaged Leases.  
 3.14.1. Mortgagor shall perform, observe and otherwise comply in all material respects with each and every covenant, agreement, requirement and condition set forth in the Mortgaged Leases to be performed
by Mortgagor except where the failure to do so would not reasonably be expected to have a Material Adverse Effect. Upon request of Mortgagee, Mortgagor shall, subject to the terms of the Mortgaged Leases, request from the lessor under any Mortgaged
Lease an estoppel certificate, addressed to Mortgagee, stating that there is no default under such Mortgaged Lease, or any state of facts which with the passage of time or notice or both would constitute a default thereunder, or if there be any
default under such Mortgaged Lease, giving the details thereof; provided that, so long as no Event of Default has occurred and is continuing, Mortgagor shall only be required to deliver such estoppel certificate in the event that the cost to obtain
such certificate from lessor under any Mortgaged Lease is less than $25,000 each. 
 3.14.2. In the event Mortgagor acquires the
fee simple title in the real property subject to any Mortgaged Lease, such acquisition will not merge with the leasehold estate created by such Mortgaged Lease, but such other estate or interest will remain discrete to the extent permitted by
applicable law and immediately become subject to the Lien of this Mortgage without the execution or delivery of any further instrument or document and without any further action by any Person; provided, however, that the Mortgagor
shall execute, acknowledge and deliver any instruments requested by Mortgagee to confirm the coverage of the Lien evidenced hereby upon such other estate or interest. Mortgagor shall pay any and all conveyance or mortgage taxes and filing or similar
fees in connection with the execution, delivery, filing or recording of any such instrument. 

  
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 3.14.3. Mortgagor shall promptly notify Mortgagee in writing of the occurrence of any
default (or any event which, with the lapse of time or notice or both, would constitute a default) on the part of or caused by any party to any Mortgaged Lease. If for any reason Mortgagor cannot timely make any payment under, perform or comply in
all material respects with any of its obligations under any Mortgaged Lease, Mortgagor shall notify Mortgagee in sufficient time to enable Mortgagee (but Mortgagee shall not be obligated) timely to make such payments and/or to perform or comply with
such other obligations. On receipt by Mortgagee from Mortgagor pursuant to this subsection 3.14.3 of any such notice of default by, or inability to make any payment by, Mortgagor thereunder, Mortgagee may rely thereon and, after notice to
Mortgagor, take such action as Mortgagee deems necessary or desirable to cure such default. 
 3.14.4. Mortgagor shall not
surrender the leasehold estate created by any Mortgaged Lease, or terminate or cancel any Mortgaged Lease, unless the Mortgaged Lease terminates for reasons that Mortgagor has exhausted all mineable and merchantable coal, no longer require the
surface for mining, or otherwise expires by its own terms. Mortgagor shall not, without the prior written consent of Mortgagee, amend, modify, surrender, impair, forfeit, cancel, or terminate, or permit the amendment, modification, surrender,
impairment, forfeiture, cancellation, or termination of any Mortgaged Lease in whole or in part, whether or not a default shall have occurred and shall be continuing under either thereof, except for such amendments or modifications which shall not
materially impair the value or utility of any Mortgaged Lease or the interest of Mortgagor therein. 
 3.14.5. To the extent
permitted by applicable law, the leasehold estate of Mortgagor created by the Mortgaged Leases and the estate of the lessor under the Mortgaged Leases shall each at all times remain separate and apart and retain their separate identities, and no
merger of the leasehold or easement estate of Mortgagor with the estate of the lessor will result with respect to Mortgagee or with respect to any purchaser acquiring the Mortgaged Property at any sale on foreclosure of the Lien of this Mortgage
without the written consent of Mortgagee. 
 3.14.6. To the extent permitted by applicable law, Mortgagor covenants and agrees
that if it shall be the subject to a proceeding under Title 11 of the United States Code (“Bankruptcy Code”), it shall not elect to treat any Mortgaged Lease as terminated (pursuant to Section 365 of the Bankruptcy Code or any
similar statute or law) without the prior written consent of Mortgagee. Mortgagor hereby irrevocably assigns to Mortgagee the right to exercise such election. 
 3.15 Indemnification; subrogation: waiver of offset. Mortgagor hereby covenants and agrees to the following conditions: 

  
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 (a) That if Mortgagee is made a party defendant to any litigation concerning
this Mortgage or the Mortgaged Property or any part thereof or therein, or the occupancy thereof by Mortgagor, then Mortgagor shall promptly notify Mortgagee and indemnify, defend, and hold Mortgagee harmless from all liability by reason of said
litigation, including reasonable attorney fees and expenses incurred by Mortgagee in any such litigation, whether or not any such litigation is prosecuted to judgment. If Mortgagee commences an action against Mortgagor to enforce any of the terms
hereof, or because of the breach by Mortgagor of any of the terms hereof, or for the recovery of any sum secured hereby, then to the extent allowed by law, Mortgagor shall pay to Mortgagee reasonable attorney fees and expenses. The right to such
attorney fees and expenses shall be deemed to have accrued on the commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. If Mortgagor shall breach any term of this Mortgage, Mortgagee may employ an
attorney or attorneys to protect its rights hereunder, and in the event of such employment following any breach by Mortgagor and to the extent allowed by law, Mortgagor shall pay Mortgagee reasonable attorney fees and expenses incurred by Mortgagee,
whether or not an action is actually by law commenced against Mortgagor by reason of breach. 
 (b) That
Mortgagor waives any and all right to claim or recover against Mortgagee, its officers, employees, agents, and representatives for loss of or damage to Mortgagor, the Mortgaged Property, Mortgagor’s property, or the property of others under its
control from any cause insured against or required to be insured against by the provisions of this Mortgage. 

(c) That all sums payable by Mortgagor hereunder shall be paid without notice, demand, counterclaim, set-off, deduction,
or defense and without abatement, suspension, deferment, diminution, or reduction, and the obligations and liabilities of Mortgagor hereunder shall in no way be released, discharged, or otherwise affected (except as expressly provided herein) by
reason of the following circumstances: 
 (i) Any damage to or destruction of, or any condemnation or similar
taking of, the Premises or any part thereof; 
 (ii) Any restriction of, prevention of, or interference with any
use of the Mortgaged Property or any part thereof; 
 (iii) Any title defect or encumbrance or any eviction from
the Premises or the improvements or any part thereof by title paramount or otherwise; 
 (iv) Any bankruptcy,
insolvency, reorganization, composition, adjustment, dissolution, liquidation, or other like proceeding relating to Mortgagee, or any action taken with respect to this Mortgage by any trustee or receiver of Mortgagee, or by any court, in any such
proceeding; 
 (v) Any claim that Mortgagor has or might have against Mortgagee; 

  
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 (vi) Any default or failure on the part of Mortgagee to perform or comply
with any of the terms hereof or of any other agreement with Mortgagor; or 
 (vii) Any other occurrence
whatsoever, whether similar or dissimilar to the foregoing, whether or not Mortgagor shall have notice or knowledge of any of the foregoing. 
 Except as expressly provided herein, Mortgagor waives all rights now or hereafter conferred by statute or otherwise to any abatement, suspension, deferment, diminution, or reduction of any sum secured
hereby and payable by Mortgagor. 
 3.16 Taxes and Impositions. Mortgagor hereby covenants and agrees to the following
conditions: 
 (a) That Mortgagor shall pay, prior to delinquency, all real property taxes and assessments,
general and special, and all other taxes and assessments of any kind or nature whatsoever, including, without limitation, nongovernmental levies or assessments such as maintenance charges, levies, or charges resulting from covenants, conditions, and
restrictions affecting the Mortgaged Property, that are assessed or imposed upon the Mortgaged Property, or become due and payable, and which create, may create, or appear to create a lien upon the Mortgaged Property or any part thereof, or upon any
equipment or other facilities used in the operation or maintenance thereof (all of which taxes, assessments, and other governmental charges of like nature are hereinafter referred to as “Impositions”). 

(b) That if, at any time after the date hereof, there shall be assessed or imposed (i) a tax or assessment on the
Mortgaged Property in lieu of or in addition to the Impositions payable by Mortgagor pursuant to paragraph (a) hereof, or (ii) a license fee, tax, or assessment imposed on Mortgagee and measured by or based in whole or in part upon the
amount of the outstanding obligations secured hereby, then all such taxes, assessments, or fees shall be deemed to be included within the term “Impositions” as defined in paragraph (a) hereof, and Mortgagor shall pay and discharge the
same as herein provided with respect to the payment of Impositions. 
 (c) That Mortgagor shall have the right,
before any delinquency occurs, to contest or object to the amount or validity of any such imposition by appropriate legal proceedings, but such right shall not be deemed or construed in any way as relieving, modifying, or extending Mortgagor’s
covenant to pay any such imposition at the time and in the manner provided in this Section 3.16. 
 (d) That
Mortgagor shall furnish Mortgagee, within 30 days after the date upon which any such imposition is due and payable by Mortgagor, official receipts of the appropriate taxing authority or other proof satisfactory to Mortgagee evidencing the
payment thereof. 

  
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 (e) That in the event Mortgagor fails to pay such Impositions as required by
this section, Mortgagee may, at Mortgagee’s election, but without any obligation to do so, advance any amounts necessary to pay the Impositions, which advances, if any, shall be secured hereby and shall be repayable to Mortgagee promptly upon
demand by Mortgagee. 
 3.17 Inspection. Mortgagor shall permit Mortgagee, and its agents, representatives and employees,
upon reasonable prior notice to the Mortgagor, to inspect the Mortgaged Property and all books and records of Mortgagor related thereto. 

SECTION 4. DEFAULT AND FORECLOSURE 
 4.1 Remedies. If an Event of Default has occurred and continues beyond any applicable grace period contained herein or in the Note, Mortgagee may, at Mortgagee’s election, exercise any or all
of the following rights, remedies and recourses: 
 4.1.1. Declare the Secured Obligations to be immediately due and payable,
without further notice, presentment, protest, notice of intent to accelerate, notice of acceleration, demand or action of any nature whatsoever (each of which hereby is expressly waived by Mortgagor), whereupon the same shall become immediately due
and payable. 
 4.1.2. To the extent permitted by applicable law, enter the Mortgaged Property and take exclusive possession
thereof and of all books, records and accounts relating thereto or located thereon. If Mortgagor remains in possession of the Mortgaged Property after an Event of Default and without Mortgagee’s prior written consent, Mortgagee may invoke any
legal remedies to dispossess Mortgagor. 
 4.1.3. To the extent permitted by applicable law, act in all respects as lessee in
respect of the Mortgaged Leases and perform on behalf and for account of Mortgagor any of the obligations of the tenant or lessee thereunder. 
 4.1.4. To the extent permitted by applicable law, hold, lease, develop, manage, operate or otherwise use the Mortgaged Property upon such terms and conditions as Mortgagee may deem reasonable under the
circumstances (making such repairs, alterations, additions and improvements and taking other actions, from time to time, as Mortgagee deems necessary or desirable), and apply all Rents and other amounts collected by Mortgagee in connection therewith
in accordance with the provisions hereof. 
 4.1.5. Institute an action to foreclose its interest under the Lien of this Mortgage
against the Mortgaged Property by judicial foreclosure sale in one proceeding or against portions of the Mortgaged Property in a series of separate proceedings, and to have the same sold under the judgment or decree of a court of competent
jurisdiction. 

  
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 4.1.6. To the extent permitted by applicable law, make application to a court of competent
jurisdiction for, and obtain from such court as a matter of strict right and without notice to Mortgagor or regard to the adequacy of the Mortgaged Property for the repayment of the Secured Obligations, the appointment of a receiver of the Mortgaged
Property, and Mortgagor irrevocably consents to such appointment. Any such receiver shall have all the usual powers and duties of receivers in similar cases, including the full power to rent, maintain and otherwise operate the Mortgaged Property
upon such terms as may be approved by the court, and shall apply such Rents in accordance with the provisions hereof. 
 4.1.7.
Exercise all other rights, remedies and recourses granted under the Note or otherwise available at law or in equity. 
 4.2
Separate Sales. The Mortgaged Property may be sold in one or more parcels and in such manner and order as Mortgagee in its sole discretion may elect; the right of sale arising out of any Event of Default shall not be exhausted by any one or more
sales. 
 4.3 Remedies Cumulative, Concurrent and Nonexclusive. Mortgagee shall have all rights, remedies and recourses
granted in this Mortgage, the Note and available at law or equity (including the UCC), which rights (a) shall be cumulated and concurrent, (b) may be pursued separately, successively or concurrently against Mortgagor or against the
Mortgaged Property at the sole discretion of Mortgagee, (c) may be exercised as often as occasion therefor shall arise, and the exercise or failure to exercise any of them shall not be construed as a waiver or release thereof or of any other
right, remedy or recourse, and (d) are intended to be, and shall be, nonexclusive. No action by Mortgagee in the enforcement of any rights, remedies or recourses under this Mortgage, the Note or otherwise at law or equity shall be deemed to
cure any Event of Default. 
 4.4 Release of and Resort to Collateral. Mortgagee may release, regardless of consideration
and without the necessity for any notice to or consent by the holder of any subordinate lien on the Mortgaged Property, except to the extent such notice or consent may not be waived under applicable law, any part of the Mortgaged Property without,
as to the remainder, in any way impairing, affecting, subordinating or releasing the lien or security interest created in or evidenced by this Mortgage or its status as a first and prior lien and security interest in and to the Mortgaged Property.
For payment of the Secured Obligations, Mortgagee may resort to any other security in such order and manner as Mortgagee may elect. 
 4.5 Waiver of Redemption, Notice and Marshalling of Assets. To the fullest extent permitted by law, Mortgagor hereby irrevocably and unconditionally waives and releases (a) all benefit that
might accrue to Mortgagor by virtue of any present or future statute of limitations or law or judicial decision exempting the Mortgaged Property from attachment, levy or sale on execution or providing for any stay of execution, exemption from civil
process, redemption or extension of time for payment; (b) all notices of any Event of Default or of Mortgagee’s election to exercise or the actual exercise of any right, remedy or recourse provided for under this Mortgage or the Note; and
(c) any right to a marshalling of assets or a sale in inverse order of alienation. 

  
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 4.6 Discontinuance of Proceedings. If Mortgagee shall have proceeded to invoke any
right, remedy or recourse permitted under this Mortgage or the Note and shall thereafter elect to discontinue or abandon it for any reason, Mortgagee shall have the unqualified right to do so and, in such an event, Mortgagor and Mortgagee shall be
restored to their former positions with respect to the Secured Obligations, the Mortgaged Property and otherwise, and the rights, remedies, recourses and powers of Mortgagee shall continue as if the right, remedy or recourse had never been invoked,
but no such discontinuance or abandonment shall waive any Event of Default which may then exist or the right of Mortgagee thereafter to exercise any right, remedy or recourse under this Mortgage or the Note for such Event of Default. 

4.7 Application of Proceeds. The proceeds of any sale of, and the Rents and other amounts generated by the holding, leasing,
management, operation or other use of the Mortgaged Property, shall be applied by Mortgagee (or the receiver, if one is appointed) in the following order unless otherwise required by applicable law: first, to the payment of the costs and expenses of
taking possession of the Mortgaged Property and of holding, using, leasing, repairing, improving and selling the same, including, (a) receiver’s fees and expenses, including the repayment of the amounts evidenced by any receiver’s
certificates, (b) court costs, (c) reasonable attorneys’ and accountants’ fees and expenses, and (d) costs of advertisement; second, to all other items that under the terms hereof, constitute Secured Obligations additional
to that evidenced by the Note, with interest thereon as herein provided or a provided by any instrument relating to such indebtedness or by law; third, to all principal and interest remaining unpaid on the Note; and fourth, any balance to Mortgagor,
its successors, or assigns, as their rights may appear. 
 4.8 Occupancy After Foreclosure. Any sale of the Mortgaged
Property or any part thereof will divest all right, title and interest of Mortgagor in and to the property sold. Subject to applicable law, any purchaser at a foreclosure sale will receive immediate possession of the property purchased. If Mortgagor
retains possession of such property or any part thereof subsequent to such sale, Mortgagor will be considered a tenant at sufferance of the purchaser, and will, if Mortgagor remains in possession after demand to remove, be subject to eviction and
removal, forcible or otherwise, with or without process of law. 
 4.9 Additional Advances and Disbursements; Costs of
Enforcement. If any Event of Default exists, Mortgagee shall have the right, but not the obligation, to cure such Event of Default in the name and on behalf of Mortgagor. All sums advanced and expenses incurred at any time by Mortgagee under
this Section, or otherwise under this Mortgage or the Note or applicable law, shall bear interest from the date that such sum is advanced or expense incurred if not repaid within five (5) days after demand therefor, to and including the date of
reimbursement, computed at the rate or rates at which interest is then computed on the Secured Obligations, and all such sums, together with interest thereon, shall be secured by this Mortgage. Mortgagor shall pay all expenses (including reasonable
attorneys’ fees and expenses) of or incidental to the perfection and enforcement of this Mortgage and the Note, or the enforcement, compromise or settlement of the Secured Obligations or any claim under this Mortgage and the Note, and for the
curing thereof, or for defending or asserting the rights and claims of Mortgagee thereof, by litigation or otherwise. 

  
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 4.10 No Mortgagee in Possession. Neither the enforcement of any of the remedies under
this Section, the assignment of the Rents and Subleases under Section 5, the security interests under Section 6, nor any other remedies afforded to Mortgagee under this Mortgage, at law or in equity, shall cause Mortgagee to be deemed or
construed to be a beneficiary in possession of the Mortgaged Property, to obligate Mortgagee to lease the Mortgaged Property or attempt to do so, or to take any action, incur any expense, or perform or discharge any obligation, duty or liability
whatsoever under any of the Subleases or otherwise. 
 4.11 Mortgagor’s Right to Cure. In the event any Event of
Default hereunder has occurred and continues beyond any applicable grace period contained herein or in the Note, Mortgagor shall be entitled to cure such event of default by satisfying the Secured Obligations defined herein in full within
30 days from the expiration of any applicable grace period contained herein or in the Note; provided, however that, this Section 4.11 shall not act to limit or prohibit Mortgagee from exercising any rights, remedies, or recourses set forth
in this Section 4, including, but not limited to Mortgagee’s initiation of foreclosure proceedings. 
 SECTION 5. ASSIGNMENT OF
RENTS AND LEASES 
 5.1 Assignment. In furtherance of and in addition to the assignment made by Mortgagor herein,
Mortgagor hereby absolutely and unconditionally assigns, sells, transfers and conveys to Mortgagee all of its right, title and interest in and to all Subleases, whether now existing or hereafter entered into, and all of its right, title and interest
in and to all Rents. This assignment is an absolute assignment and not an assignment for additional security only. So long as no Event of Default shall have occurred and be continuing, Mortgagor shall have a revocable license from Mortgagee to
exercise all rights extended to the landlord under the Subleases, including the right to receive and collect all Rents and to hold the Rents for use in the payment and performance of the Secured Obligations and to otherwise use the same. Subject to
applicable law, the foregoing license is granted subject to the conditional limitation that no Event of Default shall have occurred and be continuing. Upon the occurrence and during the continuance of an Event of Default, whether or not legal
proceedings have commenced, and without regard to waste, adequacy of security for the Secured Obligations or solvency of Mortgagor, the license herein granted shall automatically expire and terminate, without notice by Mortgagee (any such notice
being hereby expressly waived by Mortgagor). 
 5.2 Perfection Upon Recordation. Mortgagor acknowledges that Mortgagee has
taken all reasonable actions necessary to obtain, and that upon recordation of this Mortgage, Mortgagee shall have, to the extent permitted under applicable law, a valid and fully perfected, first priority, present assignment of the Rents arising
out of the Subleases and all security for such Subleases and in the case of security deposits, rights of depositors and requirements of law, in each case. Mortgagor acknowledges and agrees that upon recordation of this Mortgage Mortgagee’s
interest in the Rents shall be deemed to be fully perfected, “choate” and enforced as to Mortgagor and all third parties, including, any subsequently appointed trustee in any case under the Bankruptcy Code, without the necessity of
commencing a foreclosure action with respect to this Mortgage, making formal demand for the Rents, obtaining the appointment of a receiver or taking any other affirmative action. 

  
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 5.3 Bankruptcy Provisions. Without limitation of the absolute nature of the
assignment of the Rents hereunder and to the extent permitted by applicable law, Mortgagor and Mortgagee agree that (a) this Mortgage shall constitute a “security agreement” for purposes of Section 552(b) of the Bankruptcy Code,
(b) the security interest created by this Mortgage extends to property of Mortgagor acquired before the commencement of a case in bankruptcy and to all amounts paid as Rents, and (c) such security interest shall extend to all Rents
acquired by the estate after the commencement of any case in bankruptcy. 
 SECTION 6. SECURITY AGREEMENT 

6.1 Security Interest. This Mortgage constitutes a “security agreement” on personal property, extracted collateral and
fixtures as within the meaning of the UCC and other applicable law and with respect to the Personalty (including as-extracted collateral), Fixtures, Subleases, Rents, Permits, Property Agreements, Tax Refunds, Proceeds, Insurance and Condemnation
Awards. To this end, Mortgagor grants to Mortgagee a first and prior security interest in the Personalty (including as-extracted collateral), Fixtures, Subleases, Rents, Permits, Property Agreements, Tax Refunds, Proceeds, Insurance, Condemnation
Awards and all other Mortgaged Property which is personal property to secure the payment and performance of the Secured Obligations, and agrees that Mortgagee shall have all the rights and remedies of a secured party under the UCC with respect to
such property. Any notice of sale, disposition or other intended action by Mortgagee with respect to the Personalty (including as-extracted collateral), Fixtures, Subleases, Rents, Permits, Property Agreements, Tax Refunds, Proceeds, Insurance and
Condemnation Awards sent to Mortgagor at least ten (10) days prior to any action under the UCC shall constitute reasonable notice to Mortgagor. 
 6.2 Financing Statements. This Mortgage shall also constitute a Financing Statement from Mortgagor, as Debtor, perfecting and preserving Mortgagee’s security interest hereunder as Secured
Party. Mortgagor shall execute and deliver to Mortgagee, in form and substance satisfactory to Mortgagee, such financing statements and such further assurances as Mortgagee may, from time to time, reasonably consider necessary to create, perfect and
preserve Mortgagee’s security interest hereunder and Mortgagee may cause such statements and assurances to be recorded and filed, at such times and places as may be required or permitted by law to so create, perfect and preserve such security
interest. Mortgagor’s chief executive office is at the address set forth in the first paragraph of this Mortgage. 
 6.3
As-Extracted Collateral and Fixture Filing. This Mortgage shall also constitute an as-extracted collateral filing and a “fixture filing” for the purposes of the UCC against all of the Mortgaged Property which is or is to become
fixtures or as-extracted collateral. Information concerning the security interest herein granted may be obtained at the addresses of Debtor (Mortgagor) and Secured Party (Mortgagee) as set forth in the first paragraph of this Mortgage. 

  
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 SECTION 7. ATTORNEY-IN-FACT 
 To the extent permitted by applicable law, Mortgagor hereby irrevocably appoints Mortgagee and its successors and assigns, as its attorney-in-fact, which agency is coupled with an interest and with full
power of substitution, (a) to execute and/or record any notices of completion, cessation of labor or any other notices that Mortgagee deems appropriate to protect Mortgagee’s interest, if Mortgagor shall fail to do so within ten
(10) days after written request by Mortgagee, (b) upon the issuance of a deed pursuant to the foreclosure of this Mortgage or the delivery of a deed in lieu of foreclosure, to execute all instruments of assignment, conveyance or further
assurance with respect to the Subleases, Rents, Permits, Fixtures, Personalty, Property Agreements, Tax Refunds, Proceeds, Insurance and Condemnation Awards in favor of the grantee of any such deed and as may be necessary or desirable for such
purpose, (c) to prepare, execute and file or record financing statements, continuation statements, applications for registration and like papers necessary to create, perfect or preserve Mortgagee’s security interests and rights in or to
any of the Mortgaged Property, and (d) while any Event of Default exists, to perform any obligation of Mortgagor hereunder; provided, (i) Mortgagee shall not under any circumstances be obligated to perform any obligation of Mortgagor;
(ii) any sums advanced by Mortgagee in such performance shall be added to and included in the Secured Obligations and shall bear interest at the rate or rates at which interest is then computed on the Secured Obligations provided that from the
date incurred said advance is not repaid within five (5) days demand therefor; (iii) Mortgagee as such attorney-in-fact shall only be accountable for such funds as are actually received by Mortgagee; and (iv) Mortgagee shall not be
liable to Mortgagor or any other person or entity for any failure to take any action which it is empowered to take under this Section other than any action of Mortgagee which constitutes gross negligence or 2willful misconduct on the part of
Mortgagee. 
 SECTION 8. LOCAL LAW PROVISIONS 
 8.1 Future Advances. This Mortgage secures all future advances, if any, made by Mortgagee to Mortgagor, which future advances have the same priority as if all such future advances were made on the
date of execution hereof. Nothing in this Section 8.1 or in any other provision of this Mortgage shall be deemed an obligation on the part of Mortgagee to make any future advances. 

SECTION 9. MISCELLANEOUS 

9.1 Notices. Any notice required or permitted to be given under this Mortgage shall be in writing and delivered by hand or mailed
by certified mail addressed to such party at its address stated in the preamble hereto or at such other place as either party hereto may, by written notice, designate as a place for service of notice shall constitute service of notice hereunder.

 9.2 Choice of Law. THE PROVISIONS OF THIS MORTGAGE REGARDING THE CREATION, PERFECTION AND ENFORCEMENT OF THE LIENS AND
SECURITY INTERESTS HEREIN GRANTED SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE IN WHICH THE MORTGAGED PROPERTY IS LOCATED. ALL OTHER PROVISIONS OF THIS MORTGAGE AND THE RIGHTS AND OBLIGATIONS OF MORTGAGOR AND MORTGAGEE SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF KENTUCKY, WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. 

  
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 9.3 Successors and Assigns. This Mortgage shall be binding upon and inure to the
benefit of Mortgagee and Mortgagor and their respective successors and assigns. Mortgagor shall not, without the prior written consent of Mortgagee, assign any rights, duties or obligations hereunder. 

9.4 No Waiver. No failure or delay by Mortgagee to insist upon strict performance of any of the terms, provisions or conditions of
this Mortgage or the Note or to exercise any power, right or privilege hereunder shall be deemed to be a waiver of same, and Mortgagee shall have the right at any time to insist upon strict performance of all of such terms, provisions and conditions
or to exercise any power, right or privilege. 
 9.5 Waiver of Stay, Moratorium and Similar Rights. Mortgagor agrees, to
the full extent that it may lawfully do so, that it will not at any time insist upon or plead or in any way take advantage of any appraisement, valuation, stay, marshalling of assets, extension, redemption or moratorium law now or hereafter in force
and effect so as to prevent or hinder the enforcement of the provisions of this Mortgage or the Secured Obligations, or any agreement between Mortgagor and Mortgagee or any rights or remedies of Mortgagee. 

9.6 Entire Agreement. This Mortgage and the Note embody the entire agreement and understanding between Mortgagee and Mortgagor and
supersede all prior agreements and understandings between such parties relating to the subject matter hereof and thereof. Accordingly, this Mortgage and the Note may not be contradicted by evidence of prior, contemporaneous or subsequent oral
agreements of the parties. There are no unwritten oral agreements between the parties. 
 9.7 Counterparts. This Mortgage
is being executed in several counterparts, all of which are identical. Each of such counterparts shall for all purposes be deemed to be an original and all such counterparts shall together constitute but one and the same instrument. 

9.8 Severability. All rights and remedies existing under this Mortgage and the Note are cumulative to, and not exclusive of, any
rights or remedies otherwise available. In case any provision in or obligation under this Mortgage shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations,
or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

 9.9 Termination and Release. Upon payment and performance in full of the Secured Obligations Mortgagee, at
Mortgagor’s expense, shall promptly release the liens and security interests created by this Mortgage or reconvey the Mortgaged Property to Mortgagor or, at the request of Mortgagor, assign this Mortgage without recourse. 

  
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 9.10 WAIVER OF TRIAL BY JURY. THE MORTGAGEE AND MORTGAGOR ACKNOWLEDGE THAT THE TIME
AND EXPENSE REQUIRED FOR TRIAL BY JURY EXCEED THE TIME AND EXPENSE REQUIRED FOR A BENCH TRIAL AND HEREBY KNOWINGLY AND VOLUNTARILY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, AND AFTER HAVING CONSULTED OR HAVING HAD AMPLE OPPORTUNITY TO CONSULT
THEIR RESPECTIVE LEGAL COUNSEL CONCERNING THE CONSEQUENCES OF SUCH WAIVER, TRIAL BY JURY IN ANY ACTION OR OTHER PROCEEDING BROUGHT TO ENFORCE OR DEFEND AGAINST COLLECTION OF OR OTHERWISE IN CONNECTION WITH THIS MORTGAGE OR THE OTHER LOAN DOCUMENTS.

 [Remainder of page intentionally left blank] 

  
 21 

 IN WITNESS WHEREOF, Mortgagor has on the date set forth in the acknowledgment hereto,
effective as of the date first above written, caused this instrument to be duly executed and delivered by authority duly given. 
  

			
	ARMSTRONG COAL COMPANY, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

 ACKNOWLEDGMENT 

 

					
	STATE OF
                                        
	  	)	  	
		  	) ss.	  	
	COUNTY OF
                                    	  	)	  	

 The foregoing instrument was acknowledged before me this         day of
                    , 2011, by
                    of Armstrong Coal Company, Inc., a Delaware corporation, on behalf of the company. 

 

					
	 [SEAL]
  
	  	
		  	  

Notary

		  	My Commission Expires:  	  	 

 This instrument was prepared by: 
                                  
                       (signature) 
 J. Sale Gordon, Esq. 
 Gordon Law Offices, PSC 

121 W.
2nd Street 

P.O. Box 1146 
 Owensboro, Kentucky 42302

 (270) 684-5757 

  
 22 

 EXHIBIT A 
 TO 
 MORTGAGE 

Map 

  
 23 

 

 

  
 24 

 EXHIBIT B 
 TO 
 MORTGAGE 

All recording references are to the Office of the Muhlenberg County Clerk. 

TRACT 199 – LC#016-745 P16 and P17 
 Parcel 16 
 A strip of land of even width, 100 feet on each side of the following described
centerline; beginning at an iron pipe, 4 feet E of a 30 inch gum in the East — West property line between Ayrshire Collieries Corporation’s 126.5 acre Roy Johnson tract and Katie B. Reneer, which iron pipe is N 88-20 W 3231 feet (old call
S 86 W) from a 1-1/4 inch iron axle at a root wad, corner to Rogers, Ayrshire Collieries Corporation and Katie B. Reneer; thence N 02-14 W 858.4 feet across the lands of Katie B. Reneer to another iron pipe near a 10-inch elm and 18-inch gum on the
S side of a ditch in the East — West property line between Ayrshire Collieries Corporation’s 77-acre Luther Faught tract and Katie B. Reneer, which iron pipe is approximately 477 feet East of Katie B. Reneer’s Northwest corner. Said
tract of land contains 3.94 acres and extends from the Roy Johnson tract on the South to the Luther Faught tract on the North. 

Parcel17 
 Tract
#1: Beginning at an old corner, gum and maple, corner to Joseph Milligan; thence N 4 W 52 poles to a rock marked “BB”; thence N 86 E 154 poles to a rock marked “BB”; thence S 4 E 52 poles to a small dogwood, black gum and
hickory in Milligan’s line; thence with same S 86 W 150 poles to the beginning, containing 50 acres, more or less. 
 Tract #2:
Beginning at a rock near a maple and beech corner to John Brinkman’s survey running N 86 E about 70 poles to the old line, a red oak, elm and hickory marked; thence S 4 E 52 poles to the old corner of original survey, a mulberry; thence S 86 W
about 70 poles to Brinkman’s corner in the old line, dogwood, black gum and hickory; thence with Brinkman’s line to the beginning 

LESS AND EXCEPTED: 
 “There is excepted
3.94 acres of surface heretofore conveyed to the party of the second part by the party of the first part”. 

  
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 Source Of Title 
 1. And being Parcels 16 and 17, Tract 1 and 2 conveyed by AMAX INC to Peabody Coal Company by deed dated October 19, 1987, recorded October 22, 1987 in Deed Book 384, page 652 at recorded page
668. 
 2. And being a portion of the property conveyed by Peabody Coal Company, a Delaware Corporation, to Peabody Development Company, a
Delaware Corporation, by deed dated September 12, 1989, recorded October 22, 1987 in Deed Book 398, page 37, as Item 235. 
 3.
Effective December 16, 2003, in 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 Corporation, as shown in Articles of Incorporation Book 14, pages 635 – 638. 
 4. And further being a portion of the property
conveyed by Peabody Development Company, LLC to Central States Coal Reserves of Kentucky, LLC by deed dated December 20, 2005, recorded in Deed Book 516, page 599, as corrected by Deed of Confirmation between Peabody Development Company, LLC
and Central States Coal Reserves of Kentucky, LLC by deed dated December 27, 2005, effective December 20, 2005 and recorded in Deed Book 516, page 716. 
 5. Being a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by deed dated September 13, 2007 recorded in Deed Book 530, page 620,
as Tract 199 
 TRACT 209 – LC#1304-001 T1A 
 Only that portion of the following tract as lies North of the South Right-of-Way of the Western Kentucky Parkway (now Wendell Ford Parkway). 

Beginning at an iron axle the Southeast corner of the “Heck” tract, thence S 81° 47’ W with the south line of
“Heck” for 3637.4 feet to a stump; thence N 70° 32’ W for 923.8 feet to a gum; thence N 24° 57’ W for 678.3 feet to a rock; thence N 72° 26’ w for 3,438.3 feet; thence S 17° 04’ W for 2714.6 feet; thence
S 71° 08’ E for 1011.3 feet; thence S 39° 56’ W for 1151.6 feet to an iron axle; thence S 23° 19’ E for 63.2 feet; thence S. 35° 50’ E for 1677.5 feet; thence S 35° 47’ E for 2,159.7 feet; thence N
53° 13’ E for 1725.5 feet to a 3” iron axle; thence S 14° 01’ E for 2547.8 feet to a 3” iron axle; thence N 71° 56’ E for 2,163.7 feet, to a 2” iron axle; thence N 12° 15’ W for 2663.7 feet to a
road; thence N 69° 53’ E for 342.9 feet, S 67° 35’ E for 401.3 feet, s 49° 37’ E for 228.4 feet, thence N 15° 46’ W for 1000.6 feet, thence S 83° 45’ E for 1514.0 feet; thence N 13° 42’ E for
2,573.3 feet to the southeast corner of the church lot, thence N 80° 00’ W for 289.0 feet to a point which is 30 feet east 

  
 26 

 
of the center line of U. S. Highway 62, thence parallel with Highway 62 and 30 feet east of its center line N 36° 10’ E for 70.0 feet, N 28° 50’ E for 75.0 feet, N 21°
25’ E for 95.0 feet, thence leaving the highway s 80° 00’ E for 230.0 feet to a point in the old line, thence with the old line N 13° 42’ E for 370.0 feet to the place of beginning. Containing 916.71 acres more or less.

 Source Of Title 
 1. And being a portion of a 916.71 acre tract identified as “Martwick Tract ‘A’ Minerals” conveyed by Peabody Coal Company to Peabody Development Company by deed dated
July 19, 1984, recorded August 31, 1984, in Deed Book 363, page 420. 
 2. Effective December 16, 2003, in 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 Corporation, as shown in Articles of
Incorporation Book 14, pages 635 – 638. 
 3. And further being a portion of the property conveyed by Peabody Development Company, LLC
to Central States Coal Reserves of Kentucky, LLC by deed dated December 20, 2005, recorded in Deed Book 516, page 599, as corrected by Deed of Confirmation between Peabody Development Company, LLC and Central States Coal Reserves of Kentucky,
LLC by deed dated December 27, 2005, effective December 20, 2005 and recorded in Deed Book 516, page 716. 
 4. Being a portion
of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by deed dated September 13, 2007 recorded in Deed Book 530, page 620, as Tract 209 

END OF EXHIBIT B 

  
 27 

 EXHIBIT N 
 TO 
 ASSET PURCHASE AGREEMENT 

UCC-1 Financing Statement 
 UCC-1 and UCC-1Ad 

  
 

 
 UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS ffrort and back) CAREFULLY A. NAM: &
PHONE OF CONTACT AT FIB? (optional) J. Sale Gordon (370) 684-5757 ft SB ACKNOWLEDGMENT TO: (Name and Address) Gordon Law Offices, P.S.C. P.O. Box 1146 Owensboro, kentucky 42302-1146 I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1. DEBTOR S
EXACT FULL LEGAL NAME-ln ortonlyimflcMton mePaoc1b)-doi alibiBvl orcombirMriainM 1a. ORGANIZATION S NAME ARMSTRONG COAL COMPANY, INC. ” 1 INDMDUAL LASTNA I FIRST NAME JMOoDlNAME I SUFFIX 1c. MAtUNGADDRESS CfTY STATE I POSTAL CODE COUNIRY 407
Brown Road MadisonvUle KY 142431 US 1d. IADOLINFORE l1e.TYPEOFORGANIZATION 1f.,,RISTJIcro OF ORGANIZATION 1ft ORGANIZATIONAL HJ#, If any CRGAMZATiON , debtor FCO DE 0655052 Phone 2. ADDITIONAL DEBTOR S EXACT FULL LEGAL NAME-limit only am debtor
namaga Of 3b)- to not abbreviate or combine names m 2b. WOMDUALS LAST NAME FIRST NAME (MIDDLE NAME ISUFFIX 2c MAMN6 ADDRESS OTY STATE I POSTAL CODE COUNTRY $ lADOrLlNFORE 12s. TYPE OF ORGANIZATION 2f. JURISDICTION OF ORGANIZATION 2j.
ORGANIZATIONAL #, If any ORGANIZATION IDEBTORh 3. SECUREDPARTY S NAME (Qif AIVIEonOTALASSIQN ciTAS-GNCWSff)-iMerto^yoM8ecuiB ipaityn ll8(3aor3b) CYPRUS CREEK LAND RESOURCES, LLC 0R 3b. INDIVIDUAL S LAST NAME (FIRST NAME (MIDDLE NAME SUFFIX 3c.
MA1UNQADORESS at? STATE (POSTAL CODE COUNTRY 701 Market Street, Suite 798 St Louis MO 63101 US 4. This FINANCING STATEMENT csvem the foPovWna cousteml: This Financing Statement covers all as-extracted collateral of the Debtor, whether now
existing or hereafter arising, relating to or appertaining to the real property described on Exhibit A attached hereto. 5. ALTERNATIVE DESIGNATION H applicable! 1 SSEE/LESSORf f GNE ttONSIGNOR i~|BAII BAILOR SELLER/BUYER
RaG-LIENriNOmWCFttJNG l/lFSTATFRFnnRr Afar!, AHdenrt..n, Hf a ll,,blri I SbniTIONAI. FgFI fainon-ll LIaU Oebtoa I lD.btp.1 Oeb-f2 8. OPTIONAL FILER REFERENCE DATA MuhlenbergCo^Ky. FILING OFFICE COPY UCC FINANCING STATEMENT (FORM UCC1) (REV.
05/22/02) 

  
 

 
  

 MUHLENBERG COUNTY 
 FF7 PG757 
 EXHIBIT A 

All recording references are to the Office of the Muhlenberg County Clerk. 

TRACT 199 — LC#016-745 P16 and P17 
 Parcel 16 
 A strip of land of even width, 100 feet on each side of the following described
centerline; beginning at an iron pipe, 4 feet E of a 30 inch gum in the East - West property line between Ayrshire Collieries Corporation’s 126.5 acre Roy Johnson tract and Katie B. Reneer, which iron pipe is N 88-20 W 3231 feet (old call S 86
W) from a 1-1/4 inch iron axle at a root wad, corner to Rogers, Ayrshire Collieries Corporation and Katie B. Reneer; thence N 02-14 W 858.4 feet across the lands of Katie B. Reneer to another iron pipe near a 10-inch elm and 18-inch gum on the S
side of a ditch in the East - West property line between Ayrshire Collieries Corporation’s 77-acre Luther Faught tract and Katie B. Reneer, which iron pipe is approximately 477 feet East of Katie B. Reneer’s Northwest corner. Said tract of
land contains 3.94 acres and extends from the Roy Johnson tract on the South to the Luther Faught tract on the North. 

Parcel 17 
 Tract
#1: Beginning at an old corner, gum and maple, corner to Joseph Milligan; thence N 4 W 52 poles to a rock marked “BB”; thence N 86 E 154 poles to a rock marked “BB”; thence S 4 E 52 poles to a small dogwood, black gum and
hickory in Milligan’s line; thence with same S 86 W 150 poles to the beginning, containing 50 acres, more or less. 
 Tract #2:
Beginning at a rock near a maple and beech corner to John Brinkman’s survey running N 86 E about 70 poles to the old line, a red oak, elm and hickory marked; thence S 4 E 52 poles to the old corner of original survey, a mulberry; thence S 86 W
about 70 poles to Brinkman’s corner in the old line, dogwood, black gum and hickory; thence with Brinkman’s line to the beginning 

LESS AND EXCEPTED: 
 “There is excepted
3.94 acres of surface heretofore conveyed to the party of the second part by the party of the first part”. 

  
 1 

 MUHLENBERG COUNTY 
 FF7 PG758
  

 Source Of Title 
 1. And being Parcels 16 and 17, Tract 1 and 2 conveyed by AMAX INC to Peabody Coal Company by deed dated October 19, 1987, recorded October 22, 1987 in Deed Book 384, page 652 at recorded page
668. 
 2. And being a portion of the property conveyed by Peabody Coal Company, a Delaware Corporation, to Peabody Development Company, a
Delaware Corporation, by deed dated September 12, 1989, recorded October 22, 1987 in Deed Book 398, page 37, as Item 235. 
 3.
Effective December 16, 2003, in 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 Corporation, as shown in Articles of Incorporation Book 14, pages 635 - 638. 
 4. And further being a portion of the property
conveyed by Peabody Development Company, LLC to Central States Coal Reserves of Kentucky, LLC by deed dated December 20, 2005, recorded in Deed Book 516, page 599, as corrected by Deed of Confirmation between Peabody Development Company, LLC
and Central States Coal Reserves of Kentucky, LLC by deed dated December 27, 2005, effective December 20, 2005 and recorded in Deed Book 516, page 716. 
 5. Being a portion of the property conveyed by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by deed dated September 13, 2007 recorded in Deed Book 530, page 620,
as Tract 199 
 TRACT 209 - LC#1304-001 T1A 
 Only that portion of the following tract as lies North of the South Right-of-Way of the Western Kentucky Parkway (now Wendell Ford Parkway). 

Beginning at an iron axle the Southeast corner of the “Heck” tract, thence S 81 ° 47’ W with the south line of
“Heck” for 3637.4 feet to a stump; thence N 70° 32’ W for 923.8 feet to a gum; thence N 24° 57’ W for 678.3 feet to a rock; thence N 72° 26’ w for 3,438.3 feet; thence S 17° 04’ W for 2714.6 feet; thence
S 71° 08’ E for 1011.3 feet; thence S 39° 56’ W for 1151.6 feet to an iron axle; thence S 23° 19’ E for 63.2 feet; thence S. 35° 50’ E for 1677.5 feet; thence S 35° 47’ E for 2,159.7 feet; thence N
53° 13’ E for 1725.5 feet to a 3” iron axle; thence S 14° 01’ E for 2547.8 feet to a 3” iron axle; thence N 71° 56’ E for 2,163.7 feet, to a 2” iron axle; thence N 12° 15’ W for 2663.7 feet to a
road; thence N 69° 53’ E for 342.9 feet, S 67° 35’ E for 401.3 feet, s 49° 37’ E for 228.4 feet, thence N 15° 46’ W for 1000.6 feet, thence S 83° 45’ E for 1514.0 feet; thence N 13° 42’ E for
2,573.3 feet to the southeast corner of the church lot, thence N 80° 00’ W for 289.0 feet to a point which is 30 feet east 

  
 2 

 MUHLENBERG COUNTY 
 FF7 PG759
  

 
of the center line of U. S. Highway 62, thence parallel with Highway 62 and 30 feet east of its center line N 36° 10’ E for 70.0 feet, N 28° 50’ E for 75.0 feet, N 21°
25’ E for 95.0 feet, thence leaving the highway s 80° 00’ E for 230.0 feet to a point in the old line, thence with the old line N 13° 42’ E for 370.0 feet to the place of beginning. Containing 916.71 acres more or less.

 Source Of Title 
 1. And being a portion of a 916.71 acre tract identified as “Martwick Tract ‘A’ Minerals” conveyed by Peabody Coal Company to Peabody Development Company by deed dated July 19,
1984, recorded August 31, 1984, in Deed Book 363, page 420. 
 2. Effective December 16, 2003, in 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 Corporation, as shown in Articles of Incorporation Book 14, pages
635 - 638. 
 3. And further being a portion of the property conveyed by Peabody Development Company, LLC to Central States Coal Reserves of
Kentucky, LLC by deed dated December 20, 2005, recorded in Deed Book 516, page 599, as corrected by Deed of Confirmation between Peabody Development Company, LLC and Central States Coal Reserves of Kentucky, LLC by deed dated December 27,
2005, effective December 20, 2005 and recorded in Deed Book 516, page 716. 
 4. Being a portion of the property conveyed by Central States
Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by deed dated September 13, 2007 recorded in Deed Book 530, page 620, as Tract 209 
 Common Source of Title 
 AND BEING the same property conveyed by Cyprus Creek Land
Resources, LLC to Armstrong Coal Company, Inc., by Deed dated December 29, 2011, of record in Deed Book 556, page 412. 
 DOCUMENT NO: 212786 
 RECORDED: January 05, 2012 01:56:42 PM

 TOTAL FEE: $38.00 
 COUNTY CLERK: GAYLAN SPURLIN 
 DEPUTY CLERK: REGINA JONES

 COUNTY: MUHLENBERG COUNTY 

BOOK: FF7 PAGES: 755 - 760 

  
 3 

 

 

 EXHIBIT O 
 TO 
 ASSET PURCHASE AGREEMENT 

Evidence of Cash Payment 
 Wire Transfer $8,870,991.67 

 EXHIBIT P 
 TO 
 ASSET PURCHASE AGREEMENT 

Agreement Relating to 
 Additional Earned Royalty (1%)

 Exhibit P 
 NOT TO BE RECORDED 
 AGREEMENT RELATING TO ADDITIONAL EARNED ROYALTY

 “Deep #9 Coal North of South ROW Line of the Wendell Ford Parkway” 

This AGREEMENT RELATING TO ADDITIONAL EARNED ROYALTY “Deep #9 Coal North of Wendell Ford Parkway”
(“Agreement”) is made and entered into on this the 29th day of December, 2011, by and among: 
 TALMAR, LLC 

A Florida limited liability company authorized to 
 transact and conduct business in the 
 Commonwealth of Kentucky under the name of

 TALMAR OF FL, LLC, with mailing address of 

3975 20th Street, Suite J 
 Vero Beach, Florida 32960 
 Talmage G. Rogers, Jr., Manager 

-and- 
 J. L.
ROGERS FAMILY, LLC 
 A Florida limited liability company authorized to 

transact and conduct business in the 
 Commonwealth of Kentucky, with mailing address of 
 200 Coconut Palm Road

 Vero Beach, Florida 32963 
 James L. Rogers, III, Manager 
 -and- 

JAMES L. ROGERS, III and MARY M. ROGERS, His Wife 
 200 Coconut Palm Road 
 Vero Beach, Florida 32963 

-and- 
 SUE
ROGERS JOHNSON, a Single Woman 
 7380 Wildercliff Drive 

Atlanta, Georgia 30328 
 (hereinafter collectively referred to as “ROGERS”) 
 -AND- 

 

					
	 Rogers 1947 Lease

LC#1542-023-00

LC#1542-066-00

#9 Vein or Seam of Coal

N of the S ROW line of Wendell Ford Parkway

(formerly the Western Kentucky Parkway)

Muhlenberg Co., Ky.
	  	 	12/14/11	  

  
 1 

 CYPRUS CREEK LAND RESOURCES, LLC 

A Delaware limited liability company 
 701 Market Street, Suite 798 
 St. Louis, Missouri 63101 

(hereinafter referred to as “CCLR”). 
 W I T N E S S E T H: 
 WHEREAS, ROGERS and CCLR, through their respective
predecessors in title, are parties to a certain Mineral Lease of coal properties and coal mining rights located in Muhlenberg County, Kentucky (“Leased Premises”), dated December 4, 1947, of record in Deed Book 164, page 525, in the
Office of the Muhlenberg County Clerk, as amended, supplemented, and extended from time to time, (“1947 Mineral Lease”), incorporated herein by reference and made a part hereof, for which the sources of title for ROGERS and CCLR are more
particularly set forth on Addendums 1 and 2 hereto; 
 WHEREAS, ROGERS has granted to CCLR their Consent to Partial Sublease
whereby CCLR intends to partially sublease to Armstrong Coal Company, Inc., a Delaware corporation (“Armstrong Coal”) by Coal Mining Sublease (“Rogers #9 Sublease”) a portion of CCLR’s leasehold estate under the 1947 Mineral
Lease only insofar as it relates to the #9 vein or seam of Coal lying north of the south right-of-way line of the Wendell Ford Parkway (formerly the Western Kentucky Parkway) in Muhlenberg County, Kentucky, as more particularly described on
Exhibit A and depicted on Exhibit B attached hereto and made a part hereof (“Rogers Deep #9 Coal”); 

WHEREAS, in the event and only in the event CCLR consummates the Rogers #9 Sublease, the parties hereto desire to enter into this
Agreement relating to the sublease of the Rogers Deep #9 Coal lying north of the south right-of-way line of the Wendell Ford Parkway subject to the terms and conditions of the 1947 Mineral Lease, as amended, supplemented, and extended from time to
time, upon the following terms and conditions. 
 NOW, THEREFORE, for and in consideration of the mutual covenants and promises
of the parties hereto and in exchange for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the ROGERS and CCLR do hereby covenant and agree as follows: 

1. Recitals. The foregoing recitals and instruments referenced therein are incorporated herein and made a part hereof.

 2. Additional Earned Royalty. For and in additional consideration for the granting of their Consent to Partial
Sublease to CCLR in order that CCLR may enter into the Armstrong Sublease for its contribution of the Rogers Deep #9 Coal to Armstrong Coal, CCLR hereby agrees to pay to ROGERS an additional earned royalty equal to one percent (1.0%) of the
gross proceeds for each ton of Rogers Deep #9 Coal of 2,000 pounds mined, removed, and sold from the #9 Subleased Premises, subject to the 1947 Mineral Lease, as amended, supplemented, and extended, for a total earned royalty of six percent
(6.0%) of the gross proceeds thereunder relating to the Rogers Deep #9 Coal lying north of the south right-of-way of the Wendell Ford Parkway (formerly known as the Western Kentucky Parkway), incorporated herein by reference, described on
Exhibit A and depicted on Exhibit B attached hereto and made a part hereof, for and during the term of the 1947 Mineral Lease, as amended, supplemented, and extended, from time to time. 

  
 2 

 3. Nullified / Voided Agreement. In the event CCLR does not consummate the
Rogers #9 Sublease with Armstrong Coal, then this Agreement shall be null and void and of no further force or effect. The terms and conditions of the 1947 Mineral Lease as amended, supplemented, and extended from time to time, as relates to the
payment of earned royalties last agreed to between CCLR and ROGERS through their respective predecessors in title shall be ratified and confirmed as if this Agreement had not existed. 

4. Binding Effect. This Agreement shall binding upon and inure to the benefit of the parties hereto, their heirs, successors
and assigns. 
 5. Governing Law. This Agreement shall be construed in accordance with the laws of the Commonwealth
of Kentucky. 
 6. Multiple Counterparts. This Agreement may be executed in multiple counterparts each of which shall
be considered an original or which may be conformed into a single document. 
 IN WITNESS WHEREOF, the parties have executed
this Agreement Relating to Additional Earned Royalty “Deep #9 Coal North of Wendell Ford Parkway” on the date first hereinabove written. 
  

							
	ROGERS:	  		  	TALMAR, LLC
				
		  		  	By:	 	/s/ Talmage G. Rogers, Jr.
		  		  		 	Talmage G. Rogers, Jr., Manager
		
	STATE OF FLORIDA	  	)
		  	)
	COUNTY OF INDIAN RIVER	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO, AND ACKNOWLEDGED before me by
Talmage G. Rogers, Jr, Manager, of Talmar, LLC, a Florida limited liability company authorized to transact and conduct business in the Commonwealth of Kentucky under the name of TALMAR OF FL, LLC, personally known to me to be the person whose name
is subscribed above, and having represented to me that he has full power and authority to so execute on its behalf as its free act and deed in due form of law, for the purposes herein stated, on this the 21st day of December, 2011. 

 

	
	/s/ Sybil B. Wilkerson
	Notary Public, Sybil B. Wilkerson
	My commission expires: September 22, 2015
	  
 

  
 3 

 WITNESS, the execution of:  

 

							
	ROGERS:	  		  	J. L. ROGERS FAMILY, LLC
				
		  		  	By:	 	/s/ James L. Rogers, III
		  		  		 	James L. Rogers, III, Manager
		
	STATE OF FLORIDA	  	)
		  	
	COUNTY OF ST LUCIE	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO, AND ACKNOWLEDGED before me by
James L. Rogers, III, Manager of the J. L. Rogers Family, LLC, a Florida limited liability company authorized to transact and conduct business in the Commonwealth of Kentucky, personally known to me to be the person whose name is subscribed above,
and having represented to me that he has full power and authority to so execute on its behalf as its free act and deed in due form of law, for the purposes herein stated, on this the 21st day of December, 2011. 

 

	
	/s/ Ronnie Tippins
	Notary Public, Ronnie Tippins
	My commission expires: 4/7/2013
	  
 

  
 4 

 WITNESS, the execution of:  

 

					
	ROGERS:	  		 	
			
		  		 	 /s/ James L. Rogers, III

		  		 	James L. Rogers, III
			
		  		 	 /s/ Mary M. Rogers

		  		 	Mary M. Rogers, His Wife
		
	STATE OF FLORIDA	  	)
		  	)
	COUNTY OF ST LUCIE	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO, AND ACKNOWLEDGED before me by
James L. Rogers, III, and Mary M. Rogers, his wife, personally known to me to be the persons whose names are subscribed above, as their free act and deed in due form of law, for the purposes herein stated, on this the 21st day of December, 2011. 

 

	
	/s/ Ronnie Tippins
	Notary Public, Ronnie Tippins
	My commission expires: 4/7/2013
	  
 

  
 5 

 WITNESS, the execution of:  

 

					
	ROGERS:	  		 	
			
		  		 	 /s/ Sue Rogers Johnson

		  		 	Sue Rogers Johnson
		
	STATE OF GEORGIA	  	)
		  	)
	COUNTY OF COBB	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO, AND ACKNOWLEDGED before me by Sue Rogers Johnson, a
single woman, personally known to me to be the person whose name is subscribed above, as her free act and deed in due form of law, for the purposes herein stated, on this the 21 day of December, 2011. 

 

			
	

	 	 /s/ Seema Kapoor
 Notary Public, Seema Kapoor
 My commission expires: 28th Feb, 2015

  
 6 

 WITNESS, the execution of:  

 

							
	CCLR:	  		  	CYPRUS CREEK LAND RESOURCES, LLC
				
		  		  	By:	 	/s/ James C. Severn
		  		  	Title:	 	Vice President
		
	STATE OF MISSOURI	  	)
		  	) SS:
	CITY OF ST. LOUIS	  	)

 The foregoing instrument was SUBSCRIBED, SWORN TO, AND ACKNOWLEDGED before me by
James C. Severn as Vice President of Cyprus Creek Land Resources, LLC, a Delaware limited liability company authorized to transact and conduct business in the Commonwealth of Kentucky,, personally known to me to be the person whose name is
subscribed above, and having represented to me that he has full power and authority to so execute on its behalf as its free act and deed in due form of law, for the purposes herein stated, on this the 29th day of December, 2011. 

 

			
	 Elizabeth S. Earnest
 Notary Public — Notary Seal
 State of Missouri

Commissioned for St. Louis City
 My Commission Expires: June 20, 2012
 Commission Number:
08412217
	  	 /s/ Elizabeth S. Earnest
 Notary Public, Elizabeth S. Earnest
 My commission expires: June 20, 2012

  
 7 

 ADDENDUM 1 
 TO 
 AGREEMENT RELATING TO ADDITIONAL EARNED ROYALTY 

“Deep #9 Coal North of Wendell Ford Parkway” 
 ROGERS’ Source of Title 
 1. By deed dated September 11,
1937, recorded in Deed Book 142, page 3, at page 11, Hite H Huffaker, Special Master in Chancery, U.S. District Court for the Western District of Kentucky in Cause No. 715 entitled “20 South Main Street Corporation v. Gibraltar Coal
Mining Company” conveyed on behalf of the parties to this lawsuit and J. A Smith and D. B. Cornett, coal receivers of Gibraltar Coal Mining Company in bankruptcy numerous tracts and estates (less oil & gas) to James L. Rogers.

 2. James L. Rogers died testate a resident of Muhlenberg County, Kentucky where his will was proven on January 27,
1945 and is recorded in Will Book 5, page 617. Pursuant to the terms of his will, he devised his property to his sons, T. G. Rogers and J. L. Rogers, Jr., equally. 
 3. By lease dated December 7, 1947, recorded December 20, 1947, in Deed Book 164, page 525, James L Rogers, Jr, and Anne F. Rogers, his wife, and Talmage G. Rogers and Martha F. Rogers, his
wife, demised to Ayrshire Collieries Corporation numerous tracts and estates. 
 T. G. Rogers’ 1/2 Interest

 4. As proven by Affidavit of Descent dated February 9, 1948, recorded in Deed Book 165, page 205, T. G. Rogers
died intestate on January 29, 1948 and left surviving him his wife, Martha F. Rogers, who inherited a dower interest, which terminated at her death on January 1, 1976, and two children: Martha Ann Rogers (Poulos) Haas and Talmage G.
Rogers, Jr., each of whom inherited an undivided 1/2 interest of 1/2. By unrelated document, it is determined that Martha F. Rogers died January 1, 1976, thus terminating her dower interest. 

5. Martha Ann (Rogers) Haas, a widow, by deed dated May 8, 2003, recorded June 4, 2003, in Deed Book 496, page 501,
conveyed her interest in the subject tract to Martha Rogers Haas, Trustee of the Martha Rogers Haas 1996 Revocable Trust dated September 14, 1996. 
 6. By deed dated May 3, 2011, recorded in Deed Book 553, page 92, Martha Rogers Haas, Trustee of the Martha Rogers Haas 1996 Revocable Trust conveyed to Talmar, LLC, a Florida limited liability
company, doing business in Kentucky as TALMAR OF FL, LLC, all of their combined right, title and interest in and to coal and coal mining rights and privileges in Muhlenberg County, Kentucky. 

7. By deed dated May 3, 2011, recorded in Deed Book 553, page 57, and Talmage G. Rogers, Jr. and Jean M. Rogers, His Wife,
conveyed to Talmar, LLC, a Florida limited liability company, doing business in Kentucky as TALMAR OF FL, LLC, all of their combined right, title and interest in and to the coal and coal mining rights and privileges in Muhlenberg County, Kentucky.

  
 8 

 J. L. Rogers, Jr’s 1/2 Interest 

8. By deed dated April 30, 1956, recorded December 14, 1956, in Deed Book 200, page 45, J. L. Rogers, Jr. and wife, Anne F
Rogers, conveyed to Wm. P. Donan, Trustee: 
 “an undivided 1/2 interest in an undivided 1/2 interest (being an undivided
1/4 interest thereof)” 
 of “all the coal and minerals” in 4 descriptions, one of which is described as that real estate
conveyed (Tract 2) to J. L. Rogers, Trustee, by Hite K Huffaker, Special Master in Chancery, for Gibraltar Coal Mining Company by deed dated September 11, 1937, recorded in Deed Book 143, page 3. This deed and trust instrument is for the
benefit of their children, James L. Rogers, III, and Sue Rogers, until they each reach the age of 21 years at which time they take free of trust. 
 This instrument contains the following mineral reservation: 
 There is reserved
from Parcel II, Tracts #1, 2, 3 and 4, all of the coal except the #9 vein of coal. There is also reserved and not conveyed herein, all the #9 coal that is strippable and covered in the coal lease from Talmage G Rogers, et al to Ayrshire Collieries
Corporation, dated December 4, 1947 and of record in Deed Book 164, page 525, in the office aforesaid, to which reference is hereby made for a more specific description of the #9 coal excluded from this conveyance. 

9. By identically worded deeds: 
  

	 	(a)	Dated November 25, 1958, recorded October 2, 1859, in Deed Book 212, page 175; 

 

	 	(b)	Dated October 1, 1959, recorded October 2, 1859, in Deed Book 212, page 177; 

 

	 	(c)	Dated January 1, 1960, recorded January 12, 1960, in Deed Book 213, page 430; and 

 

	 	(d)	Dated January 1, 1961, recorded January 11, 1961, in Deed Book 221, page 421, 

J. L. Rogers, Jr. and wife, Anne F Rogers, conveyed to Wm. P. Donan, Trustee: 

“an undivided 1/8 interest in an undivided 1/2 (being an undivided 1/16 interest thereof)” 

in those real estate interests acquired by J. L. Rogers from Hite H. Huffaker, Special Master, by deed dated September 11, 1937, recorded in Deed
Book 143, page 3. Each of these four conveyances contains the identical reservation set forth in paragraph 6. 
 10. By
deed dated June 13, 1962, recorded June 19, 1962, in Deed Book 229, page 302, Wm P. Donan, Trustee, conveyed to James L. Rogers, III, and Sue Ford Grable (nee Rogers) an undivided 1/4 interest each of the interest he held as Trustee.

  
 9 

 11. James Lloyd Rogers, Jr. died testate July 6, 1968 a resident of Florida. On
July 13, 1968, daughter, Sue R, Grable, filed an authenticated copy of the will and the Muhlenberg County Court ordered an ancillary probate in Muhlenberg County. The Will is of record in Will Book 10, page 116. William P Donan was appointed
ancillary administrator on July 13, 1968, County Court Order Book 36, page 254. On June 30, 1971, County Court Order Book 38, page 254, the estate was settled. 
 12. By deed dated June 18, 1971, recorded June 22, 1971, in Deed Book 283, page 168, William Donan, Ancillary Administrator with the will annexed of the estate of James L. Rogers, Jr.
conveyed to James L. Rogers, III, Testamentary Trustee under the will of James L Rogers, Jr. an undivided 1/2 interest of the 1/2 interests owned by the decedent James L. Rogers, Jr at the time of his death. In this conveyance, page 175, heading
“Brownie Holt, Brownsville and Mercer”, the parcels acquired from Gibraltar Coal Mining Company are conveyed to Grantee, subject to the following exceptions: 
 “(16) An undivided % interest in an to the deep coal of the #9 vein of coal and all the minerals except coal as set out in Parcel II (2) in the deed from J. L. Rogers, Jr., et ux, to Wm., P.
Donan, Trustee, dated April 30,1956, and of record in Deed Book 200, page 45 
 (17) An undivided 1/16 interest in and
to the deep coal of the #9 vein of coal and all the minerals except coal as set out in Parcel I (2) in the deed from J. L. Rogers, Jr., et ux, to Wm. P. Donan, Trustee, dated November 25, 1958, and of record in Deed Book 212, p. 175.

 (18) An undivided 1/16 interest in and to the deep coal of the #9 vein of coal and all the minerals except coal as set
out in Parcel I (2) in the deed from J. L Rogers, Jr, et ux, to Wm P Donan, Trustee, dated October 1, 1959, and of record in Deed Book 212, page 177. 
 (19) An undivided 1/16 interest in and to the deep coal of the #9 vein of coal and all the minerals except coal as set out in Parcel I (2) in the deed from J. L. Rogers, Jr., et ux, to Wm P.
Donan, Trustee, dated January 1, 1960, and of record in Deed Book 213, page 430 
 (20) An undivided 1/16 interest in
and to the deep coal of the #9 vein of coal and all the minerals except coal as set out in Parcel I (2) in the deed from J. L Rogers, Jr., et ux, to Wm. P. Donan, Trustee, dated January 1, 1961 and of record in Deed Book 221, page
421.” 
 13. By deed dated June 18, 1971, recorded in Deed Book 283, page 204, William P. Donan, Ancillary
Administrator with the will annexed of the estate of James L. Rogers, Jr. conveyed to Anne F. Rogers an undivided 1/2 interest of the 1/2 interests owned by the decedent James L Rogers, Jr. at the time of his death. This instrument contains the
identical exceptions set forth in the preceding paragraph. 
 14. Anne F. Rogers died testate April 22, 1988 a
resident of Indian River County, Florida, where her November 15, 1976 will was proven on May 18, 1988 and subsequently filed in Muhlenberg County on June 13, 1988, recorded in Will Book 24, page 1. Pursuant to Item 3, her real
property was divided equally between her children, James L. Rogers, III, and Sue Rogers Johnson. 
 15. By deed dated
May 8, 1991, recorded in Deed Book 407, page 64, James R. Rogers, III, et ux; Sue R. Johnson, et vir; James L, Rogers, HI; and Sue R. Johnson as ancillary administrator/trix of the Estate of Anne F. Rogers, deceased, conveyed to James L Rogers,
III, Trustee of the James L Rogers, Jr Testamentary Trust: 
 “all of the surface, and mineral interests Anne F. Rogers had
received by deed from Wm. P Donan, ancillary administrator of the Estate of James L. Rogers, Jr.” 

  
 10 

 16. By deed dated April 29, 2011, of record in Deed Book 552, page 778, James L.
Rogers, III, Trustee of the James L. Rogers, Jr. Testamentary Trust conveyed to J. L. Rogers Family, LLC, a Florida limited liability company authorized to transact business in Kentucky, all of its right, title and interest in and to coal and coal
mining rights and privileges in Muhlenberg County, Kentucky. 
 END OF ADDENDUM 1 

  
 11 

 ADDENDUM 2 
 TO 
 AGREEMENT RELATING TO ADDITIONAL EARNED ROYALTY 

“Deep #9 Coal North of Wendell Ford Parkway” 
 CCLR’s Source of Title 
 1. By Mineral Lease dated December 4,
1947, recorded in Deed Book 164, page 525, Talmage G. Rogers, et al, leased to Ayrshire Collieries Corp. numerous tracts of properties consisting of both surface and mineral, surface only, coal only, and partial interests in such estates. By mesne
instruments, the mineral lease dated December 4, 1947 has been amended and supplemented (“1947 Mineral Lease”). 

2. By “Notice” dated February     , 1950, recorded September 30, 1969, in Deed Book 273,
page 269, J. L. Rogers, Jr., et al, gave notice to Ayrshire Collieries that certain properties were being added to the demised premises of the 1947 Mineral Lease. 

3. By “Third Supplement” dated January 1, 1966, recorded September 25, 1974, in Deed Book 304,
page 439, Martha F. Rogers, widow; Martha R. Poulos, et vir; T. G. Rogers, Jr., et ux; J. L. Rogers, III, et ux; and Sue Grable, et vir leased to Ayrshire Collieries “the deep #9 vein of coal excepted by Rogers, et al, under the 3rd paragraph on page 2 of the original lease owned by Lessors contained
in the demised premises”. 
 4. By unrecorded instrument entitled “Notice of Extension of Lease” dated
November 1, 1967, Ayrshire Collieries Corporation gave notice to J. L. Rogers, et al, “pursuant to the provisions of said Third Supplemental Agreement has elected to elected to exercise its right to extend said lease for one
(1) additional 20-year period or term, that is, until December 3, 1987.” 
 5. By “Supplemental
Agreement” dated November 30, 1967, recorded September 25, 1974, in Deed Book 304, page 453, the initial term of the “deep #9 vein of coal” as demised by Deed Book 304, page 439, was extended until December 3, 1987, and
was to run concurrent with the term of the 1947 Mineral Lease. 
 6. By instrument dated October 20, 1969, recorded
December 18, 1969, in Articles of incorporation Book 6, page 211, Ayrshire Collieries Corporation was merged into American Metal Climax, Inc. 
 7. By instrument dated June 15, 1974, recorded October 4, 1974, in Articles of Incorporation Book 8, page 73, American Metal Climax, Inc. changed its name to Amax, Inc. 

8. By “Partial Release of Coal Mining Lease” dated October 16, 1987, recorded in Deed Book 386, page 127, Talmage G.
Rogers, Jr., et al, and Ayrshire Collieries Corporation mutually released a portion of the 1947 Mineral Lease by metes and bounds description of 768.11 acres and 15.56 acres. The Release terminated approximately 11.1 acres of Rogers Parcel 227; 16
acres of Rogers Parcel 238 and 25.7 acres of Rogers Parcel 239. 

  
 12 

 9. By Assignment dated October 19, 1987, recorded in Deed Book 384, page 712, Amax,
Inc., assigned to Peabody Coal Company, a partial interest in the 1947 Mineral Lease (“Partial Interest in Mineral Lease”). 
 10. By deed dated September 12, 1989, recorded in Deed Book 389, page 37, Peabody Coal Company, a Delaware corporation, assigned to Peabody Development Company, a Delaware corporation, the Partial
Interest in Mineral Lease. See also Deed of Confirmation dated December 20, 2005, effective September 12, 1989, Deed Book 516, page 502. 
 11. By instrument dated August 30, 1991, recorded October 21, 1991, in Deed Book 410, page 98, Martha Haas, et al, consented to the assignment by Peabody Coal Company, a Delaware corporation, of
the Partial Interest in Mineral Lease to Peabody Development Company, a Delaware corporation. 
 12. By unrecorded instrument
dated October 26, 1992, entitled “Amendment to Leases”, Martha Anne Rogers Haas, et al, contracted with Peabody Development Company, a Delaware corporation, for an amendment to the Partial Interest in 1947 Lease as previously amended
by “Third Supplement Agreement” dated January 8, 1957 to define gross sales realization to include amounts received by lessee from its customers and payment of state severance tax, federal black lung and federal reclamation or SMCRA
taxes imposed on the coal removed from the demised premises. 
 13. Effective December 16, 2003, Peabody Development
Company, a Delaware corporation, converted and changed its name to Peabody Development Company, LLC, a Delaware limited liability corporation, as shown in Articles of Incorporation Book 15, page 635. 

14. Effective July 11, 2005, Peabody Coal Company, a Delaware corporation, pursuant to Section 266 of the Delaware General
Corporation Law, converted and changed its name to Peabody Coal Company, LLC, a Delaware limited liability company, as shown in Articles of Incorporation Book 15, page 59. 
 15. By “Deed of Confirmation” dated December 20, 2005, effective September 12, 1989, recorded December 28, 2005, in Deed Book 516, page 502, Peabody Coal Company, LLC, a Delaware
limited liability company, confirmed the assignment of the Partial Interest in 1947 Mineral Lease to Peabody Development Company, LLC, a Delaware limited liability company. 
 16. By deed dated December 20, 2005, recorded December 28, 2005, in Deed Book 516, page 590, Peabody Coal Company, LLC, a Delaware limited liability company, assigned to Peabody Development
Company, LLC, a Delaware limited liability company, the Partial Interest in the 1947 Mineral Lease. 
 17. By deed dated
December 20, 2005, recorded December 28, 2005, in Deed Book 516, page 599, Peabody Development Company, LLC, a Delaware limited liability company, conveyed to Central States Coal Reserves of Kentucky, LLC, a Delaware limited liability
company, all of its real property located in Muhlenberg County, Kentucky, to include the Partial Interest in the 1947 Mineral Lease. 
 18. By “Deed of Confirmation” dated December 27, 2005, effective December 20, 2005, recorded December 28, 2005, in Deed Book 516, page 527, Peabody Development Company, LLC, a
Delaware limited liability company, confirmed its conveyance to Central States Coal Reserves of Kentucky, LLC, a Delaware limited liability company, dated December 20, 2005, recorded in Deed Book 516, page 599. 

  
 13 

 19. By “Consent to Assignment and Assumption” dated February 27, 2006,
recorded in Deed Book 518, page 331, Talmage G. Rogers, Jr., et al, consented to the assignment and assumption by Peabody Development Company, LLC of the Partial Interest in the 1947 Mineral Lease to Central States Coal Reserves of Kentucky, LLC, a
Delaware limited liability company. 
 20. By “Mutual Partial Release” effective February 27, 2006, recorded in
Deed Book 518, page 355, Talmage G. Rogers, Jr., et al, and Central States Coal Reserves of Kentucky, LLC, a Delaware limited liability company, mutually released “the strippable #9 vein of coal and all coals lying above the strippable #9 vein
and all mining rights relating thereto” of Rogers Coal Parcel 214 from its Partial Interest in the 1947 Mineral Lease. 

21. By “Mutual Partial Release” effective February 27, 2006, recorded in Deed Book 518, page 365, Talmage G. Rogers, Jr.,
et al, and Central States Coal Reserves of Kentucky, LLC, mutually released in its entirety Rogers Coal Parcel 308 and a 16.9 acre portion of Rogers Parcel 209 and a 5.3 acre portion of Rogers Parcel 310 from Central States Coal Reserves of
Kentucky’s Partial Interest in the 1947 Mineral Lease. 
 22. By “Partial Assignment and Assumption of Mineral
Lease” dated December 12, 2006, recorded in Deed Book 524, page 523, and by “Amended and Restated Partial Assignment of Leasehold Estate” dated April 17, 2007, effective December 12, 2006, recorded in Deed Book 527,
page 186, Central States Coal Reserves of Kentucky, LLC, assigned to Western Land Company, LLC, and Western Land Company, LLC, a part of Central States Coal Reserves of Kentucky’s Partial Interest in 1947 Mineral Lease, such assignment being
“the deep #9 Coal and coal mining rights” to portions of Rogers Tracts 237, 200, 204 and 214 and all of Rogers Tracts 213, 221, 201, 223 and 222. 
 23. By “Amendment and Extension of Mineral Lease” dated April 25, 2007, a Memorandum of which is recorded in Deed Book 527, page 410, Talmage G. Rogers, Jr., at al, and Central States Coal
Reserves of Kentucky, LLC, amended and extended its Partial Interest in 1947 Mineral Lease, inter alia, to extend the initial term through December 3, 2027. 
 24. By unrecorded Agreement Relating to Additional Advance Royalties “Deep #9 Coal North of Western Kentucky Parkway” dated May 3, 2007, the Rogers and Central States Coal Reserves of
Kentucky, LLC agreed to additional monthly minimum advance royalties under the terms and conditions of the 1947 Mineral Lease with respect to the Deep #9 Coal lying north of the Western Kentucky Parkway (now Wendell Ford Parkway) upon the terms and
conditions more particularly set forth therein. 
 25. By “Assignment and Assumption of Partial Interest In Mineral
Lease” dated August 31, 2007, of record in Deed Book 531, page 227, 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 its Partial Interest in the 1947 Mineral Lease. 
 26. By unrecorded Consent to Assignment and Assumption of Partial
Interest in Mineral Lease dated October 3, 2007, between Talmage G. Rogers, Jr., et al, as “LESSORS” consented to the assignment of a partial interest in the 1947 Mineral Lease by Central States Coal Reserves of Kentucky to Cyprus
Creek Land Resources, LLC. 

  
 14 

 27. By unrecorded Consent to Partial Sublease dated , 2011, between Talmar, LLC,
et al, as “Lessors” therein consent to the assignment of a partial interest in the 1947 Mineral Lease by Cyprus Creek Land Resources, LLC to Armstrong Coal Company, Inc. of only the Deep #9 Coal lying north of the south right-of-way line
of the Wendell Ford Parkway (formerly known as the Western Kentucky Parkway). 
 END OF ADDENDUM 2 

  
 15 

 EXHIBIT A 
 TO 
 AGREEMENT RELATING TO ADDITIONAL EARNED ROYALTY 

“Deep #9 Coal North of Wendell Ford Parkway” 
 (All references to Muhlenburg County Clerk’s office) 
 Only so much of the Rogers Deep
#9 Coal in, on, and underlying the following tracts as lie north of the south right-of-way line of the Wendell Ford Parkway (formerly known as the Western Kentucky Parkway): 

 

															
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote	  	 Comment

	 1
	  	R200	  	2699-011 Rogers 200	  	UNK	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2	  	
	 2
	  	R202	  	2699-011 Rogers 202	  	265.2	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	 3
	  	R203	  	2699-011 Rogers 203	  	4.6	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
	 4
	  	R204	  	2699-011 Rogers 204	  	UNK	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2	  	
	 5
	  	R205	  	2699-011 Rogers 205	  	158.8	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
	 6
	  	R206	  	2699-011 Rogers 206	  	24	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	 7
	  	R207	  	2699-011 Rogers 207	  	198	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
	 8
	  	R208	  	2699-011 Rogers 208	  	36.1	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
	 9
	  	R212	  	2699-011 Rogers 212	  	110.7	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
	 10
	  	NONE	  	2699-011 Rogers 214	  	UNK	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2	  	 Coal under R242
 and
R241

	 11
	  	R217	  	2699-011 Rogers 217	  	235	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
	 12
	  	R225	  	2699-011 Rogers 225	  	60	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	 13
	  	R227	  	2699-011 Rogers 227	  	28	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	 14
	  	R228	  	2699-011 Rogers 228	  	71.82	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	
	 15
	  	R229	  	2699-011 Rogers 229	  	68.58	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	

  
 16 

															
	 	  	Map No	  	 LC#
	  	Acres	  	DB/P	  	Date	  	Footnote	  	 Comment

	 16
	  	R237-2	  	2699-011 Rogers 237-2	  	329	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	3	  	
	 17
	  	R238	  	2699-011 Rogers 238	  	40	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	4	  	
	 18
	  	R241	  	2699-011 Rogers	  	14.2	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2,4	  	See also R214
	 19
	  	R242	  	2699-011 Rogers 242	  	22	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	1,2,4	  	See also R214
	 20
	  	R316	  	2699-011 Rogers 316	  	139.5	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  	2	  	
	 21
	  	R317	  	2699-011 Rogers 317	  	142.8	  	4/18/97
 518/343
	  	1/6/93
 2/27/06
	  		  	

 Schedule of Known Exception 

 

			
	 Footnote
	  	 Description

	1	  	Less and except that portion lying south of the south Right of Way of the Wendell Ford Parkway, formerly the Western Kentucky Parkway, assigned by Central States Coal Reserves of
Kentucky, LLC to Western Land Company, LLC by Assignment dated December 12, 2006, of record in Deed Book 524, page 523.
		
	2	  	Subject to Right of Way and/or ownership in the Commonwealth of Kentucky for the Wendell Ford Parkway, formerly the Western Kentucky Parkway, dated December 10, 1962, of record
in Deed Book 232, page 558.
		
	3	  	Subject to Right of Way for the P&L Railroad, formerly I. C. Railroad
		
	4	  	Tract also lies within the boundary of Rogers Tract 214.

 Source of Title 
 Rogers Tracts LC#2699-011 
  

	1.	AND BEING a portion of the property assigned by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC by Deed dated August 31, 2007, of
record in Deed Book 531, page 227. 

  

	2.	By unrecorded Consent to Assignment and Assumption of Lease dated October 3, 2007, Martha Rogers Haas 1996 Revocable Trust, Talmage G. Rogers, et al, consented to
the partial assignment and assumption by Central States Coal Reserves of Kentucky, LLC to Cyprus Creek Land Resources, LLC. 

 END OF EXHIBIT A 

  
 17 

 EXHIBIT B 
 TO 
 AGREEMENT RELATING TO ADDITIONAL EARNED ROYALTY 

“Deep #9 Coal North of Wendell Ford Parkway” 
 Map 

  
 18 

 

 

 EXHIBIT Q 
 TO 
 ASSET PURCHASE AGREEMENT 

Formation and Transfer Agreement 

 FORMATION AND TRANSFER AGREEMENT 

THIS FORMATION AND TRANSFER AGREEMENT (this “Agreement”) is made, entered into and effective as of
the 29th day of December, 2011 by and among Cyprus
Creek Land Resources, LLC, a Delaware limited liability company with principal offices at 701 Market Street, Suite 798, St. Louis, Missouri 63101 (“Cyprus”) and Cyprus Creek Land Company, a Delaware corporation with its
offices at 701 Market Street, Suite 772, St. Louis, Missouri 63101; and Armstrong Coal Company, Inc., a Delaware corporation with principal offices at 7733 Forsyth Boulevard, Suite 1625, St. Louis, Missouri 63105 (herein
“Armstrong”), and Western Land Company, LLC, a Kentucky limited liability company with its office at 407 Brown Road, Madisonville, Kentucky 42431. 
 RECITALS 
 A. Cyprus and Armstrong desire to form a limited
liability company under the laws of the State of Delaware and intend to enter into a Certificate of Formation and a Limited Liability Company Agreement, as described herein (collectively, the “Organization Documents”), to form the proposed
limited liability company under the name Survant Mining Company, LLC (herein the “Company”). The parties acknowledge and ratify the filing of the Certificate of Formation for the Company on November 29, 2011 with the Secretary of
State of Delaware. 
 B. Cyprus and Armstrong desire to set out in this Agreement the documents and procedures to be taken
in connection with the formation of the Company and the fulfillment of the initial capital contributions and scheduled capital contributions to the Company as further described in the Organization Documents. 

C. The parties to this Agreement further desire to set out in this Agreement (i) certain conditions to the closing of the
formation of the Company and the completion of the initial capital contributions and scheduled capital contributions, and (ii) certain other terms, provisions, representations and warranties relating to the formation of the Company and the
assets comprising the initial capital contributions and scheduled capital contributions to the Company. 
 D. Cyprus Creek
Land Company is an affiliate of Cyprus and desires to join in the execution of this Agreement for the purpose of acknowledging its agreement to join in the execution of the Conveyance Documents. 

E. Western Land Company, LLC is an affiliate of Armstrong and desires to join in the execution of this Agreement for the purpose of
acknowledging its agreement to join in the execution of the Conveyance Documents. Pursuant to Section 4 of that certain Royalty Deferment and Option Agreement dated October 11, 2011, Western Mineral Development, LLC is contractually
obligated to quitclaim its interests in the Armstrong Assets to Western Land Company, LLC. 
 AGREEMENT 

In consideration of the foregoing Recitals which are incorporated herein, the mutual covenants contained in this Agreement and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows: 
 12/28/11 

  
 1 

 1. Definitions. As used herein, the following terms shall have the following
meanings: 
 1.1 Agreement: This Formation and Transfer Agreement, including all exhibits hereto. 

1.2 Armstrong: Armstrong Coal Company, Inc., a Delaware corporation. 

1.3 Armstrong Assets: As defined in Section 4.2. 
 1.4 Armstrong Representations and Warranties: As defined in Section 9. 

1.5 Closing: As defined in Section 8. 
 1.6 Closing Agenda: As defined in Section 7. 
 1.7 Closing Date:
As defined in Section 8. 
 1.8 Closing Documents: As defined in Section 7. 

1.9 Company: Survant Mining Company, LLC, a Delaware limited liability company to be formed pursuant to the terms of this
Agreement. 
 1.10 Conveyance Documents: The deeds, leases, subleases, agreements and instruments listed on
Schedule 1 attached hereto, substantially in the forms attached hereto but with such modifications that are reasonably requested by either party that do not alter in any material respect the nature or extent of the Scheduled Capital
Contributions or the substantive rights of the parties pursuant to the Organization Documents. 
 1.11 Cyprus: Cyprus
Creek Land Resources, LLC, a Delaware limited liability company. 
 1.12 Cyprus Assets: As defined in Section 4.1.

 1.13 Cyprus Representations and Warranties: As defined in Section 10. 

1.14 Indemnity Claim: As defined in Section 11.2. 
 1.15 Initial Capital Contributions: The Initial Capital Contributions described in Section 4. 
 1.16 Members: Cyprus and Armstrong and their respective successors, if any, under the Organization Documents. 
 1.17 Notices: As defined in Section 13.7. 
 1.18 Organization
Documents: As defined in Recital A. 
 1.18 Scheduled Capital Contributions: The Scheduled Capital Contributions
described in Section 4. 

  
 2 

 2. Formation of the Company. Subject to the terms and conditions of this
Agreement, Cyprus and Armstrong hereby agree to form the Company under the laws of the State of Delaware, and further agree to make their respective Initial Capital Contributions and Scheduled Capital Contributions to the Company as described in
Section 4. The Company shall be established upon the execution of the Limited Liability Company Agreement attached hereto as Exhibit A. The terms of the Organization Documents shall govern the rights, interests, duties and obligations of
the Members relative to the Company, and shall govern over any conflicting provisions contained in this Agreement. 

3. Members’ Interest in the Company. Upon the Closing and formation of the Company, Armstrong shall have a member
interest in the Company of 51% and Cyprus shall have a member interest in the Company of 49%, as further set forth in, and governed by the terms of, the Limited Liability Company Agreement. 

4. Initial Capital Contributions and Scheduled Capital Contributions to the Company. Subject to the terms and provisions of
this Agreement and upon the fulfillment of the conditions precedent set out or described in Section 6 and the execution of the Organization Documents by both Members, (a) each Member shall, upon execution of the Organization Documents by
both members, make its initial capital contribution to the Company of $30,000.00 in cash (the “Initial Capital Contributions”), and (b) on the milestone dates set forth in the “Contribution Schedule” attached as
Exhibit A to the Limited Liability Company Agreement (the “Contribution Schedule”), each Member shall make their respective additional contributions of property as indicated in the Contribution Schedule (collectively, the
“Scheduled Capital Contributions”). 
 4.1 Scheduled Capital Contribution by Cyprus. Cyprus shall contribute to
the Company, by means of the applicable Conveyance Documents, those assets, agreements and interests in real property described on the Contribution Schedule (“Cyprus Assets”), consisting primarily of coal reserves and property rights
located in Muhlenberg County, Kentucky. The parties agree that the fair market value of the Cyprus Assets is $44,492,000.00. Cyprus Creek Land Company hereby agrees to join in the execution of the Conveyance Documents. 

4.2 Scheduled Capital Contribution by Armstrong. Armstrong shall contribute to the Company, by means of the applicable Conveyance
Documents, those assets, agreements and interests in real property described on the Contribution Schedule (the “Armstrong Assets”). The parties agree that the fair market value of the Armstrong Assets is $46,308,000.00. Western Land
Company, LLC hereby agrees to join in the execution of the Conveyance Documents. 
 5. Closing. The Closing of the
transactions contemplated by this Agreement shall be conducted in accordance with Section 8 hereto and the operations of the Company shall commence as of the Closing Date. 
 6. Conditions Precedent to Formation. The obligations of both Cyprus and Armstrong to execute (or cause the execution of) the Organization Documents and make, or cause to be made, the Initial
Capital Contributions and complete the other transactions described in this Agreement are subject to the completion of all of the items comprising the Closing Agenda, or the mutual waiver by Cyprus and Armstrong of completion of any items not so
completed. It is a further condition each party’s obligation to close the transactions set forth in this Agreement that all representations and warranties made by the other party in Subsection 9 and 10 respectively remain true and accurate as
of the Closing Date. 

  
 3 

 7. Closing Agenda. The contribution by the Company Members of their respective
Initial Capital Contributions, and the completion of the other transactions set forth herein, shall be effected by the execution and delivery of all the documents listed on Schedule 7 to this Agreement and such other documents as are necessary
or desirable in connection therewith or which are otherwise referred to in this Agreement (the “Closing Documents”). The Closing Documents shall be in form and substance acceptable to both Cyprus and Armstrong and shall be consistent with
the terms of this Agreement. Cyprus and Armstrong acknowledge that included within the Closing Documents are certain third-party consents, certificates, opinions and approvals. The parties agree to cooperate and proceed diligently with the
acquisition of such third-party items, but do not waive the requirement that all Closing Documents, including the third-party consents listed in the Closing Documents, be obtained or be hereafter waived in writing by Cyprus and Armstrong as a
condition to Closing. All of the activities described in this Section 7 are collectively described as the “Closing Agenda.” 
 8. Closing Date. The parties shall proceed diligently with the preparation of the Closing Documents, and the fulfillment of the other conditions precedent set out in Section 6, so that
the formation and effectiveness of the Company, and the completion of the Initial Capital Contributions by the Company Members (collectively, the “Closing”) occurs on or prior to December 29th, 2011 (the “Closing Date”). If the Closing does not occur
by the Closing Date for any reason, and the Closing is not extended by the mutual agreement of Cyprus and Armstrong, then this Agreement shall terminate and be null and void and of no further force or effect. 

9. Representation and Warranties of Armstrong. Armstrong hereby represents and warrants to Cyprus as follows, which
representations and warranties constitute a material inducement to Cyprus’s entering into this Agreement, and performing hereunder, including, without limitation, making its Initial Capital Contribution and Scheduled Capital Contributions. The
representations and warranties of Armstrong set forth herein or in any of the Closing Documents (collectively the “Armstrong Representations and Warranties”) shall be deemed to be remade as of the Closing and shall survive the Closing,
including the execution and delivery of the Closing Documents. 
 9.1 Due Organization. Armstrong is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware, has the power and authority to own its property and carry on its business as owned and carried on as of the date hereof. 

9.2 Due Authorization. Armstrong has the requisite power and authority to execute and deliver this Agreement and the Closing
Documents to which it is a party and to perform its obligations hereunder and thereunder. The execution, delivery, and performance of this Agreement and the Closing Documents to which Armstrong is a party have been duly authorized by Armstrong. This
Agreement has been, and the Closing Documents when executed and delivered by Armstrong will be, duly executed and delivered by Armstrong. This Agreement constitutes, and the Closing Documents when so executed shall constitute, the legal, valid and
binding obligations of Armstrong enforceable in accordance with their respective terms. 

  
 4 

 9.3 No Conflict with Restrictions; No Default. Neither the execution, delivery or
performance of this Agreement or the Closing Documents by Armstrong shall: (i) conflict with, violate or result in a breach of any of the terms, conditions or provisions of any law, regulation, order, writ, injunction, decree, determination or
award of any court, any governmental department, board, agency or instrumentality, domestic or foreign, or any arbitrator which are applicable to Armstrong; (ii) conflict with or violate any of the terms, conditions or provisions of the
certificate of incorporation of Armstrong; or (iii) result in the creation or imposition of any lien upon the Company (except the pledge of members interests in favor of PNC Bank, as contemplated in the Limited Liability Company Agreement) or
any of the Armstrong Assets. 
 9.4 Governmental Authorizations and Third-Party Consents. There is no registration,
declaration or filing with, or consent, approval, license, permit or authorization or order by any governmental or regulatory authority, domestic or foreign, or by any third party which is required in connection with the valid execution, delivery
and acceptance by Armstrong of this Agreement or the Closing Documents that has not been obtained. 
 9.5 Permittee
Status. Armstrong represents and warrants that, to Armstrong’s knowledge, neither it nor any of its owners, nor any entity owned or controlled by any of its owners, has been notified by any state or federal agency that any of the entities
listed above is ineligible to receive coal mining permits in any state. 
 9.6 Litigation. Except as disclosed on
Schedule 9.6 to this Agreement, there are no claims, actions, suits, proceedings or investigations pending before or being conducted by any court, government officer or agency, or arbitrator relating to Armstrong which could reasonably be
expected to materially affect Armstrong’s ability to enter into this Agreement, to complete the actions contained in the Closing Agenda, or to make its Initial Capital Contribution. To the best of the knowledge of Armstrong, no such claims,
actions, suits, proceedings or investigations are threatened. 
 10. Representation and Warranties of Cyprus. Cyprus
hereby represents and warrants to Armstrong as follows, which representations and warranties constitute a material inducement to Armstrong entering into this Agreement and making its Initial Capital Contribution and Scheduled Capital Contributions.
The representations and warranties of Cyprus set forth herein or in any of the Closing Documents (collectively the “Cyprus Representations and Warranties”) shall be deemed to be remade as of the Closing and shall survive the Closing,
including the execution and delivery of the Closing Documents. 
 10.1 Due Formation. Cyprus is a Delaware limited
liability company and has the power and authority to own its property and carry on its business as owned and carried on as of the date hereof. 
 10.2 Due Authorization. Cyprus has the power and authority to execute and deliver this Agreement and to perform its obligations hereunder and thereunder. The execution and delivery of this
Agreement has been duly authorized by its sole member. This Agreement has been, and the Closing Documents when authorized, executed and delivered by Cyprus will have been, duly executed and delivered by Cyprus. This Agreement constitutes, and the
Closing Documents when so executed shall constitute, the legal, valid and binding obligations of Cyprus enforceable in accordance with their respective terms. 

  
 5 

 10.3 No Conflict With Restrictions; No Default. Neither the execution, delivery or
performance of this Agreement or the Closing Documents by Cyprus shall: (i) conflict with, violate or result in a breach of any of the terms, conditions or provisions of any law, regulation, order, writ, injunction, decree, determination or
award of any court, any governmental department, board, agency or instrumentality, domestic or foreign, or any arbitrator which are applicable to Cyprus; (ii) conflict with or violate any of the terms, conditions or provisions of the
organizational agreements of Cyprus; or (iii) result in the creation or imposition of any lien upon the Company or any of the Cyprus Assets. 
 10.4 Governmental Authorizations and Third-Party Consents. There is no registration, declaration or filing with, or consent, approval, license, permit or authorization or order by any governmental
or regulatory authority, domestic or foreign, or by any third party which is required in connection with the valid execution, delivery or acceptance by Cyprus of this Agreement or the Closing Documents that has not been obtained. 

10.5 Permittee Status. Cyprus represents and warrants that, to its knowledge, neither it nor any of its owners, nor any entity
owned or controlled by any of its owners, has been notified by any state or federal agency that any of the entities listed above is ineligible to receive coal mining permits in any state. 

10.6 Litigation. Except as disclosed on Schedule 10.6 to this Agreement, there are no claims, actions, suits, proceedings or
investigations pending before or being conducted by any court, government officer or agency, or arbitrator relating to Cyprus which could reasonably be expected to materially affect Cyprus’s ability to enter into this Agreement, to complete the
actions contained in the Closing Agenda, or to make its Initial Capital Contribution. To the best of the knowledge of Cyprus, no such claims, actions, suits, proceedings or investigations are threatened. 

11. Indemnification. In addition to any other indemnity obligations set out in this Agreement, Armstrong hereby agrees to
indemnify and hold Cyprus harmless, and Cyprus hereby agrees to indemnify and hold Armstrong harmless, from and against any and all claims, demands, suits, proceedings, judgments, losses, liabilities, damages, costs and expenses of every kind and
nature (including, but not limited to, reasonable attorneys’ fees and any and all related litigation costs and expenses as a consequence of any such proceedings described in this Section 11), imposed upon or incurred by the indemnified
party as a result of or in connection with (i) any misrepresentation or breach of warranty or failure of any of the representations and warranties made by the indemnifying party in or pursuant to this Agreement (or any Closing Document) to have
been true and complete in all material respects as of the Closing (“Representation Indemnity Claim”) or (ii) any breach of any covenant or agreement of the indemnifying party set forth herein or in any of the Closing Documents
(“Covenant Indemnity Claim”; Representation Indemnity Claims and Covenant Indemnity Claims are collectively referred to as “Indemnity Claims”). 
 11.1 Notice of Indemnity Claim. If a party intends to assert an Indemnity Claim, it shall provide the other party with written notice of such Indemnity Claim promptly after the facts providing the
basis for such Indemnity Claim are known. No Representation Indemnity Claim may be asserted after 18 months from the Closing Date, but any Representation Indemnity Claim made prior to 18 months from the Closing Date shall remain valid and
enforceable. Except for statutes of limitation under applicable law, there are no time limits for Covenant Indemnity Claims. An Indemnity Claim notice shall set forth, in detail, the specific character and factual basis for each individual Indemnity
Claim asserted therein. At the time the Indemnity Claim is made and thereafter, any party asserting the Indemnity Claim shall provide 

  
 6 

 
the other party with copies of any materials in its possession describing the facts or containing information providing the basis for the Indemnity Claim. If the indemnity Claim involves a claim
by a third party, the party against which the Indemnity Claim is asserted may assume, at its sole expense, the defense of the claim by the third party if such party against which the Indemnity Claim is asserted agrees in writing with respect to such
Indemnity Claim that it is obligated hereunder to indemnify and hold the party asserting the Indemnity Claim harmless in accordance with the terms of this Section 11.1. The failure of the party against which the Indemnity Claim is asserted to
assume the defense of any such claim shall not affect any indemnification obligation under this Agreement. 

12. Brokers. Each party hereto hereby represents and warrants to the other parties hereto that there are no claims for
brokerage or other commissions or finders or other similar fees as of the date hereof in connection with the transactions contemplated by this Agreement. Each party hereto hereby agrees to indemnify and hold harmless the other party and the Company
from and against all liabilities, costs, damages, and expenses from any such claim resulting from its action. 

13. Miscellaneous.  
 13.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky. 

13.2 Entire Agreement; Modification. This Agreement and the Closing Documents constitute the entire agreement of the parties hereto
pertaining to the subject matter hereof and supersede any previously written or oral discussions or representations. No supplement, modification or waiver (except as provided herein relative to conditions precedent) of this Agreement or the Closing
Documents, or any provision hereof or thereof, shall be binding unless in writing and executed by the parties. 
 13.3 No
Third-Party Beneficiaries. Nothing in this Agreement shall entitle any person other than the parties named in and executing this Agreement to any claim, cause of action, remedy or right of any kind except that the Company shall be beneficiaries
of this Agreement. 
 13.4 Expenses. Except as set forth below, each party shall be liable for its own expenses in
connection with the preparation and performance of this Agreement, the Closing Documents, and the acquisition of government approvals for the Closing. 
 13.5 Assignment. This Agreement may not be assigned, in whole or in part, by any party without the consent of the other parties. Any attempted assignment without the consent of all parties shall be
void. Subject to the foregoing, this Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns. 
 13.6 Further Assurances. The parties hereto shall take such further actions and execute such further documents after the Closing as may be required to fulfill the intentions of the parties
expressed herein and in the Closing Documents relative to the formation of the Company and the Initial Capital Contributions and Scheduled Capital Contributions. 

  
 7 

 13.7 Notices. All notices, consents, elections, requests, reports, demands and other
communications hereunder (collectively, “Notices”) shall be in writing and shall be personally delivered or mailed by registered or certified mail, postage prepaid and addressed as follows: 

 

			
	 Cyprus Creek Land Resources, LLC
	  	Armstrong Coal Company, Inc.
	 701 Market Street, Suite 708
	  	7733 Forsyth Boulevard, Suite 1625
	 St. Louis, Missouri 63101
	  	St. Louis, Missouri 63105
		
		  	Armstrong Energy, Inc.
		  	Attn: Martin D. Wilson, President
		  	7733 Forsyth Boulevard, Suite 1625
		  	St. Louis, Missouri 63105

 or to such other address or to such other person as any party hereto shall have last designated by notice to the other
party in accordance with the foregoing. All such Notices shall be effective as of the date received by the addressee. If such addressee refuses to accept delivery of any such Notice, such Notice shall be deemed to have been delivered on the date of
such refusal. 
 13.8 Survival. The terms of this Agreement shall survive the closing and the formation of the Company.

 -remainder of page intentionally left blank- 

  
 8 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and date
first above written. 
  

			
	CYPRUS CREEK LAND RESOURCES, LLC
		
	By:	 	/s/ T.L. Bethel
	Its:	 	VP
	
	CYPRUS CREEK LAND COMPANY
		
	By:	 	/s/ T.L. Bethel
	Its:	 	VP
	
	ARMSTRONG COAL COMPANY, INC.
		
	By:	 	/s/ Martin D. Wilson
	It:	 	President
	
	WESTERN LAND COMPANY, LLC
		
	By:	 	/s/ Martin D. Wilson
	It:	 	Manager

  
 9 

 Schedule 7 

TO 

FORMATION AND TRANSFER AGREEMENT 
  

	1.	Execution of Organization Documents 

  

	 	•	 	 Certificate of Formation 

  

	 	•	 	 Limited Liability Company Agreement 

  

	2.	Execution of the Company agreements 

  

	 	•	 	 the Management Agreement (attached hereto as Appendix 1) 

 

	 	•	 	 the Sales Representation Agreement (attached hereto as Appendix 2) 

  
 10 

 Appendix 1 

 MANAGEMENT AGREEMENT 

This is a Management Agreement (this “Agreement”) dated December 29, 2011, between Survant Mining Company, LLC, a
Delaware limited liability company (the “Company”) and Armstrong Coal Company, Inc., a Delaware corporation (the “Manager”). 
 RECITALS 
 A. Whereas, the Company desires to enter into a contractual arrangement
setting forth the terms and conditions for the Manager’s management of the Company pursuant to Section 7 of the Company’s Limited Liability Company Agreement, also called the Operating Agreement (the “Operating Agreement”),
a copy of which has been provided to Manager, and is attached hereto and made a part hereof as Exhibit A; and 
 B. Whereas,
the Manager desires to enter into such contractual arrangement and to provide management services to the Company on the terms and conditions herein set forth; and 
 C. Whereas, even though the Company will have its own workforce, it is anticipated that employees of the Manager will be involved in the operations, budgeting, accounting, permitting, human resources,
maintenance and other areas of the management of the Company and its day-to-day operations (“Technical Services”); and 

D. Whereas, even though the Company will generally operate using its own leased or owned equipment and enter into its own vendor and
supplier contracts, it is anticipated that the Manager or third-party suppliers contracted by the Manager will, from time to time, arrange for services, equipment or supplies to be provided to the Company (“Pass-Through Services”), and
that the Manager will provide needed equipment to the Company on a short-term basis (“Borrowed Equipment”). 
 NOW,
THEREFORE, in consideration of the foregoing and of the covenants herein contained, the parties hereto agree as follows: 

1. Management. The Company hereby retains the Manager as the manager of the Company, and vests all authority and
responsibility for the management of the day-to-day operations of the Company in the Manager (except as may otherwise be provided in the Operating Agreement), and the Manager accepts such position, all on the terms and conditions set forth herein.
The Manager initially appoints Kenneth Allen, Vice President of Operations of the Manager, as the individual who will be responsible for the day-to-day management of the Company. The Manager may appoint replacement or additional individuals to be
responsible for the day-to-day management of the Company, provided such individuals shall be selected with the input and consent of the Board of Managers of the Company. 

  
 1 

 2. Term. The term of this Agreement shall be a one-year (1) period
commencing on the date hereof (the “Initial Term”) unless terminated sooner pursuant to Section 7 below. After the Initial Term, this Agreement shall be automatically renewed on a year-to-year basis (the “Additional
Term(s)”), unless the Manager or the Managing Member (as such term is defined in the Operating Agreement) of the Company provides prior written notice of its intention for this Agreement not to be renewed, which written notice shall be provided
not less than ninety (90) days prior to the expiration of the Initial Term or any Additional Term. The Initial Term and any Additional Term, if any, will each be referred to as a “Term” and collectively as the “Term”).

 3. Duties; Limitation on Liability; Indemnification.  

(a)Duties. The Manager shall have full, exclusive, and complete discretion, power and authority to manage, control, administer, and
operate the business and affairs of the Company and to make decisions affecting the business and affairs of the Company; provided, however, that the Manager shall not enter into or conduct any transactions that require either unanimous or majority
consent of the Board of Managers or unanimous consent of the Members as established under Sections 3.2, 7.4 or 7.5 of the Operating Agreement, or take any actions inconsistent with the Operating Agreement, and shall use its commercially
reasonable efforts to ensure that the Company at all times engages in prudent mining operations, hiring and reclamation practices and complies with all applicable laws in all material respects. The Manager shall perfom its duties hereunder,
including those set forth in the Operating Agreement, in good faith, using good faith efforts and reasonable diligence. 
 (b)
Limitation on Liability. Neither the Manager nor any officer, director, employee, agent, stockholder, or partner of the Manager (each, an “Indemnitee”) shall be liable to the Company or to any other person or entity for any debts
owed by the Company, or for any actions taken or omissions made in good faith and reasonably believed to be in the best interests of the Company, except for acts or omissions of gross negligence, willful misconduct, intentional misconduct, or a
knowing violation of the law. 
 (c) Indemnification. The Company shall indemnify and hold harmless any Indemnitee, from
and against any claim, loss, damage, liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of investigation and appeal) actually incurred by any such Indemnitee by reason of, or arising from, the
operations, business, or affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent any of the foregoing (A) is determined by final, nonappealable order of a court of competent jurisdiction (or by any
other means approved by the Board of Managers) to have been primarily caused by any fraud, breach of fiduciary duties established under this Agreement, gross negligence or willful misconduct of such person or (B) is actually incurred as a
result of any claim (other than a claim for indemnification under this Agreement) asserted by the Indemnitee as plaintiff against the Company; provided that if (for purposes of clause (A) immediately above) the fraud, breach of fiduciary duties
established under this Agreement, gross negligence or willful misconduct of any person claiming indemnification shall consist of a conviction of or plea of no contest to a felony, then such person shall not be entitled to indemnification unless it
is determined, by final, nonappealable order of a court of competent jurisdiction (or by any other means approved by the Board of Managers), that indemnification should be granted in whole or part. 

4. Reporting Relationship. The Manager shall report to the Board of Managers of the Company. 

  
 2 

 5. Management Fee. The Manager shall receive a management
fee of fifty cents ($0.50) per ton (the “Management Fee”) of #8 seam coal sold by the Company on a monthly basis and shall be payable by the 25th day of the following month. The Management Fee shall be the compensation of the Manager for duties performed under
this Agreement (other than as provided in Section 6). 
 6. Payment for Technical Services,
Borrowed Equipment and Pass-Through Services. As and when needed by the Company, in the reasonable discretion of the Manager, the Manager may furnish or arrange for Technical Services, Borrowed Equipment and Pass-Through Services to be provided
to the Company. The Company agrees to reimburse the Manager for such services on a monthly basis, payable on or before the
25th day of the following month. The Manager shall submit
a written reimbursement request to the Board of Managers for review and, upon request of the Company or any of its Managers or Members, provide back-up documents and other reasonable verification for the expenses and charges being requested. The
following additional provisions shall govern reimbursement for such services; provided, however, that the method for determining amounts to be paid may be modified from time to time by the Board of Managers. 

(a) Technical Services. For Technical Services provided by each employee of the Manager during a given month, the
amount shall be determined as follows: (i) for the employees identified on Schedule 1 attached hereto, the amount set forth on Schedule 1; (ii) for employees not listed on Schedule 1, the product of (a) the percentage of
such employee’s time in such month spent on the business of the Company, multiplied by (b) the total cost to the Manager of salary and benefits, excluding bonuses, for such employee during such month. The amount of employee time
allocated to the Company shall be determined by the Manager using commercially reasonable practices and using its best efforts to fairly and equitably allocate such time. 

(b) Pass-Through Services. Pass-Through Services shall be charged to the Company on a direct pass-through basis,
with no mark-up for profit or administrative fees. If allocation is necessary because the contract underlying the Pass-Through Services is common to the Company and other operations run by the Manager, the amount allocated to the Company shall be
determined by the Manager using commercially reasonable practices and using its best efforts to fairly and equitably allocate such services with full disclosure to the Board of Managers. 

(c) Borrowed Equipment. For Borrowed Equipment, the amount shall be a fair and equitable charge reasonably set by
the Manager, but not to exceed the amount for which the Company could have obtained use of equivalent equipment from a third party at prevailing market rates. 

  
 3 

 7. Termination. 

(a) Events of Termination. Notwithstanding any other provision of this Agreement to the contrary, this Agreement and the
Manager’s retention under the terms of this Agreement will terminate immediately upon the first of the following events to occur: 
 (i) the Manager’s corporate dissolution or liquidation; 
 (ii) the
Manager ceasing to be the Managing Member pursuant to the Operating Agreement; or 
 (iii) the occurrence of a Triggering
Event, as defined under the Operating Agreement. 
 (b) Compensation Upon Termination. In the event of termination of the
Manager due to an event of termination pursuant to Section 7(a) above, the Manager shall be entitled to be paid for services rendered up to the time of actual termination. 
 8. Use of Company Facilities by the Manager. The Manager shall have the right to utilize the Company’s surface facilities and employees for processing and handling coal from
Armstrong’s Parkway mining operations in the #9 seam of coal and from adjacent mining operations, provided (i) such utilization is at such times and in such manner as will not interfere with the Company’s operations or reduce the coal
output of the Company, and (ii) the Manager pays the Company for usage of the surface facilities, which charge shall be charged to the Manager on a direct pass-through basis, with no mark-up for profit or administrative fees. 

9. No Assignment by Manager. The services to be rendered by the Manager under this Agreement are unique and personal, and the
Manager shall not assign any of its rights or delegate any of its duties under this Agreement, except to an employee or a corporate affiliate of Manager. 
 10. Assumption by Cyprus. In the event Cyprus Creek Land Resources, LLC (“Cyprus”) exercises its rights to assume this Management Agreement pursuant to Section 7.1 of the
Operating Agreement then this Agreement shall be construed and enforced to provide Cyprus with all of the Manager’s rights and entitlements hereunder, including but not limited to the right to receive the Management Fee provided for hereunder.
In the event Cyprus assumes the status as “Manager” hereunder, Cyprus shall have no obligation to continue to utilize the goods or services previously provided by or through Armstrong under Section 6, and shall be authorized to make
arrangements and outsource such services in its sole discretion, subject to the limitations on the authority of the Manager contained in Section 6 and elsewhere in this Agreement and the Operating Agreement. 

11. Severability and No Violation. If any provision of this Agreement or its application shall be invalid, illegal, or
unenforceable in any respect, the validity, legality, and enforceability of all other applications of that provision and of all other provisions and applications hereof shall not in any way be affected or impaired. The Manager represents that in
signing this Agreement it will not violate any other agreement to which it is a party. 
 12. Governing Law. This
Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of Kentucky. 

  
 4 

 13. Non-Waiver. A delay or failure by either party to exercise a right under
this Agreement, or a partial or single exercise of that right, shall not constitute a waiver of that or any other right. 

14. Counterparts. This Agreement may be executed in two or more counterparts (including via facsimile), each of which shall be
deemed an original but all of which together shall constitute one and the same agreement. 
 15. Entire Contract.
This Agreement and the Operating Agreement constitute the entire understanding and agreement between the parties hereto with regard to all matters herein and supersedes any prior agreements and discussions between the parties. There are no other
agreements, conditions or representations, oral or written, expressed or implied with regard thereto. In the event of a conflict between this Agreement and the Operating Agreement, the terms contained in the Operating Agreement shall control. This
Agreement may be amended only in writing, signed by both parties. Any further agreement of the parties on any matter, including matters unrelated to this Agreement, shall be binding and enforceable only if in writing, and signed by both parties.

 16. Headings. The headings in this Agreement have been inserted solely for convenience of reference and shall not
be considered in the interpretation or construction of this Agreement. 
 [remainder of page intentionally left blank]

  
 5 

 IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to
execute this Agreement effective as of the date set forth above. 
  

			
	Armstrong Coal Company, Inc. (the “Manager”)
		
	By:	 	/s/ Kenneth R. Allen
		 	Kenneth Allen, Vice President of Operations
	
	Survant Mining Company, LLC (the “Company”)
		
	By:	 	 Armstrong Coal Company, Inc., its
 Managing Member

		
	By:	 	/s/ Kenneth R. Allen
		 	Kenneth Allen, Vice President of Operations
	
	Approved by:
	
	 Cyprus Creek Land Resources, LLC, Member of
 Survant Mining Company, LLC

		
	By:	 	/s/ T.L. Bethel
	Title:	 	VP

  
 6 

 Schedule 1 
 Technical Services 
 (Specified Armstrong Employees) 

 

			
	 Employee
	 	 Amount to Be Reimbursed

	 Vice President of Operations
	 	$0 – included in the Management Fee
	 Vice President of Corporate Development
	 	$0 – included in the Management Fee
	 Underground Mine Superintendent
	 	$0 – included in the Management Fee
	 Chief Electrician (1)
	 	$0 – included in the Management Fee
	 Director of Training
	 	$0 – included in the Management Fee
	 Director of Safety
	 	$0 – included in the Management Fee
	 Underground Engineer
	 	$0 – included in the Management Fee
	 IT Director
	 	$0 – included in the Management Fee
	 Manager of Underground IT
	 	$0 – included in the Management Fee
	 HR Director
	 	$0 – included in the Management Fee
	 Transportation Sales Coordinator
	 	$0 – included in the Management Fee

  
 7 

 Exhibit A 

 NOTICE: THIS AGREEMENT CONTAINS AN ARBITRATION PROVISION 

SURVANT MINING COMPANY, LLC 
 LIMITED LIABILITY COMPANY AGREEMENT 
 (THE OPERATING AGREEMENT)

 THIS LIMITED LIABILITY COMPANY AGREEMENT, also called the “Operating Agreement” (collectively herein,
the “Agreement”) effective as of the          day of December, 2011, is entered into by and among Cyprus Creek Land Resources, LLC (“Cyprus”) and Armstrong Coal Company, Inc.
(“Armstrong”).  
 WHEREAS, the Members (hereafter defined) desire to form a limited liability company
under the laws of the State of Delaware to be known as Survant Mining Company, LLC (the “Company”) for the purposes set out in this Agreement, and to carry on such other legally permissible business and activities as the Company, in
accordance with applicable laws and this Limited Liability Company Agreement, shall determine from time to time; 
 WHEREAS,
the Members desire to enter into this Limited Liability Company Agreement to govern the conduct of the business and affairs of the Company and to set forth the understanding of the Members regarding all other matters concerning the Company which
may be covered in a Limited Liability Company Agreement; 
 NOW, THEREFORE, in consideration of mutual promises and
covenants contained herein and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, do hereby agree as follows: 

1. Certain Definitions.  
 When used herein, the following terms shall have the meanings set forth below: 

1.1 “Act” means the Delaware Limited Liability Company Act, Title 6, Chapter 18 of the Delaware Code (as amended). All
references herein to specific sections of the Act shall be deemed to refer to the corresponding provisions of succeeding law. 

1.2 “Affiliate” means: (i) any Person which, directly or indirectly, is in Control of, is Controlled by or is under common
Control with the 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. 
 1.3 “Agreement” means this Limited Liability Company Agreement as the same may be amended and
supplemented from time to time. 
 1.4 “Armstrong” means Armstrong Coal Company, Inc., a Delaware corporation.

 1.5 “Available Cash” means all cash determined by the Managing Member to be available to the Company for
distribution to the Members after the payment of all current expenses and other liabilities then due, establishing reserves for capital improvements, working capital needs, contingent liabilities and unforeseen contingencies, all determined
reasonably and in good faith by the Managing Member. 
 1.6 “Board of Managers” has the meaning set forth in
Section 7.1. 

 1.7 “Capital Expenditure” means all expenditures (excluding interest capitalized
during construction) which must be capitalized under generally accepted accounting principles (GAAP). 
 1.8
“Certificate” means the Certificate of Formation, and all amendments thereto, executed and filed pursuant to applicable laws and the terms of this Agreement. 
 1.9 “Change of Control,” with respect to Armstrong, means any transfer or other action that results in (a) Armstrong ceasing to be Controlled, directly or indirectly, by the Yorktown
Parties unless as a result of an initial or secondary public offering of stock, (b) any Person, other than the Yorktown Parties or Persons Controlled by the Yorktown Parties, acquiring a 50% or greater ownership interest, directly or
indirectly, in Armstrong, or (c) any private or public company or entity primarily engaged in the business of coal mining gaining Control, directly or indirectly, over Armstrong or over Yorktown Parties that have Control over Armstrong.
“Change of Control,” with respect to a Member other than Armstrong, means any transfer or other action that results in such Member ceasing to be Controlled, directly or indirectly, by the same Persons or an Affiliate of the Persons who
Controlled such Member as of the date of such Member’s admission to the Company. 
 1.10 “Closing” means the
execution of the Operating Agreement, Management Agreement, Sales Representation Agreement and the contributions of initial capital as set forth in Milestone I of Exhibit A hereto by Cyprus and Armstrong, 

1.11 “Closing Date” means the date set for the Closing. 
 1.12 “Code” means the Internal Revenue Code of 1986, as amended. All references herein to specific sections of the Code shall be deemed to refer also to the corresponding provisions of
succeeding law. 
 1.13 “Company” means Survant Mining Company, LLC, a Delaware limited liability company, 

1.14 “Company Minimum Gain” has the same meaning as the phrase “Partnership minimum gain” as set forth in treasury
regulation § 1,704-2(d), 
 1.15 “Consideration Period” has the meaning set forth in Section 8.3(a).

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

1.17 “Cyprus” means Cyprus Creek Land Resources, LLC, a Delaware limited liability company, 

  
 - 2 -

 1.18 “Deficit Capital Account” means with respect to any Member, the deficit
balance, if any, in such Member’s capital account as of the end of the taxable year, after giving effect to the following adjustments: 
 (a) credit to such capital account that amount which such Member is obligated to restore under Section 1.704-1 (b)(2)(ii)(c) of the treasury regulations, as well as any addition thereto pursuant to
the next to last sentence of treasury regulation §§1.704-2(g)(l) and (i)(5), after taking into account thereunder any changes during such year in Partnership (Company) Minimum Gain (as determined in accordance with treasury regulation
§ 1.704-2(d) and in the minimum gain attributable to any Partner (Member) for nonrecourse debt (as determined under treasury regulation §l,704-2(i)(3); and 

(b) debit to such capital account items described in treasury regulation §§1.704-l(b)(2)(ii)(d)(4), (5) and
(6). 
 The definition of Deficit Capital Account is intended to comply with the provisions of treasury regulations
§§1.704-l(b)(2)(ii)(d) and 1,704-2, and will be interpreted consistently with those provisions. 
 1.19
“Designated Representative” has the meaning set forth in Section 6.8(d). 
 1.20 “Distributional
Interest” has the meaning set forth in Section 8.1, 
 1.21 “Fair Value” has the meaning set forth in
Section 8.7. 
 1.22 “Fiscal Year” means the Company’s fiscal year which shall correspond to the calendar
year, except that (i) the Company’s first fiscal year shall commence on the date of the filing of the Certificate and (ii) such term shall also include any period for which the Company is required to allocate net profits, net losses
and other items of Company income, gain, loss or deduction pursuant to this Agreement or the Code. 
 1.23 “Foreclosure
Assignment” has the meaning set forth in Section 8.7. 
 1.24 “Indemnitee” shall mean (i) any Manager,
(ii) any Managing Member, (iii) any Member, or (iv) any officer, director, employee, agent, stockholder, member or partner of the Company, or a Member. 
 1.25 “Lender” has the meaning set forth in Section 8.1. 
 1.26
“Lender Interest Holder” has the meaning set forth in Section 8.7. 
 1.27 “Lien” means any mortgage,
deed of trust, security agreement, pledge, hypothecation, assignment, deposit arrangement, lien (statutory or otherwise), security interest, financing statement, overriding royalty agreement or preferential arrangement of any kind or nature
whatsoever, including any conditional sale or other title retention agreement, 
 1.28 “Major Decisions” shall mean
those acts and decisions described in the subsections of Section 7.4. 
 1.29 “Managing Member” shall have the
meaning set forth in Section 7.2. 
 1.30 “Manager” and “Managers” shall have the meanings set forth in
Section 7.1. 
 1.31 “Member Interest” shall include any and all rights of a Member under this Agreement, the Act
and other applicable law, including without limitation all Distributional Rights, economic rights, voting and consent rights, notice rights, contract rights and management rights. 

  
 - 3 -

 1.32 “Member Loan” means any loan to the Company by a Member. 

1.33 “Member Nonrecourse Debt Minimum Gain” has the same meaning as the phrase “Company nonrecourse debt minimum gain”
as set forth in treasury regulation §1.704-2(i). 
 1.34 “Member Nonrecourse Deduction” has the same meaning as
the phrase “Survant nonrecourse deduction” as set forth in treasury regulation §1.704-2(i). 
 1.35 “Member
Nonrecourse Loan” means a loan made to, or credit arrangement for the benefit of, the Company by a Member or by any person related to a Member (as defined in treasury regulation § 1,752-4(b)) which by its terms exculpates the Members from
personal liability on the debt, but under which such Member or related person bears the ultimate economic risk of loss within the meaning of treasury regulation §1.752-2. 
 1.36 “Member” means any Person who becomes a Member in the Company as provided herein, initially Cyprus and Armstrong. 
 1.37 “Non-Managing Member” has the meaning set forth in Section 6.6(e). 
 1.38 “Offer Price” has the meaning set forth in Section 8.7. 
 1.39
“Percentage Interest” means 51% for Armstrong and 49% for Cyprus, unless adjusted in accordance with Section 3.3. 

1.40 “Person” means any individual, limited liability company, limited liability partnership, partnership, corporation, trust or
other person or entity. 
 1.41 “Profit Distribution Share” shall mean 50% for each Member without regard to each
Member’s Percentage Interest; provided, however, that if the Members’ Percentage Interests are ever adjusted pursuant to the provisions of Section 3.3, then, starting as of the date of such adjustment, the “Profit Distribution
Share” for each Member shall be equal to the Percentage Interest of each Member. 
 1.42 “Project” means the
development of the Kentucky #8 seam of coal reserves identified on the map attached hereto as Exhibit B, located in Muhlenberg County, Kentucky. 
 1.43 “Project Budget” means the pro forma revenue and expense statement for the Project approved by the Board of Managers in accordance with Section 7.4. 

1.44 “Right of First Offer” has the meaning set forth in Section 8.7. 

1.45 “Sale Period” has the meaning set forth in Section 8.7, 

1.46 “Subsidiary” means any Person, more than 50% of the voting securities of which, is owned (whether directly or indirectly
through one or more Subsidiaries) by the Company. 
 1.47 “Triggering Event” shall mean the occurrence of any of the
following: (a) Armstrong resigns as the Managing Member, (b) Armstrong is removed from the Managing Member position by the Board of Managers acting upon the majority consent of all of the Managers, (c) Armstrong ceases to be a Member,
(d) Armstrong files for bankruptcy, (e) the Management Agreement, referenced in Section 7.1, is terminated pursuant to its terms and conditions, (f) a Change of Control with respect to Armstrong occurs,
(g)

  
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the willful engaging by the Managing Member or its principals in gross misconduct materially or demonstrably injurious to the Company, (h) the conviction of the Managing Member or its
principals of a felony involving fraudulent or dishonest conduct, or (i) the occurrence of a Foreclosure Assignment pursuant to Section 8.7, 
 1.48 “Yorktown Parties” shall mean Yorktown Energy Partners VI, L.P., Yorktown Energy Partners VII, L.P., Yorktown Energy Partners VIII, L.P. and their Affiliates. 

1.49 Other Definitions. Unless otherwise provided in this Agreement, any other term used in this Agreement which is elsewhere
defined in this Agreement shall have the same meaning as such term is respectively given by this Agreement. The definitions in this section shall apply equally to both the singular and plural forms of the terms defined. 

2. Organization.  
 2.1 Formation. The Members hereby agree to form the Company and to associate themselves as Members of the Company. Accordingly, commensurate with the execution of this Agreement, the Members of the
Company shall adopt the Certificate that was filed with the Office of the Delaware Secretary of State. 
 2.2 Registered
Office and Agent The initial registered office of the Company in Delaware shall be located at The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. The Company’s primary business office
shall be at 407 Brown Road, Madisonville, KY 42431, or such other location as may hereafter be determined by the Members. The Company’s registered agent for service of process in Delaware shall be The Corporation Trust Company, Corporation
Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. 
 2.3 Foreign Qualifications. Prior to the Company’s
conducting business in any jurisdiction other than Delaware, the Members shall cause the Company to comply, to the extent procedures are available and those matters are reasonably within the control of the Members, with all requirements necessary to
qualify the Company as a foreign limited liability company in that jurisdiction. At the request of the Managing Member, each Member shall execute, acknowledge, swear to, and deliver all certificates and other instruments conforming with this
Agreement that are necessary or appropriate to qualify, continue, and terminate the Company as a foreign limited liability company in all such other jurisdictions in which the Company may conduct business. 

2.4 Limited Liability Company. The Members intend that the Company not be a partnership (including, without limitation, a limited
partnership) or joint venture, and that no Member be a partner or joint venturer of any other Member, for any purposes other than federal and state tax purposes, and this Agreement may not be construed to suggest otherwise. 

2.5 Term. The existence of the Company shall be perpetual, unless terminated or dissolved as set forth herein, 

2.6 Annual Reporting. Beginning with the first full calendar year following the year in which the Company is organized, the Company
shall prepare and file with the Delaware Secretary of State an annual report as required by the Act or Delaware law. 

  
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 3. Capital Contributions, Member Loans, and Related Matters.  

3.1 Scheduled Capital. Contributions. At Closing, each Member shall make its initial capital contribution to the Company of
$30,000.00 in cash and the Members shall, on the milestone dates set forth on Exhibit A attached hereto (the “Contribution Schedule”), make their respective additional contributions of property as indicated on the Contribution
Schedule (collectively, the “Scheduled Capita! Contributions”), Notwithstanding any provision of this Agreement, neither Member is making any representation or warranty concerning the condition or quality of its properties being
contributed hereunder, and neither Member shall be determined to have failed to remit its capital contribution or be liable to the Company or the other Member based on any subsequent determination that any portion of the Member’s capital
contribution consisting of owned or leased real property is unable to be used, developed or mined for any reason or is not used, mined and/or developed for any reason or the Member’s title to any such property is found to be defective or the
estimated tonnages of any coal reserves are determined to be inaccurate or due to any aspect of the condition, fitness or serviceability of any of the Equipment, Buildings, or other facilities described in Exhibit A hereto. All contributions,
including but not limited to the surface properties, coal reserves, mining facilities, buildings and equipment described in Exhibit A and more particularly described in Exhibit D hereto, shall be contributed to Company free and clear of all
liens and encumbrances, Each Member hereby represents and warrants to the other Member, that prior to entering into this Operating Agreement it has obtained all necessary consents, commitments and authorizations from any party holding current
security interests in the properties that will be contributed to the Company pursuant to this Section 3.1 .Each Member shall make its contributions substantially in the same form of the conveyancing documents attached hereto and made a part
hereof as Exhibit D. 
 3.2 Additional Capital Contributions: Loans. Each Member acknowledges that, in addition to
the foregoing, additional capital contributions will be required for the continued development and operation of the Company and each Member agrees to make the additional capital contributions in the amounts and at the times indicated on the Project
Budget or the Contribution Schedule, as well as any additional capital contributions unanimously agreed to by the Board of Managers in a timely fashion. Any additional capital contributions to the Company shall be made in proportion to each
Member’s Percentage Interest. In the event the Managing Member reasonably determines that additional cash is necessary in order to fund the Company’s operations in the ordinary course of business or to fund the cash needs in accordance
with the approved Project Budget, but the Members do not unanimously agree on the amount of an additional capital contribution, the Managing Member shall have the right (but not the obligation), following reasonable notice to the other Members, to
make a loan to the Company, and the terms of Section 3.3 applicable to the priority and repayment of Member Loans shall apply. 
 3.3 Non-Compliance. In the event a Member (for the purposes of this Section 3.3 the “Non-Contributing Member”) fails to remit (i) its Scheduled Capital Contributions pursuant to
Section 3.1, or (ii) its portion of any additional capital contribution unanimously agreed to by the Board of Managers, when due and such non-compliance is not cured within ten (10) days after written notice is delivered to the Non-
Contributing Member by the other Member requesting that such funds be remitted to the Company, the other Member (for the purposes of this Section 3.3 the “Contributing Member”) may make the capital contribution or loan owed by the
Non-Contributing Member and elect to treat such amount as an additional capita! contribution or as a Member Loan to the Company. Such election must be set forth in a written notice delivered to the Non-Contributing Member within thirty
(30) days after the funds are contributed to the Company by the Contributing Member, on behalf of the Non-Contributing Member. If the written notice is not delivered within the thirty (30) day time period, the additional funds contributed
to the Company shall be deemed a Member Loan by the Contributing Member to the Company. If the Contributing Member elects to treat the contribution as an additional capital contribution and provides written notice of election to the Non-
Contributing Member, then the Percentage Interest of each Member shall be adjusted to reflect the percentage that each Member’s total capital contributions bear to the total of all capital contributions made to the Company. If such funds are
classified as a Member Loan, the loan shall accrue interest at the prime rate posted 

  
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by the lending institution at which the Company has its primary operating account, plus two (2) percentage points. AH Member Loans, whether made under this section, Section 3.2, or
otherwise, shall be a priority and no distributions to the Members shall be made until such loan is repaid without the written consent of the Member who made the Member Loan. 
 3.4 Withdrawal of Capital. The Members shall only be entitled to withdraw or to receive distributions of capital in accordance with the terms and conditions of this Agreement. 

3.5 Capital Accounts. A single capital account shall be maintained for each Member in accordance with the capital accounting rules
of section 704(b) of the Code and the tax regulations thereunder (including treasury regulation 1.704(b)(2)(iv)), The capital account of each Member shall be credited with the fair market value of such Member’s capita! contributions, such
Member’s distributive share of profits, income or gain, and the amount of any Company liabilities assumed by such Member or which are secured by any property distributed to such Member. The capital account of each Member shall be debited with
the amount of cash and the value of any property distributed to such Member pursuant to any provision of this Agreement, such Member’s distributive share of losses and expense, and the amount of any liabilities of such Member assumed by the
Company or which are secured by any property contributed by such Member to the Company. 
 3.6 Revaluation of Capital
Accounts. The capital accounts of the Members shall be adjusted to reflect revaluation of Company assets in all cases required by treasury regulation § 1.704-l(b) and in all optional circumstances to the extent allowed by treasury
regulation § 1.704-l(b)(2)(iv)(f) unless the Board of Managers determines that such revaluation would not be beneficial or fair under the circumstances. If there is a revaluation under this Section 3.6, then the Company shall make special
allocations consistent with the principles of Section 704(c) of the Code. In determining such allocations, the Company shall use the traditional method with curative allocations described in treasury regulation § 1,704~3(c) for any
Contributed Asset. 
 4. Allocations.  

4.1 Allocation of Profit Loss. Income, Gain. Deduction, and Credit. Subject to Section 4.2, profits and losses of the Company
and, items of taxable income, gain, loss, deduction and credit, shall be apportioned among the Members in accordance with each Member’s Profit Distribution Share. 
 4.2 Tax Allocations Contributed Property. With respect to any asset contributed by a Member to the Company (“Contributed Asset”) that has a tax basis different from its agreed upon fair
market value on the date of the contribution, the Company shall make the special allocations required by Section 704(c) of the Code, These special allocations apply solely for Federal, state, and local income tax purposes. They shall not affect
or be taken into account in computing a Member’s capital account, or share of profits, losses, or distributions pursuant to any provision of this Agreement. In making these special allocations, the Company shall use the traditional method with
curative allocations described in treasury regulation § 1.704-3(c) for any Contributed Asset. 
 4.3 754 Election and
Other Tax Elections. In the event of a distribution of property to a Member, or a transfer of any interest in the Company permitted under the Act or this Agreement, the Company, upon written request of the transferor or transferee, shall file a
timely election under this section 754 of the Code and the regulations thereunder to adjust the basis of the Company’s assets under section 734(b) or 743(b) of the Code and a corresponding election under the applicable provisions of state and
local law, and the Person making such request shall pay all costs incurred by the Company in connection therewith, including reasonable ??? accountants’ fees. Other tax elections and elections relating to Taxes not specifically governed by
another provision of this Agreement shall be made as agreed by the Board of Managers. 

  
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 5. Distributions.  

5.1 Distribution to Members. On or before the last business day of each calendar quarter, the Company may make distributions of
cash or cash equivalents to the Members based upon the Available Cash of the Company. The Managing Member shall first determine the amount of Available Cash of the Company available for distribution, and then the Board of Managers shall determine
the aggregate amount of distributions which may be made to the Members and the Members shall share in such total distributions in accordance with each Member’s Profit Distribution Share. 

5.2 Distributions in Kind. Except as may be provided in this Agreement or an amendment to this Agreement, no Member, regardless of
the nature of the Member’s contribution to capital, may demand or receive a distribution from the Company in any form other than cash or cash equivalents. 
 5.3 Limitation on Distributions. No distribution shall be made by the Company if after giving effect to the distribution; (a) the Company would not be able to pay its debts as they become due
in the usual course of business; or (b) the assets of the Company would be less than the sum of its liabilities plus, the amount that would be needed, if the Company were to be dissolved at the time of the distribution, to satisfy the
preferential rights of other Members upon dissolution which are superior to the rights of the Member receiving the distribution. 
 6. Members.  
 6.1 Representations and Warranties. Each
Member hereby represents and warrants to the Company and each other Member that: (a) it is duly organized, validly existing and in good standing under the laws of its formation and is duly qualified and in good standing in the jurisdiction of
its principal place of business; (b) it has full power and authority to execute and agree to this Agreement and to perform its obligations hereunder; (c) it has duly executed and delivered this Agreement; and (d) its authorization,
execution, delivery, and performance of this Agreement does not conflict with any other agreement or arrangement to which that Member is a party or by which it is bound. 
 6.2 Additional Members. It is not intended that additional Members will be admitted into the Company. Nonetheless, if the Members unanimously agree, additional Members may be admitted on such terms
and conditions as the Members may determine at the time of admission, 
 6.3 Prohibited Transfers. No Member may transfer
all or any part of such Member’s Percentage Interests if such transfer will (a) violate in any material respect any applicable federal or state securities laws or regulations, or subject the Company to registration as an investment company
or election as a “business development company” under the Investment Company Act of 1940; (b) require any Member or any Affiliate of a Member to register as an investment adviser under the Investment Advisers Act of 1940;
(c) effect a termination of the Company under Section 708 of the Code; or (d) cause the Company to be treated as an association taxable as a corporation for federal income tax purposes. 

6.4 Information. The Members acknowledge that from time to time, they may receive information from or regarding the Company in the
nature of trade secrets or that otherwise is confidential, the release of which may be damaging to the Company or Persons with which it does business. Each Member shall hold in strict confidence any information it receives regarding the Company that
is identified as being confidential (and if that information is provided in writing, that is so marked) and may not disclose it to any Person other than another Member, except for disclosures (i) compelled by law (but the Member must notify the
other Members, as appropriate, promptly of any request for that information, before disclosing it, if 

  
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practicable), (ii) to advisers or representatives of the Member or Persons to which that Member’s interest may be disposed as permitted by this Agreement, but only if the recipients
have agreed to be bound by the provisions of this Section, or (iii) of information that Member also has received from a source independent of the Company that the Member reasonably believes obtained that information without breach of any
obligation of confidentially. The Members acknowledge that breach of the provisions of this Section may cause irreparable injury to the Company for which monetary damages are inadequate, difficult to compute, or both. The Members agree that the
provisions of this section may be enforced by specific performance, 
 6.5 Liabilities to Third Parties; Indemnification.
Except as otherwise expressly agreed in writing, no Member shall be liable for the debts, obligations or liabilities of the Company, including under a judgment decree or order of a court; provided, however, that notwithstanding any other provision
of this Agreement, each Member shall indemnify and hold harmless the Company and the other Member from and against any claim, loss, damage, liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of
investigation and appeal) actually incurred by the Company or the other Member by reason of, or arising from, the operations, business, or affairs of, or any action taken or failure to act, of or by the other Member or its Affiliates prior to
formation of this Company. The parties acknowledge that a claim has been filed against the Armstrong Parties in US District Court, Western District of Kentucky, Civil Action No. 4:11 cv 114, alleging the existence of an existing overriding
royalty that is alleged to apply to #8 seam coal to be mined by the Company, and the parties agree in the event that such claims are adjudged to apply to any #8 seam coal mined by the Company (but only with respect to #8 seam coal mined by the
Company), the Company shall not be entitled to be indemnified or held harmless by Armstrong relating to such obligations. 
 6.6
Fiduciary Duties. 
 (a) Duty of Loyalty. Each Member’s, Manager’s and Managing
Member’s duty of loyalty to the Company and the other Members is limited to account to the Company and to hold as trustee for the Company any property, profit or benefit derived by the Member, Manager or Managing Member in the conduct or
winding up of the Company’s business. A Member, Manager or Managing Member does not violate the duty of loyalty by engaging in a competing business or pursuing other business opportunities, even if the business opportunity could have been
pursued by the Company. 
 (b) Duty of Care. Each Member’s, Manager’s and Managing Member’s
duty of care to the Company and the other Members in the conduct of and winding up of the Company’s business is limited to refraining from engaging in gross negligence, reckless conduct, intentional misconduct, or a knowing violation of law,

 (c) Good Faith and Fair Dealing. Each Member, Manager and Managing Member shall discharge its duties
and exercise any of its rights consistently with the obligation of good faith and fair dealing which it owes to the Company and the other Members, A Member, Manager or Managing Member does not violate a duty of good faith or fair dealing to the
Company merely because the Member’s, Manager’s or Managing Member’s conduct furthers the Member’s, Manager’s or Managing Member’s, as the case may be, own interest. Further, a Member, Manager, or Managing Member does
not violate the duty of good faith and fair dealing by engaging in a competing business or pursing other business opportunities, even if the business opportunity could have been pursued by the Company; provided, however, that each Member, Manager
and Managing Member shall not engage in a competing business involving any coal reserves described in the Rogers #8 Lease of Kentucky #8 Reserves identified on Exhibit B hereto without the express written consent of the other Member.

  
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 (d) Indemnification of Members, Managers and Managing Member. To the
fullest extent allowed by law, the Members, Managers, and Managing Member shall be indemnified and held harmless by the Company for any liability resulting from any act performed or omission made by them in good faith on behalf of the Company,
except for acts or omissions of gross negligence, willful misconduct, intentional misconduct, or a knowing violation of the law. Notwithstanding anything contained in this Agreement to the contrary, no Member, Manager or Managing Member, nor any
officer, director, employee, agent, stockholder, member or partner of any Member or the Managing Member shall be liable, responsible, or accountable in monetary damages to the Company or any Member by reason of, or arising from, the operations,
business, or affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent that any of the foregoing is primarily caused by any acts or omissions of gross negligence, willful misconduct, intentional misconduct, or
knowing violation of the law of such Person; provided, however, that the rights of either Member with respect to the buy-sell triggers set forth in Section 8.3 shall not be limited to or conditioned upon acts or omissions of gross negligence,
willful misconduct, intentional misconduct, or knowing violation of the law. 
 (e) Duty of Care for Managing
Member. The Managing Member shall perform its duties hereunder, including but not limited to those expressly stated in Section 7.6, in good faith, using reasonable good faith efforts and with reasonable diligence. In the event the other
Member (“Non-Managing Member”) determines that the Managing Member is not performing its duties hereunder consistent with the standards set forth in this Section 6.6(e), the Non-Managing Member may deliver written notice of such
determination to the Managing Member, which notice shall set forth in reasonable detail the basis for the Non-Managing Member’s determination that the Managing Member is not performing its duties hereunder consistent with the standards set
forth in this Section 6.6(e). If, after sixty (60) days after delivery of the foregoing notice, the Non-Managing Member reasonably determines that the Managing Member continues to not perform its duties hereunder consistent with the
standards set forth in this Section 6.6(e), the Non-Managing Member may exercise the buy-sell option set forth in Section 8.3 hereof. 
 6.7 Alternate Dispute Resolution. If a dispute, controversy or claim (whether based upon contract, tort, statute, common law or otherwise) (collectively a “Dispute”) arises from or
relates directly or indirectly to the subject matter hereof, and if the Dispute cannot be settled through direct discussions, the parties shall first endeavor to resolve the Dispute by participating in a mediation administered by the American
Arbitration Association (“AAA”) under its Commercial Mediation Rules before resorting to arbitration. Thereafter, any unresolved Dispute shall be settled by binding arbitration administered by the AAA in accordance with its Commercial
Arbitration Rules and judgment on the award rendered by the arbitrator, after the review rights set forth below have been exhausted, may be entered in any court having jurisdiction. Any arbitration proceeding shall be conducted in St. Louis,
Missouri on an expedited basis before a neutral arbitrator (or multiple arbitrators if called for by the Commercial Arbitration Rules), Each arbitrator shall be selected in the manner determined by the AAA. Upon the request of either party, the
arbitrator’s award shall include findings of fact and conclusions of law provided that such findings may be in summary form. Either party may seek review of the arbitrator’s award before an arbitrations review panel comprised of three
arbitrators qualified in the same manner as the initial arbitrator(s) (as set forth above) by submitting a written request to the AAA. The right of review shall be deemed waived unless requested in writing within ten (10) days of the receipt of
the initial arbitrator’s award. The arbitration review panel shall be entitled to review all findings of fact and conclusions of law in whatever manner it deems appropriate and may modify the award of the initial arbitrator(s) in its
discretion. The prevailing party in any arbitration proceeding shall be entitled to 

  
 - 10 -

 
an award of all reasonable out of pocket costs and expenses (including attorneys’ and arbitrators tees) related to the entire arbitration proceeding (including review if applicable). Upon
request of either party, the arbitrator(s) may require that the subject arbitration proceedings be kept confidential and no party shall disclose or permit the disclosure of any information produced or disclosed in the arbitration proceedings until
the award is final. A party shall not be prevented from seeking temporary injunctive relief before a court of competent jurisdiction in an emergency situation, but responsibility for resolution of the Dispute shall be appropriately transferred to
the arbitrator(s) upon appointment in accordance with the provisions hereof. 
 6.8 Meetings of Members. 

(a) Meetings. The Members will have an annual meeting as may be established by the Managing Member. The Members
will have such special meetings as are called in accordance with the provisions of this Agreement. Any annual or special meeting of the Members is to be held at such place as may be designated by the Managing Member or in a waiver of notice executed
by all Members, If there is a failure to designate a place for any such meeting, the same is to be held at the principal place of business of the Company. The annual meeting of the Members is to be held each year within sixty (60) days of the
beginning of the Fiscal Year for the transaction of such other business as may come before the meeting. Special meetings of the Members may be called at any time by the Managing Member or by Members possessing not less than one-third of the
Percentage Interests and are to be held on such dates and at such times as are set forth in the notice calling the meeting. 
 (b) Quorum. A majority of ail the Percentage Interests represented in person or by proxy at such meeting constitutes a quorum of Members for all purposes. Less than such quorum has the right to
adjourn the meeting to a specified date not longer than ninety (90) days after such adjournment, with notice of such adjournment to Members to be given in the manner for special meetings of the Members. Except where the affirmative vote of all
of the Members or unanimous agreement of the Members is required herein, the act of a majority (computed with reference to Percentage Interests) of the Members present at any duly called meeting at which a quorum of Members is present is the act of
the Members. 
 (c) Notice of Meetings. Written or printed notice of each meeting of Members stating the
place, day and hour of the meeting and, in the case of special meetings, the purpose or purposes for which the meeting is called must be delivered or given: (i) in the case of regular meetings, not less than ten (10) nor more than forty
(40) days before the date of the meeting; and (ii) in the case of special meetings, not less than five (5) Business Days nor more than thirty (30) days before the date of the meeting; in each case either personally or by mail.
Notice of an annual meeting of the Members is to be given by the Company, Notice of a special meeting of the Members is to be given by the Company or the Member calling the meeting. Any notice required by this Section may be waived by the Members by
signing a waiver of notice before or after the time of such meeting and such waiver is equivalent to the giving of such notice. 
 (d) Designated Representative(s). Each Member shall designate in writing to the Company and the other Members the names of up to two (2) officers, directors, partner’s, members, employees
or other affiliates of the Member who are to serve as the “Designated Representatives” of the Member at all meetings and in all votes, consents and approvals of the Members required pursuant to this Agreement. The designated individual(s)
shall be the official Designated Representative(s) of the designating Member. One of such Designated Representatives shall be the primary voting representative of the Member and the other (if 

  
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 any) shall be the alternative voting representative. Both Designated Representatives of a
Member may attend meetings of the Members, but only one (1) Designated Representative shall cast the Member’s official vote on any matter. The initial Designated Representatives of the entity Members are as follow: 

 

			
	 Cyprus
	  	T.L. Bethel
		  	Vice President, Cyprus
		
		  	Tom Benner
		  	Vice President Operations Underground,
		  	Peabody Midwest Group
		
	 Armstrong
	  	Kenneth Allen
		  	Vice President Operations,
		  	Armstrong
		
		  	Martin Wilson
		  	President,
		  	Armstrong

 If neither Designated Representative of a Member is able to attend a particular meeting of the Members,
such Member may designate in writing another officer, director, partner, member, employee or affiliate of the Member to have voting privileges for that specific meeting. A Member may change either or both of its Designated Representatives at any
time by giving written notice thereof to the Company and the other Members. 
 (e) Informal Action by
Members. Any action required by this Agreement to be taken at a meeting of the Members, or any action which may be taken at a meeting of the Members, may be taken without a meeting if all of the Members sign written consents that set forth the
action so taken. Such consents have the same force and effect as a unanimous vote of the Members at a meeting duly held. The Company is to file such consents with the minutes of the meetings of the Members. 

(f) Tele-Participation in Meetings. Members may participate in a meeting of the Members by means of a conference
telephone or similar communications equipment whereby all individuals participating in the meeting can hear each other. Participation in a meeting in this manner constitutes presence in person at the meeting. 

7. Management of the Company.  
 7.1 Board of Managers. The management of the Company is vested in a Board of Managers consisting initially of four (4) individuals acting as Managers (individually a “Manager” and
collectively the “Managers”) of the Company, two (2) selected by Armstrong (or its successor or permitted assign) and the other two (2) selected by Cyprus (or its successor or permitted assign). Initially, Armstrong selects
Kenneth Allen, Vice President of Operations of Armstrong and Martin Wilson, President of Armstrong as its representatives on the Board of Managers and Cyprus selects T. L. Bethel, Vice President of Cyprus and Tom Benner, Vice President Operations
Underground, Peabody Midwest Group as its representatives on the Board of Managers. Except as provided herein, the decisions of the Board of Managers shall be binding upon 

  
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the Company and may be relied upon by other persons or entities. A Manager may at any time be changed or removed and replaced by the Member which has appointed such Manager, but not by any other
Member. In the event that Armstrong or Cyprus (or such party’s successor or permitted assign) ceases to be a Member, the Managers appointed by such Member shall be removed at such time and replaced by the affirmative vote of all of the Members.
Except as set forth in Section 3.2 and Section 7.12(e), the Board of Managers shall act solely upon the majority consent of all of the Managers, which requires an affirmative vote of at least three (3) of the four (4) Managers,
including the affirmative vote of at least one (1) Manager appointed by each of Armstrong and Cyprus, and each Manager shall have one (1) vote. No Manager shall be required to devote all of such Manager’s time or business efforts to
the affairs of the Company but shall devote so much of such Manager’s time and attention to the Company as is reasonably necessary and advisable to manage the affairs of the Company to the best advantage of the Company. The Managing Member is
hereby authorized to execute, in such capacity, all documents and agreements that do not require consent of the Board of Managers, For documents and agreements that require such consent, the Board of Managers may, in connection with its approval
thereof, authorize the Managing Member and/or all or less than all of the Managers to execute any and all documents necessary or convenient to carry out those actions approved by a majority of the Managers, If the Board of Managers approves
executing a document or agreement without specifically authorizing signers, then the Managing Member and each of the Managers, acting individually, may execute such document or agreement on behalf of the Company. The Company shall enter into a
Management Agreement (the “Management Agreement”) which shall initially engage Armstrong to be the manager of the Company’s day-to-day operations and the development of the Project, in accordance with the terms and conditions
contained in the Management Agreement and this Agreement. Pursuant to the terms of this Agreement Armstrong shall serve as the Managing Member until the occurrence of a Triggering Event or is removed by the Board of Managers, at which time Cyprus
shall have the authority, in its sole discretion, to assume the position of Managing Member without consent or action from any other Member or the Board of Managers and shall also have the authority, in its sole discretion, to assume the position of
manager under the Management Agreement, both elections being entirely independent from the other. 
 7.2 Authority and Duties
of the Managing Member. Except for Major Decisions, the Managing Member shall have authority over and control and management of the day-to-day affairs of the Company, including, without limitation, the authority to carry out the duties set forth
in Section 7,6, below. The Managing Member shall be appointed by the Board of Managers and may be removed by the Board of Managers, with or without cause. The initial Managing Member shall be Armstrong. Armstrong shall remain the Managing
Member until the occurrence of a Triggering Event or removed by the Board of Managers acting upon the majority consent of all of the Managers, Without limiting the foregoing, the Managing Member shall have all of the following specific rights and
powers to implement the business and affairs of the Company: 
 (a) Execute and deliver contracts and other
agreements necessary to conduct the efficient and safe day to day operations of the Project and to facilitate the development of the Project and in the ordinary course of business; 

(b) Retain or employ and coordinate the services (both on site and off site) of employees, independent contractors,
supervisors, accountants, attorneys and other persons necessary or appropriate to carry out the business and purposes of the Company, subject to the provisions of Section 7,4(d); 

(c) Pay all debts and other obligations of the Company, to the extent that funds of the Company are available therefor;

  
 - 13 -

 (d) Execute for and on behalf of the Company, and with respect to the
Project, all such applications for permits and licenses as the Managing Member deems necessary and advisable; 

(e) Perform all ministerial acts and duties relating to the payment of all indebtedness, taxes, and assessments due or to
become due with regard to the Project, and to give and receive notices, reports, and other communications arising out of or in connection with the ownership, indebtedness, or maintenance of the Project; and 

(f) Take such other actions or execute such other documents or agreements on behalf of the Company that do not expressly
require the consent of the Board of Managers or the Members hereunder. 
 7.3 Delegation of Duties. The Managing Member
may delegate such authority and duties as the Managing Member deems advisable, excluding any authority or duty which the Act requires to be exercised by the Members or which is a Major Decision. Any delegation pursuant to this Section may be revoked
at any time by the Managing Member, 
 7.4 Major Decisions. Notwithstanding Sections 7,2 and 7.6, the Managing
Member, on behalf of the Company, may not enter into or conduct any of the following transactions (“Major Decisions”) without the majority consent of the Board of Managers: 

(a) admit a Person as a Member except as provided in this Agreement; 

(b) change the status of the Company from one in which management of the Company is vested in managers to one in which
management of the Company is vested in the members and vice versa; 
 (c) assign the Company’s property in
trust for creditors or on the assignee’s promise to pay the Debts of the Company; 
 (d) select, retain or
employ any attorneys or legal advisors to institute or defend any claims, litigation or other legal proceeding brought by or brought on behalf of or against the Company, in which the amount in controversy exceeds $250,000.00; 

(e) institute or settle any litigation, arbitration or other legal proceeding by or on behalf of the Company, or confess a
judgment against the Company, in which the amount in controversy exceeds $250,000.00, except that the Managing Member, without consent of the Board of Managers, may negotiate and settle disputes on behalf of the Company with the Mine Safety and
Health Administration (MSHA), with authority to commit the Company to pay any associated fines, costs or other liabilities in an aggregate amount of $1,000,000.00 in any given Fiscal Year; 

(f) sell, convey, lease, assign, exchange or otherwise dispose of any real property or any combination thereof or any
other material asset of the Company with a fair market value in excess of $250,000.00 in the aggregate during any Fiscal Year without consent of the Board of Managers, provided, however, that the Managing Member shall have the authority to sell,
transfer, dispose, abandon or lease any movable equipment in the ordinary course of business which are no longer necessary or required in the conduct of the Company’s business; 

  
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 (g) borrow money in the name of the Company in excess of $250,000.00 in the
aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal Year or issue evidences of indebtedness of the Company, or refinance, recast, modify or extend the same, or secure the same by mortgage, deed
of trust, pledge or other Lien; 
 (h) commit to make, or make, any expenditure (including Capital Expenditures)
in excess of $250,000.00 in the aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal Year; 
 (i) acquire by purchase, lease or otherwise, any real property in excess of $250,000.00 in the aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal
Year or make any investment in securities or any ownership or controlling interests in any corporation, partnership, limited partnership, limited liability company or other Person; 

(j) possess any property of the Company, or assign the rights of the Company in specific property, for other than a
Company purpose; 
 (k) approve the Project Budget for each Fiscal Year and any amendments thereto; 

(1) cause the Company to enter into one or more transactions with a Member (other than in its capacity as a Member) or an
Affiliate of a Member except as otherwise specifically permitted hereunder and in the Management Agreement; 

(m) change the name of the Company at any time; 

(n) form, organize, acquire, sell, dispose of, reorganize or liquidate a Subsidiary; 

(o) to make any loan or advance to other Persons in excess of $10,000.00 to any such Person (including Members and
Affiliates of Members) or in excess of $50,000.00 in the aggregate during any Fiscal Year, other than (i) trade credit extended on usual and customary terms in the ordinary course of business; and (ii) investments of Company cash in
certificates of deposit, treasuries, high-grade commercial paper or similar investment products; 
 (p) enter
into any modification of the Management Agreement or. Sales Representation Agreement; or 
 (q) enter into or
modify any lease or agreement between the Company and the Managing Member or any of its Affiliates except to the extent permitted under the Management Agreement. 
 7.5 Actions Requiring Unanimous Approval of Members. Notwithstanding Sections 7.1, 7.2, 7.4 and 7,6, neither the Company, the Managers, the Managing Member nor any other Member may, without
the unanimous consent of all the Members, do any of the following: 
 (a) any act materially in contravention of
this Agreement; 
 (b) amend this Agreement or the Certificate; 

  
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 (c) approve a merger or consolidation of the Company with another Person;

 (d) modify, compromise or release the amount and character of the Scheduled Capital Contributions which a
Member is to make or promises to make hereunder; 
 (e) any act which would make it impossible to carry on the
ordinary business of the Company; 
 (f) to dissolve or wind up the Company, except as otherwise expressly
provided in this Agreement; or 
 (g) any and all elections required or permitted to be made by the Company under
the Code. 
 7.6 Managing Member’s Duties. The Managing Member shall be responsible for the good faith performance of
the following functions in a commercially reasonable manner consistent with practices found in the development of properties similar to the Project: 
 (a) Protect and preserve the title and interest of the Company with respect to the Project and other assets now or hereafter owned by the Company; 

(b) Pay from the funds of the Company in a business-like manner all taxes, assessments and other obligations associated
with the Project; 
 (c) Prepare and implement the Project Budget as modified from time to time in accordance
with the terms of this Agreement; 
 (d) Report to the Managers on a quarterly basis regarding the status of the
development of the Project and compliance with the Project Budget for that Fiscal Year; 
 (e) Negotiate, enter
into and supervise the performance of contracts covering all aspects of development of the Project; provided however, that the Sales Representation Agreement shall control the conduct of the parties regarding the sale and marketing of coal from the
Project and the Management Agreement shall control the conduct of the parties regarding the day to day management and development of the Project; 
 (f) Keep all books and accounts and other records required by the Company, including detailed information regarding all expenditures, preserve and store in a safe place all such books and records for at
least a seven (7) year period after termination of each fiscal year; and permit the Members, or any person designated by any Member, with reasonable advance notice and at reasonable times to examine or audit the books, records and accounts
relating to the Company, including but not limited to the assets of the business of the Company’s contractual obligations and forecast for performance by the Company; 

(g) Cause an annual financial statement to be prepared by a firm of certified public accountants of recognized standing,
which financial statements shall be audited if required by any Member; 
 (h) Pay from funds of the Company all
obligations of the Company; 

  
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 (i) Maintain all funds of the Company in financial institutions of
recognized credit standing or in certificates of deposit, treasuries, high-grade commercial paper or similar products; 
 (j) Supervise all matters coming within the terms of this Agreement, including direct observation, inspection and supervision of the development of the Project and production of coal therefrom in a safe
and efficient manner; 
 (k) Develop, manage and operate the Project in a commercially reasonable and safe
manner, which includes but is not limited to 1) submitting the appropriate applications for encroachment permits to mine the Kentucky #8 seam of coal under (i) state and federal highways, including the Wendell Ford Parkway (f/k/a Western
Kentucky Parkway), and (ii) the Paducah and Louisville Railway, and 2) obtaining satisfactory opinions of title on all coal tracts prior to entering upon or mining upon such tracts; 

(1) Acquire appropriate insurance for the Company and the Project in amounts determined by the Managing Member in
consultation with the Board of Managers; 
 (m) Supervise the management of the Project and the production of
coal therefrom; 
 (n) No later than one hundred twenty (120) days prior to the end of the Fiscal Year, the
Managing Member shall start the budgetary process for the next Fiscal Year and no later than ninety (90) days prior to the end of the Fiscal Year shall prepare and deliver to the Members and Managers the projected annual Project Budget of the
Company which itemizes projected sources of revenue and anticipated expense items for the next Fiscal Year; 

(o) No later than ninety (90) days after the end of the Fiscal Year, the Managing Member shall prepare a business
report (“Annual Business Report”) of the past Fiscal Year, The Annual Business Report shall be delivered to the Members to advise and inform each Member of the current status of the Project. The Annual Business Report shall include:
(i) description of activities taken place during the past Fiscal Year; (ii) an annual income statement; (iii) a marketing plan for the next Fiscal Year; (iv) a coal production schedule; and (v) any other information that the
Members reasonably request be included in the Annual Business Report; 
 (p) The Managing Member shall cause all
required Federal, state and local income, franchise, property and other tax returns of the Company, including information returns, to be timely filed with the appropriate office of the relevant taxing jurisdiction or agency. With respect to the
Federal and state income tax returns of the Company, the Company shall submit to each Member drafts of the proposed returns as soon as possible, but in no event later than March 15 of each year, to permit review and approval of such returns by
each Member prior to filing. All expenses incurred in connection with such tax returns and information returns, as well as for the Annual Business Report referred to in Section 7.7(o) hereof, shall be expenses of the Company; 

(q) No later than one hundred eighty (180) days after formation of the Company, the Managing Member shall cause all
tracts being subdivided by the “New Division Line”, or subdivided for any other reason, to be surveyed and to obtain a legal description and survey plat of said tracts. The survey plat shall be recorded and the legal description used in
the Special Warranty Deed from Armstrong to the Company; and 

  
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 (r) In general, supervise the business and affairs of the Company for the
benefit of the Members. 
 7.7 Exclusion Areas. Notwithstanding any other provision of this Agreement, the Company may not
mine or enter upon any portion of the Kentucky #8 seam of coal situated within the “No Mining Boundary” depicted on the map attached hereto and incorporated herein by reference as Exhibit C (herein referred to as the “Exclusion
Areas”) without the prior written consent of Cyprus granting the Company the right to mine or enter upon all or any portion of the Exclusion Areas. The granting of any such consent shall be within the sole discretion of Cyprus and its refusal
to provide any such consent shall not constitute a failure by Cyprus to remit its initial capital contribution or otherwise constitute a material act in contravention of this Agreement. The Company shall subordinate its interests in the coal
reserves located within the Exclusion Areas upon request of the surface owner or its lessee of those areas. In the event Cyprus, in its sole discretion, grants consent to lift the prohibition against mining within the Exclusion Areas, the Company
shall have the first right to mine the Kentucky #8 seam of coal situated within the No Mining Boundary. 
 7.8 Development and
Due Diligence Expenses. Each party shall bear its own costs and expenses for developing the Project and its own due diligence activities until this Agreement is executed. 
 7.9 Conflicts of Interest. The pursuit of other ventures and activities by the Members, Managers and Managing Member are hereby consented to by the Members and shall not be deemed wrongful or
improper. No Member, Manager or Managing Member shall be obligated to present any particular investment opportunity to the Company, even if such opportunity is of a character which, if presented to the Company, could be taken by the Company. The
Company may enter into agreements with a Member, or an affiliate of a Member, to provide other services to the Company; provided such agreement must be at competitive rates and terms and, if applicable, approved by the Board of Managers in
accordance with Section 7.4. 
 7.10 Indemnification. 

(a) Indemnities and Indemnifiable Claims. The Company shall indemnify and hold harmless any Indemnitee, from and against any claim,
loss, damage, liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of investigation and appeal) actually incurred by any such Indemnitee by reason of, or arising from, the operations, business, or
affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent any of the foregoing (A) is determined by final, nonappealable order of a court of competent jurisdiction (or by any other means approved by the
Board of Managers) to have been primarily caused by any fraud, breach of fiduciary duties established under this Agreement, gross negligence or willful misconduct of such person or (B) is actually incurred as a result of any claim (other than a
claim for indemnification under this Agreement) asserted by the Indemnitee as plaintiff against the Company; provided that if (for purposes of clause (A) immediately above) the fraud, breach of fiduciary duties established under this Agreement,
gross negligence or willful misconduct of any person claiming indemnification shall consist of a conviction of or plea of no contest to a felony, then such person shall not be entitled to indemnification unless it is determined, by final,
nonappealable order of a court of competent jurisdiction (or by any other means approved by the Board of Managers), that indemnification should be granted in whole or part. 

  
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 (b) Advancement of Expenses, Unless a determination has been made (by final,
nonappealable order of a court of competent jurisdiction or by any other means approved by the Board of Managers) that indemnification is not required, the Company shall, upon the request of any Indemnitee and except for any claim of the type
described in clause (B) of Section 7.10(a) of this Agreement, advance or promptly reimburse such Indemnitee’s reasonable costs of investigation, litigation, or appeal, including reasonable attorneys’ fees; provided that the
affected Indemnitee shall, as a condition of such Indemnitee’s right to receive such advances and reimbursements, undertake in writing to promptly repay the Company for all such advancements or reimbursements if a court of competent
jurisdiction determines, by final, nonappealable order, that such Indemnitee is not then entitled to indemnification under this Section 7.10. The written undertaking described in the immediately preceding sentence to repay the amount paid or
reimbursed to an Indemnitee by the Company must be an unlimited general obligation of the Indemnitee but need not be secured and it may be accepted without reference to financial ability to make repayment, 

7.11 Tax Matters Partner. Armstrong shall be designated, as the tax matters partner of the Company pursuant to §623 l(a)(7) of
the Code, Any Member designated as tax matters partner shall take such action as may be necessary to cause each other Member to become a notice partner within the meaning of §6223 of the Code. The Company shall indemnify the tax matters partner
of the Company from and against any and all judgments, penalties (including excise and similar taxes and punitive damages), fines, settlements and reasonable expenses, (including without limitation attorneys fees) actually incurred by such Member in
performing its duties as the tax matters partner of the Company; provided that the Company shall not be liable to any Person acting as the tax matters partner of the Company for any portion of such judgments, penalties, fines, settlements or
reasonable expenses resulting from such persons gross negligence or willful misconduct. 
 7.12 Meetings of the Board of
Managers. 
 (a) Meetings. The Board of Managers will have an annual meeting and such quarterly
meetings as may be established by the Company. The Board of Managers will have such special meetings as are called in accordance with the provisions of this Agreement, Any annual, quarterly or special meeting of the Board of Managers is to be held
at such place as may be designated by the Company or in a waiver of notice executed by all Managers. If there is a failure to designate a place for any such meeting, the same is to be held at the principal place of business of the Company. The
annual and quarterly meetings of the Board of Managers is to be held each year within sixty (60) days prior to the beginning of the Fiscal Year, but in no event prior to the time the Managing Member delivers the projected annual Project Budget
of the Company to the Managers and the Members pursuant to Section 7.7(n), for the establishment of the Project Budget and the transaction of such other business as may come before the meeting. Special meetings of the Board of Managers may be
called at any time by the Company or by a Manager and are to be held on such dates and at such times as are set forth in the notice calling the meeting. 
 (b) Quorum. A Manager appointed by Cyprus and a Manager appointed by Armstrong attending such meeting constitutes a quorum of Managers for all purposes, and no quorum shall exist unless a Manager
appointed by both Cyprus and Armstrong shall be in attendance. 
 (c) Notice of Meetings. Written or
printed notice of each meeting of the Board of Managers stating the place, day and hour of the meeting and, in the case of special meetings, the purpose or purposes for which the meeting is called must be delivered or given: (i) in the case of
regular meetings, not less than ten (10) nor more than forty (40) days before the date of the meeting; and (ii) in the case of special meetings, not less than five (5) Business Days nor more than thirty (30) days before the
date of the meeting; in each case either 

  
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personally or by mail. Notice of an annual meeting of the Board of Managers is to be given by the Company. Notice of a special meeting of the Board of Managers is to be given by the Company or
the Manager calling the meeting. Any notice required by this Section may be waived by the Managers by signing a waiver of notice before or after the time of such meeting and such waiver is equivalent to the giving of such notice. 

(d) Proxies. A Manager may vote at any meeting either in person or by proxy executed in writing by the Manager or
its duly authorized attorney in fact. Such proxy must be filed with the Company before or at the time of the meeting. No proxy is valid after 11 months from the date of execution unless otherwise provided in the proxy. 

(e) Informal Action by Managers. Any action required by this Agreement to be taken at a meeting of the Board of
Managers, or any action which may be taken at a meeting of the Board of Managers, may be taken without a meeting if all of the Managers sign written consents that set forth the action so taken. Such consents have the same force and effect as a
unanimous vote of the Managers at a meeting duly held. The Company is to file such consents with the minutes of the meetings of the Board of Managers. 
 (f) Tele-Participation in Meetings. Managers may participate in a meeting of the Board of Managers by means of a conference telephone or similar communications equipment whereby all individuals
participating in the meeting can hear each other. Participation in a meeting in this manner constitutes presence in person at the meeting. 
 8. Transfers of Interests; Admission.  
 8.1 Transfer
Restrictions. Except as otherwise set forth in this Section 8, no Member may sell, assign, transfer, pledge, hypothecate or otherwise dispose of its Member Interest unless unanimously approved by the Members, including, without limitation,
a Member’s distributional interest as described in §18-702 of the Act (“Distributional Interest”). Any transfer of a Member’s interest in violation of this Agreement shall be void and of no effect; provided, however, that
Armstrong shall be permitted to pledge its Distributional Interest only to PNC Bank or the successor agent of the existing PNC credit facility or successor primary lender to Armstrong (“Lender”). Notwithstanding the foregoing [imitations,
the parties acknowledge and agree that, under the limited circumstances set forth in Section 8.7, the Lender shall have the right to sell and transfer all of Armstrong’s Member Interest (not limited to its Distributional Interest) upon
compliance with the provisions of Section 8.7, 
 8.2 Right of First Refusal. If a Member receives a bona fide offer
(“Offer”) which the Member (“Selling Member”) proposes to accept, whether or not solicited, to sell or otherwise dispose of its entire Member Interest in the Company, then the Selling Member shall furnish to the non-selling
Member written notice of the receipt of the Offer together with the principal terms and conditions of the sale, including the minimum price (“Sale Price”) at which such interest is proposed to be sold, and a statement as to the identity of
the real party in interest making the Offer. The non-selling Member, shall then have the right to purchase the Member Interest (“Offered Interest”) proposed to be sold by the Selling Member upon and subject to the terms and conditions as
set forth in this Section 8.2. This Section 8.2 shall not apply to any sale pursuant to the procedures of Section 8.7. 
 (a) The price at which the Offered Interest may be purchased shall be the price contained in the Offer. If the price contained in the Offer shall consist (in whole or in part) of consideration other than
cash, payable at the closing thereof or at a later date, the cash equivalent fair market value of such other consideration shall be included in the price at which the Offered Interest may be so purchased. 

  
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 (b) The non-selling Member shall have sixty (60) days after receipt of
the notice to elect to purchase the Offered Interest. The purchase transaction (unless otherwise agreed to with third-party purchasers) shall be consummated at a closing to be held at the principal executive offices of the Company, or at such other
location as may be agreed by the parties, within sixty(60) days following the date of the non-selling Member’s election to purchase the Offered Interest. At the closing, unless otherwise stipulated in the Offer, the non-selling Member shall
deliver to the Selling Member the full purchase price against delivery of an instrument appropriately transferring the Offered Interest sold thereby. 
 (c) If the non-selling Member does not elect to purchase the Offered Interest, then the Selling Member may accept the Offer and, pursuant thereto, sell the Offered Interest and, notwithstanding anything
to the contrary contained herein (including, without limitation, Section 8.5 hereof), upon such sale of the Offered Interest and the execution by the transferee of this Agreement, the transferee shall become a Member of the Company. However, if
the Selling Member does not sell the Offered Interest pursuant to the Offer within ninety (90) days after the termination (by passage of time or otherwise) of the rights of first refusal created under this Section 8.2, the Selling Member
may not thereafter transfer the Offered Interest, without again complying with the provisions of this Section 8.2. 
 8.3
Buy-Sell Option. Except under circumstances where the procedures set forth in Section 8.7 applies following a Foreclosure Assignment (as defined below), upon the occurrence of any of the following events, each Member shall have the right
of purchase and sale provided by this Section 8.3 to be exercised by a Member (“Electing Member”) by delivering a written notice (“Election Notice”) to the other Member (“Notice Member”): 

(a) a Member or the Managing Member seeks in good faith for approval for an action that requires approval of the Board of
Managers or the Members pursuant to Section 3.2, Section 6.2, Section 7.4(g), or Section 7.5, and the Board of Managers or the Members, as applicable, reach a full and final deadlock on whether to approve the requested action
after attempting in good faith to negotiate a mutually agreed outcome; 
 (b) the Notice Member, acting as a
Managing Member or Member, or any Manager appointed by the Notice Member takes any action or transaction described in Section 7.4 or 7.5 without the consent of the Board of Managers or Members, as applicable; 

(c) the Notice Member has breached the Representations and Warranties in Section 6.1; 

(d) the Notice Member has breached Section 6.3; 

(e) the Notice Member has breached its duties and obligations set forth in Section 6.6(a),(b) or (c); 

(f) a Member other than the Managing Member elects to exercise this provision pursuant to the provisions set forth in
Section 6.6(e); 
 (g) a Change of Control with respect to either Member occurs; or 

  
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 (h) the voluntary election of either Member at any time on or after January 1, 2020.

 Such Election Notice shall state a dollar amount equal to the value placed by the Electing Member on all of the issued and
outstanding membership interests in the Company, calculated on a pari passu basis taking into consideration the relative equity interest of the Electing Member, and shall constitute an irrevocable offer by the Electing Member either to
purchase all, but not less than all, of the Member Interest in the Company of the Notice Member from the Notice Member, or to sell all, but not less than all, of the Electing Member’s Member Interest in the Company to the Notice Member. The
purchase price at which the Member Interest of any Member is purchased and sold under this Section 8.3 shall be the value for all of the interests in the Company, as stated in the Election Notice, multiplied by the selling Member’s
Percentage Interest in the Company. 
 (i) For a period of time not exceeding sixty (60) days from the
receipt of the Election Notice by the Notice Member (“Consideration Period), the Notice Member shall have the right to elect to purchase all of the Electing Member’s Member Interest in the Company by providing written notice
(“Purchase Notice”) to the Electing Member of the Notice Member’s intent to purchase the Electing Member’s Member Interest. If the Notice Member does not provide the Purchase Notice to the Electing Member within the above
referenced sixty (60) day time period, the Notice Member shall become obligated to sell its Member Interest in the Company to the Electing Member. 
 (ii) The closing of the purchase and sale shall occur within sixty (60) days from the earlier of the expiration of the Consideration Period, or the date the Electing Member receives a Purchase Notice
from the Notice Member. In either event, at the closing of the purchase and sale transaction described in this Section 8.3, the purchase price must be paid in cash (either by certified check or by wire transfer), unless otherwise agreed upon by
the Electing Member and the Notice Member. 
 (iii) At the closing on the sale of a Member’s Member Interest
pursuant to this Section 8.3, there shall be a final accounting among the Members with respect to all amounts due them from the Company. With respect to the indebtedness and obligations for which any Member is responsible, the purchasing Member
shall, as a condition to closing (but said condition may be waived in writing by the selling Member), cause the repayment of such indebtedness. The Members agree, upon request of any other Member, to execute such certificates or other documents and
perform such other acts as may be reasonably requested by such requesting Member from time to time in connection with such sale. 

8.4 Completion of Sale. If a Member becomes obligated to sell its Member Interest in the Company pursuant to Sections 8.2 or
8.3 of this Agreement, each Member covenants and agrees that it will take such actions and execute such instruments of transfer and other documents as reasonably requested by the other Member to further evidence and complete the sale of the
Member’s Member Interest, Additionally, as a condition precedent to the consummation of the sale of the Percentage Interest, a purchasing Member must arrange for the complete release of all guarantees provided by the selling Member as security
for indebtedness of the Company. 
 8.5 Admissions. All transfers of an interest in the Company by a Member shall entitle
the transferee only the rights afforded a transferee of a Distributional Interest pursuant to § 18-702 of the Act except as otherwise expressly provided herein. These rights are the rights to receive allocations and

  
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distributions to which the transferring Member would otherwise have been entitled, but shall not allow the transferee any additional rights, nor shall the transferee become a Member of the
Company upon such transfer. The transferee shall only become a Member of the Company by receiving the written consent of all Members of the Company and executing this Agreement. The consent of the Members to admit any transferee of a distributional
interest into the Company shall be given in the sole and absolute discretion of each Member. 
 8.6 Distributions and
Allocations in Respect to Transferred Interests. If any Member’s interest is sold, assigned or transferred, or any Person is otherwise admitted as a Member during any Fiscal Year in compliance with the provisions of this Agreement, net
profits, net losses, each item thereof, and all other items attributable to such interest for such Fiscal Year shall be allocated among the Members by taking into account their varying interests during such Fiscal Year in accordance with Code
§706(d). Unless otherwise required by the applicable treasury regulations, such sale, assignment, transfer or admission shall be deemed to have occurred at the end of the calendar month during which such event shall have actually occurred, and
such allocations shall be determined and made pursuant to a pro forma closing of the books of the Company as of the end of such month. With respect to a transferred Member’s interest or any interest therein, all distributions on or before the
deemed date of such transfer shall be made to the transferor and all distributions thereafter shall be made to the transferee. The Company shall not incur any liability for making allocations and distributions in accordance with this provision.

 8.7 Right of First Offer and Sale Procedure Following Foreclosure by Armstrong’s Lender. The procedures of this
Section 8.7 shall apply only in the event Armstrong’s interest has been assigned to Lender or its designee (“Lender Interest Holder”) upon the exercise of Lender’s default remedies pursuant to the pledge referenced in
Section 8.1 (such event being referred to as a “Foreclosure Assignment”), it being understood that any such Lender Interest Holder’s are limited to that of the holder of a Distributional Interest and the Lender or its designee or
assignee may acquire all rights and attributes of Armstrong’s Membership Interest in the Company only pursuant to the procedures of this Section 8.7. 
 (a) If, at any time, the Lender Interest Holder proposes to initiate a sale of Armstrong’s Member Interest to a third party, it shall provide written notice of such intention to Cyprus
(“Election Notice”), and Cyprus shall have a right of first offer to purchase Lender Interest Holder’s Percentage Interest for a price equal to the Fair Value for all the Member Interests in the Company multiplied by the Lender
Interest Holder’s Percentage Interest in the Company (the “Offer Price”), 
 (b) As used herein, “Fair Value” shall
mean the fair market value of the entire Company, as determined by the following process. The parties shall have a period of 60 days following the date of the Election Notice in which to agree on the Fair Value of the Company, which period may
be extended by mutual consent, which consent shall not be unreasonably withheld. If they are unable to so agree during such 60-day period (as such period may be extended by mutual consent), then the parties shall submit in writing to the other a
list of three neutral and impartial mining valuation consultants. The first name that matches on both lists shall be retained to determine the Fair Value of the Company. If there are no matches on the lists, the parties shall submit new lists of
three names within two business days, and this process shall continue until an appraiser is selected. The selected appraiser shall have a period of sixty (60) days (which 60-day period shall be extended if the appraiser believes it is necessary
to complete its appraisal) in which to render the appraisal and provide each of the parties with a copy, which appraisal shall be final and binding upon all the parties. All parties agree to give the appraiser full access to the mining operations,
mine management and all requested financial, business and operational information that the appraiser may reasonably request. 
 (c) The
period beginning on the date on which the Fair Value is determined (whether by mutual agreement or by appraisal) and lasting for 180 days thereafter shall constitute the “Sale Period.” For the first thirty (30) days of the Sale
Period, Cyprus shall have the option to elect to purchase all of the Lender Interest 

  
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 Holder’s Percentage Interest for the Offer Price (the “Right of First Offer”). If Cyprus does
not deliver notice of its election to purchase within such 30-day period, Lender Interest Holder shall have the right to sell Lender Interest Holder’s Percentage Interest to any other Person, so long as the total purchase price is not less than
90% of the Offer Price; however, if, during the Sale Period, Lender Interest Holder notifies Cyprus in writing of a proposed sale of Lender Interest Holder’s Percentage Interest for a total purchase price less than 90% of the Offer Price, which
notice (the “ROFR Notice”) shall include a description of the principal terms and conditions of the sale, then Cyprus shall have the right to elect to purchase the interest at the price identified in the ROFR, which election shall be
delivered within 60 days of the date of its receipt of the ROFR Notice, and if Cyprus shall fail to timely deliver written notice of its election to purchase, then Lender Interest Holder may sell its Percentage Interest on the price and on the
terms set forth in the ROFR Notice, so long as such sale is completed within 120 days after the date of Cyprus’ receipt of the ROFR Notice. Any sale by Lender Interest Holder that conforms with the provisions of this Section 8.7 shall
be effective to vest in the purchaser all Member Interest rights relating to the Percentage Interest sold, and such purchaser shall automatically become a Member of the Company upon such transfer upon such the purchaser executing an agreement
agreeing to be bound by the terms of this Agreement. If, however, Lender Interest Holder does not consummate the sale during the Sale Period (or, as applicable, within 120 days from the date of Cyprus’ receipt of the ROFR Notice), then the
Right of First Offer shall apply to any subsequent sale by Lender Interest Holder. 
 (d) If Cyprus elects to exercise the Right of First
Offer or its rights upon receipt of an ROFR Notice, the closing of the sale shall occur within 60 days of the start of the Sale Period. Each of Cyprus and Lender Interest Holder covenants and agrees that it will take such actions and execute
such instruments of transfer and other documents as reasonably requested by the other to further evidence and complete the sale of the Lender Interest Holder’s Percentage Interest. The provisions of Section 8.6 shall apply to the interest
being transferred. The purchase price shall be paid in cash unless the parties mutually agree otherwise, and the Lender Interest Holder’s interest shall be free and clear of any liens and encumbrances. 

9. Dissolution Acts. The Company shall only be dissolved upon the occurrence of any one of the following events:
(i) the completion of the term of the Company as set forth in the Certificate; (ii) written consent of all Members upon exhaustion of the economically mineable coal reserves from the Project; (iii) the sale of all or substantially all
of the assets of the Company; (iv) written consent of all Members, or (v) as required by Section 10 below. Except as otherwise agreed to herein below in Section 10, upon dissolution, the Company shall liquidate and distribute its
assets in the following priority: 
 9.1 First, to pay all debts owed by the Company to non-Members; 

9.2 Second, to pay any outstanding Member Loans; 
 9.3 Third, to each Member in accordance with the positive balance of Member’s capital account; and 
 9.4 Fourth, to the Members in proportion to each Member’s Percentage Interest. 
 10. Withdrawal and Disassociation. Except as otherwise agreed to herein below in this Section 10, no Member shall be allowed to withdraw or disassociate from the Company. Any
attempted disassociation or withdrawal by a Member shall be null and void and not recognized by the Company, If an event disassociation occurs for any reason whatsoever, the Company shall not dissolve and the Member causing the disassociation, if
any, shall be liable to the Company for such wrongful disassociation. In no event shall the disassociated Member be entitled to have its Percentage Interest purchased by the Company. Notwithstanding any provision of this Agreement, if the Company
has not established commercially viable mining operations in the Kentucky #8 seam of coal by January 5,2016, then either Member shall have the right to provide the other 

  
 - 24 -

 Member with notice of withdrawal from the Company (“Notice of Withdrawal”). Neither Member shall
have the right to provide Notice of Withdrawal from the Company prior to January 5, 2016. In the event either Member provides Notice of Withdrawal under this Section due to the Company’s failure to establish commercially viable mining
operations in the Kentucky #8 seam of coal by January 5, 2016, the Company shall liquidate all assets of the Company, other than the assets contributed pursuant to the Contribution Schedule identified in Exhibit A hereto and pay all debts
or other amounts owed by the Company to: (i) non-Members; then to (ii) pay any outstanding Member Loans; then to (iii) the Members is accordance with the positive balance of their the Member’s capital account; then to
(iv) the Members in proportion to each Member’s Percentage Interest. After all amounts identified in subsections (i) through (iii) of the preceding sentence have been paid in full, the Company will distribute the remaining assets
identified on Exhibit A hereto to the Member who originally contributed such assets as part of that Member’s Initial Capital Contribution. In the event the Company is unable to satisfy its debts after liquidating all assets other than
those identified in Exhibit A hereto, then all remaining assets will be subject to the liquidation and distribution of assets pursuant to Section 9 of this Agreement unless otherwise unanimously agreed to by the Members. Armstrong
covenants and agrees that it will not interfere or compete with Cyprus’ primary rights to renegotiate or seek an extension to the Rogers #8 Lease during the Non-interference Period (as defined below). Notwithstanding any disassociation
hereunder or stated herein in this Section 10, Armstrong hereby covenants and agrees for itself, its successors and assigns and its and their Affiliates, and any successor owner of any ownership interest in the assets that were contributed by
Armstrong under Section 3 hereof, including without limitation, the successors in title to the 1,977 acres of surface lands, that it and they will not, during the Noninterference Period (as defined below), seek to or obtain a lease from the
Rogers of any coal reserves described in the Rogers #8 Lease of Kentucky #8 Reserves identified on Exhibit A hereto, or accept the assignment of any sublease of the such coal reserves, or take any action which could ultimately lead to the
non-development or delayed development of the Cyprus owned Kentucky #8 Reserves either separately, jointly or in conjunction with the Rogers Kentucky #8 Reserves. This covenant and agreement shall survive the disassociation and termination of this
Agreement and shall be deemed a covenant running with said land for a period of five (5) years from the date of withdrawal and disassociation or from the date the Company is otherwise dissolved (the “Non-Interference Period”).

 11. Management of Workforce. Managing Member shall have the right, power and obligation to exercise any control
over the hiring or supervision of the workforce of the Company, necessary to manage the Company, including, but not limited to, any employment benefits or other terms and conditions of employment for the employees of the Company, Cyprus shall take
no part in, and shall have no right, power or obligation with respect to, any matter relating to the hiring of miners; provided, however, that Armstrong shall not hire miners previously terminated by Armstrong without first receiving consent from
the Board of Managers. The Managing Member shall provide written notification to the Board of Managers of the lateral transfer miners from Armstrong’s other operations to the Company within thirty (30) days of such transfer. 

12. Applicant Violator System. Each Member represents and warrants that such member, its officers, shareholders,
members, subsidiaries, affiliates and any other entity that can be attributed to it under the “ownership and control” regulations issued by the office of Surface Mining (collectively, “Member Entities”) are not currently permit
blocked under the Surface Mining Control and Reclamation Act of 1977 (“SMCRA”). No Member will allow to exist any violation of SMCRA or any comparable state law at any operation of a Member Entity that would cause any other Member or its
Member Entities to be permit blocked. Any Member Entity which becomes permit blocked under SMCRA or any comparable state law shall provide written notice of such event to the other Members within five (5) days and shall take any and all actions
necessary for the removal of such permit block within twenty (20) days’ provided, however, that if the permit block does not then or thereafter adversely affect the other Member(s) (by permit block or otherwise), the permit blocked entity
may contest the permit block in good faith and by appropriate legal proceedings, provided further, however, that if the permit block does adversely affect the other Members (by permit block or 

  
 - 25 -

 otherwise), the non-permit blocked Member(s) may (i) undertake to remove the condition causing the
permit block, at the permit blocked Member’s expense or (ii) purchase such permit blocked Member’s interest in the Company at the fair market value of such permit blocked Member’s interest. 

13. Relationship with Company.  
 13.1 Promotion of Company. Subject to Section 7.9 above, each Member shall use reasonable efforts to promote the activities of the Company and to ensure its success. 

13.2 Information. Subject to any applicable restriction of law, all Members shall be fully and currently informed of the activities
of the Company. To the extent that there are any applicable laws or regulations which would have the effect of limiting the right of a Member to be so informed, the other Members) shall use all reasonable efforts to obtain waivers thereof in favor
of the Company and the member so limited and, failing the obtaining of such waivers, the Members shall make such arrangements as shall be practicable to preserve the Company the benefits of the contacts or projects to which such secrecy agreements
or laws or regulations relate. Each Member shall not, except as required by law and except for disclosure to its officers, directors, employees, shareholders, members, partners, attorneys, accountants, and Affiliates (who shall be bound by the
confidentiality provisions of this Agreement), divulge to any person any confidential or proprietary information concerning the business of the Company, including, without limitation, the terms of this Agreement. 

14. Miscellaneous Matters.  
 14.1 Offset. Whenever the Company is to pay any sum to any Member, any amounts that the Member owes the Company may be deducted from that sum before payment. 

14.2 Captions. Section and paragraph titles or captions contained in this Agreement are inserted only as a matter of convenience
and for reference and in no way define, limit extend or describe the scope of this Agreement or the intent of any provision hereof. 
 14.3 Variation in Pronouns. All pronouns and any variation thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons.

 14.4 Governing Law; Severability. This Agreement is governed by and shall be construed in accordance with the law of
the State of Delaware. If any provision of this Agreement or the application thereof to any Person or circumstance is held invalid or unenforceable to any extent, the remainder of this Agreement and the application of that provision to other Persons
or circumstances is not affected thereby and that provision shall be enforced to the greatest extent permitted by law. 
 14.5
Validity. In the event that any provision of this Agreement shall be held to be invalid, the same shall not affect in any respect whatsoever the validity of the remainder of this Agreement. 

14.6 Benefit. Except as herein otherwise provided to the contrary, this Agreement shall be binding upon and inure to the benefit of
the Members, their heirs, personal representatives, successors and assigns. 
 14.7 Notice. Any notice or communication
required or permitted to be given by any provision of this Agreement shall be in writing and shall be deemed to have been given and received by the person to whom directed (a) when personally delivered, (b) when sent by telefacsimile,
telecopier or similar transmission, at the number of the recipient set forth herein, followed with mailing by regular United States 

  
 - 26 -

 mail, (c) one (1) business day after deposited for overnight delivery with an overnight courier
such as Federal Express, Airborne, United Postal Service or other overnight courier service, or (d) three (3) business days after deposited in the U. S. mail, sent by certified mail, postage prepaid, return receipt requested, and such
notices are addressed to the person to which directed at the address or facsimile number of which such person has notified the Company and all of the Members. The initial addresses and facsimile numbers of the parties are reflected on the signature
page of this Agreement. 
 14.8 Further Assurances. In connection with this Agreement and the transactions contemplated
hereby, each Member shall execute and deliver any additional documents and instruments and perform any additional acts that may be necessary or appropriate to effectuate and perform the provisions of this Agreement. 

14.9 Entire Agreement/Amendment. This Agreement embodies the entire agreement and understanding of the Members relating to the
subject matter hereof and supersedes all prior representations, agreements and understandings, oral or written, relating to such subject matter. This Agreement may be amended only by a written instrument executed by all the Members. 

14.10 Waiver and Consent. No consent or waiver, express or implied, by a Member to or of any breach or default by the other Member
in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of such other Member of the same or any other obligation of such member hereunder.

 14.11 Legal Fees. Except as otherwise provided herein, all legal and other costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby are to be paid by the Member incurring such costs and expenses. In the event the Company or any Member brings suit to construe or enforce the terms hereof, or raises this Agreement as a
defense in a suit brought by the Company or another Member, the prevailing Person is entitled to recover its attorneys’ fees and expenses. 
 14.12 Waiver of Dissolution under the Act. Any dissolution of the Company shall occur only as provided herein, and each Member hereby waives and renounces its rights, if any, under the Act to seek
a court decree of dissolution, to seek the appointment of a liquidator of the Company, and to seek a partition of the Company property. 
 14.13 Relationship of the Members. The relationship between the Members shall be limited to the performance of the transactions contemplated by this Agreement and by the Formation Agreement and in
accordance with their terms. Nothing herein shall be construed to authorize a Member to act as general agent for the other Member(s). 
 14.14 Agreement in Counterparts. This Agreement may be executed in as many counterparts as may be deemed necessary and convenient. Each counterpart when so executed shall be deemed an original, but
all counterparts shall constitute one and the same instrument. 
 [remainder of page blank; signature page follows]

  
 - 27 -

 The Members execute this Agreement effective as of the date first above written. 

 

			
	Members:
	
	Cyprus Creek Land Resources, LLC
		
	By:	 	 /s/ T. L. Bethel

	Name:	 	T. L. Bethel
	Its:	 	VP

  

			
	Official Address:	 	701 Market Street
		 	St. Louis, MO 83101
		 	Attention: President
		 	Facsimile No: (314) 342-7697

  

			
	Armstrong Coal Company, Inc.
		
	By:	 	 /s/ Martin D. Wilson

	Name:	 	Martin D. Wilson
	Its:	 	President

  

			
	Official Address:	 	407 Brown Road
		 	Madisonville, KY 42431
		 	Attention: President
		 	Facsimile No: (270) 821-4245

  

			
	Company:
	
	Survant Mining Company, LLC
		
	By:	 	 /s/ Martin D. Wilson

	Name:	 	Martin D. Wilson
	Its:	 	Managing Member

  

			
	Official Address:	 	407 Brown Road
		 	Madisonville, KY 42431
		 	Attention: Vice President
		 	Facsimile No.: (270) 821-4245

  
 - 28 -

 Exhibit ‘A’ 

Contribution Schedule 

Scheduled Capital Contributions: 
  

	I.	Milestone 1.         Initial Capital (Permitting Phase) 

 Milestone 1 will occur upon the execution of the Operating Agreement of the Company, the Management Agreement and Sales Representation Agreement. Following the occurrence of Milestone 1, the Company will
work to obtain permits for the slope site, the airshaft site, the other surface operations, and the #8 reserves being contributed by Cyprus. 
 Contributions: 
 -Armstrong contributes $30,000 in cash 

-Cyprus contributes $30,000 in cash 
 -Each Member grants rights of entry as necessary to facilitate permitting 
  

	II.	Milestone 2 

 Milestone 2 will occur upon the
completion of permitting as determined by the Board of Managers (projected to occur in August 2012). Following the occurrence of Milestone 2, the Company will begin work on slope construction and airshaft construction. 

Contributions: 

-Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to complete construction of the mine,
including slope, airshafts, coal handling equipment, power drops, communication, rock dust, etc. 
 -Members to contribute, in
proportion to each Member’s Percentage Interest, cash sufficient for down payments on mining equipment, as determined by the Board of Managers. 
 -Armstrong to contribute surface property, equipment, buildings and facilities as follows: 

Contribution by Armstrong and/or its Affiliates by deed to the Company of the surface properties (approximately 1977 acres) and improvements (Parkway prep
plant) as described on Schedule 1 attached hereto and made a part hereof. PNC Mortgages and financing statements affecting those properties will be released. See Exhibit D for form of deed. 

Grant and/or assignment by Armstrong and/or its Affiliates of access and unlimited usage of all waterlines and unlimited withdrawal rights from the any
impoundment, reservoir or body of water associated therewith, including but not limited to the Overland Slurry/Water Supply, Lines servicing the Project, with rights of ingress and egress over any surface properties of Armstrong and/or its
Affiliates for the purpose of maintaining, reconstructing, modifying or otherwise servicing the waterlines and any impoundment, reservoir or body of water associated therewith, together with the right to permit such facilities. 

Conveyance and sublease of all equipment from Armstrong’s Parkway #9 operations, which shall include all substantially all of the owned and leased
equipment that is primarily used in connection with Armstrong’s Parkway #9 operations (supporting both surface and underground operations) on Milestone 2 (“Equipment”). At the time of conveyance and sublease of all Equipment,
Armstrong shall prepare complete exhibits to be 

  
 - 29 -

 attached as exhibits to the Bill of Sale and Sublease attached hereto in Exhibit D, All owned Equipment
shall be by bill of sale. Conveyance of leased Equipment shall be by means of a sublease whereby the Company will receive the benefit of use of such equipment and the residual interest (if any) in the equipment upon satisfaction of the underlying
lease obligations (without mark-up or additional rental owed to Armstrong). The Company will provide Armstrong the first-priority, rent-free right to possess and use all of the Equipment pursuant to a Use Agreement consistent with the terms stated
herein and the further terms set forth on Exhibit D. Armstrong shall be responsible to pay all underlying lease obligations for so long as any leased Equipment is being used in Armstrong’s Parkway #9 operations. Pursuant to the Use
Agreement, Armstrong shall be responsible to pay all operating costs associated with or arising from operation of Parkway prep plant and Equipment, including but not limited to any utilities and maintenance costs, until such time as the Company
begins mining the #8 seam of coal. When the Company begins mining the #8 seam, the Company and Armstrong shall prorate the operation costs of the Parkway prep plant and related Equipment, excluding Equipment dedicated solely to the #9 mining
operations, based on their production from both seams. As Armstrong depletes the #9 seam reserves at Parkway and ceases using particular items of Equipment, the Use Agreement shall terminate as to such items, and possession will be delivered to the
Company. 
 Contribution by Armstrong and/or its Affiliates of rights to the Gibraltar Haulroad and Access Road pursuant to a Non-Exclusive
Haulroad Easement Agreement. 
 -Cyprus to contribute reserves and property rights as follows: 

Contribution to the Company by Cyprus and/or its Affiliates of all Kentucky #8 coal reserves located within the Comprehensive Mining Area, now or
hereafter owned or leased by Cyprus or its Affiliates, by the Lease and Sublease Agreement described on Exhibit D, all such leased and subleased interests being contributed free from and not subject to any obligations of royalty interests,
overriding royalty interests, premiums or rentals to any Person, except for the royalty obligations due to any original Lessor of the subleased interests. Company will reimburse Cyprus for advance royalties paid in 2012 for leased Rogers #8 coal
reserves. 1 
 Contribution by Cyprus and/or its Affiliates of rights to the Gibraltar Haulroad and Access Road pursuant to Non-Exclusive
Haulroad Easement Agreements. 
  

	III.	Milestone 3 

 Milestone 3 occurs upon the
completion of mine construction as determined by the Board of Managers (projected to occur in August 2013). 

Contributions: 

-Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to acquire a full underground unit of
equipment as determined by the Board of Managers, which is projected to include two JOY 1415 continuous miners, four BH10 battery haulers, two Fletcher double boom roof bolters, one BF17 JOY feeder, two scoops, two 14 place mantrips, three tow man
rides, power distribution equipment, coal handling equipment (headers, etc.) and any other equipment or supplies necessary to operate one split air supersection. 

 

	1	Upon completion of permitting Cyprus shall acquire a new #8 coal lease from the Rogers to extend the existing 1993 lease and will subsequently sublease those leasehold
interests to the Company. 

  
 - 30 -

	IV.	Milestone 4 

 Milestone 4 occurs following the
completion of mine construction and prior to mining as determined by the Board of Managers (projected to occur in August 2013). Following the occurrence of Milestone 4, the Company will begin mining the #8 seam. 

Contributions: 

-Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to upgrade the Parkway preparation plant
to allow for processing of additional tonnage as determined by the Board of Managers. Cost of operation of the preparation plant will be shared on a prorata basis by Armstrong and Survant as long as Armstrong continues to operate in the #9 seam.

 VI. TV A Contract. To the extent any coal is sold by the Company under Armstrong’s existing contract with Tennessee Valley Authority, TVA
Contract No, 40685, Armstrong shall remit to the Company the net proceeds attributable to the sale of such coal, without mark-up or additional costs or charges to the Company pursuant to a pass-through agreement acceptable to the Board of Managers.
The Sales Representation Agreement requires payment for all coal mined removed and sold by the Company, including any coal passed through Armstrong contracts. 
 Notwithstanding any provision of this Agreement, neither Member is making any representation or warranty concerning the condition or quality of its properties being contributed hereunder, and neither
Member shall be determined to have failed to remit its capital contributions or be liable to the Company or the other Member based on any subsequent determination that any portion of the Member’s capital contributions consisting of owned or
leased real property is unable to be used, developed or mined for any reason or is not used, mined and/or developed for any reason or the Member’s title to any such property is found to be defective or the estimated tonnages of any coal
reserves provided for herein are determined to be inaccurate or due to any aspect of the condition, fitness or serviceability of any of the Equipment, Buildings, or other facilities described herein. The Members agree that certain surface properties
(being those tracts subdivided by the “New Division Line”) to be contributed to the Company by Armstrong will be surveyed to effectively subdivide the tracts and that neither Member will be entitled to seek adjustment of their respective
Percentage Interests in the Company or otherwise be liable to the Company or the other Member by reason of any determination of any deviation between the representations contained in the lease and the surveyed acreage of those surface properties.

  
 - 31 -

 EXHIBIT B 
 COMPREHENSIVE MINING AREA 

  
 - 32 -

 

 

 EXHIBIT C 
 EXCLUSION AREAS 

  
 - 33 -

 

 

 EXHIBIT D 
 TO 
 OPERATING AGREEMENT 

Forms of Contribution Conveyancing Documents 
 1. Coal Mining Lease and Sublease — CCLR & Survant — Owned #8 Coal, Leased 1993 and 2013 Rogers #8 Coal, and Leased Duncan #8 Coal. 

2. Memorandum of Coal Mining Lease and Sublease — CCLR & Survant — Owned #8 Coal, Leased 1993 and 2013 Rogers #8 Coal, and Lease
Duncan #8 Coal. 
 3. Rogers Consent to Sublease 1993 #8 Leased Coal. 
 4. Rogers Consent to Sublease 2013 #8 Leased Coal. 
 5. Duncan Consent to Sublease Portions of #8
Coal. 
 6. Non-Exclusive Haulroad & Access Easement — CCLC & Survant — Under review by Armstrong. To be mutually
agreed by the parties within 30 days of the date of the Operating Agreement. 
 7. Non-Exclusive Haulroad Easement — CCLC &
Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of the Operating Agreement. 
 8.
Non-Exclusive Haulroad Easement — CCLC & Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of the Operating Agreement. 

9. Quitclaim Deed — WMD and WLC — 39.45% interest 4,782 acres of Owned Gibraltar Surface. 

10. Quitclaim Deed — WMD and WLC — 39.45% interest in 661.54 acres of Owned Parkway Surface. 

11. Special Warranty Deed — WLC and Survant — 100% Interest in 1,977 acres of Owned Surface with deed-in provisions (1,628 acres from
Gibraltar; 349 acres from Parkway). 
 12. Rogers Partial Release of Right of First Refusal to Purchase — Rogers, WLC, Survant. 

13. Non-Exclusive Haulroad Easement (Gibraltar HR and Access Road — WLC, Armstrong, Survant — Under review by Armstrong. To be mutually agreed
by the parties within 30 days of the date of the Operating Agreement. 

  
 - 34 -

 14. Bill of Sale — Armstrong Owned Equipment — Armstrong & Survant. 

15. Equipment Sublease — Armstrong Leased Equipment — Armstrong & Survant. 
 16. Use Agreement — To be drafted post-closing and mutually agreed by the parties within 30 days of the date of the Operating Agreement, which agreement will contain the following basic terms:

 - Armstrong shall have the first-priority, rent-free right to possess and use all of the Equipment as needed
in its #9 seam mining operations. 
 -Armstrong shall have no obligation to pay rent or use fees for the
Equipment. 
 -Armstrong shall insure and maintain the Equipment at its cost until possession is delivered to
Survant. 
 -Armstrong shall pay operating costs. 

-Armstrong shall indemnify Survant for any liabilities and claims related to Armstrong’s use of the Equipment.

 -As Armstrong depletes the #9 seam reserves at Parkway and ceases using particular items of Equipment, the Use
Agreement shall terminate as to such items, and possession will be delivered to the Company. 

  
 - 35 -

 Appendix 2 

 SALES REPRESENTATION AGREEMENT 

THIS SALES REPRESENTATION AGREEMENT (“Agreement”) made and entered into as of the 29th day of December, 2011, by and
among Survant Mining Company, LLC, a Delaware limited liability company (“SURVANT”) with a mailing address of 407 Brown Road, Madisonville, KY 42431 and PEABODY COALSALES, LLC, a Delaware limited liability company with its principal place
of business at 701 Market Street, St. Louis, Missouri 63101 (“COALSALES”). 
 W I T N E S S E T H: 

WHEREAS, SURVANT is a coal company which owns, leases or otherwise controls Kentucky #8 seam coal reserves located in Muhlenberg
County, Kentucky (the “SURVANT Reserves”) and is jointly owned by Armstrong Coal Company, Inc. (“Armstrong”) and Cyprus Creek Land Resources, LLC (“Cyprus”); and 

WHEREAS, SURVANT is governed by the terms and conditions contained in a certain Limited Liability Company Agreement dated the 29th
day of December, 2011 (the “Operating Agreement”); and 
 WHEREAS, SURVANT desires to find customers and
develop markets for coal to be produced from the SURVANT Reserves; and 
 WHEREAS, COALSALES has particular expertise and
knowledge in the area of coal sales, marketing, domestic and export sales and related services and represents producers of similar coals in domestic markets; and 
 WHEREAS, COALSALES is willing to serve as sales agent and/or to purchase coal from SURVANT upon the terms and conditions set forth in this Agreement; 

WHEREAS, SURVANT and COALSALES wish to establish the terms and conditions under which COALSALES shall market and sell coal
produced by SURVANT and to compensate COALSALES for the same; 
 NOW THEREFORE, in consideration of the foregoing
premises, the mutual covenants and promises herein contained, and for other good and valuable consideration, the reciept and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 

ARTICLE ONE — SALES AGENCIES 
 1.1 SURVANT hereby appoints COALSALES, and COALSALES hereby accepts the appointment, to act as Survant’s agent for the sale of coal (subject to the procedures under Article Two) from the
SURVANT Reserves which is to be sold in domestic markets. 
 1.2 It is further expressly understood that while COALSALES
will sell coal produced, owned, or marketed by companies other than SURVANT and will also act as agent for such other companies in the sale of their coal, COALSALES shall give fair representation in accordance with industry trade practices and
customs to SURVANT at 

  
 1 

 all times and will, where the coal quality and rail access requirements of a potential purchaser can be
satisfied by SURVANT’s coal from the SURVANT Reserves and COALSALES has no superior obligation to any other company which it represents, due to a previously executed representation agreement, give preference to SURVANT’s coal from the
SURVANT Reserves. 
 1.3 SURVANT and its affiliates hereby represent and warrant to COALSALES that there is no current
sales representation agreement between SURVANT and any other third party with respect to the SURVANT Reserves and SURVANT and its affiliates, hereby agree not to enter into any other new sales representation agreement with respect to the SURVANT
Reserves that would prevent COALSALES from receiving its commission described in section 2.2. 
 1.4 The relationship of
SURVANT and COALSALES shall be that of an independent contractor, and nothing contained in this Agreement shall be construed or interpreted as: (i) establishing a relationship of partners, co-owners or otherwise as participants in a joint
venture; (ii) creating a franchisor-franchisee or employer-employee relationship; (iii) constituting SURVANT, its respective agents or employees as the agents or employees of COALSALES or to grant to SURVANT any power or authority to act
for, bind or otherwise create or assume any obligation on behalf of COALSALES; or (iv) constituting COALSALES, its agents or employees as the agents or employees of any of SURVANT (except for the appointment as sales agent as set forth herein)
or to grant to COALSALES any power or authority to act for, bind or otherwise create or assume any obligation on behalf of SURVANT. All offers, proposals and other submissions to customers by COALSALES in its sales agent capacity shall be subject to
acceptance of such offer or proposal by SURVANT. 
 ARTICLE TWO — COMPENSATION 

2.1 All costs and expenses of whatever kind and nature incurred by COALSALES as a result of the sales representation of coal
pursuant to Article One hereof, shall be solely for its own account and SURVANT shall have no obligation to advance to COALSALES, or reimburse it for, any such cost or expense. 

2.2 For all coal produced and sold from the SURVANT Reserves during the Term of this Agreement; COALSALES shall be paid a
commission of Twenty-Five cents ($0.25) per ton on a monthly basis, payable by the 25th day of the following month. 
 2.3
Compensation Due Under Armstrong Sales Contracts. The parties understand and agree that coal produced from the Survant Reserves may be sold under supply agreements and contracts between Armstrong and third party customers, including but
not limited to TVA, and that COALSALES will be paid the commission described in Section 2.2 above for all coal from the Survant Reserves sold under any such agreement or contract. 

ARTICLE THREE — RESPONSIBILITY FOR 
 PERFORMANCE OF COAL CONTRACTS, INDEMNIFICATION 
 3.1 SURVANT shall
be solely responsible for the full and due performance of all contracts which it enters into with COALSALES or any third party as a result of this Agreement and SURVANT shall indemnify COALSALES against liability for any loss, damage, or injury
suffered by COALSALES arising out of or related to SURVANT’s performance or non-performance of any contract, unless such liability is proximately caused by the willful acts or gross negligence acts of COALSALES. SURVANT shall be solely
responsible for the costs of any analysis, washability, or reserves studies. 

  
 2 

 3.2 COALSALES shall: (i) respond promptly to any reasonable request by SURVANT
for market information affecting the market for all coal; (ii) cooperate with SURVANT in dealing with any customer complaints concerning sales of coal hereunder; and (iii) assist SURVANT with other customer support activities related to
such coal sales orders. 
 3.3 SURVANT shall: (i) communicate promptly to COALSALES all inquiries from customers for
purposes of handling and quotation; (ii) comply with the terms of all such coal sales orders; and (iii) communicate to COALSALES, in writing, at least once prior to the end of each month of their anticipated monthly shipments by
destination, coal type and tonnage, and any planned mine outages or potential shipping/delivery problems, for the following month. This communication should compare anticipated monthly availability of such coal products against anticipated sales to
provide COALSALES with projected supply shortfalls and/or uncommitted tonnage. 
 3.4 Disclaimer of Fiduciary
Obligation. SURVANT agrees and acknowledges that COALSALES acts as a sales agent or sales representative, or both, for other producers (including its affiliates), brokers coal, and buys and sells coal on its own behalf and on behalf of its
affiliates. COALSALES expressly disclaims any fiduciary obligation to SURVANT, or any other obligation not expressly set forth herein. 
 3.5 Compliance with Laws. The parties shall comply with all laws, orders, rules, regulations, and requirements of every duly constituted governmental authority, agency, or instrumentality,
which may be applicable to this Agreement or its subject matter, including but not limited to US Anti-trust and state unfair competition laws and the Foreign Corrupt Practices Act and The Patriot Act. 

3.6 Joint Customers. In the event a solicitation is requested from a prospective customer which COALSALES is also
submitting a bid for its own account, then SURVANT will deliver the bid to such prospective customer, with its price independent of COALSALES. If SURVANT is successful in obtaining the sale, COALSALES will handle the ongoing relationship with the
customer in accordance with this Agreement. 
 ARTICLE FOUR — TERM AND TERMINATION 

4.1 Subject to earlier termination as provided for in Section 4.2 below, this Agreement shall be for an initial term of three
(3) years beginning on the date first above written, and shall be automatically renewed from year to year thereafter without further action of the parties required, as long as SURVANT remains in existence and coal is produced from the SURVANT
Reserves (the “Term”). 

  
 3 

 4.2 Events of Default. An event of default (“Event of
Default”) with respect to SURVANT shall mean any of the following: (i) the failure of SURVANT to pay when due any required payment under this Agreement and such failure is not remedied within five (5) business days after written
notice thereof; (ii) the failure of SURVANT to comply with its other material obligations under this Agreement; (iii) SURVANT shall be subject to a Bankruptcy Proceeding; or (iv) any representation or warranty made by SURVANT under
this Agreement shall prove to be untrue when made in any material respect. An Event of Default with respect to COALSALES shall mean any of the following: (i) the failure of COALSALES to comply with its material obligations under this Agreement;
and (ii) any representation or warranty made by COALSALES under this Agreement shall prove to be untrue when made in any material respect. If any default, other than a payment default (as to which the 5 business day cure period above applies),
is curable, it may be cured (and no Event of Default will have occurred) if the defaulting party (“Defaulting Party”), as the case may be, after receiving written notice demanding cure of such default (1) shall cure the default within
thirty (30) days; or (2) if the cure requires more than thirty (30) days, shall immediately initiate reasonable steps sufficient to cure the default and thereafter continue and complete all reasonable and necessary steps sufficient to
cure the breach as soon as reasonably practical. Upon the occurrence and during the continuation of an Event of Default as to the Defaulting Party, the other party (the “Non-Defaulting Party”) may, in its sole discretion, accelerate
and liquidate the Defaulting Party’s obligations under this Agreement by establishing and notifying the Defaulting Party of, an early termination date (which shall be no earlier than the date of such notice) on which the Term of this Agreement
shall terminate (“Early Termination Date”). If notice of an Early Termination Date is given under this Section 4.2, the Early Termination Date will occur on the designated date, whether or not the relevant Event of Default is
then continuing. Any rights of a Non-Defaulting Party under this Section 5.2 shall be in addition to such Non-Defaulting Party’s other rights under this Agreement. In the event Cyprus ceases to be a member of SURVANT pursuant to the
Operating Agreement, SURVANT shall have the right to terminate the Term of this Agreement effective on the date Cyprus ceases to be a member. 
 ARTICLE FIVE — GENERAL PROVISIONS 
 5.1 ASSIGNMENT.
Neither party may assign its rights or obligations under this Agreement without the written consent of the other party. 

5.2 NOTICE. Notice sent by certified mail, or hand delivered, addressed to the president or a vice president of the party
to whom such notice is given at the address listed in this Agreement shall be sufficient notice in any case requiring notice under this Agreement. At any time, any party may specify in writing a new address for notifications hereunder. 

5.3 LIABILITY AND INDEMNIFICATION. As between the parties hereto, any party shall be liable to the others for the death of
or injury to any employee of the other parties, or loss of or damage to the property of the other parties, unless proximately caused by the assertly liable party’s negligence or willful action. Each party shall indemnify the other party against
any liability for the death of or injury to any of its own employees, or loss of or damage to its own property, unless caused by the sole negligence or willful action of the other party. Each party shall indemnify the other party against any
liability for any loss, damage, or injury suffered by any third party and arising out of the parties’ performance of this Agreement except where such loss is proximately caused solely by one party’s negligence or willful action, and the
parties shall bear equal liability for such loss, damage or injury where caused by their joint negligence or willful actions. 

  
 4 

 5.4 COMPLIANCE WITH LAWS. SURVANT and COALSALES represent that they will
comply with all applicable laws and regulations. 
 5.5 ACCESS TO INFORMATION. Each party shall have access to
applicable data in the possession of the other parties in order to fulfill their respective obligations to third parties. However, each party shall maintain such data on a confidential basis and not disclose such data to third parties without the
prior written consent of the other parties. This provision shall survive termination of this Agreement. 
 5.6 FORCE
MAJEURE. In the event the obligations of the parties under this Agreement shall be prevented, delayed, suspended or reduced by Force Majeure, then the party experiencing such Force Majeure shall promptly notify the other party and, to the
extent caused by Force Majeure, performance hereunder shall be excused. A “Force Majeure” event shall mean: acts of God, acts of local, state, tribal or federal government, war, labor shortage, strikes or similar labor interruptions,
accidents, or any other cause, whether of like or dissimilar nature, beyond the control of any party. 
 5.7
NON-WAIVER. The failure by any party to insist on compliance with one or more of the provisions of this Agreement shall not serve as a waiver of any other provisions of this Agreement. 

5.8 PERMITS AND RECLAMATION. SURVANT represents and warrants that it will conduct all of its mining and other operations in
accordance with all federal and state requirements and abide by the terms and conditions of all of its permits. SURVANT has or will acquire and maintain all of the necessary permits and licenses required to conduct its mining and other operations on
the SURVANT Reserves and will perform reclamation in accordance with its permits. 
 5.9 COUNTERPARTS. This
Agreement may be signed in counterparts, including facsimile signatures, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument. 

5.10 CONSENT TO JURSIDICTION. SURVANT and COALSALES agree that any action or proceeding initiated by or on behalf of any
party regarding any dispute under this Agreement, shall be commenced and maintained in the District Court of the United States for the Eastern District of Missouri, or the Circuit Court of St. Louis County, St. Louis, Missouri, or any other court of
applicable jurisdiction located in St. Louis County, Missouri. The parties also agree that a summons and complaint commencing an action or proceeding in any such Missouri court by or on behalf of such party or parties shall be properly served and
shall confer personal jurisdiction on a party (to which jurisdiction each party consents and submits itself, waiving any objection based upon forum non conveniens and any objection to venue of any action instituted hereunder), if
(i) served personally or by certified mail to each other party at its respective address set forth in this Agreement, or (ii) as otherwise provided under the laws of the State of Missouri. 

5.11 WAIVER OF JURY TRIAL. Each of the parties hereto hereby irrevocably waives any and all rights each may have to a trial
by jury in any action, proceeding or claim of any nature relating to this Agreement, any documents executed in connection with this Agreement, or any transaction contemplated herein. Each of the parties acknowledges that the foregoing waiver is
knowing and voluntary. 

  
 5 

 5.12 GOVERNING LAW. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of Missouri, without regard to any conflict of laws principles. 
 5.13 ENTIRE
AGREEMENT. This Agreement and the Operating Agreement constitute the entire Agreement of the parties, and supersedes all prior negotiations, understandings and writings between the parties, as to the matters covered herein. Any and all sales
contracts entered into during the term of this Agreement shall be governed solely by the provisions of such contracts and of this Agreement. Where the provisions of a sales contract is at variance with this Agreement, the two documents shall, to the
extent possible, be interpreted in a harmonious manner; provided, however, that where it is not possible to harmoniously interpret the two documents, the provision of the sales contract shall prevail. In the event of a conflict between the terms of
this Agreement and the Operating Agreement, the terms of the Operating Agreement shall prevail. This Agreement may only be modified by written amendment executed by all parties. 

5.14 THIRD PARTIES. Nothing in this Agreement is intended or shall be construed to confer any rights, remedies or benefits
on any person or entity other than SURVANT and COALSALES. 
 5.15 CAPTIONS. Section and paragraph titles or
captions contained in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision hereof. 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly constituted officers as of the day
and year first written above. 
  

									
	SURVANT MINING COMPANY, LLC	 		 	PEABODY COALSALES, LLC
					
	By:	 	  
	 		 	By:	 	  

	Title:	 	  
	 		 	Title:	 	  

  
 6 

 Schedule 9.6 

TO 

FORMATION AND TRANSFER AGREEMENT 

  
 11 

 Schedule 10.6 

TO 

FORMATION AND TRANSFER AGREEMENT 

  
 12 

 Exhibit A 
 NOTICE: THIS AGREEMENT CONTAINS AN ARBITRATION PROVISION 
 SURVANT
MINING COMPANY, LLC 
 LIMITED LIABILITY COMPANY AGREEMENT 

(THE OPERATING AGREEMENT) 
 THIS LIMITED LIABILITY COMPANY AGREEMENT, also called the “Operating Agreement” (collectively herein, the “Agreement”) effective as of the
            day of December, 2011, is entered into by and among Cyprus Creek Land Resources, LLC (“Cyprus”) and Armstrong Coal Company, Inc. (“Armstrong”).
 
 WHEREAS, the Members (hereafter defined) desire to form a limited liability company under the laws of the State
of Delaware to be known as Survant Mining Company, LLC (the “Company”) for the purposes set out in this Agreement, and to carry on such other legally permissible business and activities as the Company, in accordance with applicable laws
and this Limited Liability Company Agreement, shall determine from time to time; 
 WHEREAS, the Members desire to enter
into this Limited Liability Company Agreement to govern the conduct of the business and affairs of the Company and to set forth the understanding of the Members regarding all other matters concerning the Company which may be covered in a Limited
Liability Company Agreement; 
 NOW, THEREFORE, in consideration of mutual promises and covenants contained herein and
other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, do hereby agree as follows: 

1. Certain Definitions.  
 When used herein, the following terms shall have the meanings set forth below: 

1.1 “Act” means the Delaware Limited Liability Company Act, Title 6, Chapter 18 of the Delaware Code (as amended). All
references herein to specific sections of the Act shall be deemed to refer to the corresponding provisions of succeeding law. 

1.2 “Affiliate” means: (i) any Person which, directly or indirectly, is in Control of, is Controlled by or is under common
Control with the 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. 
 1.3 “Agreement” means this Limited Liability Company Agreement as the same may be amended and
supplemented from time to time. 
 1.4 “Armstrong” means Armstrong Coal Company, Inc., a Delaware corporation.

 1.5 “Available Cash” means all cash determined by the Managing Member to be available to the Company for
distribution to the Members after the payment of all current expenses and other liabilities then due, establishing reserves for capital improvements, working capital needs, contingent liabilities and unforeseen contingencies, all determined
reasonably and in good faith by the Managing Member. 
 1.6 “Board of Managers” has the meaning set forth in
Section 7.1. 

 1.7 “Capital Expenditure” means all expenditures (excluding interest capitalized
during construction) which must be capitalized under generally accepted accounting principles (GAAP). 
 1.8
“Certificate” means the Certificate of Formation, and all amendments thereto, executed and filed pursuant to applicable laws and the terms of this Agreement. 
 1.9 “Change of Control,” with respect to Armstrong, means any transfer or other action that results in (a) Armstrong ceasing to be Controlled, directly or indirectly, by the Yorktown
Parties unless as a result of an initial or secondary public offering of stock, (b) any Person, other than the Yorktown Parties or Persons Controlled by the Yorktown Parties, acquiring a 50% or greater ownership interest, directly or
indirectly, in Armstrong, or (c) any private or public company or entity primarily engaged in the business of coal mining gaining Control, directly or indirectly, over Armstrong or over Yorktown Parties that have Control over Armstrong.
“Change of Control,” with respect to a Member other than Armstrong, means any transfer or other action that results in such Member ceasing to be Controlled, directly or indirectly, by the same Persons or an Affiliate of the Persons who
Controlled such Member as of the date of such Member’s admission to the Company. 
 1.10 “Closing” means the
execution of the Operating Agreement, Management Agreement, Sales Representation Agreement and the contributions of initial capital as set forth in Milestone I of Exhibit A hereto by Cyprus and Armstrong, 

1.11 “Closing Date” means the date set for the Closing. 
 1.12 “Code” means the Internal Revenue Code of 1986, as amended. All references herein to specific sections of the Code shall be deemed to refer also to the corresponding provisions of
succeeding law. 
 1.13 “Company” means Survant Mining Company, LLC, a Delaware limited liability company, 

1.14 “Company Minimum Gain” has the same meaning as the phrase “Partnership minimum gain” as set forth in treasury
regulation § 1,704-2(d), 
 1.15 “Consideration Period” has the meaning set forth in Section 8.3(a).

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

1.17 “Cyprus” means Cyprus Creek Land Resources, LLC, a Delaware limited liability company, 

  
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 1.18 “Deficit Capital Account” means with respect to any Member, the deficit
balance, if any, in such Member’s capital account as of the end of the taxable year, after giving effect to the following adjustments: 
 (a) credit to such capital account that amount which such Member is obligated to restore under Section 1.704-1 (b)(2)(ii)(c) of the treasury regulations, as well as any addition thereto pursuant to
the next to last sentence of treasury regulation §§1.704-2(g)(l) and (i)(5), after taking into account thereunder any changes during such year in Partnership (Company) Minimum Gain (as determined in accordance with treasury regulation
§ 1.704-2(d) and in the minimum gain attributable to any Partner (Member) for nonrecourse debt (as determined under treasury regulation §l,704-2(i)(3); and 

(b) debit to such capital account items described in treasury regulation §§1.704-l(b)(2)(ii)(d)(4), (5) and
(6). 
 The definition of Deficit Capital Account is intended to comply with the provisions of treasury regulations
§§1.704-l(b)(2)(ii)(d) and 1,704-2, and will be interpreted consistently with those provisions. 
 1.19
“Designated Representative” has the meaning set forth in Section 6.8(d). 
 1.20 “Distributional
Interest” has the meaning set forth in Section 8.1, 
 1.21 “Fair Value” has the meaning set forth in
Section 8.7. 
 1.22 “Fiscal Year” means the Company’s fiscal year which shall correspond to the calendar
year, except that (i) the Company’s first fiscal year shall commence on the date of the filing of the Certificate and (ii) such term shall also include any period for which the Company is required to allocate net profits, net losses
and other items of Company income, gain, loss or deduction pursuant to this Agreement or the Code. 
 1.23 “Foreclosure
Assignment” has the meaning set forth in Section 8.7. 
 1.24 “Indemnitee” shall mean (i) any Manager,
(ii) any Managing Member, (iii) any Member, or (iv) any officer, director, employee, agent, stockholder, member or partner of the Company, or a Member. 
 1.25 “Lender” has the meaning set forth in Section 8.1. 
 1.26
“Lender Interest Holder” has the meaning set forth in Section 8.7. 
 1.27 “Lien” means any mortgage,
deed of trust, security agreement, pledge, hypothecation, assignment, deposit arrangement, lien (statutory or otherwise), security interest, financing statement, overriding royalty agreement or preferential arrangement of any kind or nature
whatsoever, including any conditional sale or other title retention agreement, 
 1.28 “Major Decisions” shall mean
those acts and decisions described in the subsections of Section 7.4. 
 1.29 “Managing Member” shall have the
meaning set forth in Section 7.2. 
 1.30 “Manager” and “Managers” shall have the meanings set forth in
Section 7.1. 
 1.31 “Member Interest” shall include any and all rights of a Member under this Agreement, the Act
and other applicable law, including without limitation all Distributional Rights, economic rights, voting and consent rights, notice rights, contract rights and management rights. 

  
 - 3 -

 1.32 “Member Loan” means any loan to the Company by a Member. 

1.33 “Member Nonrecourse Debt Minimum Gain” has the same meaning as the phrase “Company nonrecourse debt minimum gain”
as set forth in treasury regulation §1.704-2(i). 
 1.34 “Member Nonrecourse Deduction” has the same meaning as
the phrase “Survant nonrecourse deduction” as set forth in treasury regulation §1.704-2(i). 
 1.35 “Member
Nonrecourse Loan” means a loan made to, or credit arrangement for the benefit of, the Company by a Member or by any person related to a Member (as defined in treasury regulation § 1,752-4(b)) which by its terms exculpates the Members from
personal liability on the debt, but under which such Member or related person bears the ultimate economic risk of loss within the meaning of treasury regulation §1.752-2. 
 1.36 “Member” means any Person who becomes a Member in the Company as provided herein, initially Cyprus and Armstrong. 
 1.37 “Non-Managing Member” has the meaning set forth in Section 6.6(e). 
 1.38 “Offer Price” has the meaning set forth in Section 8.7. 
 1.39
“Percentage Interest” means 51% for Armstrong and 49% for Cyprus, unless adjusted in accordance with Section 3.3. 

1.40 “Person” means any individual, limited liability company, limited liability partnership, partnership, corporation, trust or
other person or entity. 
 1.41 “Profit Distribution Share” shall mean 50% for each Member without regard to each
Member’s Percentage Interest; provided, however, that if the Members’ Percentage Interests are ever adjusted pursuant to the provisions of Section 3.3, then, starting as of the date of such adjustment, the “Profit Distribution
Share” for each Member shall be equal to the Percentage Interest of each Member. 
 1.42 “Project” means the
development of the Kentucky #8 seam of coal reserves identified on the map attached hereto as Exhibit B, located in Muhlenberg County, Kentucky. 
 1.43 “Project Budget” means the pro forma revenue and expense statement for the Project approved by the Board of Managers in accordance with Section 7.4. 

1.44 “Right of First Offer” has the meaning set forth in Section 8.7. 

1.45 “Sale Period” has the meaning set forth in Section 8.7, 

1.46 “Subsidiary” means any Person, more than 50% of the voting securities of which, is owned (whether directly or indirectly
through one or more Subsidiaries) by the Company. 
 1.47 “Triggering Event” shall mean the occurrence of any of the
following: (a) Armstrong resigns as the Managing Member, (b) Armstrong is removed from the Managing Member position by the Board of Managers acting upon the majority consent of all of the Managers, (c) Armstrong ceases to be a Member,
(d) Armstrong files for bankruptcy, (e) the Management Agreement, referenced in Section 7.1, is terminated pursuant to its terms and conditions, (f) a Change of Control with respect to Armstrong occurs,
(g)

  
 - 4 -

 
the willful engaging by the Managing Member or its principals in gross misconduct materially or demonstrably injurious to the Company, (h) the conviction of the Managing Member or its
principals of a felony involving fraudulent or dishonest conduct, or (i) the occurrence of a Foreclosure Assignment pursuant to Section 8.7, 
 1.48 “Yorktown Parties” shall mean Yorktown Energy Partners VI, L.P., Yorktown Energy Partners VII, L.P., Yorktown Energy Partners VIII, L.P. and their Affiliates. 

1.49 Other Definitions. Unless otherwise provided in this Agreement, any other term used in this Agreement which is elsewhere
defined in this Agreement shall have the same meaning as such term is respectively given by this Agreement. The definitions in this section shall apply equally to both the singular and plural forms of the terms defined. 

2. Organization.  
 2.1 Formation. The Members hereby agree to form the Company and to associate themselves as Members of the Company. Accordingly, commensurate with the execution of this Agreement, the Members of the
Company shall adopt the Certificate that was filed with the Office of the Delaware Secretary of State. 
 2.2 Registered
Office and Agent The initial registered office of the Company in Delaware shall be located at The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. The Company’s primary business office
shall be at 407 Brown Road, Madisonville, KY 42431, or such other location as may hereafter be determined by the Members. The Company’s registered agent for service of process in Delaware shall be The Corporation Trust Company, Corporation
Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. 
 2.3 Foreign Qualifications. Prior to the Company’s
conducting business in any jurisdiction other than Delaware, the Members shall cause the Company to comply, to the extent procedures are available and those matters are reasonably within the control of the Members, with all requirements necessary to
qualify the Company as a foreign limited liability company in that jurisdiction. At the request of the Managing Member, each Member shall execute, acknowledge, swear to, and deliver all certificates and other instruments conforming with this
Agreement that are necessary or appropriate to qualify, continue, and terminate the Company as a foreign limited liability company in all such other jurisdictions in which the Company may conduct business. 

2.4 Limited Liability Company. The Members intend that the Company not be a partnership (including, without limitation, a limited
partnership) or joint venture, and that no Member be a partner or joint venturer of any other Member, for any purposes other than federal and state tax purposes, and this Agreement may not be construed to suggest otherwise. 

2.5 Term. The existence of the Company shall be perpetual, unless terminated or dissolved as set forth herein, 

2.6 Annual Reporting. Beginning with the first full calendar year following the year in which the Company is organized, the Company
shall prepare and file with the Delaware Secretary of State an annual report as required by the Act or Delaware law. 

  
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 3. Capital Contributions, Member Loans, and Related Matters. 

3.1 Scheduled Capital. Contributions. At Closing, each Member shall make its initial capital contribution to the Company of
$30,000.00 in cash and the Members shall, on the milestone dates set forth on Exhibit A attached hereto (the “Contribution Schedule”), make their respective additional contributions of property as indicated on the Contribution
Schedule (collectively, the “Scheduled Capita! Contributions”), Notwithstanding any provision of this Agreement, neither Member is making any representation or warranty concerning the condition or quality of its properties being
contributed hereunder, and neither Member shall be determined to have failed to remit its capital contribution or be liable to the Company or the other Member based on any subsequent determination that any portion of the Member’s capital
contribution consisting of owned or leased real property is unable to be used, developed or mined for any reason or is not used, mined and/or developed for any reason or the Member’s title to any such property is found to be defective or the
estimated tonnages of any coal reserves are determined to be inaccurate or due to any aspect of the condition, fitness or serviceability of any of the Equipment, Buildings, or other facilities described in Exhibit A hereto. All contributions,
including but not limited to the surface properties, coal reserves, mining facilities, buildings and equipment described in Exhibit A and more particularly described in Exhibit D hereto, shall be contributed to Company free and clear of all
liens and encumbrances, Each Member hereby represents and warrants to the other Member, that prior to entering into this Operating Agreement it has obtained all necessary consents, commitments and authorizations from any party holding current
security interests in the properties that will be contributed to the Company pursuant to this Section 3.1 .Each Member shall make its contributions substantially in the same form of the conveyancing documents attached hereto and made a part
hereof as Exhibit D. 
 3.2 Additional Capital Contributions: Loans. Each Member acknowledges that, in addition to
the foregoing, additional capital contributions will be required for the continued development and operation of the Company and each Member agrees to make the additional capital contributions in the amounts and at the times indicated on the Project
Budget or the Contribution Schedule, as well as any additional capital contributions unanimously agreed to by the Board of Managers in a timely fashion. Any additional capital contributions to the Company shall be made in proportion to each
Member’s Percentage Interest. In the event the Managing Member reasonably determines that additional cash is necessary in order to fund the Company’s operations in the ordinary course of business or to fund the cash needs in accordance
with the approved Project Budget, but the Members do not unanimously agree on the amount of an additional capital contribution, the Managing Member shall have the right (but not the obligation), following reasonable notice to the other Members, to
make a loan to the Company, and the terms of Section 3.3 applicable to the priority and repayment of Member Loans shall apply. 
 3.3 Non-Compliance. In the event a Member (for the purposes of this Section 3.3 the “Non-Contributing Member”) fails to remit (i) its Scheduled Capital Contributions pursuant to
Section 3.1, or (ii) its portion of any additional capital contribution unanimously agreed to by the Board of Managers, when due and such non-compliance is not cured within ten (10) days after written notice is delivered to the Non-
Contributing Member by the other Member requesting that such funds be remitted to the Company, the other Member (for the purposes of this Section 3.3 the “Contributing Member”) may make the capital contribution or loan owed by the
Non-Contributing Member and elect to treat such amount as an additional capita! contribution or as a Member Loan to the Company. Such election must be set forth in a written notice delivered to the Non-Contributing Member within thirty
(30) days after the funds are contributed to the Company by the Contributing Member, on behalf of the Non-Contributing Member. If the written notice is not delivered within the thirty (30) day time period, the additional funds contributed
to the Company shall be deemed a Member Loan by the Contributing Member to the Company. If the Contributing Member elects to treat the contribution as an additional capital contribution and provides written notice of election to the Non-
Contributing Member, then the Percentage Interest of each Member shall be adjusted to reflect the percentage that each Member’s total capital contributions bear to the total of all capital contributions made to the Company. If such funds are
classified as a Member Loan, the loan shall accrue interest at the prime rate posted 

  
 - 6 -

 
by the lending institution at which the Company has its primary operating account, plus two (2) percentage points. AH Member Loans, whether made under this section, Section 3.2, or
otherwise, shall be a priority and no distributions to the Members shall be made until such loan is repaid without the written consent of the Member who made the Member Loan. 
 3.4 Withdrawal of Capital. The Members shall only be entitled to withdraw or to receive distributions of capital in accordance with the terms and conditions of this Agreement. 

3.5 Capital Accounts. A single capital account shall be maintained for each Member in accordance with the capital accounting rules
of section 704(b) of the Code and the tax regulations thereunder (including treasury regulation 1.704(b)(2)(iv)), The capital account of each Member shall be credited with the fair market value of such Member’s capita! contributions, such
Member’s distributive share of profits, income or gain, and the amount of any Company liabilities assumed by such Member or which are secured by any property distributed to such Member. The capital account of each Member shall be debited with
the amount of cash and the value of any property distributed to such Member pursuant to any provision of this Agreement, such Member’s distributive share of losses and expense, and the amount of any liabilities of such Member assumed by the
Company or which are secured by any property contributed by such Member to the Company. 
 3.6 Revaluation of Capital
Accounts. The capital accounts of the Members shall be adjusted to reflect revaluation of Company assets in all cases required by treasury regulation § 1.704-l(b) and in all optional circumstances to the extent allowed by treasury
regulation § 1.704-l(b)(2)(iv)(f) unless the Board of Managers determines that such revaluation would not be beneficial or fair under the circumstances. If there is a revaluation under this Section 3.6, then the Company shall make special
allocations consistent with the principles of Section 704(c) of the Code. In determining such allocations, the Company shall use the traditional method with curative allocations described in treasury regulation § 1,704~3(c) for any
Contributed Asset. 
 4. Allocations.  

4.1 Allocation of Profit Loss. Income, Gain. Deduction, and Credit. Subject to Section 4.2, profits and losses of the Company
and, items of taxable income, gain, loss, deduction and credit, shall be apportioned among the Members in accordance with each Member’s Profit Distribution Share. 
 4.2 Tax Allocations Contributed Property. With respect to any asset contributed by a Member to the Company (“Contributed Asset”) that has a tax basis different from its agreed upon fair
market value on the date of the contribution, the Company shall make the special allocations required by Section 704(c) of the Code, These special allocations apply solely for Federal, state, and local income tax purposes. They shall not affect
or be taken into account in computing a Member’s capital account, or share of profits, losses, or distributions pursuant to any provision of this Agreement. In making these special allocations, the Company shall use the traditional method with
curative allocations described in treasury regulation § 1.704-3(c) for any Contributed Asset. 
 4.3 754 Election and
Other Tax Elections. In the event of a distribution of property to a Member, or a transfer of any interest in the Company permitted under the Act or this Agreement, the Company, upon written request of the transferor or transferee, shall file a
timely election under this section 754 of the Code and the regulations thereunder to adjust the basis of the Company’s assets under section 734(b) or 743(b) of the Code and a corresponding election under the applicable provisions of state and
local law, and the Person making such request shall pay all costs incurred by the Company in connection therewith, including reasonable ??? accountants’ fees. Other tax elections and elections relating to Taxes not specifically governed by
another provision of this Agreement shall be made as agreed by the Board of Managers. 

  
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 5. Distributions.  

5.1 Distribution to Members. On or before the last business day of each calendar quarter, the Company may make distributions of
cash or cash equivalents to the Members based upon the Available Cash of the Company. The Managing Member shall first determine the amount of Available Cash of the Company available for distribution, and then the Board of Managers shall determine
the aggregate amount of distributions which may be made to the Members and the Members shall share in such total distributions in accordance with each Member’s Profit Distribution Share. 

5.2 Distributions in Kind. Except as may be provided in this Agreement or an amendment to this Agreement, no Member, regardless of
the nature of the Member’s contribution to capital, may demand or receive a distribution from the Company in any form other than cash or cash equivalents. 
 5.3 Limitation on Distributions. No distribution shall be made by the Company if after giving effect to the distribution; (a) the Company would not be able to pay its debts as they become due
in the usual course of business; or (b) the assets of the Company would be less than the sum of its liabilities plus, the amount that would be needed, if the Company were to be dissolved at the time of the distribution, to satisfy the
preferential rights of other Members upon dissolution which are superior to the rights of the Member receiving the distribution. 
 6. Members. 
 6.1 Representations and Warranties. Each
Member hereby represents and warrants to the Company and each other Member that: (a) it is duly organized, validly existing and in good standing under the laws of its formation and is duly qualified and in good standing in the jurisdiction of
its principal place of business; (b) it has full power and authority to execute and agree to this Agreement and to perform its obligations hereunder; (c) it has duly executed and delivered this Agreement; and (d) its authorization,
execution, delivery, and performance of this Agreement does not conflict with any other agreement or arrangement to which that Member is a party or by which it is bound. 
 6.2 Additional Members. It is not intended that additional Members will be admitted into the Company. Nonetheless, if the Members unanimously agree, additional Members may be admitted on such terms
and conditions as the Members may determine at the time of admission, 
 6.3 Prohibited Transfers. No Member may transfer
all or any part of such Member’s Percentage Interests if such transfer will (a) violate in any material respect any applicable federal or state securities laws or regulations, or subject the Company to registration as an investment company
or election as a “business development company” under the Investment Company Act of 1940; (b) require any Member or any Affiliate of a Member to register as an investment adviser under the Investment Advisers Act of 1940;
(c) effect a termination of the Company under Section 708 of the Code; or (d) cause the Company to be treated as an association taxable as a corporation for federal income tax purposes. 

6.4 Information. The Members acknowledge that from time to time, they may receive information from or regarding the Company in the
nature of trade secrets or that otherwise is confidential, the release of which may be damaging to the Company or Persons with which it does business. Each Member shall hold in strict confidence any information it receives regarding the Company that
is identified as being confidential (and if that information is provided in writing, that is so marked) and may not disclose it to any Person other than another Member, except for disclosures (i) compelled by law (but the Member must notify the
other Members, as appropriate, promptly of any request for that information, before disclosing it, if 

  
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practicable), (ii) to advisers or representatives of the Member or Persons to which that Member’s interest may be disposed as permitted by this Agreement, but only if the recipients
have agreed to be bound by the provisions of this Section, or (iii) of information that Member also has received from a source independent of the Company that the Member reasonably believes obtained that information without breach of any
obligation of confidentially. The Members acknowledge that breach of the provisions of this Section may cause irreparable injury to the Company for which monetary damages are inadequate, difficult to compute, or both. The Members agree that the
provisions of this section may be enforced by specific performance, 
 6.5 Liabilities to Third Parties; Indemnification.
Except as otherwise expressly agreed in writing, no Member shall be liable for the debts, obligations or liabilities of the Company, including under a judgment decree or order of a court; provided, however, that notwithstanding any other provision
of this Agreement, each Member shall indemnify and hold harmless the Company and the other Member from and against any claim, loss, damage, liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of
investigation and appeal) actually incurred by the Company or the other Member by reason of, or arising from, the operations, business, or affairs of, or any action taken or failure to act, of or by the other Member or its Affiliates prior to
formation of this Company. The parties acknowledge that a claim has been filed against the Armstrong Parties in US District Court, Western District of Kentucky, Civil Action No. 4:11 cv 114, alleging the existence of an existing overriding
royalty that is alleged to apply to #8 seam coal to be mined by the Company, and the parties agree in the event that such claims are adjudged to apply to any #8 seam coal mined by the Company (but only with respect to #8 seam coal mined by the
Company), the Company shall not be entitled to be indemnified or held harmless by Armstrong relating to such obligations. 
 6.6
Fiduciary Duties. 
 (a) Duty of Loyalty. Each Member’s, Manager’s and Managing
Member’s duty of loyalty to the Company and the other Members is limited to account to the Company and to hold as trustee for the Company any property, profit or benefit derived by the Member, Manager or Managing Member in the conduct or
winding up of the Company’s business. A Member, Manager or Managing Member does not violate the duty of loyalty by engaging in a competing business or pursuing other business opportunities, even if the business opportunity could have been
pursued by the Company. 
 (b) Duty of Care. Each Member’s, Manager’s and Managing Member’s
duty of care to the Company and the other Members in the conduct of and winding up of the Company’s business is limited to refraining from engaging in gross negligence, reckless conduct, intentional misconduct, or a knowing violation of law,

 (c) Good Faith and Fair Dealing. Each Member, Manager and Managing Member shall discharge its duties
and exercise any of its rights consistently with the obligation of good faith and fair dealing which it owes to the Company and the other Members, A Member, Manager or Managing Member does not violate a duty of good faith or fair dealing to the
Company merely because the Member’s, Manager’s or Managing Member’s conduct furthers the Member’s, Manager’s or Managing Member’s, as the case may be, own interest. Further, a Member, Manager, or Managing Member does
not violate the duty of good faith and fair dealing by engaging in a competing business or pursing other business opportunities, even if the business opportunity could have been pursued by the Company; provided, however, that each Member, Manager
and Managing Member shall not engage in a competing business involving any coal reserves described in the Rogers #8 Lease of Kentucky #8 Reserves identified on Exhibit B hereto without the express written consent of the other Member.

  
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 (d) Indemnification of Members, Managers and Managing Member. To the
fullest extent allowed by law, the Members, Managers, and Managing Member shall be indemnified and held harmless by the Company for any liability resulting from any act performed or omission made by them in good faith on behalf of the Company,
except for acts or omissions of gross negligence, willful misconduct, intentional misconduct, or a knowing violation of the law. Notwithstanding anything contained in this Agreement to the contrary, no Member, Manager or Managing Member, nor any
officer, director, employee, agent, stockholder, member or partner of any Member or the Managing Member shall be liable, responsible, or accountable in monetary damages to the Company or any Member by reason of, or arising from, the operations,
business, or affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent that any of the foregoing is primarily caused by any acts or omissions of gross negligence, willful misconduct, intentional misconduct, or
knowing violation of the law of such Person; provided, however, that the rights of either Member with respect to the buy-sell triggers set forth in Section 8.3 shall not be limited to or conditioned upon acts or omissions of gross negligence,
willful misconduct, intentional misconduct, or knowing violation of the law. 
 (e) Duty of Care for Managing
Member. The Managing Member shall perform its duties hereunder, including but not limited to those expressly stated in Section 7.6, in good faith, using reasonable good faith efforts and with reasonable diligence. In the event the other
Member (“Non-Managing Member”) determines that the Managing Member is not performing its duties hereunder consistent with the standards set forth in this Section 6.6(e), the Non-Managing Member may deliver written notice of such
determination to the Managing Member, which notice shall set forth in reasonable detail the basis for the Non-Managing Member’s determination that the Managing Member is not performing its duties hereunder consistent with the standards set
forth in this Section 6.6(e). If, after sixty (60) days after delivery of the foregoing notice, the Non-Managing Member reasonably determines that the Managing Member continues to not perform its duties hereunder consistent with the
standards set forth in this Section 6.6(e), the Non-Managing Member may exercise the buy-sell option set forth in Section 8.3 hereof. 
 6.7 Alternate Dispute Resolution. If a dispute, controversy or claim (whether based upon contract, tort, statute, common law or otherwise) (collectively a “Dispute”) arises from or
relates directly or indirectly to the subject matter hereof, and if the Dispute cannot be settled through direct discussions, the parties shall first endeavor to resolve the Dispute by participating in a mediation administered by the American
Arbitration Association (“AAA”) under its Commercial Mediation Rules before resorting to arbitration. Thereafter, any unresolved Dispute shall be settled by binding arbitration administered by the AAA in accordance with its Commercial
Arbitration Rules and judgment on the award rendered by the arbitrator, after the review rights set forth below have been exhausted, may be entered in any court having jurisdiction. Any arbitration proceeding shall be conducted in St. Louis,
Missouri on an expedited basis before a neutral arbitrator (or multiple arbitrators if called for by the Commercial Arbitration Rules), Each arbitrator shall be selected in the manner determined by the AAA. Upon the request of either party, the
arbitrator’s award shall include findings of fact and conclusions of law provided that such findings may be in summary form. Either party may seek review of the arbitrator’s award before an arbitrations review panel comprised of three
arbitrators qualified in the same manner as the initial arbitrator(s) (as set forth above) by submitting a written request to the AAA. The right of review shall be deemed waived unless requested in writing within ten (10) days of the receipt of
the initial arbitrator’s award. The arbitration review panel shall be entitled to review all findings of fact and conclusions of law in whatever manner it deems appropriate and may modify the award of the initial arbitrator(s) in its
discretion. The prevailing party in any arbitration proceeding shall be entitled to 

  
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an award of all reasonable out of pocket costs and expenses (including attorneys’ and arbitrators tees) related to the entire arbitration proceeding (including review if applicable). Upon
request of either party, the arbitrator(s) may require that the subject arbitration proceedings be kept confidential and no party shall disclose or permit the disclosure of any information produced or disclosed in the arbitration proceedings until
the award is final. A party shall not be prevented from seeking temporary injunctive relief before a court of competent jurisdiction in an emergency situation, but responsibility for resolution of the Dispute shall be appropriately transferred to
the arbitrator(s) upon appointment in accordance with the provisions hereof. 
 6.8 Meetings of Members. 

(a) Meetings. The Members will have an annual meeting as may be established by the Managing Member. The Members
will have such special meetings as are called in accordance with the provisions of this Agreement. Any annual or special meeting of the Members is to be held at such place as may be designated by the Managing Member or in a waiver of notice executed
by all Members, If there is a failure to designate a place for any such meeting, the same is to be held at the principal place of business of the Company. The annual meeting of the Members is to be held each year within sixty (60) days of the
beginning of the Fiscal Year for the transaction of such other business as may come before the meeting. Special meetings of the Members may be called at any time by the Managing Member or by Members possessing not less than one-third of the
Percentage Interests and are to be held on such dates and at such times as are set forth in the notice calling the meeting. 
 (b) Quorum. A majority of ail the Percentage Interests represented in person or by proxy at such meeting constitutes a quorum of Members for all purposes. Less than such quorum has the right to
adjourn the meeting to a specified date not longer than ninety (90) days after such adjournment, with notice of such adjournment to Members to be given in the manner for special meetings of the Members. Except where the affirmative vote of all
of the Members or unanimous agreement of the Members is required herein, the act of a majority (computed with reference to Percentage Interests) of the Members present at any duly called meeting at which a quorum of Members is present is the act of
the Members. 
 (c) Notice of Meetings. Written or printed notice of each meeting of Members stating the
place, day and hour of the meeting and, in the case of special meetings, the purpose or purposes for which the meeting is called must be delivered or given: (i) in the case of regular meetings, not less than ten (10) nor more than forty
(40) days before the date of the meeting; and (ii) in the case of special meetings, not less than five (5) Business Days nor more than thirty (30) days before the date of the meeting; in each case either personally or by mail.
Notice of an annual meeting of the Members is to be given by the Company, Notice of a special meeting of the Members is to be given by the Company or the Member calling the meeting. Any notice required by this Section may be waived by the Members by
signing a waiver of notice before or after the time of such meeting and such waiver is equivalent to the giving of such notice. 
 (d) Designated Representative(s). Each Member shall designate in writing to the Company and the other Members the names of up to two (2) officers, directors, partner’s, members, employees
or other affiliates of the Member who are to serve as the “Designated Representatives” of the Member at all meetings and in all votes, consents and approvals of the Members required pursuant to this Agreement. The designated individual(s)
shall be the official Designated Representative(s) of the designating Member. One of such Designated Representatives shall be the primary voting representative of the Member and the other (if 

  
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any) shall be the alternative voting representative. Both Designated Representatives of a Member may attend meetings of the Members, but only one (1) Designated Representative shall cast the
Member’s official vote on any matter. The initial Designated Representatives of the entity Members are as follow: 
  

			
	 Cyprus
	  	T.L. Bethel
		  	Vice President, Cyprus
		
		  	Tom Benner
		  	Vice President Operations Underground,
		  	Peabody Midwest Group
		
	 Armstrong
	  	Kenneth Allen
		  	Vice President Operations,
		  	Armstrong
		
		  	Martin Wilson
		  	President,
		  	Armstrong

 If neither Designated Representative of a Member is able to attend a particular meeting of the Members,
such Member may designate in writing another officer, director, partner, member, employee or affiliate of the Member to have voting privileges for that specific meeting. A Member may change either or both of its Designated Representatives at any
time by giving written notice thereof to the Company and the other Members. 
 (e) Informal Action by
Members. Any action required by this Agreement to be taken at a meeting of the Members, or any action which may be taken at a meeting of the Members, may be taken without a meeting if all of the Members sign written consents that set forth the
action so taken. Such consents have the same force and effect as a unanimous vote of the Members at a meeting duly held. The Company is to file such consents with the minutes of the meetings of the Members. 

(f) Tele-Participation in Meetings. Members may participate in a meeting of the Members by means of a conference
telephone or similar communications equipment whereby all individuals participating in the meeting can hear each other. Participation in a meeting in this manner constitutes presence in person at the meeting. 

7. Management of the Company. 
 7.1 Board of Managers. The management of the Company is vested in a Board of Managers consisting initially of four (4) individuals acting as Managers (individually a “Manager” and
collectively the “Managers”) of the Company, two (2) selected by Armstrong (or its successor or permitted assign) and the other two (2) selected by Cyprus (or its successor or permitted assign). Initially, Armstrong selects
Kenneth Allen, Vice President of Operations of Armstrong and Martin Wilson, President of Armstrong as its representatives on the Board of Managers and Cyprus selects T. L. Bethel, Vice President of Cyprus and Tom Benner, Vice President Operations
Underground, Peabody Midwest Group as its representatives on the Board of Managers. Except as provided herein, the decisions of the Board of Managers shall be binding upon 

  
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the Company and may be relied upon by other persons or entities. A Manager may at any time be changed or removed and replaced by the Member which has appointed such Manager, but not by any other
Member. In the event that Armstrong or Cyprus (or such party’s successor or permitted assign) ceases to be a Member, the Managers appointed by such Member shall be removed at such time and replaced by the affirmative vote of all of the Members.
Except as set forth in Section 3.2 and Section 7.12(e), the Board of Managers shall act solely upon the majority consent of all of the Managers, which requires an affirmative vote of at least three (3) of the four (4) Managers,
including the affirmative vote of at least one (1) Manager appointed by each of Armstrong and Cyprus, and each Manager shall have one (1) vote. No Manager shall be required to devote all of such Manager’s time or business efforts to
the affairs of the Company but shall devote so much of such Manager’s time and attention to the Company as is reasonably necessary and advisable to manage the affairs of the Company to the best advantage of the Company. The Managing Member is
hereby authorized to execute, in such capacity, all documents and agreements that do not require consent of the Board of Managers, For documents and agreements that require such consent, the Board of Managers may, in connection with its approval
thereof, authorize the Managing Member and/or all or less than all of the Managers to execute any and all documents necessary or convenient to carry out those actions approved by a majority of the Managers, If the Board of Managers approves
executing a document or agreement without specifically authorizing signers, then the Managing Member and each of the Managers, acting individually, may execute such document or agreement on behalf of the Company. The Company shall enter into a
Management Agreement (the “Management Agreement”) which shall initially engage Armstrong to be the manager of the Company’s day-to-day operations and the development of the Project, in accordance with the terms and conditions
contained in the Management Agreement and this Agreement. Pursuant to the terms of this Agreement Armstrong shall serve as the Managing Member until the occurrence of a Triggering Event or is removed by the Board of Managers, at which time Cyprus
shall have the authority, in its sole discretion, to assume the position of Managing Member without consent or action from any other Member or the Board of Managers and shall also have the authority, in its sole discretion, to assume the position of
manager under the Management Agreement, both elections being entirely independent from the other. 
 7.2 Authority and Duties
of the Managing Member. Except for Major Decisions, the Managing Member shall have authority over and control and management of the day-to-day affairs of the Company, including, without limitation, the authority to carry out the duties set forth
in Section 7,6, below. The Managing Member shall be appointed by the Board of Managers and may be removed by the Board of Managers, with or without cause. The initial Managing Member shall be Armstrong. Armstrong shall remain the Managing
Member until the occurrence of a Triggering Event or removed by the Board of Managers acting upon the majority consent of all of the Managers, Without limiting the foregoing, the Managing Member shall have all of the following specific rights and
powers to implement the business and affairs of the Company: 
 (a) Execute and deliver contracts and other
agreements necessary to conduct the efficient and safe day to day operations of the Project and to facilitate the development of the Project and in the ordinary course of business; 

(b) Retain or employ and coordinate the services (both on site and off site) of employees, independent contractors,
supervisors, accountants, attorneys and other persons necessary or appropriate to carry out the business and purposes of the Company, subject to the provisions of Section 7,4(d); 

(c) Pay all debts and other obligations of the Company, to the extent that funds of the Company are available therefor;

  
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 (d) Execute for and on behalf of the Company, and with respect to the
Project, all such applications for permits and licenses as the Managing Member deems necessary and advisable; 

(e) Perform all ministerial acts and duties relating to the payment of all indebtedness, taxes, and assessments due or to
become due with regard to the Project, and to give and receive notices, reports, and other communications arising out of or in connection with the ownership, indebtedness, or maintenance of the Project; and 

(f) Take such other actions or execute such other documents or agreements on behalf of the Company that do not expressly
require the consent of the Board of Managers or the Members hereunder. 
 7.3 Delegation of Duties. The Managing Member
may delegate such authority and duties as the Managing Member deems advisable, excluding any authority or duty which the Act requires to be exercised by the Members or which is a Major Decision. Any delegation pursuant to this Section may be revoked
at any time by the Managing Member, 
 7.4 Major Decisions. Notwithstanding Sections 7,2 and 7.6, the Managing
Member, on behalf of the Company, may not enter into or conduct any of the following transactions (“Major Decisions”) without the majority consent of the Board of Managers: 

(a) admit a Person as a Member except as provided in this Agreement; 

(b) change the status of the Company from one in which management of the Company is vested in managers to one in which
management of the Company is vested in the members and vice versa; 
 (c) assign the Company’s property in
trust for creditors or on the assignee’s promise to pay the Debts of the Company; 
 (d) select, retain or
employ any attorneys or legal advisors to institute or defend any claims, litigation or other legal proceeding brought by or brought on behalf of or against the Company, in which the amount in controversy exceeds $250,000.00; 

(e) institute or settle any litigation, arbitration or other legal proceeding by or on behalf of the Company, or confess a
judgment against the Company, in which the amount in controversy exceeds $250,000.00, except that the Managing Member, without consent of the Board of Managers, may negotiate and settle disputes on behalf of the Company with the Mine Safety and
Health Administration (MSHA), with authority to commit the Company to pay any associated fines, costs or other liabilities in an aggregate amount of $1,000,000.00 in any given Fiscal Year; 

(f) sell, convey, lease, assign, exchange or otherwise dispose of any real property or any combination thereof or any
other material asset of the Company with a fair market value in excess of $250,000.00 in the aggregate during any Fiscal Year without consent of the Board of Managers, provided, however, that the Managing Member shall have the authority to sell,
transfer, dispose, abandon or lease any movable equipment in the ordinary course of business which are no longer necessary or required in the conduct of the Company’s business; 

  
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 (g) borrow money in the name of the Company in excess of $250,000.00 in the
aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal Year or issue evidences of indebtedness of the Company, or refinance, recast, modify or extend the same, or secure the same by mortgage, deed
of trust, pledge or other Lien; 
 (h) commit to make, or make, any expenditure (including Capital Expenditures)
in excess of $250,000.00 in the aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal Year; 
 (i) acquire by purchase, lease or otherwise, any real property in excess of $250,000.00 in the aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal
Year or make any investment in securities or any ownership or controlling interests in any corporation, partnership, limited partnership, limited liability company or other Person; 

(j) possess any property of the Company, or assign the rights of the Company in specific property, for other than a
Company purpose; 
 (k) approve the Project Budget for each Fiscal Year and any amendments thereto; 

(1) cause the Company to enter into one or more transactions with a Member (other than in its capacity as a Member) or an
Affiliate of a Member except as otherwise specifically permitted hereunder and in the Management Agreement; 

(m) change the name of the Company at any time; 

(n) form, organize, acquire, sell, dispose of, reorganize or liquidate a Subsidiary; 

(o) to make any loan or advance to other Persons in excess of $10,000.00 to any such Person (including Members and
Affiliates of Members) or in excess of $50,000.00 in the aggregate during any Fiscal Year, other than (i) trade credit extended on usual and customary terms in the ordinary course of business; and (ii) investments of Company cash in
certificates of deposit, treasuries, high-grade commercial paper or similar investment products; 
 (p) enter
into any modification of the Management Agreement or. Sales Representation Agreement; or 
 (q) enter into or
modify any lease or agreement between the Company and the Managing Member or any of its Affiliates except to the extent permitted under the Management Agreement. 
 7.5 Actions Requiring Unanimous Approval of Members. Notwithstanding Sections 7.1, 7.2, 7.4 and 7,6, neither the Company, the Managers, the Managing Member nor any other Member may, without
the unanimous consent of all the Members, do any of the following: 
 (a) any act materially in contravention of
this Agreement; 
 (b) amend this Agreement or the Certificate; 

  
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 (c) approve a merger or consolidation of the Company with another Person;

 (d) modify, compromise or release the amount and character of the Scheduled Capital Contributions which a
Member is to make or promises to make hereunder; 
 (e) any act which would make it impossible to carry on the
ordinary business of the Company; 
 (f) to dissolve or wind up the Company, except as otherwise expressly
provided in this Agreement; or 
 (g) any and all elections required or permitted to be made by the Company under
the Code. 
 7.6 Managing Member’s Duties. The Managing Member shall be responsible for the good faith performance of
the following functions in a commercially reasonable manner consistent with practices found in the development of properties similar to the Project: 
 (a) Protect and preserve the title and interest of the Company with respect to the Project and other assets now or hereafter owned by the Company; 

(b) Pay from the funds of the Company in a business-like manner all taxes, assessments and other obligations associated
with the Project; 
 (c) Prepare and implement the Project Budget as modified from time to time in accordance
with the terms of this Agreement; 
 (d) Report to the Managers on a quarterly basis regarding the status of the
development of the Project and compliance with the Project Budget for that Fiscal Year; 
 (e) Negotiate, enter
into and supervise the performance of contracts covering all aspects of development of the Project; provided however, that the Sales Representation Agreement shall control the conduct of the parties regarding the sale and marketing of coal from the
Project and the Management Agreement shall control the conduct of the parties regarding the day to day management and development of the Project; 
 (f) Keep all books and accounts and other records required by the Company, including detailed information regarding all expenditures, preserve and store in a safe place all such books and records for at
least a seven (7) year period after termination of each fiscal year; and permit the Members, or any person designated by any Member, with reasonable advance notice and at reasonable times to examine or audit the books, records and accounts
relating to the Company, including but not limited to the assets of the business of the Company’s contractual obligations and forecast for performance by the Company; 

(g) Cause an annual financial statement to be prepared by a firm of certified public accountants of recognized standing,
which financial statements shall be audited if required by any Member; 
 (h) Pay from funds of the Company all
obligations of the Company; 

  
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 (i) Maintain all funds of the Company in financial institutions of
recognized credit standing or in certificates of deposit, treasuries, high-grade commercial paper or similar products; 
 (j) Supervise all matters coming within the terms of this Agreement, including direct observation, inspection and supervision of the development of the Project and production of coal therefrom in a safe
and efficient manner; 
 (k) Develop, manage and operate the Project in a commercially reasonable and safe
manner, which includes but is not limited to 1) submitting the appropriate applications for encroachment permits to mine the Kentucky #8 seam of coal under (i) state and federal highways, including the Wendell Ford Parkway (f/k/a Western
Kentucky Parkway), and (ii) the Paducah and Louisville Railway, and 2) obtaining satisfactory opinions of title on all coal tracts prior to entering upon or mining upon such tracts; 

(1) Acquire appropriate insurance for the Company and the Project in amounts determined by the Managing Member in
consultation with the Board of Managers; 
 (m) Supervise the management of the Project and the production of
coal therefrom; 
 (n) No later than one hundred twenty (120) days prior to the end of the Fiscal Year, the
Managing Member shall start the budgetary process for the next Fiscal Year and no later than ninety (90) days prior to the end of the Fiscal Year shall prepare and deliver to the Members and Managers the projected annual Project Budget of the
Company which itemizes projected sources of revenue and anticipated expense items for the next Fiscal Year; 

(o) No later than ninety (90) days after the end of the Fiscal Year, the Managing Member shall prepare a business
report (“Annual Business Report”) of the past Fiscal Year, The Annual Business Report shall be delivered to the Members to advise and inform each Member of the current status of the Project. The Annual Business Report shall include:
(i) description of activities taken place during the past Fiscal Year; (ii) an annual income statement; (iii) a marketing plan for the next Fiscal Year; (iv) a coal production schedule; and (v) any other information that the
Members reasonably request be included in the Annual Business Report; 
 (p) The Managing Member shall cause all
required Federal, state and local income, franchise, property and other tax returns of the Company, including information returns, to be timely filed with the appropriate office of the relevant taxing jurisdiction or agency. With respect to the
Federal and state income tax returns of the Company, the Company shall submit to each Member drafts of the proposed returns as soon as possible, but in no event later than March 15 of each year, to permit review and approval of such returns by
each Member prior to filing. All expenses incurred in connection with such tax returns and information returns, as well as for the Annual Business Report referred to in Section 7.7(o) hereof, shall be expenses of the Company; 

(q) No later than one hundred eighty (180) days after formation of the Company, the Managing Member shall cause all
tracts being subdivided by the “New Division Line”, or subdivided for any other reason, to be surveyed and to obtain a legal description and survey plat of said tracts. The survey plat shall be recorded and the legal description used in
the Special Warranty Deed from Armstrong to the Company; and 

  
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 (r) In general, supervise the business and affairs of the Company for the
benefit of the Members. 
 7.7 Exclusion Areas. Notwithstanding any other provision of this Agreement, the Company may not
mine or enter upon any portion of the Kentucky #8 seam of coal situated within the “No Mining Boundary” depicted on the map attached hereto and incorporated herein by reference as Exhibit C (herein referred to as the “Exclusion
Areas”) without the prior written consent of Cyprus granting the Company the right to mine or enter upon all or any portion of the Exclusion Areas. The granting of any such consent shall be within the sole discretion of Cyprus and its refusal
to provide any such consent shall not constitute a failure by Cyprus to remit its initial capital contribution or otherwise constitute a material act in contravention of this Agreement. The Company shall subordinate its interests in the coal
reserves located within the Exclusion Areas upon request of the surface owner or its lessee of those areas. In the event Cyprus, in its sole discretion, grants consent to lift the prohibition against mining within the Exclusion Areas, the Company
shall have the first right to mine the Kentucky #8 seam of coal situated within the No Mining Boundary. 
 7.8 Development and
Due Diligence Expenses. Each party shall bear its own costs and expenses for developing the Project and its own due diligence activities until this Agreement is executed. 
 7.9 Conflicts of Interest. The pursuit of other ventures and activities by the Members, Managers and Managing Member are hereby consented to by the Members and shall not be deemed wrongful or
improper. No Member, Manager or Managing Member shall be obligated to present any particular investment opportunity to the Company, even if such opportunity is of a character which, if presented to the Company, could be taken by the Company. The
Company may enter into agreements with a Member, or an affiliate of a Member, to provide other services to the Company; provided such agreement must be at competitive rates and terms and, if applicable, approved by the Board of Managers in
accordance with Section 7.4. 
 7.10 Indemnification. 

(a) Indemnities and Indemnifiable Claims. The Company shall indemnify and hold harmless any Indemnitee, from and against any claim,
loss, damage, liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of investigation and appeal) actually incurred by any such Indemnitee by reason of, or arising from, the operations, business, or
affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent any of the foregoing (A) is determined by final, nonappealable order of a court of competent jurisdiction (or by any other means approved by the
Board of Managers) to have been primarily caused by any fraud, breach of fiduciary duties established under this Agreement, gross negligence or willful misconduct of such person or (B) is actually incurred as a result of any claim (other than a
claim for indemnification under this Agreement) asserted by the Indemnitee as plaintiff against the Company; provided that if (for purposes of clause (A) immediately above) the fraud, breach of fiduciary duties established under this Agreement,
gross negligence or willful misconduct of any person claiming indemnification shall consist of a conviction of or plea of no contest to a felony, then such person shall not be entitled to indemnification unless it is determined, by final,
nonappealable order of a court of competent jurisdiction (or by any other means approved by the Board of Managers), that indemnification should be granted in whole or part. 

  
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 (b) Advancement of Expenses, Unless a determination has been made (by final,
nonappealable order of a court of competent jurisdiction or by any other means approved by the Board of Managers) that indemnification is not required, the Company shall, upon the request of any Indemnitee and except for any claim of the type
described in clause (B) of Section 7.10(a) of this Agreement, advance or promptly reimburse such Indemnitee’s reasonable costs of investigation, litigation, or appeal, including reasonable attorneys’ fees; provided that the
affected Indemnitee shall, as a condition of such Indemnitee’s right to receive such advances and reimbursements, undertake in writing to promptly repay the Company for all such advancements or reimbursements if a court of competent
jurisdiction determines, by final, nonappealable order, that such Indemnitee is not then entitled to indemnification under this Section 7.10. The written undertaking described in the immediately preceding sentence to repay the amount paid or
reimbursed to an Indemnitee by the Company must be an unlimited general obligation of the Indemnitee but need not be secured and it may be accepted without reference to financial ability to make repayment, 

7.11 Tax Matters Partner. Armstrong shall be designated, as the tax matters partner of the Company pursuant to §623 l(a)(7) of
the Code, Any Member designated as tax matters partner shall take such action as may be necessary to cause each other Member to become a notice partner within the meaning of §6223 of the Code. The Company shall indemnify the tax matters partner
of the Company from and against any and all judgments, penalties (including excise and similar taxes and punitive damages), fines, settlements and reasonable expenses, (including without limitation attorneys fees) actually incurred by such Member in
performing its duties as the tax matters partner of the Company; provided that the Company shall not be liable to any Person acting as the tax matters partner of the Company for any portion of such judgments, penalties, fines, settlements or
reasonable expenses resulting from such persons gross negligence or willful misconduct. 
 7.12 Meetings of the Board of
Managers. 
 (a) Meetings. The Board of Managers will have an annual meeting and such quarterly
meetings as may be established by the Company. The Board of Managers will have such special meetings as are called in accordance with the provisions of this Agreement, Any annual, quarterly or special meeting of the Board of Managers is to be held
at such place as may be designated by the Company or in a waiver of notice executed by all Managers. If there is a failure to designate a place for any such meeting, the same is to be held at the principal place of business of the Company. The
annual and quarterly meetings of the Board of Managers is to be held each year within sixty (60) days prior to the beginning of the Fiscal Year, but in no event prior to the time the Managing Member delivers the projected annual Project Budget
of the Company to the Managers and the Members pursuant to Section 7.7(n), for the establishment of the Project Budget and the transaction of such other business as may come before the meeting. Special meetings of the Board of Managers may be
called at any time by the Company or by a Manager and are to be held on such dates and at such times as are set forth in the notice calling the meeting. 
 (b) Quorum. A Manager appointed by Cyprus and a Manager appointed by Armstrong attending such meeting constitutes a quorum of Managers for all purposes, and no quorum shall exist unless a Manager
appointed by both Cyprus and Armstrong shall be in attendance. 
 (c) Notice of Meetings. Written or
printed notice of each meeting of the Board of Managers stating the place, day and hour of the meeting and, in the case of special meetings, the purpose or purposes for which the meeting is called must be delivered or given: (i) in the case of
regular meetings, not less than ten (10) nor more than forty (40) days before the date of the meeting; and (ii) in the case of special meetings, not less than five (5) Business Days nor more than thirty (30) days before the
date of the meeting; in each case either 

  
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personally or by mail. Notice of an annual meeting of the Board of Managers is to be given by the Company. Notice of a special meeting of the Board of Managers is to be given by the Company or
the Manager calling the meeting. Any notice required by this Section may be waived by the Managers by signing a waiver of notice before or after the time of such meeting and such waiver is equivalent to the giving of such notice. 

(d) Proxies. A Manager may vote at any meeting either in person or by proxy executed in writing by the Manager or
its duly authorized attorney in fact. Such proxy must be filed with the Company before or at the time of the meeting. No proxy is valid after 11 months from the date of execution unless otherwise provided in the proxy. 

(e) Informal Action by Managers. Any action required by this Agreement to be taken at a meeting of the Board of
Managers, or any action which may be taken at a meeting of the Board of Managers, may be taken without a meeting if all of the Managers sign written consents that set forth the action so taken. Such consents have the same force and effect as a
unanimous vote of the Managers at a meeting duly held. The Company is to file such consents with the minutes of the meetings of the Board of Managers. 
 (f) Tele-Participation in Meetings. Managers may participate in a meeting of the Board of Managers by means of a conference telephone or similar communications equipment whereby all individuals
participating in the meeting can hear each other. Participation in a meeting in this manner constitutes presence in person at the meeting. 
 8. Transfers of Interests; Admission. 
 8.1 Transfer
Restrictions. Except as otherwise set forth in this Section 8, no Member may sell, assign, transfer, pledge, hypothecate or otherwise dispose of its Member Interest unless unanimously approved by the Members, including, without limitation,
a Member’s distributional interest as described in §18-702 of the Act (“Distributional Interest”). Any transfer of a Member’s interest in violation of this Agreement shall be void and of no effect; provided, however, that
Armstrong shall be permitted to pledge its Distributional Interest only to PNC Bank or the successor agent of the existing PNC credit facility or successor primary lender to Armstrong (“Lender”). Notwithstanding the foregoing [imitations,
the parties acknowledge and agree that, under the limited circumstances set forth in Section 8.7, the Lender shall have the right to sell and transfer all of Armstrong’s Member Interest (not limited to its Distributional Interest) upon
compliance with the provisions of Section 8.7, 
 8.2 Right of First Refusal. If a Member receives a bona fide offer
(“Offer”) which the Member (“Selling Member”) proposes to accept, whether or not solicited, to sell or otherwise dispose of its entire Member Interest in the Company, then the Selling Member shall furnish to the non-selling
Member written notice of the receipt of the Offer together with the principal terms and conditions of the sale, including the minimum price (“Sale Price”) at which such interest is proposed to be sold, and a statement as to the identity of
the real party in interest making the Offer. The non-selling Member, shall then have the right to purchase the Member Interest (“Offered Interest”) proposed to be sold by the Selling Member upon and subject to the terms and conditions as
set forth in this Section 8.2. This Section 8.2 shall not apply to any sale pursuant to the procedures of Section 8.7. 
 (a) The price at which the Offered Interest may be purchased shall be the price contained in the Offer. If the price contained in the Offer shall consist (in whole or in part) of consideration other than
cash, payable at the closing thereof or at a later date, the cash equivalent fair market value of such other consideration shall be included in the price at which the Offered Interest may be so purchased. 

  
 - 20 -

 (b) The non-selling Member shall have sixty (60) days after receipt of
the notice to elect to purchase the Offered Interest. The purchase transaction (unless otherwise agreed to with third-party purchasers) shall be consummated at a closing to be held at the principal executive offices of the Company, or at such other
location as may be agreed by the parties, within sixty(60) days following the date of the non-selling Member’s election to purchase the Offered Interest. At the closing, unless otherwise stipulated in the Offer, the non-selling Member shall
deliver to the Selling Member the full purchase price against delivery of an instrument appropriately transferring the Offered Interest sold thereby. 
 (c) If the non-selling Member does not elect to purchase the Offered Interest, then the Selling Member may accept the Offer and, pursuant thereto, sell the Offered Interest and, notwithstanding anything
to the contrary contained herein (including, without limitation, Section 8.5 hereof), upon such sale of the Offered Interest and the execution by the transferee of this Agreement, the transferee shall become a Member of the Company. However, if
the Selling Member does not sell the Offered Interest pursuant to the Offer within ninety (90) days after the termination (by passage of time or otherwise) of the rights of first refusal created under this Section 8.2, the Selling Member
may not thereafter transfer the Offered Interest, without again complying with the provisions of this Section 8.2. 
 8.3
Buy-Sell Option. Except under circumstances where the procedures set forth in Section 8.7 applies following a Foreclosure Assignment (as defined below), upon the occurrence of any of the following events, each Member shall have the right
of purchase and sale provided by this Section 8.3 to be exercised by a Member (“Electing Member”) by delivering a written notice (“Election Notice”) to the other Member (“Notice Member”): 

(a) a Member or the Managing Member seeks in good faith for approval for an action that requires approval of the Board of
Managers or the Members pursuant to Section 3.2, Section 6.2, Section 7.4(g), or Section 7.5, and the Board of Managers or the Members, as applicable, reach a full and final deadlock on whether to approve the requested action
after attempting in good faith to negotiate a mutually agreed outcome; 
 (b) the Notice Member, acting as a
Managing Member or Member, or any Manager appointed by the Notice Member takes any action or transaction described in Section 7.4 or 7.5 without the consent of the Board of Managers or Members, as applicable; 

(c) the Notice Member has breached the Representations and Warranties in Section 6.1; 

(d) the Notice Member has breached Section 6.3; 

(e) the Notice Member has breached its duties and obligations set forth in Section 6.6(a),(b) or (c); 

(f) a Member other than the Managing Member elects to exercise this provision pursuant to the provisions set forth in
Section 6.6(e); 
 (g) a Change of Control with respect to either Member occurs; or 

  
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 (h) the voluntary election of either Member at any time on or after
January 1, 2020. 
 Such Election Notice shall state a dollar amount equal to the value placed by the Electing Member on all
of the issued and outstanding membership interests in the Company, calculated on a pari passu basis taking into consideration the relative equity interest of the Electing Member, and shall constitute an irrevocable offer by the Electing
Member either to purchase all, but not less than all, of the Member Interest in the Company of the Notice Member from the Notice Member, or to sell all, but not less than all, of the Electing Member’s Member Interest in the Company to the
Notice Member. The purchase price at which the Member Interest of any Member is purchased and sold under this Section 8.3 shall be the value for all of the interests in the Company, as stated in the Election Notice, multiplied by the selling
Member’s Percentage Interest in the Company. 
 (i) For a period of time not exceeding sixty (60) days
from the receipt of the Election Notice by the Notice Member (“Consideration Period), the Notice Member shall have the right to elect to purchase all of the Electing Member’s Member Interest in the Company by providing written notice
(“Purchase Notice”) to the Electing Member of the Notice Member’s intent to purchase the Electing Member’s Member Interest. If the Notice Member does not provide the Purchase Notice to the Electing Member within the above
referenced sixty (60) day time period, the Notice Member shall become obligated to sell its Member Interest in the Company to the Electing Member. 
 (ii) The closing of the purchase and sale shall occur within sixty (60) days from the earlier of the expiration of the Consideration Period, or the date the Electing Member receives a Purchase Notice
from the Notice Member. In either event, at the closing of the purchase and sale transaction described in this Section 8.3, the purchase price must be paid in cash (either by certified check or by wire transfer), unless otherwise agreed upon by
the Electing Member and the Notice Member. 
 (iii) At the closing on the sale of a Member’s Member Interest
pursuant to this Section 8.3, there shall be a final accounting among the Members with respect to all amounts due them from the Company. With respect to the indebtedness and obligations for which any Member is responsible, the purchasing Member
shall, as a condition to closing (but said condition may be waived in writing by the selling Member), cause the repayment of such indebtedness. The Members agree, upon request of any other Member, to execute such certificates or other documents and
perform such other acts as may be reasonably requested by such requesting Member from time to time in connection with such sale. 

8.4 Completion of Sale. If a Member becomes obligated to sell its Member Interest in the Company pursuant to Sections 8.2 or
8.3 of this Agreement, each Member covenants and agrees that it will take such actions and execute such instruments of transfer and other documents as reasonably requested by the other Member to further evidence and complete the sale of the
Member’s Member Interest, Additionally, as a condition precedent to the consummation of the sale of the Percentage Interest, a purchasing Member must arrange for the complete release of all guarantees provided by the selling Member as security
for indebtedness of the Company. 
 8.5 Admissions. All transfers of an interest in the Company by a Member shall entitle
the transferee only the rights afforded a transferee of a Distributional Interest pursuant to § 18-702 of the Act except as otherwise expressly provided herein. These rights are the rights to receive allocations and

  
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distributions to which the transferring Member would otherwise have been entitled, but shall not allow the transferee any additional rights, nor shall the transferee become a Member of the
Company upon such transfer. The transferee shall only become a Member of the Company by receiving the written consent of all Members of the Company and executing this Agreement. The consent of the Members to admit any transferee of a distributional
interest into the Company shall be given in the sole and absolute discretion of each Member. 
 8.6 Distributions and
Allocations in Respect to Transferred Interests. If any Member’s interest is sold, assigned or transferred, or any Person is otherwise admitted as a Member during any Fiscal Year in compliance with the provisions of this Agreement, net
profits, net losses, each item thereof, and all other items attributable to such interest for such Fiscal Year shall be allocated among the Members by taking into account their varying interests during such Fiscal Year in accordance with Code
§706(d). Unless otherwise required by the applicable treasury regulations, such sale, assignment, transfer or admission shall be deemed to have occurred at the end of the calendar month during which such event shall have actually occurred, and
such allocations shall be determined and made pursuant to a pro forma closing of the books of the Company as of the end of such month. With respect to a transferred Member’s interest or any interest therein, all distributions on or before the
deemed date of such transfer shall be made to the transferor and all distributions thereafter shall be made to the transferee. The Company shall not incur any liability for making allocations and distributions in accordance with this provision.

 8.7 Right of First Offer and Sale Procedure Following Foreclosure by Armstrong’s Lender. The procedures of this
Section 8.7 shall apply only in the event Armstrong’s interest has been assigned to Lender or its designee (“Lender Interest Holder”) upon the exercise of Lender’s default remedies pursuant to the pledge referenced in
Section 8.1 (such event being referred to as a “Foreclosure Assignment”), it being understood that any such Lender Interest Holder’s are limited to that of the holder of a Distributional Interest and the Lender or its designee or
assignee may acquire all rights and attributes of Armstrong’s Membership Interest in the Company only pursuant to the procedures of this Section 8.7. 
 (a) If, at any time, the Lender Interest Holder proposes to initiate a sale of Armstrong’s Member Interest to a third party, it shall provide written notice of such intention to Cyprus
(“Election Notice”), and Cyprus shall have a right of first offer to purchase Lender Interest Holder’s Percentage Interest for a price equal to the Fair Value for all the Member Interests in the Company multiplied by the Lender
Interest Holder’s Percentage Interest in the Company (the “Offer Price”), 
 (b) As used herein, “Fair Value” shall
mean the fair market value of the entire Company, as determined by the following process. The parties shall have a period of 60 days following the date of the Election Notice in which to agree on the Fair Value of the Company, which period may
be extended by mutual consent, which consent shall not be unreasonably withheld. If they are unable to so agree during such 60-day period (as such period may be extended by mutual consent), then the parties shall submit in writing to the other a
list of three neutral and impartial mining valuation consultants. The first name that matches on both lists shall be retained to determine the Fair Value of the Company. If there are no matches on the lists, the parties shall submit new lists of
three names within two business days, and this process shall continue until an appraiser is selected. The selected appraiser shall have a period of sixty (60) days (which 60-day period shall be extended if the appraiser believes it is necessary
to complete its appraisal) in which to render the appraisal and provide each of the parties with a copy, which appraisal shall be final and binding upon all the parties. All parties agree to give the appraiser full access to the mining operations,
mine management and all requested financial, business and operational information that the appraiser may reasonably request. 
 (c) The
period beginning on the date on which the Fair Value is determined (whether by mutual agreement or by appraisal) and lasting for 180 days thereafter shall constitute the “Sale Period.” For the first thirty (30) days of the Sale
Period, Cyprus shall have the option to elect to purchase all of the Lender Interest 

  
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 Holder’s Percentage Interest for the Offer Price (the “Right of First Offer”). If Cyprus does
not deliver notice of its election to purchase within such 30-day period, Lender Interest Holder shall have the right to sell Lender Interest Holder’s Percentage Interest to any other Person, so long as the total purchase price is not less than
90% of the Offer Price; however, if, during the Sale Period, Lender Interest Holder notifies Cyprus in writing of a proposed sale of Lender Interest Holder’s Percentage Interest for a total purchase price less than 90% of the Offer Price, which
notice (the “ROFR Notice”) shall include a description of the principal terms and conditions of the sale, then Cyprus shall have the right to elect to purchase the interest at the price identified in the ROFR, which election shall be
delivered within 60 days of the date of its receipt of the ROFR Notice, and if Cyprus shall fail to timely deliver written notice of its election to purchase, then Lender Interest Holder may sell its Percentage Interest on the price and on the
terms set forth in the ROFR Notice, so long as such sale is completed within 120 days after the date of Cyprus’ receipt of the ROFR Notice. Any sale by Lender Interest Holder that conforms with the provisions of this Section 8.7 shall
be effective to vest in the purchaser all Member Interest rights relating to the Percentage Interest sold, and such purchaser shall automatically become a Member of the Company upon such transfer upon such the purchaser executing an agreement
agreeing to be bound by the terms of this Agreement. If, however, Lender Interest Holder does not consummate the sale during the Sale Period (or, as applicable, within 120 days from the date of Cyprus’ receipt of the ROFR Notice), then the
Right of First Offer shall apply to any subsequent sale by Lender Interest Holder. 
 (d) If Cyprus elects to exercise the Right of First
Offer or its rights upon receipt of an ROFR Notice, the closing of the sale shall occur within 60 days of the start of the Sale Period. Each of Cyprus and Lender Interest Holder covenants and agrees that it will take such actions and execute
such instruments of transfer and other documents as reasonably requested by the other to further evidence and complete the sale of the Lender Interest Holder’s Percentage Interest. The provisions of Section 8.6 shall apply to the interest
being transferred. The purchase price shall be paid in cash unless the parties mutually agree otherwise, and the Lender Interest Holder’s interest shall be free and clear of any liens and encumbrances. 

9. Dissolution Acts. The Company shall only be dissolved upon the occurrence of any one of the following events:
(i) the completion of the term of the Company as set forth in the Certificate; (ii) written consent of all Members upon exhaustion of the economically mineable coal reserves from the Project; (iii) the sale of all or substantially all
of the assets of the Company; (iv) written consent of all Members, or (v) as required by Section 10 below. Except as otherwise agreed to herein below in Section 10, upon dissolution, the Company shall liquidate and distribute its
assets in the following priority: 
 9.1 First, to pay all debts owed by the Company to non-Members; 

9.2 Second, to pay any outstanding Member Loans; 
 9.3 Third, to each Member in accordance with the positive balance of Member’s capital account; and 
 9.4 Fourth, to the Members in proportion to each Member’s Percentage Interest. 
 10. Withdrawal and Disassociation. Except as otherwise agreed to herein below in this Section 10, no Member shall be allowed to withdraw or disassociate from the Company. Any
attempted disassociation or withdrawal by a Member shall be null and void and not recognized by the Company, If an event disassociation occurs for any reason whatsoever, the Company shall not dissolve and the Member causing the disassociation, if
any, shall be liable to the Company for such wrongful disassociation. In no event shall the disassociated Member be entitled to have its Percentage Interest purchased by the Company. Notwithstanding any provision of this Agreement, if the Company
has not established commercially viable mining operations in the Kentucky #8 seam of coal by January 5,2016, then either Member shall have the right to provide the other 

  
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Member with notice of withdrawal from the Company (“Notice of Withdrawal”). Neither Member shall have the right to provide Notice of Withdrawal from the Company prior to January 5,
2016. In the event either Member provides Notice of Withdrawal under this Section due to the Company’s failure to establish commercially viable mining operations in the Kentucky #8 seam of coal by January 5, 2016, the Company shall
liquidate all assets of the Company, other than the assets contributed pursuant to the Contribution Schedule identified in Exhibit A hereto and pay all debts or other amounts owed by the Company to: (i) non-Members; then to (ii) pay
any outstanding Member Loans; then to (iii) the Members is accordance with the positive balance of their the Member’s capital account; then to (iv) the Members in proportion to each Member’s Percentage Interest. After all amounts
identified in subsections (i) through (iii) of the preceding sentence have been paid in full, the Company will distribute the remaining assets identified on Exhibit A hereto to the Member who originally contributed such assets as part
of that Member’s Initial Capital Contribution. In the event the Company is unable to satisfy its debts after liquidating all assets other than those identified in Exhibit A hereto, then all remaining assets will be subject to the
liquidation and distribution of assets pursuant to Section 9 of this Agreement unless otherwise unanimously agreed to by the Members. Armstrong covenants and agrees that it will not interfere or compete with Cyprus’ primary rights to
renegotiate or seek an extension to the Rogers #8 Lease during the Non-interference Period (as defined below). Notwithstanding any disassociation hereunder or stated herein in this Section 10, Armstrong hereby covenants and agrees for itself,
its successors and assigns and its and their Affiliates, and any successor owner of any ownership interest in the assets that were contributed by Armstrong under Section 3 hereof, including without limitation, the successors in title to the
1,977 acres of surface lands, that it and they will not, during the Noninterference Period (as defined below), seek to or obtain a lease from the Rogers of any coal reserves described in the Rogers #8 Lease of Kentucky #8 Reserves identified on
Exhibit A hereto, or accept the assignment of any sublease of the such coal reserves, or take any action which could ultimately lead to the non-development or delayed development of the Cyprus owned Kentucky #8 Reserves either separately,
jointly or in conjunction with the Rogers Kentucky #8 Reserves. This covenant and agreement shall survive the disassociation and termination of this Agreement and shall be deemed a covenant running with said land for a period of five (5) years
from the date of withdrawal and disassociation or from the date the Company is otherwise dissolved (the “Non-Interference Period”). 
 11. Management of Workforce. Managing Member shall have the right, power and obligation to exercise any control over the hiring or supervision of the workforce of the Company, necessary to
manage the Company, including, but not limited to, any employment benefits or other terms and conditions of employment for the employees of the Company, Cyprus shall take no part in, and shall have no right, power or obligation with respect to, any
matter relating to the hiring of miners; provided, however, that Armstrong shall not hire miners previously terminated by Armstrong without first receiving consent from the Board of Managers. The Managing Member shall provide written notification to
the Board of Managers of the lateral transfer miners from Armstrong’s other operations to the Company within thirty (30) days of such transfer. 
 12. Applicant Violator System. Each Member represents and warrants that such member, its officers, shareholders, members, subsidiaries, affiliates and any other entity that can be
attributed to it under the “ownership and control” regulations issued by the office of Surface Mining (collectively, “Member Entities”) are not currently permit blocked under the Surface Mining Control and Reclamation Act of 1977
(“SMCRA”). No Member will allow to exist any violation of SMCRA or any comparable state law at any operation of a Member Entity that would cause any other Member or its Member Entities to be permit blocked. Any Member Entity which becomes
permit blocked under SMCRA or any comparable state law shall provide written notice of such event to the other Members within five (5) days and shall take any and all actions necessary for the removal of such permit block within twenty
(20) days’ provided, however, that if the permit block does not then or thereafter adversely affect the other Member(s) (by permit block or otherwise), the permit blocked entity may contest the permit block in good faith and by appropriate
legal proceedings, provided further, however, that if the permit block does adversely affect the other Members (by permit block or 

  
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otherwise), the non-permit blocked Member(s) may (i) undertake to remove the condition causing the permit block, at the permit blocked Member’s expense or (ii) purchase such permit
blocked Member’s interest in the Company at the fair market value of such permit blocked Member’s interest. 

13. Relationship with Company. 
 13.1 Promotion of Company. Subject to Section 7.9 above, each Member shall use reasonable efforts to promote the activities of the Company and to ensure its success. 

13.2 Information. Subject to any applicable restriction of law, all Members shall be fully and currently informed of the activities
of the Company. To the extent that there are any applicable laws or regulations which would have the effect of limiting the right of a Member to be so informed, the other Members) shall use all reasonable efforts to obtain waivers thereof in favor
of the Company and the member so limited and, failing the obtaining of such waivers, the Members shall make such arrangements as shall be practicable to preserve the Company the benefits of the contacts or projects to which such secrecy agreements
or laws or regulations relate. Each Member shall not, except as required by law and except for disclosure to its officers, directors, employees, shareholders, members, partners, attorneys, accountants, and Affiliates (who shall be bound by the
confidentiality provisions of this Agreement), divulge to any person any confidential or proprietary information concerning the business of the Company, including, without limitation, the terms of this Agreement. 

14. Miscellaneous Matters. 
 14.1 Offset. Whenever the Company is to pay any sum to any Member, any amounts that the Member owes the Company may be deducted from that sum before payment. 

14.2 Captions. Section and paragraph titles or captions contained in this Agreement are inserted only as a matter of convenience
and for reference and in no way define, limit extend or describe the scope of this Agreement or the intent of any provision hereof. 
 14.3 Variation in Pronouns. All pronouns and any variation thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons.

 14.4 Governing Law; Severability. This Agreement is governed by and shall be construed in accordance with the law of
the State of Delaware. If any provision of this Agreement or the application thereof to any Person or circumstance is held invalid or unenforceable to any extent, the remainder of this Agreement and the application of that provision to other Persons
or circumstances is not affected thereby and that provision shall be enforced to the greatest extent permitted by law. 
 14.5
Validity. In the event that any provision of this Agreement shall be held to be invalid, the same shall not affect in any respect whatsoever the validity of the remainder of this Agreement. 

14.6 Benefit. Except as herein otherwise provided to the contrary, this Agreement shall be binding upon and inure to the benefit of
the Members, their heirs, personal representatives, successors and assigns. 
 14.7 Notice. Any notice or communication
required or permitted to be given by any provision of this Agreement shall be in writing and shall be deemed to have been given and received by the person to whom directed (a) when personally delivered, (b) when sent by telefacsimile,
telecopier or similar transmission, at the number of the recipient set forth herein, followed with mailing by regular United States 

  
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mail, (c) one (1) business day after deposited for overnight delivery with an overnight courier such as Federal Express, Airborne, United Postal Service or other overnight courier
service, or (d) three (3) business days after deposited in the U. S. mail, sent by certified mail, postage prepaid, return receipt requested, and such notices are addressed to the person to which directed at the address or facsimile number
of which such person has notified the Company and all of the Members. The initial addresses and facsimile numbers of the parties are reflected on the signature page of this Agreement. 

14.8 Further Assurances. In connection with this Agreement and the transactions contemplated hereby, each Member shall execute and
deliver any additional documents and instruments and perform any additional acts that may be necessary or appropriate to effectuate and perform the provisions of this Agreement. 

14.9 Entire Agreement/Amendment. This Agreement embodies the entire agreement and understanding of the Members relating to the
subject matter hereof and supersedes all prior representations, agreements and understandings, oral or written, relating to such subject matter. This Agreement may be amended only by a written instrument executed by all the Members. 

14.10 Waiver and Consent. No consent or waiver, express or implied, by a Member to or of any breach or default by the other Member
in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of such other Member of the same or any other obligation of such member hereunder.

 14.11 Legal Fees. Except as otherwise provided herein, all legal and other costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby are to be paid by the Member incurring such costs and expenses. In the event the Company or any Member brings suit to construe or enforce the terms hereof, or raises this Agreement as a
defense in a suit brought by the Company or another Member, the prevailing Person is entitled to recover its attorneys’ fees and expenses. 
 14.12 Waiver of Dissolution under the Act. Any dissolution of the Company shall occur only as provided herein, and each Member hereby waives and renounces its rights, if any, under the Act to seek
a court decree of dissolution, to seek the appointment of a liquidator of the Company, and to seek a partition of the Company property. 
 14.13 Relationship of the Members. The relationship between the Members shall be limited to the performance of the transactions contemplated by this Agreement and by the Formation Agreement and in
accordance with their terms. Nothing herein shall be construed to authorize a Member to act as general agent for the other Member(s). 
 14.14 Agreement in Counterparts. This Agreement may be executed in as many counterparts as may be deemed necessary and convenient. Each counterpart when so executed shall be deemed an original, but
all counterparts shall constitute one and the same instrument. 
 [remainder of page blank; signature page follows]

  
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 The Members execute this Agreement effective as of the date first above written. 

 

			
	Members:
	
	Cyprus Creek Land Resources, LLC
		
	By:	 	/s/ T. L. Bethel
	Name:	 	T. L. Bethel
	 Its:
	 	VP

  

			
	Official Address:	 	701 Market Street
		 	St. Louis, MO 83101
		 	Attention: President
		 	Facsimile No: (314) 342-7697

  

			
	Armstrong Coal Company, Inc.
		
	By:	 	/s/ Martin D. Wilson
	Name:	 	Martin D. Wilson
	Its:	 	President

  

			
	Official Address:	 	407 Brown Road
		 	Madisonville, KY 42431
		 	Attention: President
		 	Facsimile No: (270) 821-4245

  

			
	Company:
	
	Survant Mining Company, LLC
		
	By:	 	/s/ Martin D. Wilson
	Name:	 	Martin D. Wilson
	Its:	 	Managing Member

  

			
	Official Address:	 	407 Brown Road
		 	Madisonville, KY 42431
		 	Attention: Vice President
		 	Facsimile No.: (270) 821-4245

  
 - 28 -

 Exhibit ‘A’ 

Contribution Schedule 

Scheduled Capital Contributions: 
  

	I.	Milestone 1.         Initial Capital (Permitting Phase) 

 Milestone 1 will occur upon the execution of the Operating Agreement of the Company, the Management Agreement and Sales Representation Agreement. Following the occurrence of Milestone 1, the Company will
work to obtain permits for the slope site, the airshaft site, the other surface operations, and the #8 reserves being contributed by Cyprus. 
 Contributions: 
 -Armstrong contributes $30,000 in cash 

-Cyprus contributes $30,000 in cash 
 -Each Member grants rights of entry as necessary to facilitate permitting 
  

	II.	Milestone 2 

 Milestone 2 will occur upon the
completion of permitting as determined by the Board of Managers (projected to occur in August 2012). Following the occurrence of Milestone 2, the Company will begin work on slope construction and airshaft construction. 

Contributions: 

-Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to complete construction of the mine,
including slope, airshafts, coal handling equipment, power drops, communication, rock dust, etc. 
 -Members to contribute, in
proportion to each Member’s Percentage Interest, cash sufficient for down payments on mining equipment, as determined by the Board of Managers. 
 -Armstrong to contribute surface property, equipment, buildings and facilities as follows: 

Contribution by Armstrong and/or its Affiliates by deed to the Company of the surface properties (approximately 1977 acres) and improvements (Parkway prep
plant) as described on Schedule 1 attached hereto and made a part hereof. PNC Mortgages and financing statements affecting those properties will be released. See Exhibit D for form of deed. 

Grant and/or assignment by Armstrong and/or its Affiliates of access and unlimited usage of all waterlines and unlimited withdrawal rights from the any
impoundment, reservoir or body of water associated therewith, including but not limited to the Overland Slurry/Water Supply, Lines servicing the Project, with rights of ingress and egress over any surface properties of Armstrong and/or its
Affiliates for the purpose of maintaining, reconstructing, modifying or otherwise servicing the waterlines and any impoundment, reservoir or body of water associated therewith, together with the right to permit such facilities. 

Conveyance and sublease of all equipment from Armstrong’s Parkway #9 operations, which shall include all substantially all of the owned and leased
equipment that is primarily used in connection with Armstrong’s Parkway #9 operations (supporting both surface and underground operations) on Milestone 2 (“Equipment”). At the time of conveyance and sublease of all Equipment,
Armstrong shall prepare complete exhibits to be 

  
 - 29 -

 attached as exhibits to the Bill of Sale and Sublease attached hereto in Exhibit D, All owned Equipment
shall be by bill of sale. Conveyance of leased Equipment shall be by means of a sublease whereby the Company will receive the benefit of use of such equipment and the residual interest (if any) in the equipment upon satisfaction of the underlying
lease obligations (without mark-up or additional rental owed to Armstrong). The Company will provide Armstrong the first-priority, rent-free right to possess and use all of the Equipment pursuant to a Use Agreement consistent with the terms stated
herein and the further terms set forth on Exhibit D. Armstrong shall be responsible to pay all underlying lease obligations for so long as any leased Equipment is being used in Armstrong’s Parkway #9 operations. Pursuant to the Use
Agreement, Armstrong shall be responsible to pay all operating costs associated with or arising from operation of Parkway prep plant and Equipment, including but not limited to any utilities and maintenance costs, until such time as the Company
begins mining the #8 seam of coal. When the Company begins mining the #8 seam, the Company and Armstrong shall prorate the operation costs of the Parkway prep plant and related Equipment, excluding Equipment dedicated solely to the #9 mining
operations, based on their production from both seams. As Armstrong depletes the #9 seam reserves at Parkway and ceases using particular items of Equipment, the Use Agreement shall terminate as to such items, and possession will be delivered to the
Company. 
 Contribution by Armstrong and/or its Affiliates of rights to the Gibraltar Haulroad and Access Road pursuant to a Non-Exclusive
Haulroad Easement Agreement. 
 -Cyprus to contribute reserves and property rights as follows: 

Contribution to the Company by Cyprus and/or its Affiliates of all Kentucky #8 coal reserves located within the Comprehensive Mining Area, now or
hereafter owned or leased by Cyprus or its Affiliates, by the Lease and Sublease Agreement described on Exhibit D, all such leased and subleased interests being contributed free from and not subject to any obligations of royalty interests,
overriding royalty interests, premiums or rentals to any Person, except for the royalty obligations due to any original Lessor of the subleased interests. Company will reimburse Cyprus for advance royalties paid in 2012 for leased Rogers #8 coal
reserves. 1 
 Contribution by Cyprus and/or its Affiliates of rights to the Gibraltar Haulroad and Access Road pursuant to Non-Exclusive
Haulroad Easement Agreements. 
  

	III.	Milestone 3 

 Milestone 3 occurs upon the
completion of mine construction as determined by the Board of Managers (projected to occur in August 2013). 

Contributions: 

-Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to acquire a full underground unit of
equipment as determined by the Board of Managers, which is projected to include two JOY 1415 continuous miners, four BH10 battery haulers, two Fletcher double boom roof bolters, one BF17 JOY feeder, two scoops, two 14 place mantrips, three tow man
rides, power distribution equipment, coal handling equipment (headers, etc.) and any other equipment or supplies necessary to operate one split air supersection. 

 

	1	Upon completion of permitting Cyprus shall acquire a new #8 coal lease from the Rogers to extend the existing 1993 lease and will subsequently sublease those leasehold
interests to the Company. 

  
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	IV.	Milestone 4 

 Milestone 4 occurs following the
completion of mine construction and prior to mining as determined by the Board of Managers (projected to occur in August 2013). Following the occurrence of Milestone 4, the Company will begin mining the #8 seam. 

Contributions: 

-Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to upgrade the Parkway preparation plant
to allow for processing of additional tonnage as determined by the Board of Managers. Cost of operation of the preparation plant will be shared on a prorata basis by Armstrong and Survant as long as Armstrong continues to operate in the #9 seam.

 VI. TV A Contract. To the extent any coal is sold by the Company under Armstrong’s existing contract with Tennessee Valley Authority, TVA
Contract No, 40685, Armstrong shall remit to the Company the net proceeds attributable to the sale of such coal, without mark-up or additional costs or charges to the Company pursuant to a pass-through agreement acceptable to the Board of Managers.
The Sales Representation Agreement requires payment for all coal mined removed and sold by the Company, including any coal passed through Armstrong contracts. 
 Notwithstanding any provision of this Agreement, neither Member is making any representation or warranty concerning the condition or quality of its properties being contributed hereunder, and neither
Member shall be determined to have failed to remit its capital contributions or be liable to the Company or the other Member based on any subsequent determination that any portion of the Member’s capital contributions consisting of owned or
leased real property is unable to be used, developed or mined for any reason or is not used, mined and/or developed for any reason or the Member’s title to any such property is found to be defective or the estimated tonnages of any coal
reserves provided for herein are determined to be inaccurate or due to any aspect of the condition, fitness or serviceability of any of the Equipment, Buildings, or other facilities described herein. The Members agree that certain surface properties
(being those tracts subdivided by the “New Division Line”) to be contributed to the Company by Armstrong will be surveyed to effectively subdivide the tracts and that neither Member will be entitled to seek adjustment of their respective
Percentage Interests in the Company or otherwise be liable to the Company or the other Member by reason of any determination of any deviation between the representations contained in the lease and the surveyed acreage of those surface properties.

  
 - 31 -

 EXHIBIT B 
 COMPREHENSIVE MINING AREA 

  
 - 32 -

  
 

 

 EXHIBIT C 
 EXCLUSION AREAS 

  
 - 33 -

  
 

 

 EXHIBIT D 
 TO 
 OPERATING AGREEMENT 

Forms of Contribution Conveyancing Documents 
 1. Coal Mining Lease and Sublease — CCLR & Survant — Owned #8 Coal, Leased 1993 and 2013 Rogers #8 Coal, and Leased Duncan #8 Coal. 

2. Memorandum of Coal Mining Lease and Sublease — CCLR & Survant — Owned #8 Coal, Leased 1993 and 2013 Rogers #8 Coal, and Lease
Duncan #8 Coal. 
 3. Rogers Consent to Sublease 1993 #8 Leased Coal. 
 4. Rogers Consent to Sublease 2013 #8 Leased Coal. 
 5. Duncan Consent to Sublease Portions of #8
Coal. 
 6. Non-Exclusive Haulroad & Access Easement — CCLC & Survant — Under review by Armstrong. To be mutually
agreed by the parties within 30 days of the date of the Operating Agreement. 
 7. Non-Exclusive Haulroad Easement — CCLC &
Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of the Operating Agreement. 
 8.
Non-Exclusive Haulroad Easement — CCLC & Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of the Operating Agreement. 

9. Quitclaim Deed — WMD and WLC — 39.45% interest 4,782 acres of Owned Gibraltar Surface. 

10. Quitclaim Deed — WMD and WLC — 39.45% interest in 661.54 acres of Owned Parkway Surface. 

11. Special Warranty Deed — WLC and Survant — 100% Interest in 1,977 acres of Owned Surface with deed-in provisions (1,628 acres from
Gibraltar; 349 acres from Parkway). 
 12. Rogers Partial Release of Right of First Refusal to Purchase — Rogers, WLC, Survant. 

13. Non-Exclusive Haulroad Easement (Gibraltar HR and Access Road — WLC, Armstrong, Survant — Under review by Armstrong. To be mutually agreed
by the parties within 30 days of the date of the Operating Agreement. 

  
 - 34 -

 14. Bill of Sale — Armstrong Owned Equipment — Armstrong & Survant. 

15. Equipment Sublease — Armstrong Leased Equipment — Armstrong & Survant. 
 16. Use Agreement — To be drafted post-closing and mutually agreed by the parties within 30 days of the date of the Operating Agreement, which agreement will contain the following basic terms:

 - Armstrong shall have the first-priority, rent-free right to possess and use all of the Equipment as needed
in its #9 seam mining operations. 
 -Armstrong shall have no obligation to pay rent or use fees for the
Equipment. 
 -Armstrong shall insure and maintain the Equipment at its cost until possession is delivered to
Survant. 
 -Armstrong shall pay operating costs. 

-Armstrong shall indemnify Survant for any liabilities and claims related to Armstrong’s use of the Equipment.

 -As Armstrong depletes the #9 seam reserves at Parkway and ceases using particular items of Equipment, the Use
Agreement shall terminate as to such items, and possession will be delivered to the Company. 

  
 - 35 -

 EXHIBIT R 
 TO 
 ASSET PURCHASE AGREEMENT 

Survant Mining Company, LLC 
 Operating Agreement 

 NOTICE: THIS AGREEMENT CONTAINS AN ARBITRATION PROVISION  

SURVANT MINING COMPANY, LLC 
 LIMITED LIABILITY COMPANY AGREEMENT 
 (THE OPERATING AGREEMENT)

 THIS LIMITED LIABILITY COMPANY AGREEMENT, also called the “Operating Agreement” (collectively herein, the
“Agreement”) effective as of the      day of December, 2011, is entered into by and among Cyprus Creek Land Resources, LLC (“Cyprus”) and Armstrong Coal Company, Inc. (“Armstrong”). 

 WHEREAS, the Members (hereafter defined) desire to form a limited liability company under the laws of the State of
Delaware to be known as Survant Mining Company, LLC (the “Company”) for the purposes set out in this Agreement, and to carry on such other legally permissible business and activities as the Company, in accordance with applicable laws and
this Limited Liability Company Agreement, shall determine from time to time; 
 WHEREAS, the Members desire to enter into
this Limited Liability Company Agreement to govern the conduct of the business and affairs of the Company and to set forth the understanding of the Members regarding all other matters concerning the Company which may be covered in a Limited
Liability Company Agreement; 
 NOW, THEREFORE, in consideration of mutual promises and covenants contained herein and
other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, do hereby agree as follows: 

1. Certain Definitions.  
 When used herein, the following terms shall have the meanings set forth below: 

1.1 “Act” means the Delaware Limited Liability Company Act, Title 6, Chapter 18 of the Delaware Code (as amended). All
references herein to specific sections of the Act shall be deemed to refer to the corresponding provisions of succeeding law. 

1.2 “Affiliate” means: (i) any Person which, directly or indirectly, is in Control of, is Controlled by or is under common
Control with the 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. 
 1.3 “Agreement” means this Limited Liability Company Agreement as the same may be amended and
supplemented from time to time. 
 1.4 “Armstrong” means Armstrong Coal Company, Inc., a Delaware corporation.

 1.5 “Available Cash” means all cash determined by the Managing Member to be available to the Company for
distribution to the Members after the payment of all current expenses and other liabilities then due, establishing reserves for capital improvements, working capital needs, contingent liabilities and unforeseen contingencies, all determined
reasonably and in good faith by the Managing Member. 
 1.6 “Board of Managers” has the meaning set forth in
Section 7.1. 

 1.7 “Capital Expenditure” means all expenditures (excluding interest capitalized
during construction) which must be capitalized under generally accepted accounting principles (GAAP). 
 1.8
“Certificate” means the Certificate of Formation, and all amendments thereto, executed and filed pursuant to applicable laws and the terms of this Agreement. 
 1.9 “Change of Control,” with respect to Armstrong, means any transfer or other action that results in (a) Armstrong ceasing to be Controlled, directly or indirectly, by the Yorktown
Parties unless as a result of an initial or secondary public offering of stock, (b) any Person, other than the Yorktown Parties or Persons Controlled by the Yorktown Parties, acquiring a 50% or greater ownership interest, directly or
indirectly, in Armstrong, or (c) any private or public company or entity primarily engaged in the business of coal mining gaining Control, directly or indirectly, over Armstrong or over Yorktown Parties that have Control over Armstrong.
“Change of Control,” with respect to a Member other than Armstrong, means any transfer or other action that results in such Member ceasing to be Controlled, directly or indirectly, by the same Persons or an Affiliate of the Persons who
Controlled such Member as of the date of such Member’s admission to the Company. 
 1.10 “Closing” means the
execution of the Operating Agreement, Management Agreement, Sales Representation Agreement and the contributions of initial capital as set forth in Milestone I of Exhibit A hereto by Cyprus and Armstrong, 

1.11 “Closing Date” means the date set for the Closing. 
 1.12 “Code” means the Internal Revenue Code of 1986, as amended. All references herein to specific sections of the Code shall be deemed to refer also to the corresponding provisions of
succeeding law. 
 1.13 “Company” means Survant Mining Company, LLC, a Delaware limited liability company, 

1.14 “Company Minimum Gain” has the same meaning as the phrase “Partnership minimum gain” as set forth in treasury
regulation § 1,704-2(d), 
 1.15 “Consideration Period” has the meaning set forth in Section 8.3(a).

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

1.17 “Cyprus” means Cyprus Creek Land Resources, LLC, a Delaware limited liability company, 

  
 - 2 -

 1.18 “Deficit Capital Account” means with respect to any Member, the deficit
balance, if any, in such Member’s capital account as of the end of the taxable year, after giving effect to the following adjustments: 
 (a) credit to such capital account that amount which such Member is obligated to restore under Section 1.704-1 (b)(2)(ii)(c) of the treasury regulations, as well as any addition thereto pursuant to
the next to last sentence of treasury regulation §§1.704-2(g)(l) and (i)(5), after taking into account thereunder any changes during such year in Partnership (Company) Minimum Gain (as determined in accordance with treasury regulation
§ 1.704-2(d) and in the minimum gain attributable to any Partner (Member) for nonrecourse debt (as determined under treasury regulation §l,704-2(i)(3); and 

(b) debit to such capital account items described in treasury regulation §§1.704-l(b)(2)(ii)(d)(4), (5) and
(6). 
 The definition of Deficit Capital Account is intended to comply with the provisions of treasury regulations
§§1.704-l(b)(2)(ii)(d) and 1,704-2, and will be interpreted consistently with those provisions. 
 1.19
“Designated Representative” has the meaning set forth in Section 6.8(d). 
 1.20 “Distributional
Interest” has the meaning set forth in Section 8.1, 
 1.21 “Fair Value” has the meaning set forth in
Section 8.7. 
 1.22 “Fiscal Year” means the Company’s fiscal year which shall correspond to the calendar
year, except that (i) the Company’s first fiscal year shall commence on the date of the filing of the Certificate and (ii) such term shall also include any period for which the Company is required to allocate net profits, net losses
and other items of Company income, gain, loss or deduction pursuant to this Agreement or the Code. 
 1.23 “Foreclosure
Assignment” has the meaning set forth in Section 8.7. 
 1.24 “Indemnitee” shall mean (i) any Manager,
(ii) any Managing Member, (iii) any Member, or (iv) any officer, director, employee, agent, stockholder, member or partner of the Company, or a Member. 
 1.25 “Lender” has the meaning set forth in Section 8.1. 
 1.26
“Lender Interest Holder” has the meaning set forth in Section 8.7. 
 1.27 “Lien” means any mortgage,
deed of trust, security agreement, pledge, hypothecation, assignment, deposit arrangement, lien (statutory or otherwise), security interest, financing statement, overriding royalty agreement or preferential arrangement of any kind or nature
whatsoever, including any conditional sale or other title retention agreement, 
 1.28 “Major Decisions” shall mean
those acts and decisions described in the subsections of Section 7.4. 
 1.29 “Managing Member” shall have the
meaning set forth in Section 7.2. 
 1.30 “Manager” and “Managers” shall have the meanings set forth in
Section 7.1. 
 1.31 “Member Interest” shall include any and all rights of a Member under this Agreement, the Act
and other applicable law, including without limitation all Distributional Rights, economic rights, voting and consent rights, notice rights, contract rights and management rights. 

  
 - 3 -

 1.32 “Member Loan” means any loan to the Company by a Member. 

1.33 “Member Nonrecourse Debt Minimum Gain” has the same meaning as the phrase “Company nonrecourse debt minimum gain”
as set forth in treasury regulation §1.704-2(i). 
 1.34 “Member Nonrecourse Deduction” has the same meaning as
the phrase “Survant nonrecourse deduction” as set forth in treasury regulation §1.704-2(i). 
 1.35 “Member
Nonrecourse Loan” means a loan made to, or credit arrangement for the benefit of, the Company by a Member or by any person related to a Member (as defined in treasury regulation § 1,752-4(b)) which by its terms exculpates the Members from
personal liability on the debt, but under which such Member or related person bears the ultimate economic risk of loss within the meaning of treasury regulation §1.752-2. 
 1.36 “Member” means any Person who becomes a Member in the Company as provided herein, initially Cyprus and Armstrong. 
 1.37 “Non-Managing Member” has the meaning set forth in Section 6.6(e). 
 1.38 “Offer Price” has the meaning set forth in Section 8.7. 
 1.39
“Percentage Interest” means 51% for Armstrong and 49% for Cyprus, unless adjusted in accordance with Section 3.3. 

1.40 “Person” means any individual, limited liability company, limited liability partnership, partnership, corporation, trust or
other person or entity. 
 1.41 “Profit Distribution Share” shall mean 50% for each Member without regard to each
Member’s Percentage Interest; provided, however, that if the Members’ Percentage Interests are ever adjusted pursuant to the provisions of Section 3.3, then, starting as of the date of such adjustment, the “Profit Distribution
Share” for each Member shall be equal to the Percentage Interest of each Member. 
 1.42 “Project” means the
development of the Kentucky #8 seam of coal reserves identified on the map attached hereto as Exhibit B, located in Muhlenberg County, Kentucky. 
 1.43 “Project Budget” means the pro forma revenue and expense statement for the Project approved by the Board of Managers in accordance with Section 7.4. 

1.44 “Right of First Offer” has the meaning set forth in Section 8.7. 

1.45 “Sale Period” has the meaning set forth in Section 8.7, 

1.46 “Subsidiary” means any Person, more than 50% of the voting securities of which, is owned (whether directly or indirectly
through one or more Subsidiaries) by the Company. 
 1.47 “Triggering Event” shall mean the occurrence of any of the
following: (a) Armstrong resigns as the Managing Member, (b) Armstrong is removed from the Managing Member position by the Board of Managers acting upon the majority consent of all of the Managers, (c) Armstrong ceases to be a Member,
(d) Armstrong files for bankruptcy, (e) the Management Agreement, referenced in Section 7.1, is terminated pursuant to its terms and conditions, (f) a Change of Control with respect to Armstrong occurs, (g)

  
 - 4 -

 the willful engaging by the Managing Member or its principals in gross misconduct materially or demonstrably
injurious to the Company, (h) the conviction of the Managing Member or its principals of a felony involving fraudulent or dishonest conduct, or (i) the occurrence of a Foreclosure Assignment pursuant to Section 8.7, 

1.48 “Yorktown Parties” shall mean Yorktown Energy Partners VI, L.P., Yorktown Energy Partners VII, L.P., Yorktown Energy
Partners VIII, L.P. and their Affiliates. 
 1.49 Other Definitions. Unless otherwise provided in this Agreement, any
other term used in this Agreement which is elsewhere defined in this Agreement shall have the same meaning as such term is respectively given by this Agreement. The definitions in this section shall apply equally to both the singular and plural
forms of the terms defined. 
 2. Organization.  

2.1 Formation. The Members hereby agree to form the Company and to associate themselves as Members of the Company. Accordingly,
commensurate with the execution of this Agreement, the Members of the Company shall adopt the Certificate that was filed with the Office of the Delaware Secretary of State. 
 2.2 Registered Office and Agent The initial registered office of the Company in Delaware shall be located at The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington,
Delaware 19801. The Company’s primary business office shall be at 407 Brown Road, Madisonville, KY 42431, or such other location as may hereafter be determined by the Members. The Company’s registered agent for service of process in
Delaware shall be The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. 
 2.3
Foreign Qualifications. Prior to the Company’s conducting business in any jurisdiction other than Delaware, the Members shall cause the Company to comply, to the extent procedures are available and those matters are reasonably within the
control of the Members, with all requirements necessary to qualify the Company as a foreign limited liability company in that jurisdiction. At the request of the Managing Member, each Member shall execute, acknowledge, swear to, and deliver all
certificates and other instruments conforming with this Agreement that are necessary or appropriate to qualify, continue, and terminate the Company as a foreign limited liability company in all such other jurisdictions in which the Company may
conduct business. 
 2.4 Limited Liability Company. The Members intend that the Company not be a partnership (including,
without limitation, a limited partnership) or joint venture, and that no Member be a partner or joint venturer of any other Member, for any purposes other than federal and state tax purposes, and this Agreement may not be construed to suggest
otherwise. 
 2.5 Term. The existence of the Company shall be perpetual, unless terminated or dissolved as set forth
herein, 
 2.6 Annual Reporting. Beginning with the first full calendar year following the year in which the Company is
organized, the Company shall prepare and file with the Delaware Secretary of State an annual report as required by the Act or Delaware law. 

  
 - 5 -

 3. Capital Contributions, Member Loans, and Related Matters.  

3.1 Scheduled Capital. Contributions. At Closing, each Member shall make its initial capital contribution to the Company of
$30,000.00 in cash and the Members shall, on the milestone dates set forth on Exhibit A attached hereto (the “Contribution Schedule”), make their respective additional contributions of property as indicated on the Contribution
Schedule (collectively, the “Scheduled Capita! Contributions”), Notwithstanding any provision of this Agreement, neither Member is making any representation or warranty concerning the condition or quality of its properties being
contributed hereunder, and neither Member shall be determined to have failed to remit its capital contribution or be liable to the Company or the other Member based on any subsequent determination that any portion of the Member’s capital
contribution consisting of owned or leased real property is unable to be used, developed or mined for any reason or is not used, mined and/or developed for any reason or the Member’s title to any such property is found to be defective or the
estimated tonnages of any coal reserves are determined to be inaccurate or due to any aspect of the condition, fitness or serviceability of any of the Equipment, Buildings, or other facilities described in Exhibit A hereto. All contributions,
including but not limited to the surface properties, coal reserves, mining facilities, buildings and equipment described in Exhibit A and more particularly described in Exhibit D hereto, shall be contributed to Company free and clear of all
liens and encumbrances, Each Member hereby represents and warrants to the other Member, that prior to entering into this Operating Agreement it has obtained all necessary consents, commitments and authorizations from any party holding current
security interests in the properties that will be contributed to the Company pursuant to this Section 3.1 .Each Member shall make its contributions substantially in the same form of the conveyancing documents attached hereto and made a part
hereof as Exhibit D. 
 3.2 Additional Capital Contributions: Loans. Each Member acknowledges that, in addition to
the foregoing, additional capital contributions will be required for the continued development and operation of the Company and each Member agrees to make the additional capital contributions in the amounts and at the times indicated on the Project
Budget or the Contribution Schedule, as well as any additional capital contributions unanimously agreed to by the Board of Managers in a timely fashion. Any additional capital contributions to the Company shall be made in proportion to each
Member’s Percentage Interest. In the event the Managing Member reasonably determines that additional cash is necessary in order to fund the Company’s operations in the ordinary course of business or to fund the cash needs in accordance
with the approved Project Budget, but the Members do not unanimously agree on the amount of an additional capital contribution, the Managing Member shall have the right (but not the obligation), following reasonable notice to the other Members, to
make a loan to the Company, and the terms of Section 3.3 applicable to the priority and repayment of Member Loans shall apply. 
 3.3 Non-Compliance. In the event a Member (for the purposes of this Section 3.3 the “Non-Contributing Member”) fails to remit (i) its Scheduled Capital Contributions pursuant to
Section 3.1, or (ii) its portion of any additional capital contribution unanimously agreed to by the Board of Managers, when due and such non-compliance is not cured within ten (10) days after written notice is delivered to the Non-
Contributing Member by the other Member requesting that such funds be remitted to the Company, the other Member (for the purposes of this Section 3.3 the “Contributing Member”) may make the capital contribution or loan owed by the
Non-Contributing Member and elect to treat such amount as an additional capita! contribution or as a Member Loan to the Company. Such election must be set forth in a written notice delivered to the Non-Contributing Member within thirty
(30) days after the funds are contributed to the Company by the Contributing Member, on behalf of the Non-Contributing Member. If the written notice is not delivered within the thirty (30) day time period, the additional funds contributed
to the Company shall be deemed a Member Loan by the Contributing Member to the Company. If the Contributing Member elects to treat the contribution as an additional capital contribution and provides written notice of election to the Non-
Contributing Member, then the Percentage Interest of each Member shall be adjusted to reflect the percentage that each Member’s total capital contributions bear to the total of all capital contributions made to the Company. If such funds are
classified as a Member Loan, the loan shall accrue interest at the prime rate posted 

  
 - 6 -

 by the lending institution at which the Company has its primary operating account, plus two
(2) percentage points. AH Member Loans, whether made under this section, Section 3.2, or otherwise, shall be a priority and no distributions to the Members shall be made until such loan is repaid without the written consent of the Member
who made the Member Loan. 
 3.4 Withdrawal of Capital. The Members shall only be entitled to withdraw or to receive
distributions of capital in accordance with the terms and conditions of this Agreement. 
 3.5 Capital Accounts. A single
capital account shall be maintained for each Member in accordance with the capital accounting rules of section 704(b) of the Code and the tax regulations thereunder (including treasury regulation 1.704(b)(2)(iv)), The capital account of each Member
shall be credited with the fair market value of such Member’s capita! contributions, such Member’s distributive share of profits, income or gain, and the amount of any Company liabilities assumed by such Member or which are secured by any
property distributed to such Member. The capital account of each Member shall be debited with the amount of cash and the value of any property distributed to such Member pursuant to any provision of this Agreement, such Member’s distributive
share of losses and expense, and the amount of any liabilities of such Member assumed by the Company or which are secured by any property contributed by such Member to the Company. 

3.6 Revaluation of Capital Accounts. The capital accounts of the Members shall be adjusted to reflect revaluation of Company assets
in all cases required by treasury regulation § 1.704-l(b) and in all optional circumstances to the extent allowed by treasury regulation § 1.704-l(b)(2)(iv)(f) unless the Board of Managers determines that such revaluation would not be
beneficial or fair under the circumstances. If there is a revaluation under this Section 3.6, then the Company shall make special allocations consistent with the principles of Section 704(c) of the Code. In determining such allocations,
the Company shall use the traditional method with curative allocations described in treasury regulation § 1,704~3(c) for any Contributed Asset. 
 4. Allocations.  
 4.1 Allocation of Profit Loss. Income,
Gain. Deduction, and Credit. Subject to Section 4.2, profits and losses of the Company and, items of taxable income, gain, loss, deduction and credit, shall be apportioned among the Members in accordance with each Member’s Profit
Distribution Share. 
 4.2 Tax Allocations Contributed Property. With respect to any asset contributed by a Member to the
Company (“Contributed Asset”) that has a tax basis different from its agreed upon fair market value on the date of the contribution, the Company shall make the special allocations required by Section 704(c) of the Code, These special
allocations apply solely for Federal, state, and local income tax purposes. They shall not affect or be taken into account in computing a Member’s capital account, or share of profits, losses, or distributions pursuant to any provision of this
Agreement. In making these special allocations, the Company shall use the traditional method with curative allocations described in treasury regulation § 1.704-3(c) for any Contributed Asset. 

4.3 754 Election and Other Tax Elections. In the event of a distribution of property to a Member, or a transfer of any interest in
the Company permitted under the Act or this Agreement, the Company, upon written request of the transferor or transferee, shall file a timely election under this section 754 of the Code and the regulations thereunder to adjust the basis of the
Company’s assets under section 734(b) or 743(b) of the Code and a corresponding election under the applicable provisions of state and local law, and the Person making such request shall pay all costs incurred by the Company in connection
therewith, including reasonable ??? accountants’ fees. Other tax elections and elections relating to Taxes not specifically governed by another provision of this Agreement shall be made as agreed by the Board of Managers. 

  
 - 7 -

 5. Distributions.  

5.1 Distribution to Members. On or before the last business day of each calendar quarter, the Company may make distributions of
cash or cash equivalents to the Members based upon the Available Cash of the Company. The Managing Member shall first determine the amount of Available Cash of the Company available for distribution, and then the Board of Managers shall determine
the aggregate amount of distributions which may be made to the Members and the Members shall share in such total distributions in accordance with each Member’s Profit Distribution Share. 

5.2 Distributions in Kind. Except as may be provided in this Agreement or an amendment to this Agreement, no Member, regardless of
the nature of the Member’s contribution to capital, may demand or receive a distribution from the Company in any form other than cash or cash equivalents. 
 5.3 Limitation on Distributions. No distribution shall be made by the Company if after giving effect to the distribution; (a) the Company would not be able to pay its debts as they become due
in the usual course of business; or (b) the assets of the Company would be less than the sum of its liabilities plus, the amount that would be needed, if the Company were to be dissolved at the time of the distribution, to satisfy the
preferential rights of other Members upon dissolution which are superior to the rights of the Member receiving the distribution. 
 6. Members.  
 6.1 Representations and Warranties. Each
Member hereby represents and warrants to the Company and each other Member that: (a) it is duly organized, validly existing and in good standing under the laws of its formation and is duly qualified and in good standing in the jurisdiction of
its principal place of business; (b) it has full power and authority to execute and agree to this Agreement and to perform its obligations hereunder; (c) it has duly executed and delivered this Agreement; and (d) its authorization,
execution, delivery, and performance of this Agreement does not conflict with any other agreement or arrangement to which that Member is a party or by which it is bound. 
 6.2 Additional Members. It is not intended that additional Members will be admitted into the Company. Nonetheless, if the Members unanimously agree, additional Members may be admitted on such terms
and conditions as the Members may determine at the time of admission, 
 6.3 Prohibited Transfers. No Member may transfer
all or any part of such Member’s Percentage Interests if such transfer will (a) violate in any material respect any applicable federal or state securities laws or regulations, or subject the Company to registration as an investment company
or election as a “business development company” under the Investment Company Act of 1940; (b) require any Member or any Affiliate of a Member to register as an investment adviser under the Investment Advisers Act of 1940;
(c) effect a termination of the Company under Section 708 of the Code; or (d) cause the Company to be treated as an association taxable as a corporation for federal income tax purposes. 

6.4 Information. The Members acknowledge that from time to time, they may receive information from or regarding the Company in the
nature of trade secrets or that otherwise is confidential, the release of which may be damaging to the Company or Persons with which it does business. Each Member shall hold in strict confidence any information it receives regarding the Company that
is identified as being confidential (and if that information is provided in writing, that is so marked) and may not disclose it to any Person other than another Member, except for disclosures (i) compelled by law (but the Member must notify the
other Members, as appropriate, promptly of any request for that information, before disclosing it, if 

  
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 practicable), (ii) to advisers or representatives of the Member or Persons to which that Member’s
interest may be disposed as permitted by this Agreement, but only if the recipients have agreed to be bound by the provisions of this Section, or (iii) of information that Member also has received from a source independent of the Company that
the Member reasonably believes obtained that information without breach of any obligation of confidentially. The Members acknowledge that breach of the provisions of this Section may cause irreparable injury to the Company for which monetary damages
are inadequate, difficult to compute, or both. The Members agree that the provisions of this section may be enforced by specific performance, 
 6.5 Liabilities to Third Parties; Indemnification. Except as otherwise expressly agreed in writing, no Member shall be liable for the debts, obligations or liabilities of the Company, including
under a judgment decree or order of a court; provided, however, that notwithstanding any other provision of this Agreement, each Member shall indemnify and hold harmless the Company and the other Member from and against any claim, loss, damage,
liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of investigation and appeal) actually incurred by the Company or the other Member by reason of, or arising from, the operations, business, or affairs
of, or any action taken or failure to act, of or by the other Member or its Affiliates prior to formation of this Company. The parties acknowledge that a claim has been filed against the Armstrong Parties in US District Court, Western District of
Kentucky, Civil Action No. 4:11 cv 114, alleging the existence of an existing overriding royalty that is alleged to apply to #8 seam coal to be mined by the Company, and the parties agree in the event that such claims are adjudged to apply to
any #8 seam coal mined by the Company (but only with respect to #8 seam coal mined by the Company), the Company shall not be entitled to be indemnified or held harmless by Armstrong relating to such obligations. 

6.6 Fiduciary Duties. 
 (a) Duty of Loyalty. Each Member’s, Manager’s and Managing Member’s duty of loyalty to the Company and the other Members is limited to account to the Company and to hold as trustee
for the Company any property, profit or benefit derived by the Member, Manager or Managing Member in the conduct or winding up of the Company’s business. A Member, Manager or Managing Member does not violate the duty of loyalty by engaging in a
competing business or pursuing other business opportunities, even if the business opportunity could have been pursued by the Company. 
 (b) Duty of Care. Each Member’s, Manager’s and Managing Member’s duty of care to the Company and the other Members in the conduct of and winding up of the Company’s business is
limited to refraining from engaging in gross negligence, reckless conduct, intentional misconduct, or a knowing violation of law, 
 (c) Good Faith and Fair Dealing. Each Member, Manager and Managing Member shall discharge its duties and exercise any of its rights consistently with the obligation of good faith and fair dealing
which it owes to the Company and the other Members, A Member, Manager or Managing Member does not violate a duty of good faith or fair dealing to the Company merely because the Member’s, Manager’s or Managing Member’s conduct furthers
the Member’s, Manager’s or Managing Member’s, as the case may be, own interest. Further, a Member, Manager, or Managing Member does not violate the duty of good faith and fair dealing by engaging in a competing business or pursing
other business opportunities, even if the business opportunity could have been pursued by the Company; provided, however, that each Member, Manager and Managing Member shall not engage in a competing business involving any coal reserves described in
the Rogers #8 Lease of Kentucky #8 Reserves identified on Exhibit B hereto without the express written consent of the other Member. 

  
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 (d) Indemnification of Members, Managers and Managing Member. To the
fullest extent allowed by law, the Members, Managers, and Managing Member shall be indemnified and held harmless by the Company for any liability resulting from any act performed or omission made by them in good faith on behalf of the Company,
except for acts or omissions of gross negligence, willful misconduct, intentional misconduct, or a knowing violation of the law. Notwithstanding anything contained in this Agreement to the contrary, no Member, Manager or Managing Member, nor any
officer, director, employee, agent, stockholder, member or partner of any Member or the Managing Member shall be liable, responsible, or accountable in monetary damages to the Company or any Member by reason of, or arising from, the operations,
business, or affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent that any of the foregoing is primarily caused by any acts or omissions of gross negligence, willful misconduct, intentional misconduct, or
knowing violation of the law of such Person; provided, however, that the rights of either Member with respect to the buy-sell triggers set forth in Section 8.3 shall not be limited to or conditioned upon acts or omissions of gross negligence,
willful misconduct, intentional misconduct, or knowing violation of the law. 
 (e) Duty of Care for Managing
Member. The Managing Member shall perform its duties hereunder, including but not limited to those expressly stated in Section 7.6, in good faith, using reasonable good faith efforts and with reasonable diligence. In the event the other
Member (“Non-Managing Member”) determines that the Managing Member is not performing its duties hereunder consistent with the standards set forth in this Section 6.6(e), the Non-Managing Member may deliver written notice of such
determination to the Managing Member, which notice shall set forth in reasonable detail the basis for the Non-Managing Member’s determination that the Managing Member is not performing its duties hereunder consistent with the standards set
forth in this Section 6.6(e). If, after sixty (60) days after delivery of the foregoing notice, the Non-Managing Member reasonably determines that the Managing Member continues to not perform its duties hereunder consistent with the
standards set forth in this Section 6.6(e), the Non-Managing Member may exercise the buy-sell option set forth in Section 8.3 hereof. 
 6.7 Alternate Dispute Resolution. If a dispute, controversy or claim (whether based upon contract, tort, statute, common law or otherwise) (collectively a “Dispute”) arises from or
relates directly or indirectly to the subject matter hereof, and if the Dispute cannot be settled through direct discussions, the parties shall first endeavor to resolve the Dispute by participating in a mediation administered by the American
Arbitration Association (“AAA”) under its Commercial Mediation Rules before resorting to arbitration. Thereafter, any unresolved Dispute shall be settled by binding arbitration administered by the AAA in accordance with its Commercial
Arbitration Rules and judgment on the award rendered by the arbitrator, after the review rights set forth below have been exhausted, may be entered in any court having jurisdiction. Any arbitration proceeding shall be conducted in St. Louis,
Missouri on an expedited basis before a neutral arbitrator (or multiple arbitrators if called for by the Commercial Arbitration Rules), Each arbitrator shall be selected in the manner determined by the AAA. Upon the request of either party, the
arbitrator’s award shall include findings of fact and conclusions of law provided that such findings may be in summary form. Either party may seek review of the arbitrator’s award before an arbitrations review panel comprised of three
arbitrators qualified in the same manner as the initial arbitrator(s) (as set forth above) by submitting a written request to the AAA. The right of review shall be deemed waived unless requested in writing within ten (10) days of the receipt of
the initial arbitrator’s award. The arbitration review panel shall be entitled to review all findings of fact and conclusions of law in whatever manner it deems appropriate and may modify the award of the initial arbitrator(s) in its
discretion. The prevailing party in any arbitration proceeding shall be entitled to 

  
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 an award of all reasonable out of pocket costs and expenses (including attorneys’ and arbitrators tees)
related to the entire arbitration proceeding (including review if applicable). Upon request of either party, the arbitrator(s) may require that the subject arbitration proceedings be kept confidential and no party shall disclose or permit the
disclosure of any information produced or disclosed in the arbitration proceedings until the award is final. A party shall not be prevented from seeking temporary injunctive relief before a court of competent jurisdiction in an emergency situation,
but responsibility for resolution of the Dispute shall be appropriately transferred to the arbitrator(s) upon appointment in accordance with the provisions hereof. 
 6.8 Meetings of Members. 
 (a) Meetings. The Members
will have an annual meeting as may be established by the Managing Member. The Members will have such special meetings as are called in accordance with the provisions of this Agreement. Any annual or special meeting of the Members is to be held at
such place as may be designated by the Managing Member or in a waiver of notice executed by all Members, If there is a failure to designate a place for any such meeting, the same is to be held at the principal place of business of the Company. The
annual meeting of the Members is to be held each year within sixty (60) days of the beginning of the Fiscal Year for the transaction of such other business as may come before the meeting. Special meetings of the Members may be called at any
time by the Managing Member or by Members possessing not less than one-third of the Percentage Interests and are to be held on such dates and at such times as are set forth in the notice calling the meeting. 

(b) Quorum. A majority of ail the Percentage Interests represented in person or by proxy at such meeting
constitutes a quorum of Members for all purposes. Less than such quorum has the right to adjourn the meeting to a specified date not longer than ninety (90) days after such adjournment, with notice of such adjournment to Members to be given in
the manner for special meetings of the Members. Except where the affirmative vote of all of the Members or unanimous agreement of the Members is required herein, the act of a majority (computed with reference to Percentage Interests) of the Members
present at any duly called meeting at which a quorum of Members is present is the act of the Members. 
 (c)
Notice of Meetings. Written or printed notice of each meeting of Members stating the place, day and hour of the meeting and, in the case of special meetings, the purpose or purposes for which the meeting is called must be delivered or given:
(i) in the case of regular meetings, not less than ten (10) nor more than forty (40) days before the date of the meeting; and (ii) in the case of special meetings, not less than five (5) Business Days nor more than thirty
(30) days before the date of the meeting; in each case either personally or by mail. Notice of an annual meeting of the Members is to be given by the Company, Notice of a special meeting of the Members is to be given by the Company or the
Member calling the meeting. Any notice required by this Section may be waived by the Members by signing a waiver of notice before or after the time of such meeting and such waiver is equivalent to the giving of such notice. 

(d) Designated Representative(s). Each Member shall designate in writing to the Company and the other Members the
names of up to two (2) officers, directors, partner’s, members, employees or other affiliates of the Member who are to serve as the “Designated Representatives” of the Member at all meetings and in all votes, consents and
approvals of the Members required pursuant to this Agreement. The designated individual(s) shall be the official Designated Representative(s) of the designating Member. One of such Designated Representatives shall be the primary voting
representative of the Member and the other (if 

  
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any) shall be the alternative voting representative. Both Designated Representatives of a Member may attend meetings of the Members, but only one (1) Designated Representative shall cast the
Member’s official vote on any matter. The initial Designated Representatives of the entity Members are as follow: 
  

			
	 Cyprus
	  	T.L. Bethel
		  	Vice President, Cyprus
		
		  	Tom Benner
		  	Vice President Operations Underground,
		  	Peabody Midwest Group
		
	 Armstrong
	  	Kenneth Allen
		  	Vice President Operations,
		  	Armstrong
		
		  	Martin Wilson
		  	President,
		  	Armstrong

 If neither Designated Representative of a Member is able to attend a particular meeting of the Members,
such Member may designate in writing another officer, director, partner, member, employee or affiliate of the Member to have voting privileges for that specific meeting. A Member may change either or both of its Designated Representatives at any
time by giving written notice thereof to the Company and the other Members. 
 (e) Informal Action by
Members. Any action required by this Agreement to be taken at a meeting of the Members, or any action which may be taken at a meeting of the Members, may be taken without a meeting if all of the Members sign written consents that set forth the
action so taken. Such consents have the same force and effect as a unanimous vote of the Members at a meeting duly held. The Company is to file such consents with the minutes of the meetings of the Members. 

(f) Tele-Participation in Meetings. Members may participate in a meeting of the Members by means of a conference
telephone or similar communications equipment whereby all individuals participating in the meeting can hear each other. Participation in a meeting in this manner constitutes presence in person at the meeting. 

7. Management of the Company. 
 7.1 Board of Managers. The management of the Company is vested in a Board of Managers consisting initially of four (4) individuals acting as Managers (individually a “Manager” and
collectively the “Managers”) of the Company, two (2) selected by Armstrong (or its successor or permitted assign) and the other two (2) selected by Cyprus (or its successor or permitted assign). Initially, Armstrong selects
Kenneth Allen, Vice President of Operations of Armstrong and Martin Wilson, President of Armstrong as its representatives on the Board of Managers and Cyprus selects T. L. Bethel, Vice President of Cyprus and Tom Benner, Vice President Operations
Underground, Peabody Midwest Group as its representatives on the Board of Managers. Except as provided herein, the decisions of the Board of Managers shall be binding upon 

  
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the Company and may be relied upon by other persons or entities. A Manager may at any time be changed or removed and replaced by the Member which has appointed such Manager, but not by any other
Member. In the event that Armstrong or Cyprus (or such party’s successor or permitted assign) ceases to be a Member, the Managers appointed by such Member shall be removed at such time and replaced by the affirmative vote of all of the Members.
Except as set forth in Section 3.2 and Section 7.12(e), the Board of Managers shall act solely upon the majority consent of all of the Managers, which requires an affirmative vote of at least three (3) of the four (4) Managers,
including the affirmative vote of at least one (1) Manager appointed by each of Armstrong and Cyprus, and each Manager shall have one (1) vote. No Manager shall be required to devote all of such Manager’s time or business efforts to
the affairs of the Company but shall devote so much of such Manager’s time and attention to the Company as is reasonably necessary and advisable to manage the affairs of the Company to the best advantage of the Company. The Managing Member is
hereby authorized to execute, in such capacity, all documents and agreements that do not require consent of the Board of Managers, For documents and agreements that require such consent, the Board of Managers may, in connection with its approval
thereof, authorize the Managing Member and/or all or less than all of the Managers to execute any and all documents necessary or convenient to carry out those actions approved by a majority of the Managers, If the Board of Managers approves
executing a document or agreement without specifically authorizing signers, then the Managing Member and each of the Managers, acting individually, may execute such document or agreement on behalf of the Company. The Company shall enter into a
Management Agreement (the “Management Agreement”) which shall initially engage Armstrong to be the manager of the Company’s day-to-day operations and the development of the Project, in accordance with the terms and conditions
contained in the Management Agreement and this Agreement. Pursuant to the terms of this Agreement Armstrong shall serve as the Managing Member until the occurrence of a Triggering Event or is removed by the Board of Managers, at which time Cyprus
shall have the authority, in its sole discretion, to assume the position of Managing Member without consent or action from any other Member or the Board of Managers and shall also have the authority, in its sole discretion, to assume the position of
manager under the Management Agreement, both elections being entirely independent from the other. 
 7.2 Authority and Duties
of the Managing Member. Except for Major Decisions, the Managing Member shall have authority over and control and management of the day-to-day affairs of the Company, including, without limitation, the authority to carry out the duties set forth
in Section 7,6, below. The Managing Member shall be appointed by the Board of Managers and may be removed by the Board of Managers, with or without cause. The initial Managing Member shall be Armstrong. Armstrong shall remain the Managing
Member until the occurrence of a Triggering Event or removed by the Board of Managers acting upon the majority consent of all of the Managers, Without limiting the foregoing, the Managing Member shall have all of the following specific rights and
powers to implement the business and affairs of the Company: 
 (a) Execute and deliver contracts and other
agreements necessary to conduct the efficient and safe day to day operations of the Project and to facilitate the development of the Project and in the ordinary course of business; 

(b) Retain or employ and coordinate the services (both on site and off site) of employees, independent contractors,
supervisors, accountants, attorneys and other persons necessary or appropriate to carry out the business and purposes of the Company, subject to the provisions of Section 7,4(d); 

(c) Pay all debts and other obligations of the Company, to the extent that funds of the Company are available therefor;

  
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 (d) Execute for and on behalf of the Company, and with respect to the
Project, all such applications for permits and licenses as the Managing Member deems necessary and advisable; 

(e) Perform all ministerial acts and duties relating to the payment of all indebtedness, taxes, and assessments due or to
become due with regard to the Project, and to give and receive notices, reports, and other communications arising out of or in connection with the ownership, indebtedness, or maintenance of the Project; and 

(f) Take such other actions or execute such other documents or agreements on behalf of the Company that do not expressly
require the consent of the Board of Managers or the Members hereunder. 
 7.3 Delegation of Duties. The Managing Member
may delegate such authority and duties as the Managing Member deems advisable, excluding any authority or duty which the Act requires to be exercised by the Members or which is a Major Decision. Any delegation pursuant to this Section may be revoked
at any time by the Managing Member, 
 7.4 Major Decisions. Notwithstanding Sections 7,2 and 7.6, the Managing
Member, on behalf of the Company, may not enter into or conduct any of the following transactions (“Major Decisions”) without the majority consent of the Board of Managers: 

(a) admit a Person as a Member except as provided in this Agreement; 

(b) change the status of the Company from one in which management of the Company is vested in managers to one in which
management of the Company is vested in the members and vice versa; 
 (c) assign the Company’s property in
trust for creditors or on the assignee’s promise to pay the Debts of the Company; 
 (d) select, retain or
employ any attorneys or legal advisors to institute or defend any claims, litigation or other legal proceeding brought by or brought on behalf of or against the Company, in which the amount in controversy exceeds $250,000.00; 

(e) institute or settle any litigation, arbitration or other legal proceeding by or on behalf of the Company, or confess a
judgment against the Company, in which the amount in controversy exceeds $250,000.00, except that the Managing Member, without consent of the Board of Managers, may negotiate and settle disputes on behalf of the Company with the Mine Safety and
Health Administration (MSHA), with authority to commit the Company to pay any associated fines, costs or other liabilities in an aggregate amount of $1,000,000.00 in any given Fiscal Year; 

(f) sell, convey, lease, assign, exchange or otherwise dispose of any real property or any combination thereof or any
other material asset of the Company with a fair market value in excess of $250,000.00 in the aggregate during any Fiscal Year without consent of the Board of Managers, provided, however, that the Managing Member shall have the authority to sell,
transfer, dispose, abandon or lease any movable equipment in the ordinary course of business which are no longer necessary or required in the conduct of the Company’s business; 

  
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 (g) borrow money in the name of the Company in excess of $250,000.00 in the
aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal Year or issue evidences of indebtedness of the Company, or refinance, recast, modify or extend the same, or secure the same by mortgage, deed
of trust, pledge or other Lien; 
 (h) commit to make, or make, any expenditure (including Capital Expenditures)
in excess of $250,000.00 in the aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal Year; 
 (i) acquire by purchase, lease or otherwise, any real property in excess of $250,000.00 in the aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal
Year or make any investment in securities or any ownership or controlling interests in any corporation, partnership, limited partnership, limited liability company or other Person; 

(j) possess any property of the Company, or assign the rights of the Company in specific property, for other than a
Company purpose; 
 (k) approve the Project Budget for each Fiscal Year and any amendments thereto; 

(1) cause the Company to enter into one or more transactions with a Member (other than in its capacity as a Member) or an
Affiliate of a Member except as otherwise specifically permitted hereunder and in the Management Agreement; 

(m) change the name of the Company at any time; 

(n) form, organize, acquire, sell, dispose of, reorganize or liquidate a Subsidiary; 

(o) to make any loan or advance to other Persons in excess of $10,000.00 to any such Person (including Members and
Affiliates of Members) or in excess of $50,000.00 in the aggregate during any Fiscal Year, other than (i) trade credit extended on usual and customary terms in the ordinary course of business; and (ii) investments of Company cash in
certificates of deposit, treasuries, high-grade commercial paper or similar investment products; 
 (p) enter
into any modification of the Management Agreement or. Sales Representation Agreement; or 
 (q) enter into or
modify any lease or agreement between the Company and the Managing Member or any of its Affiliates except to the extent permitted under the Management Agreement. 
 7.5 Actions Requiring Unanimous Approval of Members. Notwithstanding Sections 7.1, 7.2, 7.4 and 7,6, neither the Company, the Managers, the Managing Member nor any other Member may, without
the unanimous consent of all the Members, do any of the following: 
 (a) any act materially in contravention of
this Agreement; 
 (b) amend this Agreement or the Certificate; 

  
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 (c) approve a merger or consolidation of the Company with another Person;

 (d) modify, compromise or release the amount and character of the Scheduled Capital Contributions which a
Member is to make or promises to make hereunder; 
 (e) any act which would make it impossible to carry on the
ordinary business of the Company; 
 (f) to dissolve or wind up the Company, except as otherwise expressly
provided in this Agreement; or 
 (g) any and all elections required or permitted to be made by the Company under
the Code. 
 7.6 Managing Member’s Duties. The Managing Member shall be responsible for the good faith performance of
the following functions in a commercially reasonable manner consistent with practices found in the development of properties similar to the Project: 
 (a) Protect and preserve the title and interest of the Company with respect to the Project and other assets now or hereafter owned by the Company; 

(b) Pay from the funds of the Company in a business-like manner all taxes, assessments and other obligations associated
with the Project; 
 (c) Prepare and implement the Project Budget as modified from time to time in accordance
with the terms of this Agreement; 
 (d) Report to the Managers on a quarterly basis regarding the status of the
development of the Project and compliance with the Project Budget for that Fiscal Year; 
 (e) Negotiate, enter
into and supervise the performance of contracts covering all aspects of development of the Project; provided however, that the Sales Representation Agreement shall control the conduct of the parties regarding the sale and marketing of coal from the
Project and the Management Agreement shall control the conduct of the parties regarding the day to day management and development of the Project; 
 (f) Keep all books and accounts and other records required by the Company, including detailed information regarding all expenditures, preserve and store in a safe place all such books and records for at
least a seven (7) year period after termination of each fiscal year; and permit the Members, or any person designated by any Member, with reasonable advance notice and at reasonable times to examine or audit the books, records and accounts
relating to the Company, including but not limited to the assets of the business of the Company’s contractual obligations and forecast for performance by the Company; 

(g) Cause an annual financial statement to be prepared by a firm of certified public accountants of recognized standing,
which financial statements shall be audited if required by any Member; 
 (h) Pay from funds of the Company all
obligations of the Company; 

  
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 (i) Maintain all funds of the Company in financial institutions of
recognized credit standing or in certificates of deposit, treasuries, high-grade commercial paper or similar products; 
 (j) Supervise all matters coming within the terms of this Agreement, including direct observation, inspection and supervision of the development of the Project and production of coal therefrom in a safe
and efficient manner; 
 (k) Develop, manage and operate the Project in a commercially reasonable and safe
manner, which includes but is not limited to 1) submitting the appropriate applications for encroachment permits to mine the Kentucky #8 seam of coal under (i) state and federal highways, including the Wendell Ford Parkway (f/k/a Western
Kentucky Parkway), and (ii) the Paducah and Louisville Railway, and 2) obtaining satisfactory opinions of title on all coal tracts prior to entering upon or mining upon such tracts; 

(1) Acquire appropriate insurance for the Company and the Project in amounts determined by the Managing Member in
consultation with the Board of Managers; 
 (m) Supervise the management of the Project and the production of
coal therefrom; 
 (n) No later than one hundred twenty (120) days prior to the end of the Fiscal Year, the
Managing Member shall start the budgetary process for the next Fiscal Year and no later than ninety (90) days prior to the end of the Fiscal Year shall prepare and deliver to the Members and Managers the projected annual Project Budget of the
Company which itemizes projected sources of revenue and anticipated expense items for the next Fiscal Year; 

(o) No later than ninety (90) days after the end of the Fiscal Year, the Managing Member shall prepare a business
report (“Annual Business Report”) of the past Fiscal Year, The Annual Business Report shall be delivered to the Members to advise and inform each Member of the current status of the Project. The Annual Business Report shall include:
(i) description of activities taken place during the past Fiscal Year; (ii) an annual income statement; (iii) a marketing plan for the next Fiscal Year; (iv) a coal production schedule; and (v) any other information that the
Members reasonably request be included in the Annual Business Report; 
 (p) The Managing Member shall cause all
required Federal, state and local income, franchise, property and other tax returns of the Company, including information returns, to be timely filed with the appropriate office of the relevant taxing jurisdiction or agency. With respect to the
Federal and state income tax returns of the Company, the Company shall submit to each Member drafts of the proposed returns as soon as possible, but in no event later than March 15 of each year, to permit review and approval of such returns by
each Member prior to filing. All expenses incurred in connection with such tax returns and information returns, as well as for the Annual Business Report referred to in Section 7.7(o) hereof, shall be expenses of the Company; 

(q) No later than one hundred eighty (180) days after formation of the Company, the Managing Member shall cause all
tracts being subdivided by the “New Division Line”, or subdivided for any other reason, to be surveyed and to obtain a legal description and survey 

  
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plat of said tracts. The survey plat shall be recorded and the legal description used in the Special Warranty Deed from Armstrong to the Company; and 

(r) In general, supervise the business and affairs of the Company for the benefit of the Members. 

7.7 Exclusion Areas. Notwithstanding any other provision of this Agreement, the Company may not mine or enter upon any portion of
the Kentucky #8 seam of coal situated within the “No Mining Boundary” depicted on the map attached hereto and incorporated herein by reference as Exhibit C (herein referred to as the “Exclusion Areas”) without the prior
written consent of Cyprus granting the Company the right to mine or enter upon all or any portion of the Exclusion Areas. The granting of any such consent shall be within the sole discretion of Cyprus and its refusal to provide any such consent
shall not constitute a failure by Cyprus to remit its initial capital contribution or otherwise constitute a material act in contravention of this Agreement. The Company shall subordinate its interests in the coal reserves located within the
Exclusion Areas upon request of the surface owner or its lessee of those areas. In the event Cyprus, in its sole discretion, grants consent to lift the prohibition against mining within the Exclusion Areas, the Company shall have the first right to
mine the Kentucky #8 seam of coal situated within the No Mining Boundary. 
 7.8 Development and Due Diligence Expenses.
Each party shall bear its own costs and expenses for developing the Project and its own due diligence activities until this Agreement is executed. 
 7.9 Conflicts of Interest. The pursuit of other ventures and activities by the Members, Managers and Managing Member are hereby consented to by the Members and shall not be deemed wrongful or
improper. No Member, Manager or Managing Member shall be obligated to present any particular investment opportunity to the Company, even if such opportunity is of a character which, if presented to the Company, could be taken by the Company. The
Company may enter into agreements with a Member, or an affiliate of a Member, to provide other services to the Company; provided such agreement must be at competitive rates and terms and, if applicable, approved by the Board of Managers in
accordance with Section 7.4. 
 7.10 Indemnification. 

(a) Indemnities and Indemnifiable Claims. The Company shall indemnify and hold harmless any Indemnitee, from and against any claim,
loss, damage, liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of investigation and appeal) actually incurred by any such Indemnitee by reason of, or arising from, the operations, business, or
affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent any of the foregoing (A) is determined by final, nonappealable order of a court of competent jurisdiction (or by any other means approved by the
Board of Managers) to have been primarily caused by any fraud, breach of fiduciary duties established under this Agreement, gross negligence or willful misconduct of such person or (B) is actually incurred as a result of any claim (other than a
claim for indemnification under this Agreement) asserted by the Indemnitee as plaintiff against the Company; provided that if (for purposes of clause (A) immediately above) the fraud, breach of fiduciary duties established under this Agreement,
gross negligence or willful misconduct of any person claiming indemnification shall consist of a conviction of or plea of no contest to a felony, then such person shall not be entitled to indemnification unless it is determined, by final,
nonappealable order of a court of competent jurisdiction (or by any other means approved by the Board of Managers), that indemnification should be granted in whole or part. 

  
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 (b) Advancement of Expenses, Unless a determination has been made (by final,
nonappealable order of a court of competent jurisdiction or by any other means approved by the Board of Managers) that indemnification is not required, the Company shall, upon the request of any Indemnitee and except for any claim of the type
described in clause (B) of Section 7.10(a) of this Agreement, advance or promptly reimburse such Indemnitee’s reasonable costs of investigation, litigation, or appeal, including reasonable attorneys’ fees; provided that the
affected Indemnitee shall, as a condition of such Indemnitee’s right to receive such advances and reimbursements, undertake in writing to promptly repay the Company for all such advancements or reimbursements if a court of competent
jurisdiction determines, by final, nonappealable order, that such Indemnitee is not then entitled to indemnification under this Section 7.10. The written undertaking described in the immediately preceding sentence to repay the amount paid or
reimbursed to an Indemnitee by the Company must be an unlimited general obligation of the Indemnitee but need not be secured and it may be accepted without reference to financial ability to make repayment, 

7.11 Tax Matters Partner. Armstrong shall be designated, as the tax matters partner of the Company pursuant to §623 l(a)(7) of
the Code, Any Member designated as tax matters partner shall take such action as may be necessary to cause each other Member to become a notice partner within the meaning of §6223 of the Code. The Company shall indemnify the tax matters partner
of the Company from and against any and all judgments, penalties (including excise and similar taxes and punitive damages), fines, settlements and reasonable expenses, (including without limitation attorneys fees) actually incurred by such Member in
performing its duties as the tax matters partner of the Company; provided that the Company shall not be liable to any Person acting as the tax matters partner of the Company for any portion of such judgments, penalties, fines, settlements or
reasonable expenses resulting from such persons gross negligence or willful misconduct. 
 7.12 Meetings of the Board of
Managers. 
 (a) Meetings. The Board of Managers will have an annual meeting and such quarterly
meetings as may be established by the Company. The Board of Managers will have such special meetings as are called in accordance with the provisions of this Agreement, Any annual, quarterly or special meeting of the Board of Managers is to be held
at such place as may be designated by the Company or in a waiver of notice executed by all Managers. If there is a failure to designate a place for any such meeting, the same is to be held at the principal place of business of the Company. The
annual and quarterly meetings of the Board of Managers is to be held each year within sixty (60) days prior to the beginning of the Fiscal Year, but in no event prior to the time the Managing Member delivers the projected annual Project Budget
of the Company to the Managers and the Members pursuant to Section 7.7(n), for the establishment of the Project Budget and the transaction of such other business as may come before the meeting. Special meetings of the Board of Managers may be
called at any time by the Company or by a Manager and are to be held on such dates and at such times as are set forth in the notice calling the meeting. 
 (b) Quorum. A Manager appointed by Cyprus and a Manager appointed by Armstrong attending such meeting constitutes a quorum of Managers for all purposes, and no quorum shall exist unless a Manager
appointed by both Cyprus and Armstrong shall be in attendance. 
 (c) Notice of Meetings. Written or
printed notice of each meeting of the Board of Managers stating the place, day and hour of the meeting and, in the case of special meetings, the purpose or purposes for which the meeting is called must be delivered or given: (i) in the case of
regular meetings, not less than ten (10) nor more than forty (40) days before the date of the meeting; and (ii) in the case of special meetings, not less than five (5) Business Days nor more than thirty (30) days before the
date of the meeting; in each case either 

  
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personally or by mail. Notice of an annual meeting of the Board of Managers is to be given by the Company. Notice of a special meeting of the Board of Managers is to be given by the Company or
the Manager calling the meeting. Any notice required by this Section may be waived by the Managers by signing a waiver of notice before or after the time of such meeting and such waiver is equivalent to the giving of such notice. 

(d) Proxies. A Manager may vote at any meeting either in person or by proxy executed in writing by the Manager or
its duly authorized attorney in fact. Such proxy must be filed with the Company before or at the time of the meeting. No proxy is valid after 11 months from the date of execution unless otherwise provided in the proxy. 

(e) Informal Action by Managers. Any action required by this Agreement to be taken at a meeting of the Board of
Managers, or any action which may be taken at a meeting of the Board of Managers, may be taken without a meeting if all of the Managers sign written consents that set forth the action so taken. Such consents have the same force and effect as a
unanimous vote of the Managers at a meeting duly held. The Company is to file such consents with the minutes of the meetings of the Board of Managers. 
 (f) Tele-Participation in Meetings. Managers may participate in a meeting of the Board of Managers by means of a conference telephone or similar communications equipment whereby all individuals
participating in the meeting can hear each other. Participation in a meeting in this manner constitutes presence in person at the meeting. 
 8. Transfers of Interests; Admission. 
 8.1 Transfer
Restrictions. Except as otherwise set forth in this Section 8, no Member may sell, assign, transfer, pledge, hypothecate or otherwise dispose of its Member Interest unless unanimously approved by the Members, including, without limitation,
a Member’s distributional interest as described in §18-702 of the Act (“Distributional Interest”). Any transfer of a Member’s interest in violation of this Agreement shall be void and of no effect; provided, however, that
Armstrong shall be permitted to pledge its Distributional Interest only to PNC Bank or the successor agent of the existing PNC credit facility or successor primary lender to Armstrong (“Lender”). Notwithstanding the foregoing [imitations,
the parties acknowledge and agree that, under the limited circumstances set forth in Section 8.7, the Lender shall have the right to sell and transfer all of Armstrong’s Member Interest (not limited to its Distributional Interest) upon
compliance with the provisions of Section 8.7, 
 8.2 Right of First Refusal. If a Member receives a bona fide offer
(“Offer”) which the Member (“Selling Member”) proposes to accept, whether or not solicited, to sell or otherwise dispose of its entire Member Interest in the Company, then the Selling Member shall furnish to the non-selling
Member written notice of the receipt of the Offer together with the principal terms and conditions of the sale, including the minimum price (“Sale Price”) at which such interest is proposed to be sold, and a statement as to the identity of
the real party in interest making the Offer. The non-selling Member, shall then have the right to purchase the Member Interest (“Offered Interest”) proposed to be sold by the Selling Member upon and subject to the terms and conditions as
set forth in this Section 8.2. This Section 8.2 shall not apply to any sale pursuant to the procedures of Section 8.7. 
 (a) The price at which the Offered Interest may be purchased shall be the price contained in the Offer. If the price contained in the Offer shall consist (in whole or in part) of consideration other than
cash, payable at the closing thereof or at a later date, the cash equivalent fair market value of such other consideration shall be included in the price at which the Offered Interest may be so purchased. 

  
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 (b) The non-selling Member shall have sixty (60) days after receipt of
the notice to elect to purchase the Offered Interest. The purchase transaction (unless otherwise agreed to with third-party purchasers) shall be consummated at a closing to be held at the principal executive offices of the Company, or at such other
location as may be agreed by the parties, within sixty(60) days following the date of the non-selling Member’s election to purchase the Offered Interest. At the closing, unless otherwise stipulated in the Offer, the non-selling Member shall
deliver to the Selling Member the full purchase price against delivery of an instrument appropriately transferring the Offered Interest sold thereby. 
 (c) If the non-selling Member does not elect to purchase the Offered Interest, then the Selling Member may accept the Offer and, pursuant thereto, sell the Offered Interest and, notwithstanding anything
to the contrary contained herein (including, without limitation, Section 8.5 hereof), upon such sale of the Offered Interest and the execution by the transferee of this Agreement, the transferee shall become a Member of the Company. However, if
the Selling Member does not sell the Offered Interest pursuant to the Offer within ninety (90) days after the termination (by passage of time or otherwise) of the rights of first refusal created under this Section 8.2, the Selling Member
may not thereafter transfer the Offered Interest, without again complying with the provisions of this Section 8.2. 
 8.3
Buy-Sell Option. Except under circumstances where the procedures set forth in Section 8.7 applies following a Foreclosure Assignment (as defined below), upon the occurrence of any of the following events, each Member shall have the right
of purchase and sale provided by this Section 8.3 to be exercised by a Member (“Electing Member”) by delivering a written notice (“Election Notice”) to the other Member (“Notice Member”): 

(a) a Member or the Managing Member seeks in good faith for approval for an action that requires approval of the Board of
Managers or the Members pursuant to Section 3.2, Section 6.2, Section 7.4(g), or Section 7.5, and the Board of Managers or the Members, as applicable, reach a full and final deadlock on whether to approve the requested action
after attempting in good faith to negotiate a mutually agreed outcome; 
 (b) the Notice Member, acting as a
Managing Member or Member, or any Manager appointed by the Notice Member takes any action or transaction described in Section 7.4 or 7.5 without the consent of the Board of Managers or Members, as applicable; 

(c) the Notice Member has breached the Representations and Warranties in Section 6.1; 

(d) the Notice Member has breached Section 6.3; 

(e) the Notice Member has breached its duties and obligations set forth in Section 6.6(a),(b) or (c); 

(f) a Member other than the Managing Member elects to exercise this provision pursuant to the provisions set forth in
Section 6.6(e); 
 (g) a Change of Control with respect to either Member occurs; or 

(h) the voluntary election of either Member at any time on or after January 1, 2020. 

  
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 Such Election Notice shall state a dollar amount equal to the value placed by the Electing
Member on all of the issued and outstanding membership interests in the Company, calculated on a pari passu basis taking into consideration the relative equity interest of the Electing Member, and shall constitute an irrevocable offer by the
Electing Member either to purchase all, but not less than all, of the Member Interest in the Company of the Notice Member from the Notice Member, or to sell all, but not less than all, of the Electing Member’s Member Interest in the Company to
the Notice Member. The purchase price at which the Member Interest of any Member is purchased and sold under this Section 8.3 shall be the value for all of the interests in the Company, as stated in the Election Notice, multiplied by the
selling Member’s Percentage Interest in the Company. 
 (i) For a period of time not exceeding sixty
(60) days from the receipt of the Election Notice by the Notice Member (“Consideration Period), the Notice Member shall have the right to elect to purchase all of the Electing Member’s Member Interest in the Company by providing
written notice (“Purchase Notice”) to the Electing Member of the Notice Member’s intent to purchase the Electing Member’s Member Interest. If the Notice Member does not provide the Purchase Notice to the Electing Member within
the above referenced sixty (60) day time period, the Notice Member shall become obligated to sell its Member Interest in the Company to the Electing Member. 

(ii) The closing of the purchase and sale shall occur within sixty (60) days from the earlier of the expiration of
the Consideration Period, or the date the Electing Member receives a Purchase Notice from the Notice Member. In either event, at the closing of the purchase and sale transaction described in this Section 8.3, the purchase price must be paid in
cash (either by certified check or by wire transfer), unless otherwise agreed upon by the Electing Member and the Notice Member. 
 (iii) At the closing on the sale of a Member’s Member Interest pursuant to this Section 8.3, there shall be a final accounting among the Members with respect to all amounts due them from the
Company. With respect to the indebtedness and obligations for which any Member is responsible, the purchasing Member shall, as a condition to closing (but said condition may be waived in writing by the selling Member), cause the repayment of such
indebtedness. The Members agree, upon request of any other Member, to execute such certificates or other documents and perform such other acts as may be reasonably requested by such requesting Member from time to time in connection with such sale.

 8.4 Completion of Sale. If a Member becomes obligated to sell its Member Interest in the Company pursuant to
Sections 8.2 or 8.3 of this Agreement, each Member covenants and agrees that it will take such actions and execute such instruments of transfer and other documents as reasonably requested by the other Member to further evidence and complete the
sale of the Member’s Member Interest, Additionally, as a condition precedent to the consummation of the sale of the Percentage Interest, a purchasing Member must arrange for the complete release of all guarantees provided by the selling Member
as security for indebtedness of the Company. 
 8.5 Admissions. All transfers of an interest in the Company by a Member
shall entitle the transferee only the rights afforded a transferee of a Distributional Interest pursuant to § 18-702 of the Act except as otherwise expressly provided herein. These rights are the rights to receive allocations and

  
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distributions to which the transferring Member would otherwise have been entitled, but shall not allow the transferee any additional rights, nor shall the transferee become a Member of the
Company upon such transfer. The transferee shall only become a Member of the Company by receiving the written consent of all Members of the Company and executing this Agreement. The consent of the Members to admit any transferee of a distributional
interest into the Company shall be given in the sole and absolute discretion of each Member. 
 8.6 Distributions and
Allocations in Respect to Transferred Interests. If any Member’s interest is sold, assigned or transferred, or any Person is otherwise admitted as a Member during any Fiscal Year in compliance with the provisions of this Agreement, net
profits, net losses, each item thereof, and all other items attributable to such interest for such Fiscal Year shall be allocated among the Members by taking into account their varying interests during such Fiscal Year in accordance with Code
§706(d). Unless otherwise required by the applicable treasury regulations, such sale, assignment, transfer or admission shall be deemed to have occurred at the end of the calendar month during which such event shall have actually occurred, and
such allocations shall be determined and made pursuant to a pro forma closing of the books of the Company as of the end of such month. With respect to a transferred Member’s interest or any interest therein, all distributions on or before the
deemed date of such transfer shall be made to the transferor and all distributions thereafter shall be made to the transferee. The Company shall not incur any liability for making allocations and distributions in accordance with this provision.

 8.7 Right of First Offer and Sale Procedure Following Foreclosure by Armstrong’s Lender. The procedures of this
Section 8.7 shall apply only in the event Armstrong’s interest has been assigned to Lender or its designee (“Lender Interest Holder”) upon the exercise of Lender’s default remedies pursuant to the pledge referenced in
Section 8.1 (such event being referred to as a “Foreclosure Assignment”), it being understood that any such Lender Interest Holder’s are limited to that of the holder of a Distributional Interest and the Lender or its designee or
assignee may acquire all rights and attributes of Armstrong’s Membership Interest in the Company only pursuant to the procedures of this Section 8.7. 
 (a) If, at any time, the Lender Interest Holder proposes to initiate a sale of Armstrong’s Member Interest to a third party, it shall provide written notice of such intention to Cyprus
(“Election Notice”), and Cyprus shall have a right of first offer to purchase Lender Interest Holder’s Percentage Interest for a price equal to the Fair Value for all the Member Interests in the Company multiplied by the Lender
Interest Holder’s Percentage Interest in the Company (the “Offer Price”), 
 (b) As used herein, “Fair Value” shall
mean the fair market value of the entire Company, as determined by the following process. The parties shall have a period of 60 days following the date of the Election Notice in which to agree on the Fair Value of the Company, which period may
be extended by mutual consent, which consent shall not be unreasonably withheld. If they are unable to so agree during such 60-day period (as such period may be extended by mutual consent), then the parties shall submit in writing to the other a
list of three neutral and impartial mining valuation consultants. The first name that matches on both lists shall be retained to determine the Fair Value of the Company. If there are no matches on the lists, the parties shall submit new lists of
three names within two business days, and this process shall continue until an appraiser is selected. The selected appraiser shall have a period of sixty (60) days (which 60-day period shall be extended if the appraiser believes it is necessary
to complete its appraisal) in which to render the appraisal and provide each of the parties with a copy, which appraisal shall be final and binding upon all the parties. All parties agree to give the appraiser full access to the mining operations,
mine management and all requested financial, business and operational information that the appraiser may reasonably request. 
 (c) The
period beginning on the date on which the Fair Value is determined (whether by mutual agreement or by appraisal) and lasting for 180 days thereafter shall constitute the “Sale Period.” For the first thirty (30) days of the Sale
Period, Cyprus shall have the option to elect to purchase all of the Lender Interest 

  
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 Holder’s Percentage Interest for the Offer Price (the “Right of First Offer”). If Cyprus does
not deliver notice of its election to purchase within such 30-day period, Lender Interest Holder shall have the right to sell Lender Interest Holder’s Percentage Interest to any other Person, so long as the total purchase price is not less than
90% of the Offer Price; however, if, during the Sale Period, Lender Interest Holder notifies Cyprus in writing of a proposed sale of Lender Interest Holder’s Percentage Interest for a total purchase price less than 90% of the Offer Price, which
notice (the “ROFR Notice”) shall include a description of the principal terms and conditions of the sale, then Cyprus shall have the right to elect to purchase the interest at the price identified in the ROFR, which election shall be
delivered within 60 days of the date of its receipt of the ROFR Notice, and if Cyprus shall fail to timely deliver written notice of its election to purchase, then Lender Interest Holder may sell its Percentage Interest on the price and on the
terms set forth in the ROFR Notice, so long as such sale is completed within 120 days after the date of Cyprus’ receipt of the ROFR Notice. Any sale by Lender Interest Holder that conforms with the provisions of this Section 8.7 shall
be effective to vest in the purchaser all Member Interest rights relating to the Percentage Interest sold, and such purchaser shall automatically become a Member of the Company upon such transfer upon such the purchaser executing an agreement
agreeing to be bound by the terms of this Agreement. If, however, Lender Interest Holder does not consummate the sale during the Sale Period (or, as applicable, within 120 days from the date of Cyprus’ receipt of the ROFR Notice), then the
Right of First Offer shall apply to any subsequent sale by Lender Interest Holder. 
 (d) If Cyprus elects to exercise the Right of First
Offer or its rights upon receipt of an ROFR Notice, the closing of the sale shall occur within 60 days of the start of the Sale Period. Each of Cyprus and Lender Interest Holder covenants and agrees that it will take such actions and execute
such instruments of transfer and other documents as reasonably requested by the other to further evidence and complete the sale of the Lender Interest Holder’s Percentage Interest. The provisions of Section 8.6 shall apply to the interest
being transferred. The purchase price shall be paid in cash unless the parties mutually agree otherwise, and the Lender Interest Holder’s interest shall be free and clear of any liens and encumbrances. 

9. Dissolution Acts. The Company shall only be dissolved upon the occurrence of any one of the following events:
(i) the completion of the term of the Company as set forth in the Certificate; (ii) written consent of all Members upon exhaustion of the economically mineable coal reserves from the Project; (iii) the sale of all or substantially all
of the assets of the Company; (iv) written consent of all Members, or (v) as required by Section 10 below. Except as otherwise agreed to herein below in Section 10, upon dissolution, the Company shall liquidate and distribute its
assets in the following priority: 
 9.1 First, to pay all debts owed by the Company to non-Members; 

9.2 Second, to pay any outstanding Member Loans; 
 9.3 Third, to each Member in accordance with the positive balance of Member’s capital account; and 
 9.4 Fourth, to the Members in proportion to each Member’s Percentage Interest. 

10. Withdrawal and Disassociation. Except as otherwise agreed to herein below in this Section 10, no Member shall
be allowed to withdraw or disassociate from the Company. Any attempted disassociation or withdrawal by a Member shall be null and void and not recognized by the Company, If an event disassociation occurs for any reason whatsoever, the Company shall
not dissolve and the Member causing the disassociation, if any, shall be liable to the Company for such wrongful disassociation. In no event shall the disassociated Member be entitled to have its Percentage Interest purchased by the Company.
Notwithstanding any provision of this Agreement, if the Company has not established commercially viable mining operations in the Kentucky #8 seam of coal by January 5,2016, then either Member shall have the right to provide the other

  
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 Member with notice of withdrawal from the Company (“Notice of Withdrawal”). Neither Member shall
have the right to provide Notice of Withdrawal from the Company prior to January 5, 2016. In the event either Member provides Notice of Withdrawal under this Section due to the Company’s failure to establish commercially viable mining
operations in the Kentucky #8 seam of coal by January 5, 2016, the Company shall liquidate all assets of the Company, other than the assets contributed pursuant to the Contribution Schedule identified in Exhibit A hereto and pay all debts
or other amounts owed by the Company to: (i) non-Members; then to (ii) pay any outstanding Member Loans; then to (iii) the Members is accordance with the positive balance of their the Member’s capital account; then to
(iv) the Members in proportion to each Member’s Percentage Interest. After all amounts identified in subsections (i) through (iii) of the preceding sentence have been paid in full, the Company will distribute the remaining assets
identified on Exhibit A hereto to the Member who originally contributed such assets as part of that Member’s Initial Capital Contribution. In the event the Company is unable to satisfy its debts after liquidating all assets other than
those identified in Exhibit A hereto, then all remaining assets will be subject to the liquidation and distribution of assets pursuant to Section 9 of this Agreement unless otherwise unanimously agreed to by the Members. Armstrong
covenants and agrees that it will not interfere or compete with Cyprus’ primary rights to renegotiate or seek an extension to the Rogers #8 Lease during the Non-interference Period (as defined below). Notwithstanding any disassociation
hereunder or stated herein in this Section 10, Armstrong hereby covenants and agrees for itself, its successors and assigns and its and their Affiliates, and any successor owner of any ownership interest in the assets that were contributed by
Armstrong under Section 3 hereof, including without limitation, the successors in title to the 1,977 acres of surface lands, that it and they will not, during the Noninterference Period (as defined below), seek to or obtain a lease from the
Rogers of any coal reserves described in the Rogers #8 Lease of Kentucky #8 Reserves identified on Exhibit A hereto, or accept the assignment of any sublease of the such coal reserves, or take any action which could ultimately lead to the
non-development or delayed development of the Cyprus owned Kentucky #8 Reserves either separately, jointly or in conjunction with the Rogers Kentucky #8 Reserves. This covenant and agreement shall survive the disassociation and termination of this
Agreement and shall be deemed a covenant running with said land for a period of five (5) years from the date of withdrawal and disassociation or from the date the Company is otherwise dissolved (the “Non-Interference Period”).

 11. Management of Workforce. Managing Member shall have the right, power and obligation to exercise any control
over the hiring or supervision of the workforce of the Company, necessary to manage the Company, including, but not limited to, any employment benefits or other terms and conditions of employment for the employees of the Company, Cyprus shall take
no part in, and shall have no right, power or obligation with respect to, any matter relating to the hiring of miners; provided, however, that Armstrong shall not hire miners previously terminated by Armstrong without first receiving consent from
the Board of Managers. The Managing Member shall provide written notification to the Board of Managers of the lateral transfer miners from Armstrong’s other operations to the Company within thirty (30) days of such transfer. 

12. Applicant Violator System. Each Member represents and warrants that such member, its officers, shareholders,
members, subsidiaries, affiliates and any other entity that can be attributed to it under the “ownership and control” regulations issued by the office of Surface Mining (collectively, “Member Entities”) are not currently permit
blocked under the Surface Mining Control and Reclamation Act of 1977 (“SMCRA”). No Member will allow to exist any violation of SMCRA or any comparable state law at any operation of a Member Entity that would cause any other Member or its
Member Entities to be permit blocked. Any Member Entity which becomes permit blocked under SMCRA or any comparable state law shall provide written notice of such event to the other Members within five (5) days and shall take any and all actions
necessary for the removal of such permit block within twenty (20) days’ provided, however, that if the permit block does not then or thereafter adversely affect the other Member(s) (by permit block or otherwise), the permit blocked entity
may contest the permit block in good faith and by appropriate legal proceedings, provided further, however, that if the permit block does adversely affect the other Members (by permit block or

  
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otherwise), the non-permit blocked Member(s) may (i) undertake to remove the condition causing the permit block, at the permit blocked Member’s expense or (ii) purchase such permit
blocked Member’s interest in the Company at the fair market value of such permit blocked Member’s interest. 

13. Relationship with Company. 
 13.1 Promotion of Company. Subject to Section 7.9 above, each Member shall use reasonable efforts to promote the activities of the Company and to ensure its success. 

13.2 Information. Subject to any applicable restriction of law, all Members shall be fully and currently informed of the activities
of the Company. To the extent that there are any applicable laws or regulations which would have the effect of limiting the right of a Member to be so informed, the other Members) shall use all reasonable efforts to obtain waivers thereof in favor
of the Company and the member so limited and, failing the obtaining of such waivers, the Members shall make such arrangements as shall be practicable to preserve the Company the benefits of the contacts or projects to which such secrecy agreements
or laws or regulations relate. Each Member shall not, except as required by law and except for disclosure to its officers, directors, employees, shareholders, members, partners, attorneys, accountants, and Affiliates (who shall be bound by the
confidentiality provisions of this Agreement), divulge to any person any confidential or proprietary information concerning the business of the Company, including, without limitation, the terms of this Agreement. 

14. Miscellaneous Matters. 
 14.1 Offset. Whenever the Company is to pay any sum to any Member, any amounts that the Member owes the Company may be deducted from that sum before payment. 

14.2 Captions. Section and paragraph titles or captions contained in this Agreement are inserted only as a matter of convenience
and for reference and in no way define, limit extend or describe the scope of this Agreement or the intent of any provision hereof. 
 14.3 Variation in Pronouns. All pronouns and any variation thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons.

 14.4 Governing Law; Severability. This Agreement is governed by and shall be construed in accordance with the law of
the State of Delaware. If any provision of this Agreement or the application thereof to any Person or circumstance is held invalid or unenforceable to any extent, the remainder of this Agreement and the application of that provision to other Persons
or circumstances is not affected thereby and that provision shall be enforced to the greatest extent permitted by law. 
 14.5
Validity. In the event that any provision of this Agreement shall be held to be invalid, the same shall not affect in any respect whatsoever the validity of the remainder of this Agreement. 

14.6 Benefit. Except as herein otherwise provided to the contrary, this Agreement shall be binding upon and inure to the benefit
of the Members, their heirs, personal representatives, successors and assigns. 
 14.7 Notice. Any notice or
communication required or permitted to be given by any provision of this Agreement shall be in writing and shall be deemed to have been given and received by the person to whom directed (a) when personally delivered, (b) when sent by
telefacsimile, telecopier or similar transmission, at the number of the recipient set forth herein, followed with mailing by regular United States 

  
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mail, (c) one (1) business day after deposited for overnight delivery with an overnight courier such as Federal Express, Airborne, United Postal Service or other overnight courier
service, or (d) three (3) business days after deposited in the U. S. mail, sent by certified mail, postage prepaid, return receipt requested, and such notices are addressed to the person to which directed at the address or facsimile number
of which such person has notified the Company and all of the Members. The initial addresses and facsimile numbers of the parties are reflected on the signature page of this Agreement. 

14.8 Further Assurances. In connection with this Agreement and the transactions contemplated hereby, each Member shall execute and
deliver any additional documents and instruments and perform any additional acts that may be necessary or appropriate to effectuate and perform the provisions of this Agreement. 

14.9 Entire Agreement/Amendment. This Agreement embodies the entire agreement and understanding of the Members relating to the
subject matter hereof and supersedes all prior representations, agreements and understandings, oral or written, relating to such subject matter. This Agreement may be amended only by a written instrument executed by all the Members. 

14.10 Waiver and Consent. No consent or waiver, express or implied, by a Member to or of any breach or default by the other Member
in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of such other Member of the same or any other obligation of such member hereunder.

 14.11 Legal Fees. Except as otherwise provided herein, all legal and other costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby are to be paid by the Member incurring such costs and expenses. In the event the Company or any Member brings suit to construe or enforce the terms hereof, or raises this Agreement as a
defense in a suit brought by the Company or another Member, the prevailing Person is entitled to recover its attorneys’ fees and expenses. 
 14.12 Waiver of Dissolution under the Act. Any dissolution of the Company shall occur only as provided herein, and each Member hereby waives and renounces its rights, if any, under the Act to seek
a court decree of dissolution, to seek the appointment of a liquidator of the Company, and to seek a partition of the Company property. 
 14.13 Relationship of the Members. The relationship between the Members shall be limited to the performance of the transactions contemplated by this Agreement and by the Formation Agreement and in
accordance with their terms. Nothing herein shall be construed to authorize a Member to act as general agent for the other Member(s). 
 14.14 Agreement in Counterparts. This Agreement may be executed in as many counterparts as may be deemed necessary and convenient. Each counterpart when so executed shall be deemed an original, but
all counterparts shall constitute one and the same instrument. 
 [remainder of page blank; signature page follows]

  
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 The Members execute this Agreement effective as of the date first above written. 

 

			
	Members:
	
	Cyprus Creek Land Resources, LLC
		
	By:	 	/s/ T. L. Bethel
	Name:	 	T. L. Bethel
	Its:	 	VP

 
			
		
	Official Address:	 	701 Market Street
		 	St. Louis, MO 83101
		 	Attention: President
		 	Facsimile No: (314) 342-7697

 
			
	
	Armstrong Coal Company, Inc.
		
	By:	 	/s/ Martin D. Wilson
	Name:	 	Martin D. Wilson
	Its:	 	President

 
			
		
	Official Address:	 	407 Brown Road
		 	Madisonville, KY 42431
		 	Attention: President
		 	Facsimile No: (270) 821-4245

 
			
	
	Company:
	
	Survant Mining Company, LLC
		
	By:	 	/s/ Martin D. Wilson
	Name:	 	Martin D. Wilson
	Its:	 	Managing Member

 
			
		
	Official Address:	 	407 Brown Road
		 	Madisonville, KY 42431
		 	Attention: Vice President
		 	Facsimile No.: (270) 821-4245

  
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 Exhibit ‘A’ 

Contribution Schedule 

Scheduled Capital Contributions: 
 I. Milestone
1. Initial Capital (Permitting Phase) 
 Milestone 1 will occur upon the execution of the Operating Agreement of the Company, the Management
Agreement and Sales Representation Agreement. Following the occurrence of Milestone 1, the Company will work to obtain permits for the slope site, the airshaft site, the other surface operations, and the #8 reserves being contributed by Cyprus.

 Contributions: 
 -Armstrong contributes $30,000 in cash 
 -Cyprus contributes
$30,000 in cash 
 -Each Member grants rights of entry as necessary to facilitate permitting 

II. Milestone 2 
 Milestone 2 will occur
upon the completion of permitting as determined by the Board of Managers (projected to occur in August 2012). Following the occurrence of Milestone 2, the Company will begin work on slope construction and airshaft construction. 

Contributions: 

-Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to complete construction of the mine,
including slope, airshafts, coal handling equipment, power drops, communication, rock dust, etc. 
 -Members to contribute, in
proportion to each Member’s Percentage Interest, cash sufficient for down payments on mining equipment, as determined by the Board of Managers. 
 -Armstrong to contribute surface property, equipment, buildings and facilities as follows: 

Contribution by Armstrong and/or its Affiliates by deed to the Company of the surface properties (approximately 1977 acres) and improvements (Parkway prep
plant) as described on Schedule 1 attached hereto and made a part hereof. PNC Mortgages and financing statements affecting those properties will be released. See Exhibit D for form of deed. 

Grant and/or assignment by Armstrong and/or its Affiliates of access and unlimited usage of all waterlines and unlimited withdrawal rights from the any
impoundment, reservoir or body of water associated therewith, including but not limited to the Overland Slurry/Water Supply,Lines servicing the Project, with rights of ingress and egress over any surface properties of Armstrong and/or its Affiliates
for the purpose of maintaining, reconstructing, modifying or otherwise servicing the waterlines and any impoundment, reservoir or body of water associated therewith, together with the right to permit such facilities. 

Conveyance and sublease of all equipment from Armstrong’s Parkway #9 operations, which shall include all substantially all of the owned and leased
equipment that is primarily used in connection with Armstrong’s Parkway #9 operations (supporting both surface and underground operations) on Milestone 2 (“Equipment”). At the time of conveyance and sublease of all Equipment,
Armstrong shall prepare complete exhibits to be 

  
 - 29 -

 
attached as exhibits to the Bill of Sale and Sublease attached hereto in Exhibit D, All owned Equipment shall be by bill of sale. Conveyance of leased Equipment shall be by means of a
sublease whereby the Company will receive the benefit of use of such equipment and the residual interest (if any) in the equipment upon satisfaction of the underlying lease obligations (without mark-up or additional rental owed to Armstrong). The
Company will provide Armstrong the first-priority, rent-free right to possess and use all of the Equipment pursuant to a Use Agreement consistent with the terms stated herein and the further terms set forth on Exhibit D. Armstrong shall be
responsible to pay all underlying lease obligations for so long as any leased Equipment is being used in Armstrong’s Parkway #9 operations. Pursuant to the Use Agreement, Armstrong shall be responsible to pay all operating costs associated with
or arising from operation of Parkway prep plant and Equipment, including but not limited to any utilities and maintenance costs, until such time as the Company begins mining the #8 seam of coal. When the Company begins mining the #8 seam, the
Company and Armstrong shall prorate the operation costs of the Parkway prep plant and related Equipment, excluding Equipment dedicated solely to the #9 mining operations, based on their production from both seams. As Armstrong depletes the #9 seam
reserves at Parkway and ceases using particular items of Equipment, the Use Agreement shall terminate as to such items, and possession will be delivered to the Company. 
 Contribution by Armstrong and/or its Affiliates of rights to the Gibraltar Haulroad and Access Road pursuant to a Non-Exclusive Haulroad Easement Agreement. 

-Cyprus to contribute reserves and property rights as follows: 
 Contribution to the Company by Cyprus and/or its Affiliates of all Kentucky #8 coal reserves located within the Comprehensive Mining Area, now or hereafter owned or leased by Cyprus or its Affiliates, by
the Lease and Sublease Agreement described on Exhibit D, all such leased and subleased interests being contributed free from and not subject to any obligations of royalty interests, overriding royalty interests, premiums or rentals to any
Person, except for the royalty obligations due to any original Lessor of the subleased interests. Company will reimburse Cyprus for advance royalties paid in 2012 for leased Rogers #8 coal reserves. 1 

Contribution by Cyprus and/or its Affiliates of rights to the Gibraltar Haulroad and Access Road pursuant to Non-Exclusive Haulroad Easement Agreements.

 III. Milestone 3 
 Milestone 3 occurs
upon the completion of mine construction as determined by the Board of Managers (projected to occur in August 2013). 

Contributions: 

-Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to acquire a full underground unit of
equipment as determined by the Board of Managers, which is projected to include two JOY 1415 continuous miners, four BH10 battery haulers, two Fletcher double boom roof bolters, one BF17 JOY feeder, two scoops, two 14 place mantrips, three tow man
rides, power distribution equipment, coal handling equipment (headers, etc.) and any other equipment or supplies necessary to operate one split air supersection. 

 

	1	Upon completion of permitting Cyprus shall acquire a new #8 coal lease from the Rogers to extend the existing 1993 lease and will subsequently sublease those leasehold
interests to the Company. 

  
 - 30 -

 IV. Milestone 4 
 Milestone 4 occurs following the completion of mine construction and prior to mining as determined by the Board of Managers (projected to occur in August 2013). Following the occurrence of Milestone
4, the Company will begin mining the #8 seam. 
 Contributions: 

-Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to upgrade the Parkway preparation plant
to allow for processing of additional tonnage as determined by the Board of Managers. Cost of operation of the preparation plant will be shared on a prorata basis by Armstrong and Survant as long as Armstrong continues to operate in the #9 seam.

 VI. TV A Contract. To the extent any coal is sold by the Company under Armstrong’s existing contract with Tennessee Valley Authority, TVA
Contract No, 40685, Armstrong shall remit to the Company the net proceeds attributable to the sale of such coal, without mark-up or additional costs or charges to the Company pursuant to a pass-through agreement acceptable to the Board of Managers.
The Sales Representation Agreement requires payment for all coal mined removed and sold by the Company, including any coal passed through Armstrong contracts. 
 Notwithstanding any provision of this Agreement, neither Member is making any representation or warranty concerning the condition or quality of its properties being contributed hereunder, and neither
Member shall be determined to have failed to remit its capital contributions or be liable to the Company or the other Member based on any subsequent determination that any portion of the Member’s capital contributions consisting of owned or
leased real property is unable to be used, developed or mined for any reason or is not used, mined and/or developed for any reason or the Member’s title to any such property is found to be defective or the estimated tonnages of any coal
reserves provided for herein are determined to be inaccurate or due to any aspect of the condition, fitness or serviceability of any of the Equipment, Buildings, or other facilities described herein. The Members agree that certain surface properties
(being those tracts subdivided by the “New Division Line”) to be contributed to the Company by Armstrong will be surveyed to effectively subdivide the tracts and that neither Member will be entitled to seek adjustment of their respective
Percentage Interests in the Company or otherwise be liable to the Company or the other Member by reason of any determination of any deviation between the representations contained in the lease and the surveyed acreage of those surface properties.

  
 - 31 -

 EXHIBIT B 
 COMPREHENSIVE MINING AREA 

  
 - 32 -

 

 

 EXHIBIT C 
 EXCLUSION AREAS 

  
 - 33 -

 

 

 EXHIBIT D 
 TO 
 OPERATING AGREEMENT 

Forms of Contribution Conveyancing Documents 
 1. Coal Mining Lease and Sublease — CCLR & Survant — Owned #8 Coal, Leased 1993 and 2013 Rogers #8 Coal, and Leased Duncan #8 Coal. 

2. Memorandum of Coal Mining Lease and Sublease — CCLR & Survant — Owned #8 Coal, Leased 1993 and 2013 Rogers #8 Coal, and Lease Duncan
#8 Coal. 
 3. Rogers Consent to Sublease 1993 #8 Leased Coal. 
 4. Rogers Consent to Sublease 2013 #8 Leased Coal. 
 5. Duncan Consent to Sublease Portions of #8
Coal. 
 6. Non-Exclusive Haulroad & Access Easement — CCLC & Survant — Under review by Armstrong. To be mutually
agreed by the parties within 30 days of the date of the Operating Agreement. 
 7. Non-Exclusive Haulroad Easement — CCLC &
Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of the Operating Agreement. 
 8.
Non-Exclusive Haulroad Easement — CCLC & Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of the Operating Agreement. 

9. Quitclaim Deed — WMD and WLC — 39.45% interest 4,782 acres of Owned Gibraltar Surface. 

10. Quitclaim Deed — WMD and WLC — 39.45% interest in 661.54 acres of Owned Parkway Surface. 

11. Special Warranty Deed — WLC and Survant — 100% Interest in 1,977 acres of Owned Surface with deed-in provisions (1,628 acres from Gibraltar;
349 acres from Parkway). 
 12. Rogers Partial Release of Right of First Refusal to Purchase — Rogers, WLC, Survant. 

13. Non-Exclusive Haulroad Easement (Gibraltar HR and Access Road — WLC, Armstrong, Survant — Under review by Armstrong. To be mutually agreed
by the parties within 30 days of the date of the Operating Agreement. 

  
 - 34 -

 14. Bill of Sale — Armstrong Owned Equipment — Armstrong & Survant. 

15. Equipment Sublease — Armstrong Leased Equipment — Armstrong & Survant. 
 16. Use Agreement — To be drafted post-closing and mutually agreed by the parties within 30 days of the date of the Operating Agreement, which agreement will contain the following basic terms:

 - Armstrong shall have the first-priority, rent-free right to possess and use all of the Equipment as needed in its #9 seam
mining operations. 
 -Armstrong shall have no obligation to pay rent or use fees for the Equipment. 

-Armstrong shall insure and maintain the Equipment at its cost until possession is delivered to Survant. 

-Armstrong shall pay operating costs. 
 -Armstrong shall indemnify Survant for any liabilities and claims related to Armstrong’s use of the Equipment. 
 -As Armstrong depletes the #9 seam reserves at Parkway and ceases using particular items of Equipment, the Use Agreement shall terminate as to such items, and possession will be delivered to the Company.

  
 - 35 -

 Exhibit S 
 EXHIBIT S 
 TO 

ASSET PURCHASE AGREEMENT 
 Management Agreement for 
 Survant Mining Company, LLC 

 MANAGEMENT AGREEMENT  

This is a Management Agreement (this “Agreement”) dated December 29, 2011, between Survant Mining Company, LLC, a
Delaware limited liability company (the “Company”) and Armstrong Coal Company, Inc., a Delaware corporation (the “Manager”). 
 RECITALS 
 A. Whereas, the Company desires to enter into a contractual arrangement
setting forth the terms and conditions for the Manager’s management of the Company pursuant to Section 7 of the Company’s Limited Liability Company Agreement, also called the Operating Agreement (the “Operating Agreement”),
a copy of which has been provided to Manager, and is attached hereto and made a part hereof as Exhibit A; and 
 B. Whereas,
the Manager desires to enter into such contractual arrangement and to provide management services to the Company on the terms and conditions herein set forth; and 
 C. Whereas, even though the Company will have its own workforce, it is anticipated that employees of the Manager will be involved in the operations, budgeting, accounting, permitting, human resources,
maintenance and other areas of the management of the Company and its day-to-day operations (“Technical Services”); and 

D. Whereas, even though the Company will generally operate using its own leased or owned equipment and enter into its own vendor and
supplier contracts, it is anticipated that the Manager or third-party suppliers contracted by the Manager will, from time to time, arrange for services, equipment or supplies to be provided to the Company (“Pass-Through Services”), and
that the Manager will provide needed equipment to the Company on a short-term basis (“Borrowed Equipment”). 
 NOW,
THEREFORE, in consideration of the foregoing and of the covenants herein contained, the parties hereto agree as follows: 

1. Management. The Company hereby retains the Manager as the manager of the Company, and vests all authority and
responsibility for the management of the day-to-day operations of the Company in the Manager (except as may otherwise be provided in the Operating Agreement), and the Manager accepts such position, all on the terms and conditions set forth herein.
The Manager initially appoints Kenneth Allen, Vice President of Operations of the Manager, as the individual who will be responsible for the day-to-day management of the Company. The Manager may appoint replacement or additional individuals to be
responsible for the day-to-day management of the Company, provided such individuals shall be selected with the input and consent of the Board of Managers of the Company. 
 2. Term. The term of this Agreement shall be a one-year (1) period commencing on the date hereof (the “Initial Term”) unless terminated sooner pursuant to Section 7 below.
After the Initial Term, this Agreement shall be automatically renewed on a year-to-year basis (the 

  
 1 

 
“Additional Term(s)”), unless the Manager or the Managing Member (as such term is defined in the Operating Agreement) of the Company provides prior written notice of its intention for
this Agreement not to be renewed, which written notice shall be provided not less than ninety (90) days prior to the expiration of the Initial Term or any Additional Term. The Initial Term and any Additional Term, if any, will each be referred
to as a “Term” and collectively as the “Term”). 
 3. Duties; Limitation on Liability;
Indemnification.  
 (a)Duties. The Manager shall have full, exclusive, and complete discretion, power and authority
to manage, control, administer, and operate the business and affairs of the Company and to make decisions affecting the business and affairs of the Company; provided, however, that the Manager shall not enter into or conduct any transactions that
require either unanimous or majority consent of the Board of Managers or unanimous consent of the Members as established under Sections 3.2, 7.4 or 7.5 of the Operating Agreement, or take any actions inconsistent with the Operating Agreement,
and shall use its commercially reasonable efforts to ensure that the Company at all times engages in prudent mining operations, hiring and reclamation practices and complies with all applicable laws in all material respects. The Manager shall perfom
its duties hereunder, including those set forth in the Operating Agreement, in good faith, using good faith efforts and reasonable diligence. 
 (b) Limitation on Liability. Neither the Manager nor any officer, director, employee, agent, stockholder, or partner of the Manager (each, an “Indemnitee”) shall be liable to the Company
or to any other person or entity for any debts owed by the Company, or for any actions taken or omissions made in good faith and reasonably believed to be in the best interests of the Company, except for acts or omissions of gross negligence,
willful misconduct, intentional misconduct, or a knowing violation of the law. 
 (c) Indemnification. The Company shall
indemnify and hold harmless any Indemnitee, from and against any claim, loss, damage, liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of investigation and appeal) actually incurred by any such
Indemnitee by reason of, or arising from, the operations, business, or affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent any of the foregoing (A) is determined by final, nonappealable order of a
court of competent jurisdiction (or by any other means approved by the Board of Managers) to have been primarily caused by any fraud, breach of fiduciary duties established under this Agreement, gross negligence or willful misconduct of such person
or (B) is actually incurred as a result of any claim (other than a claim for indemnification under this Agreement) asserted by the Indemnitee as plaintiff against the Company; provided that if (for purposes of clause (A) immediately above)
the fraud, breach of fiduciary duties established under this Agreement, gross negligence or willful misconduct of any person claiming indemnification shall consist of a conviction of or plea of no contest to a felony, then such person shall not be
entitled to indemnification unless it is determined, by final, nonappealable order of a court of competent jurisdiction (or by any other means approved by the Board of Managers), that indemnification should be granted in whole or part. 

4. Reporting Relationship. The Manager shall report to the Board of Managers of the Company. 

  
 2 

 5. Management Fee. The Manager shall receive a management
fee of fifty cents ($0.50) per ton (the “Management Fee”) of #8 seam coal sold by the Company on a monthly basis and shall be payable by the 25th day of the following month. The Management Fee shall be the compensation of the Manager for duties performed under
this Agreement (other than as provided in Section 6). 
 6. Payment for Technical Services,
Borrowed Equipment and Pass-Through Services. As and when needed by the Company, in the reasonable discretion of the Manager, the Manager may furnish or arrange for Technical Services, Borrowed Equipment and Pass-Through Services to be provided
to the Company. The Company agrees to reimburse the Manager for such services on a monthly basis, payable on or before the
25th day of the following month. The Manager shall submit
a written reimbursement request to the Board of Managers for review and, upon request of the Company or any of its Managers or Members, provide back-up documents and other reasonable verification for the expenses and charges being requested. The
following additional provisions shall govern reimbursement for such services; provided, however, that the method for determining amounts to be paid may be modified from time to time by the Board of Managers. 

(a) Technical Services. For Technical Services provided by each employee of the Manager during a given month, the
amount shall be determined as follows: (i) for the employees identified on Schedule 1 attached hereto, the amount set forth on Schedule 1; (ii) for employees not listed on Schedule 1, the product of (a) the percentage of
such employee’s time in such month spent on the business of the Company, multiplied by (b) the total cost to the Manager of salary and benefits, excluding bonuses, for such employee during such month. The amount of employee time
allocated to the Company shall be determined by the Manager using commercially reasonable practices and using its best efforts to fairly and equitably allocate such time. 

(b) Pass-Through Services. Pass-Through Services shall be charged to the Company on a direct pass-through basis,
with no mark-up for profit or administrative fees. If allocation is necessary because the contract underlying the Pass-Through Services is common to the Company and other operations run by the Manager, the amount allocated to the Company shall be
determined by the Manager using commercially reasonable practices and using its best efforts to fairly and equitably allocate such services with full disclosure to the Board of Managers. 

(c) Borrowed Equipment. For Borrowed Equipment, the amount shall be a fair and equitable charge reasonably set by
the Manager, but not to exceed the amount for which the Company could have obtained use of equivalent equipment from a third party at prevailing market rates. 
 7. Termination. 
 (a) Events of Termination.
Notwithstanding any other provision of this Agreement to the contrary, this Agreement and the Manager’s retention under the terms of this Agreement will terminate immediately upon the first of the following events to occur: 

  
 3 

	 	(i)	the Manager’s corporate dissolution or liquidation; 

  

	 	(ii)	the Manager ceasing to be the Managing Member pursuant to the Operating Agreement; or 

 

	 	(iii)	the occurrence of a Triggering Event, as defined under the Operating Agreement. 

 (b) Compensation Upon Termination. In the event of termination of the Manager due to an event of termination pursuant to Section 7(a) above, the Manager shall be entitled to be paid for
services rendered up to the time of actual termination. 
 8. Use of Company Facilities by the Manager. The Manager
shall have the right to utilize the Company’s surface facilities and employees for processing and handling coal from Armstrong’s Parkway mining operations in the #9 seam of coal and from adjacent mining operations, provided (i) such
utilization is at such times and in such manner as will not interfere with the Company’s operations or reduce the coal output of the Company, and (ii) the Manager pays the Company for usage of the surface facilities, which charge shall be
charged to the Manager on a direct pass-through basis, with no mark-up for profit or administrative fees. 
 9. No
Assignment by Manager. The services to be rendered by the Manager under this Agreement are unique and personal, and the Manager shall not assign any of its rights or delegate any of its duties under this Agreement, except to an employee or a
corporate affiliate of Manager. 
 10. Assumption by Cyprus. In the event Cyprus Creek Land Resources, LLC
(“Cyprus”) exercises its rights to assume this Management Agreement pursuant to Section 7.1 of the Operating Agreement then this Agreement shall be construed and enforced to provide Cyprus with all of the Manager’s rights and
entitlements hereunder, including but not limited to the right to receive the Management Fee provided for hereunder. In the event Cyprus assumes the status as “Manager” hereunder, Cyprus shall have no obligation to continue to utilize the
goods or services previously provided by or through Armstrong under Section 6, and shall be authorized to make arrangements and outsource such services in its sole discretion, subject to the limitations on the authority of the Manager contained
in Section 6 and elsewhere in this Agreement and the Operating Agreement. 
 11. Severability and No Violation.
If any provision of this Agreement or its application shall be invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of all other applications of that provision and of all other provisions and applications
hereof shall not in any way be affected or impaired. The Manager represents that in signing this Agreement it will not violate any other agreement to which it is a party. 
 12. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of Kentucky. 

  
 4 

 13. Non-Waiver. A delay or failure by either party to exercise a right under
this Agreement, or a partial or single exercise of that right, shall not constitute a waiver of that or any other right. 

14. Counterparts. This Agreement may be executed in two or more counterparts (including via facsimile), each of which shall be
deemed an original but all of which together shall constitute one and the same agreement. 
 15. Entire Contract.
This Agreement and the Operating Agreement constitute the entire understanding and agreement between the parties hereto with regard to all matters herein and supersedes any prior agreements and discussions between the parties. There are no other
agreements, conditions or representations, oral or written, expressed or implied with regard thereto. In the event of a conflict between this Agreement and the Operating Agreement, the terms contained in the Operating Agreement shall control. This
Agreement may be amended only in writing, signed by both parties. Any further agreement of the parties on any matter, including matters unrelated to this Agreement, shall be binding and enforceable only if in writing, and signed by both parties.

 16. Headings. The headings in this Agreement have been inserted solely for convenience of reference and shall not
be considered in the interpretation or construction of this Agreement. 
 [remainder of page intentionally left blank]

  
 5 

 IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to
execute this Agreement effective as of the date set forth above. 
  

			
	Armstrong Coal Company, Inc. (the “Manager”)
		
	By:	 	 /s/ Kenneth R. Allen

		 	Kenneth Allen, Vice President of Operations

  

			
	Survant Mining Company, LLC (the “Company”)
		
	By:	 	Armstrong Coal Company, Inc., its
Managing Member
		
	By:	 	 /s/ Kenneth R. Allen

		 	Kenneth Allen, Vice President of Operations
	
	Approved by:

  

			
	 Cyprus Creek Land Resources, LLC, Member of
 Survant Mining Company, LLC

		
	By:	 	 /s/ T.L. Bethel

	Title:	 	VP

  
 6 

 Schedule 1 
 Technical Services 
 (Specified Armstrong Employees) 

 

			
	 Employee
	  	 Amount to Be Reimbursed

	 Vice President of Operations
	  	$0 – included in the Management Fee
	 Vice President of Corporate Development
	  	$0 – included in the Management Fee
	 Underground Mine Superintendent
	  	$0 – included in the Management Fee
	 Chief Electrician (1)
	  	$0 – included in the Management Fee
	 Director of Training
	  	$0 – included in the Management Fee
	 Director of Safety
	  	$0 – included in the Management Fee
	 Underground Engineer
	  	$0 – included in the Management Fee
	 IT Director
	  	$0 – included in the Management Fee
	 Manager of Underground IT
	  	$0 – included in the Management Fee
	 HR Director
	  	$0 – included in the Management Fee
	 Transportation Sales Coordinator
	  	$0 – included in the Management Fee

  
 7 

 Exhibit A 
 NOTICE: THIS AGREEMENT CONTAINS AN ARBITRATION PROVISION  

SURVANT MINING COMPANY, LLC 
 LIMITED LIABILITY COMPANY AGREEMENT 
 (THE OPERATING AGREEMENT)

 THIS LIMITED LIABILITY COMPANY AGREEMENT, also called the “Operating Agreement” (collectively herein, the
“Agreement”) effective as of the         day of December, 2011, is entered into by and among Cyprus Creek Land Resources, LLC (“Cyprus”) and Armstrong Coal Company, Inc.
(“Armstrong”).  
 WHEREAS, the Members (hereafter defined) desire to form a limited liability company
under the laws of the State of Delaware to be known as Survant Mining Company, LLC (the “Company”) for the purposes set out in this Agreement, and to carry on such other legally permissible business and activities as the Company, in
accordance with applicable laws and this Limited Liability Company Agreement, shall determine from time to time; 
 WHEREAS,
the Members desire to enter into this Limited Liability Company Agreement to govern the conduct of the business and affairs of the Company and to set forth the understanding of the Members regarding all other matters concerning the Company which
may be covered in a Limited Liability Company Agreement; 
 NOW, THEREFORE, in consideration of mutual promises and
covenants contained herein and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, do hereby agree as follows: 

1. Certain Definitions.  
 When used herein, the following terms shall have the meanings set forth below: 

1.1 “Act” means the Delaware Limited Liability Company Act, Title 6, Chapter 18 of the Delaware Code (as amended). All
references herein to specific sections of the Act shall be deemed to refer to the corresponding provisions of succeeding law. 

1.2 “Affiliate” means: (i) any Person which, directly or indirectly, is in Control of, is Controlled by or is under common
Control with the 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. 
 1.3 “Agreement” means this Limited Liability Company Agreement as the same may be amended and
supplemented from time to time. 
 1.4 “Armstrong” means Armstrong Coal Company, Inc., a Delaware corporation.

 1.5 “Available Cash” means all cash determined by the Managing Member to be available to the Company for
distribution to the Members after the payment of all current expenses and other liabilities then due, establishing reserves for capital improvements, working capital needs, contingent liabilities and unforeseen contingencies, all determined
reasonably and in good faith by the Managing Member. 
 1.6 “Board of Managers” has the meaning set forth in
Section 7.1. 

 1.7 “Capital Expenditure” means all expenditures (excluding interest capitalized
during construction) which must be capitalized under generally accepted accounting principles (GAAP). 
 1.8
“Certificate” means the Certificate of Formation, and all amendments thereto, executed and filed pursuant to applicable laws and the terms of this Agreement. 
 1.9 “Change of Control,” with respect to Armstrong, means any transfer or other action that results in (a) Armstrong ceasing to be Controlled, directly or indirectly, by the Yorktown
Parties unless as a result of an initial or secondary public offering of stock, (b) any Person, other than the Yorktown Parties or Persons Controlled by the Yorktown Parties, acquiring a 50% or greater ownership interest, directly or
indirectly, in Armstrong, or (c) any private or public company or entity primarily engaged in the business of coal mining gaining Control, directly or indirectly, over Armstrong or over Yorktown Parties that have Control over Armstrong.
“Change of Control,” with respect to a Member other than Armstrong, means any transfer or other action that results in such Member ceasing to be Controlled, directly or indirectly, by the same Persons or an Affiliate of the Persons who
Controlled such Member as of the date of such Member’s admission to the Company. 
 1.10 “Closing” means the
execution of the Operating Agreement, Management Agreement, Sales Representation Agreement and the contributions of initial capital as set forth in Milestone I of Exhibit A hereto by Cyprus and Armstrong, 

1.11 “Closing Date” means the date set for the Closing. 
 1.12 “Code” means the Internal Revenue Code of 1986, as amended. All references herein to specific sections of the Code shall be deemed to refer also to the corresponding provisions of
succeeding law. 
 1.13 “Company” means Survant Mining Company, LLC, a Delaware limited liability company, 

1.14 “Company Minimum Gain” has the same meaning as the phrase “Partnership minimum gain” as set forth in treasury
regulation § 1,704-2(d), 
 1.15 “Consideration Period” has the meaning set forth in Section 8.3(a).

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

1.17 “Cyprus” means Cyprus Creek Land Resources, LLC, a Delaware limited liability company, 

1.18 “Deficit Capital Account” means with respect to any Member, the deficit balance, if any, in such Member’s capital
account as of the end of the taxable year, after giving effect to the following adjustments: 

  
 - 2 -

 (a) credit to such capital account that amount which such Member is
obligated to restore under Section 1.704-1 (b)(2)(ii)(c) of the treasury regulations, as well as any addition thereto pursuant to the next to last sentence of treasury regulation §§1.704-2(g)(l) and (i)(5), after taking into account
thereunder any changes during such year in Partnership (Company) Minimum Gain (as determined in accordance with treasury regulation § 1.704-2(d) and in the minimum gain attributable to any Partner (Member) for nonrecourse debt (as determined
under treasury regulation §l,704-2(i)(3); and 
 (b) debit to such capital account items described in
treasury regulation §§1.704-l(b)(2)(ii)(d)(4), (5) and (6). 
 The definition of Deficit Capital Account is
intended to comply with the provisions of treasury regulations §§1.704-l(b)(2)(ii)(d) and 1,704-2, and will be interpreted consistently with those provisions. 
 1.19 “Designated Representative” has the meaning set forth in Section 6.8(d). 
 1.20 “Distributional Interest” has the meaning set forth in Section 8.1, 
 1.21 “Fair Value” has the meaning set forth in Section 8.7. 
 1.22
“Fiscal Year” means the Company’s fiscal year which shall correspond to the calendar year, except that (i) the Company’s first fiscal year shall commence on the date of the filing of the Certificate and (ii) such term
shall also include any period for which the Company is required to allocate net profits, net losses and other items of Company income, gain, loss or deduction pursuant to this Agreement or the Code. 

1.23 “Foreclosure Assignment” has the meaning set forth in Section 8.7. 

1.24 “Indemnitee” shall mean (i) any Manager, (ii) any Managing Member, (iii) any Member, or (iv) any
officer, director, employee, agent, stockholder, member or partner of the Company, or a Member. 
 1.25 “Lender” has
the meaning set forth in Section 8.1. 
 1.26 “Lender Interest Holder” has the meaning set forth in
Section 8.7. 
 1.27 “Lien” means any mortgage, deed of trust, security agreement, pledge, hypothecation,
assignment, deposit arrangement, lien (statutory or otherwise), security interest, financing statement, overriding royalty agreement or preferential arrangement of any kind or nature whatsoever, including any conditional sale or other title
retention agreement, 
 1.28 “Major Decisions” shall mean those acts and decisions described in the subsections of
Section 7.4. 
 1.29 “Managing Member” shall have the meaning set forth in Section 7.2. 

1.30 “Manager” and “Managers” shall have the meanings set forth in Section 7.1. 

1.31 “Member Interest” shall include any and all rights of a Member under this Agreement, the Act and other applicable law,
including without limitation all Distributional Rights, economic rights, voting and consent rights, notice rights, contract rights and management rights. 

  
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 1.32 “Member Loan” means any loan to the Company by a Member. 

1.33 “Member Nonrecourse Debt Minimum Gain” has the same meaning as the phrase “Company nonrecourse debt minimum gain”
as set forth in treasury regulation §1.704-2(i). 
 1.34 “Member Nonrecourse Deduction” has the same meaning as
the phrase “Survant nonrecourse deduction” as set forth in treasury regulation §1.704-2(i). 
 1.35 “Member
Nonrecourse Loan” means a loan made to, or credit arrangement for the benefit of, the Company by a Member or by any person related to a Member (as defined in treasury regulation § 1,752-4(b)) which by its terms exculpates the Members from
personal liability on the debt, but under which such Member or related person bears the ultimate economic risk of loss within the meaning of treasury regulation §1.752-2. 
 1.36 “Member” means any Person who becomes a Member in the Company as provided herein, initially Cyprus and Armstrong. 
 1.37 “Non-Managing Member” has the meaning set forth in Section 6.6(e). 
 1.38 “Offer Price” has the meaning set forth in Section 8.7. 
 1.39
“Percentage Interest” means 51% for Armstrong and 49% for Cyprus, unless adjusted in accordance with Section 3.3. 

1.40 “Person” means any individual, limited liability company, limited liability partnership, partnership, corporation, trust or
other person or entity. 
 1.41 “Profit Distribution Share” shall mean 50% for each Member without regard to each
Member’s Percentage Interest; provided, however, that if the Members’ Percentage Interests are ever adjusted pursuant to the provisions of Section 3.3, then, starting as of the date of such adjustment, the “Profit Distribution
Share” for each Member shall be equal to the Percentage Interest of each Member. 
 1.42 “Project” means the
development of the Kentucky #8 seam of coal reserves identified on the map attached hereto as Exhibit B, located in Muhlenberg County, Kentucky. 
 1.43 “Project Budget” means the pro forma revenue and expense statement for the Project approved by the Board of Managers in accordance with Section 7.4. 

1.44 “Right of First Offer” has the meaning set forth in Section 8.7. 

1.45 “Sale Period” has the meaning set forth in Section 8.7, 

1.46 “Subsidiary” means any Person, more than 50% of the voting securities of which, is owned (whether directly or indirectly
through one or more Subsidiaries) by the Company. 
 1.47 “Triggering Event” shall mean the occurrence of any of the
following: (a) Armstrong resigns as the Managing Member, (b) Armstrong is removed from the Managing Member position by the Board of Managers acting upon the majority consent of all of the Managers, (c) Armstrong ceases to be a Member,
(d) Armstrong files for bankruptcy, (e) the Management Agreement, referenced in Section 7.1, is terminated pursuant to its terms and conditions, (f) a Change of Control with respect to Armstrong occurs, (g)

  
 - 4 -

 the willful engaging by the Managing Member or its principals in gross misconduct materially or demonstrably
injurious to the Company, (h) the conviction of the Managing Member or its principals of a felony involving fraudulent or dishonest conduct, or (i) the occurrence of a Foreclosure Assignment pursuant to Section 8.7, 

1.48 “Yorktown Parties” shall mean Yorktown Energy Partners VI, L.P., Yorktown Energy Partners VII, L.P., Yorktown Energy
Partners VIII, L.P. and their Affiliates. 
 1.49 Other Definitions. Unless otherwise provided in this Agreement, any
other term used in this Agreement which is elsewhere defined in this Agreement shall have the same meaning as such term is respectively given by this Agreement. The definitions in this section shall apply equally to both the singular and plural
forms of the terms defined. 
 2. Organization.  

2.1 Formation. The Members hereby agree to form the Company and to associate themselves as Members of the Company. Accordingly,
commensurate with the execution of this Agreement, the Members of the Company shall adopt the Certificate that was filed with the Office of the Delaware Secretary of State. 
 2.2 Registered Office and Agent The initial registered office of the Company in Delaware shall be located at The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington,
Delaware 19801. The Company’s primary business office shall be at 407 Brown Road, Madisonville, KY 42431, or such other location as may hereafter be determined by the Members. The Company’s registered agent for service of process in
Delaware shall be The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. 
 2.3
Foreign Qualifications. Prior to the Company’s conducting business in any jurisdiction other than Delaware, the Members shall cause the Company to comply, to the extent procedures are available and those matters are reasonably within the
control of the Members, with all requirements necessary to qualify the Company as a foreign limited liability company in that jurisdiction. At the request of the Managing Member, each Member shall execute, acknowledge, swear to, and deliver all
certificates and other instruments conforming with this Agreement that are necessary or appropriate to qualify, continue, and terminate the Company as a foreign limited liability company in all such other jurisdictions in which the Company may
conduct business. 
 2.4 Limited Liability Company. The Members intend that the Company not be a partnership (including,
without limitation, a limited partnership) or joint venture, and that no Member be a partner or joint venturer of any other Member, for any purposes other than federal and state tax purposes, and this Agreement may not be construed to suggest
otherwise. 
 2.5 Term. The existence of the Company shall be perpetual, unless terminated or dissolved as set forth
herein, 
 2.6 Annual Reporting. Beginning with the first full calendar year following the year in which the Company is
organized, the Company shall prepare and file with the Delaware Secretary of State an annual report as required by the Act or Delaware law. 

  
 - 5 -

 3. Capital Contributions, Member Loans, and Related Matters.  

3.1 Scheduled Capital. Contributions. At Closing, each Member shall make its initial capital contribution to the Company of
$30,000.00 in cash and the Members shall, on the milestone dates set forth on Exhibit A attached hereto (the “Contribution Schedule”), make their respective additional contributions of property as indicated on the Contribution
Schedule (collectively, the “Scheduled Capita! Contributions”), Notwithstanding any provision of this Agreement, neither Member is making any representation or warranty concerning the condition or quality of its properties being
contributed hereunder, and neither Member shall be determined to have failed to remit its capital contribution or be liable to the Company or the other Member based on any subsequent determination that any portion of the Member’s capital
contribution consisting of owned or leased real property is unable to be used, developed or mined for any reason or is not used, mined and/or developed for any reason or the Member’s title to any such property is found to be defective or the
estimated tonnages of any coal reserves are determined to be inaccurate or due to any aspect of the condition, fitness or serviceability of any of the Equipment, Buildings, or other facilities described in Exhibit A hereto. All contributions,
including but not limited to the surface properties, coal reserves, mining facilities, buildings and equipment described in Exhibit A and more particularly described in Exhibit D hereto, shall be contributed to Company free and clear of all
liens and encumbrances, Each Member hereby represents and warrants to the other Member, that prior to entering into this Operating Agreement it has obtained all necessary consents, commitments and authorizations from any party holding current
security interests in the properties that will be contributed to the Company pursuant to this Section 3.1 .Each Member shall make its contributions substantially in the same form of the conveyancing documents attached hereto and made a part
hereof as Exhibit D. 
 3.2 Additional Capital Contributions: Loans. Each Member acknowledges that, in addition to
the foregoing, additional capital contributions will be required for the continued development and operation of the Company and each Member agrees to make the additional capital contributions in the amounts and at the times indicated on the Project
Budget or the Contribution Schedule, as well as any additional capital contributions unanimously agreed to by the Board of Managers in a timely fashion. Any additional capital contributions to the Company shall be made in proportion to each
Member’s Percentage Interest. In the event the Managing Member reasonably determines that additional cash is necessary in order to fund the Company’s operations in the ordinary course of business or to fund the cash needs in accordance
with the approved Project Budget, but the Members do not unanimously agree on the amount of an additional capital contribution, the Managing Member shall have the right (but not the obligation), following reasonable notice to the other Members, to
make a loan to the Company, and the terms of Section 3.3 applicable to the priority and repayment of Member Loans shall apply. 
 3.3 Non-Compliance. In the event a Member (for the purposes of this Section 3.3 the “Non-Contributing Member”) fails to remit (i) its Scheduled Capital Contributions pursuant to
Section 3.1, or (ii) its portion of any additional capital contribution unanimously agreed to by the Board of Managers, when due and such non-compliance is not cured within ten (10) days after written notice is delivered to the Non-
Contributing Member by the other Member requesting that such funds be remitted to the Company, the other Member (for the purposes of this Section 3.3 the “Contributing Member”) may make the capital contribution or loan owed by the
Non-Contributing Member and elect to treat such amount as an additional capita! contribution or as a Member Loan to the Company. Such election must be set forth in a written notice delivered to the Non-Contributing Member within thirty
(30) days after the funds are contributed to the Company by the Contributing Member, on behalf of the Non-Contributing Member. If the written notice is not delivered within the thirty (30) day time period, the additional funds contributed
to the Company shall be deemed a Member Loan by the Contributing Member to the Company. If the Contributing Member elects to treat the contribution as an additional capital contribution and provides written notice of election to the Non-
Contributing Member, then the Percentage Interest of each Member shall be adjusted to reflect the percentage that each Member’s total capital contributions bear to the total of all capital contributions made to the Company. If such funds are
classified as a Member Loan, the loan shall accrue interest at the prime rate posted 

  
 - 6 -

 by the lending institution at which the Company has its primary operating account, plus two
(2) percentage points. AH Member Loans, whether made under this section, Section 3.2, or otherwise, shall be a priority and no distributions to the Members shall be made until such loan is repaid without the written consent of the Member
who made the Member Loan. 
 3.4 Withdrawal of Capital. The Members shall only be entitled to withdraw or to receive
distributions of capital in accordance with the terms and conditions of this Agreement. 
 3.5 Capital Accounts. A single
capital account shall be maintained for each Member in accordance with the capital accounting rules of section 704(b) of the Code and the tax regulations thereunder (including treasury regulation 1.704(b)(2)(iv)), The capital account of each Member
shall be credited with the fair market value of such Member’s capita! contributions, such Member’s distributive share of profits, income or gain, and the amount of any Company liabilities assumed by such Member or which are secured by any
property distributed to such Member. The capital account of each Member shall be debited with the amount of cash and the value of any property distributed to such Member pursuant to any provision of this Agreement, such Member’s distributive
share of losses and expense, and the amount of any liabilities of such Member assumed by the Company or which are secured by any property contributed by such Member to the Company. 

3.6 Revaluation of Capital Accounts. The capital accounts of the Members shall be adjusted to reflect revaluation of Company assets
in all cases required by treasury regulation § 1.704-l(b) and in all optional circumstances to the extent allowed by treasury regulation § 1.704-l(b)(2)(iv)(f) unless the Board of Managers determines that such revaluation would not be
beneficial or fair under the circumstances. If there is a revaluation under this Section 3.6, then the Company shall make special allocations consistent with the principles of Section 704(c) of the Code. In determining such allocations,
the Company shall use the traditional method with curative allocations described in treasury regulation § 1,704~3(c) for any Contributed Asset. 
 4. Allocations.  
 4.1 Allocation of Profit Loss. Income,
Gain. Deduction, and Credit. Subject to Section 4.2, profits and losses of the Company and, items of taxable income, gain, loss, deduction and credit, shall be apportioned among the Members in accordance with each Member’s Profit
Distribution Share. 
 4.2 Tax Allocations Contributed Property. With respect to any asset contributed by a Member to the
Company (“Contributed Asset”) that has a tax basis different from its agreed upon fair market value on the date of the contribution, the Company shall make the special allocations required by Section 704(c) of the Code, These special
allocations apply solely for Federal, state, and local income tax purposes. They shall not affect or be taken into account in computing a Member’s capital account, or share of profits, losses, or distributions pursuant to any provision of this
Agreement. In making these special allocations, the Company shall use the traditional method with curative allocations described in treasury regulation § 1.704-3(c) for any Contributed Asset. 

4.3 754 Election and Other Tax Elections. In the event of a distribution of property to a Member, or a transfer of any interest in
the Company permitted under the Act or this Agreement, the Company, upon written request of the transferor or transferee, shall file a timely election under this section 754 of the Code and the regulations thereunder to adjust the basis of the
Company’s assets under section 734(b) or 743(b) of the Code and a corresponding election under the applicable provisions of state and local law, and the Person making such request shall pay all costs incurred by the Company in connection
therewith, including reasonable ??? accountants’ fees. Other tax elections and elections relating to Taxes not specifically governed by another provision of this Agreement shall be made as agreed by the Board of Managers. 

  
 - 7 -

 5. Distributions.  

5.1 Distribution to Members. On or before the last business day of each calendar quarter, the Company may make distributions of
cash or cash equivalents to the Members based upon the Available Cash of the Company. The Managing Member shall first determine the amount of Available Cash of the Company available for distribution, and then the Board of Managers shall determine
the aggregate amount of distributions which may be made to the Members and the Members shall share in such total distributions in accordance with each Member’s Profit Distribution Share. 

5.2 Distributions in Kind. Except as may be provided in this Agreement or an amendment to this Agreement, no Member, regardless of
the nature of the Member’s contribution to capital, may demand or receive a distribution from the Company in any form other than cash or cash equivalents. 
 5.3 Limitation on Distributions. No distribution shall be made by the Company if after giving effect to the distribution; (a) the Company would not be able to pay its debts as they become due
in the usual course of business; or (b) the assets of the Company would be less than the sum of its liabilities plus, the amount that would be needed, if the Company were to be dissolved at the time of the distribution, to satisfy the
preferential rights of other Members upon dissolution which are superior to the rights of the Member receiving the distribution. 

6. Members.  
 6.1 Representations and Warranties. Each Member hereby represents and warrants to the Company and each other Member that: (a) it is duly organized, validly existing and in good standing under
the laws of its formation and is duly qualified and in good standing in the jurisdiction of its principal place of business; (b) it has full power and authority to execute and agree to this Agreement and to perform its obligations hereunder;
(c) it has duly executed and delivered this Agreement; and (d) its authorization, execution, delivery, and performance of this Agreement does not conflict with any other agreement or arrangement to which that Member is a party or by which
it is bound. 
 6.2 Additional Members. It is not intended that additional Members will be admitted into the Company.
Nonetheless, if the Members unanimously agree, additional Members may be admitted on such terms and conditions as the Members may determine at the time of admission, 
 6.3 Prohibited Transfers. No Member may transfer all or any part of such Member’s Percentage Interests if such transfer will (a) violate in any material respect any applicable federal or
state securities laws or regulations, or subject the Company to registration as an investment company or election as a “business development company” under the Investment Company Act of 1940; (b) require any Member or any Affiliate of
a Member to register as an investment adviser under the Investment Advisers Act of 1940; (c) effect a termination of the Company under Section 708 of the Code; or (d) cause the Company to be treated as an association taxable as a
corporation for federal income tax purposes. 
 6.4 Information. The Members acknowledge that from time to time, they may
receive information from or regarding the Company in the nature of trade secrets or that otherwise is confidential, the release of which may be damaging to the Company or Persons with which it does business. Each Member shall hold in strict
confidence any information it receives regarding the Company that is identified as being confidential (and if that information is provided in writing, that is so marked) and may not disclose it to any Person other than another Member, except for
disclosures (i) compelled by law (but the Member must notify the other Members, as appropriate, promptly of any request for that information, before disclosing it, if 

  
 - 8 -

 practicable), (ii) to advisers or representatives of the Member or Persons to which that Member’s
interest may be disposed as permitted by this Agreement, but only if the recipients have agreed to be bound by the provisions of this Section, or (iii) of information that Member also has received from a source independent of the Company that
the Member reasonably believes obtained that information without breach of any obligation of confidentially. The Members acknowledge that breach of the provisions of this Section may cause irreparable injury to the Company for which monetary damages
are inadequate, difficult to compute, or both. The Members agree that the provisions of this section may be enforced by specific performance, 
 6.5 Liabilities to Third Parties; Indemnification. Except as otherwise expressly agreed in writing, no Member shall be liable for the debts, obligations or liabilities of the Company, including
under a judgment decree or order of a court; provided, however, that notwithstanding any other provision of this Agreement, each Member shall indemnify and hold harmless the Company and the other Member from and against any claim, loss, damage,
liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of investigation and appeal) actually incurred by the Company or the other Member by reason of, or arising from, the operations, business, or affairs
of, or any action taken or failure to act, of or by the other Member or its Affiliates prior to formation of this Company. The parties acknowledge that a claim has been filed against the Armstrong Parties in US District Court, Western District of
Kentucky, Civil Action No. 4:11 cv 114, alleging the existence of an existing overriding royalty that is alleged to apply to #8 seam coal to be mined by the Company, and the parties agree in the event that such claims are adjudged to apply to
any #8 seam coal mined by the Company (but only with respect to #8 seam coal mined by the Company), the Company shall not be entitled to be indemnified or held harmless by Armstrong relating to such obligations. 

6.6 Fiduciary Duties. 
 (a) Duty of Loyalty. Each Member’s, Manager’s and Managing Member’s duty of loyalty to the Company and the other Members is limited to account to the Company and to hold as trustee
for the Company any property, profit or benefit derived by the Member, Manager or Managing Member in the conduct or winding up of the Company’s business. A Member, Manager or Managing Member does not violate the duty of loyalty by engaging in a
competing business or pursuing other business opportunities, even if the business opportunity could have been pursued by the Company. 
 (b) Duty of Care. Each Member’s, Manager’s and Managing Member’s duty of care to the Company and the other Members in the conduct of and winding up of the Company’s business is
limited to refraining from engaging in gross negligence, reckless conduct, intentional misconduct, or a knowing violation of law, 
 (c) Good Faith and__Fair_Dealing. Each Member, Manager and Managing Member shall discharge its duties and exercise any of its rights consistently with the obligation of good faith and fair dealing
which it owes to the Company and the other Members, A Member, Manager or Managing Member does not violate a duty of good faith or fair dealing to the Company merely because the Member’s, Manager’s or Managing Member’s conduct furthers
the Member’s, Manager’s or Managing Member’s, as the case may be, own interest. Further, a Member, Manager, or Managing Member does not violate the duty of good faith and fair dealing by engaging in a competing business or pursing
other business opportunities, even if the business opportunity could have been pursued by the Company; provided, however, that each Member, Manager and Managing Member shall not engage in a competing business involving any coal reserves described in
the Rogers #8 Lease of Kentucky #8 Reserves identified on Exhibit B hereto without the express written consent of the other Member. 

  
 - 9 -

 (d) Indemnification of Members, Managers and Managing Member. To the
fullest extent allowed by law, the Members, Managers, and Managing Member shall be indemnified and held harmless by the Company for any liability resulting from any act performed or omission made by them in good faith on behalf of the Company,
except for acts or omissions of gross negligence, willful misconduct, intentional misconduct, or a knowing violation of the law. Notwithstanding anything contained in this Agreement to the contrary, no Member, Manager or Managing Member, nor any
officer, director, employee, agent, stockholder, member or partner of any Member or the Managing Member shall be liable, responsible, or accountable in monetary damages to the Company or any Member by reason of, or arising from, the operations,
business, or affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent that any of the foregoing is primarily caused by any acts or omissions of gross negligence, willful misconduct, intentional misconduct, or
knowing violation of the law of such Person; provided, however, that the rights of either Member with respect to the buy-sell triggers set forth in Section 8.3 shall not be limited to or conditioned upon acts or omissions of gross negligence,
willful misconduct, intentional misconduct, or knowing violation of the law. 
 (e) Duty of Care for Managing
Member. The Managing Member shall perform its duties hereunder, including but not limited to those expressly stated in Section 7.6, in good faith, using reasonable good faith efforts and with reasonable diligence. In the event the other
Member (“Non-Managing Member”) determines that the Managing Member is not performing its duties hereunder consistent with the standards set forth in this Section 6.6(e), the Non-Managing Member may deliver written notice of such
determination to the Managing Member, which notice shall set forth in reasonable detail the basis for the Non-Managing Member’s determination that the Managing Member is not performing its duties hereunder consistent with the standards set
forth in this Section 6.6(e). If, after sixty (60) days after delivery of the foregoing notice, the Non-Managing Member reasonably determines that the Managing Member continues to not perform its duties hereunder consistent with the
standards set forth in this Section 6.6(e), the Non-Managing Member may exercise the buy-sell option set forth in Section 8.3 hereof. 
 6.7 Alternate Dispute Resolution. If a dispute, controversy or claim (whether based upon contract, tort, statute, common law or otherwise) (collectively a “Dispute”) arises from or
relates directly or indirectly to the subject matter hereof, and if the Dispute cannot be settled through direct discussions, the parties shall first endeavor to resolve the Dispute by participating in a mediation administered by the American
Arbitration Association (“AAA”) under its Commercial Mediation Rules before resorting to arbitration. Thereafter, any unresolved Dispute shall be settled by binding arbitration administered by the AAA in accordance with its Commercial
Arbitration Rules and judgment on the award rendered by the arbitrator, after the review rights set forth below have been exhausted, may be entered in any court having jurisdiction. Any arbitration proceeding shall be conducted in St. Louis,
Missouri on an expedited basis before a neutral arbitrator (or multiple arbitrators if called for by the Commercial Arbitration Rules), Each arbitrator shall be selected in the manner determined by the AAA. Upon the request of either party, the
arbitrator’s award shall include findings of fact and conclusions of law provided that such findings may be in summary form. Either party may seek review of the arbitrator’s award before an arbitrations review panel comprised of three
arbitrators qualified in the same manner as the initial arbitrator(s) (as set forth above) by submitting a written request to the AAA. The right of review shall be deemed waived unless requested in writing within ten (10) days of the receipt of
the initial arbitrator’s award. The arbitration review panel shall be entitled to review all findings of fact and conclusions of law in whatever manner it deems appropriate and may modify the award of the initial arbitrator(s) in its
discretion. The prevailing party in any arbitration proceeding shall be entitled to 

  
 - 10 -

 an award of all reasonable out of pocket costs and expenses (including attorneys’ and arbitrators tees)
related to the entire arbitration proceeding (including review if applicable). Upon request of either party, the arbitrator(s) may require that the subject arbitration proceedings be kept confidential and no party shall disclose or permit the
disclosure of any information produced or disclosed in the arbitration proceedings until the award is final. A party shall not be prevented from seeking temporary injunctive relief before a court of competent jurisdiction in an emergency situation,
but responsibility for resolution of the Dispute shall be appropriately transferred to the arbitrator(s) upon appointment in accordance with the provisions hereof. 
 6.8 Meetings of Members. 
 (a) Meetings. The Members
will have an annual meeting as may be established by the Managing Member. The Members will have such special meetings as are called in accordance with the provisions of this Agreement. Any annual or special meeting of the Members is to be held at
such place as may be designated by the Managing Member or in a waiver of notice executed by all Members, If there is a failure to designate a place for any such meeting, the same is to be held at the principal place of business of the Company. The
annual meeting of the Members is to be held each year within sixty (60) days of the beginning of the Fiscal Year for the transaction of such other business as may come before the meeting. Special meetings of the Members may be called at any
time by the Managing Member or by Members possessing not less than one-third of the Percentage Interests and are to be held on such dates and at such times as are set forth in the notice calling the meeting. 

(b) Quorum. A majority of ail the Percentage Interests represented in person or by proxy at such meeting
constitutes a quorum of Members for all purposes. Less than such quorum has the right to adjourn the meeting to a specified date not longer than ninety (90) days after such adjournment, with notice of such adjournment to Members to be given in
the manner for special meetings of the Members. Except where the affirmative vote of all of the Members or unanimous agreement of the Members is required herein, the act of a majority (computed with reference to Percentage Interests) of the Members
present at any duly called meeting at which a quorum of Members is present is the act of the Members. 
 (c)
Notice of Meetings. Written or printed notice of each meeting of Members stating the place, day and hour of the meeting and, in the case of special meetings, the purpose or purposes for which the meeting is called must be delivered or given:
(i) in the case of regular meetings, not less than ten (10) nor more than forty (40) days before the date of the meeting; and (ii) in the case of special meetings, not less than five (5) Business Days nor more than thirty
(30) days before the date of the meeting; in each case either personally or by mail. Notice of an annual meeting of the Members is to be given by the Company, Notice of a special meeting of the Members is to be given by the Company or the
Member calling the meeting. Any notice required by this Section may be waived by the Members by signing a waiver of notice before or after the time of such meeting and such waiver is equivalent to the giving of such notice. 

(d) Designated Representative(s). Each Member shall designate in writing to the Company and the other Members the
names of up to two (2) officers, directors, partner’s, members, employees or other affiliates of the Member who are to serve as the “Designated Representatives” of the Member at all meetings and in all votes, consents and
approvals of the Members required pursuant to this Agreement. The designated individual(s) shall be the official Designated Representative(s) of the designating Member. One of such Designated Representatives shall be the primary voting
representative of the Member and the other (if 

  
 - 11 -

 any) shall be the alternative voting representative. Both Designated Representatives of a
Member may attend meetings of the Members, but only one (1) Designated Representative shall cast the Member’s official vote on any matter. The initial Designated Representatives of the entity Members are as follow: 

 

			
	 Cyprus
	  	T.L. Bethel
		  	Vice President, Cyprus
		
		  	Tom Benner
		  	Vice President Operations Underground,
		  	Peabody Midwest Group
		
	 Armstrong
	  	Kenneth Allen
		  	Vice President Operations,
		  	Armstrong
		
		  	Martin Wilson
		  	President,
		  	Armstrong

 If neither Designated Representative of a Member is able to attend a particular meeting of the Members,
such Member may designate in writing another officer, director, partner, member, employee or affiliate of the Member to have voting privileges for that specific meeting. A Member may change either or both of its Designated Representatives at any
time by giving written notice thereof to the Company and the other Members. 
 (e) Informal Action by
Members. Any action required by this Agreement to be taken at a meeting of the Members, or any action which may be taken at a meeting of the Members, may be taken without a meeting if all of the Members sign written consents that set forth the
action so taken. Such consents have the same force and effect as a unanimous vote of the Members at a meeting duly held. The Company is to file such consents with the minutes of the meetings of the Members. 

(f) Tele-Participation in Meetings. Members may participate in a meeting of the Members by means of a conference
telephone or similar communications equipment whereby all individuals participating in the meeting can hear each other. Participation in a meeting in this manner constitutes presence in person at the meeting. 

7. Management of the Company.  
 7.1 Board of Managers. The management of the Company is vested in a Board of Managers consisting initially of four (4) individuals acting as Managers (individually a “Manager” and
collectively the “Managers”) of the Company, two (2) selected by Armstrong (or its successor or permitted assign) and the other two (2) selected by Cyprus (or its successor or permitted assign). Initially, Armstrong selects
Kenneth Allen, Vice President of Operations of Armstrong and Martin Wilson, President of Armstrong as its representatives on the Board of Managers and Cyprus selects T. L. Bethel, Vice President of Cyprus and Tom Benner, Vice President Operations
Underground, Peabody Midwest Group as its representatives on the Board of Managers. Except as provided herein, the decisions of the Board of Managers shall be binding upon 

  
 - 12 -

 the Company and may be relied upon by other persons or entities. A Manager may at any time be changed or
removed and replaced by the Member which has appointed such Manager, but not by any other Member. In the event that Armstrong or Cyprus (or such party’s successor or permitted assign) ceases to be a Member, the Managers appointed by such Member
shall be removed at such time and replaced by the affirmative vote of all of the Members. Except as set forth in Section 3.2 and Section 7.12(e), the Board of Managers shall act solely upon the majority consent of all of the Managers,
which requires an affirmative vote of at least three (3) of the four (4) Managers, including the affirmative vote of at least one (1) Manager appointed by each of Armstrong and Cyprus, and each Manager shall have one (1) vote. No
Manager shall be required to devote all of such Manager’s time or business efforts to the affairs of the Company but shall devote so much of such Manager’s time and attention to the Company as is reasonably necessary and advisable to
manage the affairs of the Company to the best advantage of the Company. The Managing Member is hereby authorized to execute, in such capacity, all documents and agreements that do not require consent of the Board of Managers, For documents and
agreements that require such consent, the Board of Managers may, in connection with its approval thereof, authorize the Managing Member and/or all or less than all of the Managers to execute any and all documents necessary or convenient to carry out
those actions approved by a majority of the Managers, If the Board of Managers approves executing a document or agreement without specifically authorizing signers, then the Managing Member and each of the Managers, acting individually, may execute
such document or agreement on behalf of the Company. The Company shall enter into a Management Agreement (the “Management Agreement”) which shall initially engage Armstrong to be the manager of the Company’s day-to-day operations and
the development of the Project, in accordance with the terms and conditions contained in the Management Agreement and this Agreement. Pursuant to the terms of this Agreement Armstrong shall serve as the Managing Member until the occurrence of a
Triggering Event or is removed by the Board of Managers, at which time Cyprus shall have the authority, in its sole discretion, to assume the position of Managing Member without consent or action from any other Member or the Board of Managers and
shall also have the authority, in its sole discretion, to assume the position of manager under the Management Agreement, both elections being entirely independent from the other. 

7.2 Authority and Duties of the Managing Member. Except for Major Decisions, the Managing Member shall have authority over and
control and management of the day-to-day affairs of the Company, including, without limitation, the authority to carry out the duties set forth in Section 7,6, below. The Managing Member shall be appointed by the Board of Managers and may be
removed by the Board of Managers, with or without cause. The initial Managing Member shall be Armstrong. Armstrong shall remain the Managing Member until the occurrence of a Triggering Event or removed by the Board of Managers acting upon the
majority consent of all of the Managers, Without limiting the foregoing, the Managing Member shall have all of the following specific rights and powers to implement the business and affairs of the Company: 

(a) Execute and deliver contracts and other agreements necessary to conduct the efficient and safe day to day operations
of the Project and to facilitate the development of the Project and in the ordinary course of business; 
 (b)
Retain or employ and coordinate the services (both on site and off site) of employees, independent contractors, supervisors, accountants, attorneys and other persons necessary or appropriate to carry out the business and purposes of the Company,
subject to the provisions of Section 7,4(d); 
 (c) Pay all debts and other obligations of the Company, to
the extent that funds of the Company are available therefor; 

  
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 (d) Execute for and on behalf of the Company, and with respect to the
Project, all such applications for permits and licenses as the Managing Member deems necessary and advisable; 

(e) Perform all ministerial acts and duties relating to the payment of all indebtedness, taxes, and assessments due or to
become due with regard to the Project, and to give and receive notices, reports, and other communications arising out of or in connection with the ownership, indebtedness, or maintenance of the Project; and 

(f) Take such other actions or execute such other documents or agreements on behalf of the Company that do not expressly
require the consent of the Board of Managers or the Members hereunder. 
 7.3 Delegation of Duties. The Managing Member
may delegate such authority and duties as the Managing Member deems advisable, excluding any authority or duty which the Act requires to be exercised by the Members or which is a Major Decision. Any delegation pursuant to this Section may be revoked
at any time by the Managing Member, 
 7.4 Major Decisions. Notwithstanding Sections 7,2 and 7.6, the Managing
Member, on behalf of the Company, may not enter into or conduct any of the following transactions (“Major Decisions”) without the majority consent of the Board of Managers: 

(a) admit a Person as a Member except as provided in this Agreement; 

(b) change the status of the Company from one in which management of the Company is vested in managers to one in which
management of the Company is vested in the members and vice versa; 
 (c) assign the Company’s property in
trust for creditors or on the assignee’s promise to pay the Debts of the Company; 
 (d) select, retain or
employ any attorneys or legal advisors to institute or defend any claims, litigation or other legal proceeding brought by or brought on behalf of or against the Company, in which the amount in controversy exceeds $250,000.00; 

(e) institute or settle any litigation, arbitration or other legal proceeding by or on behalf of the Company, or confess a
judgment against the Company, in which the amount in controversy exceeds $250,000.00, except that the Managing Member, without consent of the Board of Managers, may negotiate and settle disputes on behalf of the Company with the Mine Safety and
Health Administration (MSHA), with authority to commit the Company to pay any associated fines, costs or other liabilities in an aggregate amount of $1,000,000.00 in any given Fiscal Year; 

(f) sell, convey, lease, assign, exchange or otherwise dispose of any real property or any combination thereof or any
other material asset of the Company with a fair market value in excess of $250,000.00 in the aggregate during any Fiscal Year without consent of the Board of Managers, provided, however, that the Managing Member shall have the authority to sell,
transfer, dispose, abandon or lease any movable equipment in the ordinary course of business which are no longer necessary or required in the conduct of the Company’s business; 

  
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 (g) borrow money in the name of the Company in excess of $250,000.00 in the
aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal Year or issue evidences of indebtedness of the Company, or refinance, recast, modify or extend the same, or secure the same by mortgage, deed
of trust, pledge or other Lien; 
 (h) commit to make, or make, any expenditure (including Capital Expenditures)
in excess of $250,000.00 in the aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal Year; 
 (i) acquire by purchase, lease or otherwise, any real property in excess of $250,000.00 in the aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal
Year or make any investment in securities or any ownership or controlling interests in any corporation, partnership, limited partnership, limited liability company or other Person; 

(j) possess any property of the Company, or assign the rights of the Company in specific property, for other than a
Company purpose; 
 (k) approve the Project Budget for each Fiscal Year and any amendments thereto; 

(1) cause the Company to enter into one or more transactions with a Member (other than in its capacity as a Member) or an
Affiliate of a Member except as otherwise specifically permitted hereunder and in the Management Agreement; 

(m) change the name of the Company at any time; 

(n) form, organize, acquire, sell, dispose of, reorganize or liquidate a Subsidiary; 

(o) to make any loan or advance to other Persons in excess of $10,000.00 to any such Person (including Members and
Affiliates of Members) or in excess of $50,000.00 in the aggregate during any Fiscal Year, other than (i) trade credit extended on usual and customary terms in the ordinary course of business; and (ii) investments of Company cash in
certificates of deposit, treasuries, high-grade commercial paper or similar investment products; 
 (p) enter
into any modification of the Management Agreement or. Sales Representation Agreement; or 
 (q) enter into or
modify any lease or agreement between the Company and the Managing Member or any of its Affiliates except to the extent permitted under the Management Agreement. 
 7.5 Actions Requiring Unanimous Approval of Members. Notwithstanding Sections 7.1, 7.2, 7.4 and 7,6, neither the Company, the Managers, the Managing Member nor any other Member may, without
the unanimous consent of all the Members, do any of the following: 
 (a) any act materially in contravention of
this Agreement; 
 (b) amend this Agreement or the Certificate; 

  
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 (c) approve a merger or consolidation of the Company with another Person;

 (d) modify, compromise or release the amount and character of the Scheduled Capital Contributions which a
Member is to make or promises to make hereunder; 
 (e) any act which would make it impossible to carry on the
ordinary business of the Company; 
 (f) to dissolve or wind up the Company, except as otherwise expressly
provided in this Agreement; or 
 (g) any and all elections required or permitted to be made by the Company under
the Code. 
 7.6 Managing Member’s Duties. The Managing Member shall be responsible for the good faith performance of
the following functions in a commercially reasonable manner consistent with practices found in the development of properties similar to the Project: 
 (a) Protect and preserve the title and interest of the Company with respect to the Project and other assets now or hereafter owned by the Company; 

(b) Pay from the funds of the Company in a business-like manner all taxes, assessments and other obligations associated
with the Project; 
 (c) Prepare and implement the Project Budget as modified from time to time in accordance
with the terms of this Agreement; 
 (d) Report to the Managers on a quarterly basis regarding the status of the
development of the Project and compliance with the Project Budget for that Fiscal Year; 
 (e) Negotiate, enter
into and supervise the performance of contracts covering all aspects of development of the Project; provided however, that the Sales Representation Agreement shall control the conduct of the parties regarding the sale and marketing of coal from the
Project and the Management Agreement shall control the conduct of the parties regarding the day to day management and development of the Project; 
 (f) Keep all books and accounts and other records required by the Company, including detailed information regarding all expenditures, preserve and store in a safe place all such books and records for at
least a seven (7) year period after termination of each fiscal year; and permit the Members, or any person designated by any Member, with reasonable advance notice and at reasonable times to examine or audit the books, records and accounts
relating to the Company, including but not limited to the assets of the business of the Company’s contractual obligations and forecast for performance by the Company; 

(g) Cause an annual financial statement to be prepared by a firm of certified public accountants of recognized standing,
which financial statements shall be audited if required by any Member; 
 (h) Pay from funds of the Company all
obligations of the Company; 

  
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 (i) Maintain all funds of the Company in financial institutions of
recognized credit standing or in certificates of deposit, treasuries, high-grade commercial paper or similar products; 
 (j) Supervise all matters coming within the terms of this Agreement, including direct observation, inspection and supervision of the development of the Project and production of coal therefrom in a safe
and efficient manner; 
 (k) Develop, manage and operate the Project in a commercially reasonable and safe
manner, which includes but is not limited to 1) submitting the appropriate applications for encroachment permits to mine the Kentucky #8 seam of coal under (i) state and federal highways, including the Wendell Ford Parkway (f/k/a Western
Kentucky Parkway), and (ii) the Paducah and Louisville Railway, and 2) obtaining satisfactory opinions of title on all coal tracts prior to entering upon or mining upon such tracts; 

(1) Acquire appropriate insurance for the Company and the Project in amounts determined by the Managing Member in
consultation with the Board of Managers; 
 (m) Supervise the management of the Project and the production of
coal therefrom; 
 (n) No later than one hundred twenty (120) days prior to the end of the Fiscal Year, the
Managing Member shall start the budgetary process for the next Fiscal Year and no later than ninety (90) days prior to the end of the Fiscal Year shall prepare and deliver to the Members and Managers the projected annual Project Budget of the
Company which itemizes projected sources of revenue and anticipated expense items for the next Fiscal Year; 

(o) No later than ninety (90) days after the end of the Fiscal Year, the Managing Member shall prepare a business
report (“Annual Business Report”) of the past Fiscal Year, The Annual Business Report shall be delivered to the Members to advise and inform each Member of the current status of the Project. The Annual Business Report shall include:
(i) description of activities taken place during the past Fiscal Year; (ii) an annual income statement; (iii) a marketing plan for the next Fiscal Year; (iv) a coal production schedule; and (v) any other information that the
Members reasonably request be included in the Annual Business Report; 
 (p) The Managing Member shall cause all
required Federal, state and local income, franchise, property and other tax returns of the Company, including information returns, to be timely filed with the appropriate office of the relevant taxing jurisdiction or agency. With respect to the
Federal and state income tax returns of the Company, the Company shall submit to each Member drafts of the proposed returns as soon as possible, but in no event later than March 15 of each year, to permit review and approval of such returns by
each Member prior to filing. All expenses incurred in connection with such tax returns and information returns, as well as for the Annual Business Report referred to in Section 7.7(o) hereof, shall be expenses of the Company; 

(q) No later than one hundred eighty (180) days after formation of the Company, the Managing Member shall cause all
tracts being subdivided by the “New Division Line”, or subdivided for any other reason, to be surveyed and to obtain a legal description and survey plat of said tracts. The survey plat shall be recorded and the legal description used in
the Special Warranty Deed from Armstrong to the Company; and 

  
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 (r) In general, supervise the business and affairs of the Company for the
benefit of the Members. 
 7.7 Exclusion Areas. Notwithstanding any other provision of this Agreement, the Company may not
mine or enter upon any portion of the Kentucky #8 seam of coal situated within the “No Mining Boundary” depicted on the map attached hereto and incorporated herein by reference as Exhibit C (herein referred to as the “Exclusion
Areas”) without the prior written consent of Cyprus granting the Company the right to mine or enter upon all or any portion of the Exclusion Areas. The granting of any such consent shall be within the sole discretion of Cyprus and its refusal
to provide any such consent shall not constitute a failure by Cyprus to remit its initial capital contribution or otherwise constitute a material act in contravention of this Agreement. The Company shall subordinate its interests in the coal
reserves located within the Exclusion Areas upon request of the surface owner or its lessee of those areas. In the event Cyprus, in its sole discretion, grants consent to lift the prohibition against mining within the Exclusion Areas, the Company
shall have the first right to mine the Kentucky #8 seam of coal situated within the No Mining Boundary. 
 7.8 Development and
Due Diligence Expenses. Each party shall bear its own costs and expenses for developing the Project and its own due diligence activities until this Agreement is executed. 
 7.9 Conflicts of Interest. The pursuit of other ventures and activities by the Members, Managers and Managing Member are hereby consented to by the Members and shall not be deemed wrongful or
improper. No Member, Manager or Managing Member shall be obligated to present any particular investment opportunity to the Company, even if such opportunity is of a character which, if presented to the Company, could be taken by the Company. The
Company may enter into agreements with a Member, or an affiliate of a Member, to provide other services to the Company; provided such agreement must be at competitive rates and terms and, if applicable, approved by the Board of Managers in
accordance with Section 7.4. 
 7.10 Indemnification. 

(a) Indemnities and Indemnifiable Claims. The Company shall indemnify and hold harmless any Indemnitee, from and against any claim,
loss, damage, liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of investigation and appeal) actually incurred by any such Indemnitee by reason of, or arising from, the operations, business, or
affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent any of the foregoing (A) is determined by final, nonappealable order of a court of competent jurisdiction (or by any other means approved by the
Board of Managers) to have been primarily caused by any fraud, breach of fiduciary duties established under this Agreement, gross negligence or willful misconduct of such person or (B) is actually incurred as a result of any claim (other than a
claim for indemnification under this Agreement) asserted by the Indemnitee as plaintiff against the Company; provided that if (for purposes of clause (A) immediately above) the fraud, breach of fiduciary duties established under this Agreement,
gross negligence or willful misconduct of any person claiming indemnification shall consist of a conviction of or plea of no contest to a felony, then such person shall not be entitled to indemnification unless it is determined, by final,
nonappealable order of a court of competent jurisdiction (or by any other means approved by the Board of Managers), that indemnification should be granted in whole or part. 
 (b) Advancement of Expenses, Unless a determination has been made (by final, 

  
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 nonappealable order of a court of competent jurisdiction or by any other means approved by the Board of
Managers) that indemnification is not required, the Company shall, upon the request of any Indemnitee and except for any claim of the type described in clause (B) of Section 7.10(a) of this Agreement, advance or promptly reimburse such
Indemnitee’s reasonable costs of investigation, litigation, or appeal, including reasonable attorneys’ fees; provided that the affected Indemnitee shall, as a condition of such Indemnitee’s right to receive such advances and
reimbursements, undertake in writing to promptly repay the Company for all such advancements or reimbursements if a court of competent jurisdiction determines, by final, nonappealable order, that such Indemnitee is not then entitled to
indemnification under this Section 7.10. The written undertaking described in the immediately preceding sentence to repay the amount paid or reimbursed to an Indemnitee by the Company must be an unlimited general obligation of the Indemnitee
but need not be secured and it may be accepted without reference to financial ability to make repayment, 
 7.11 Tax Matters
Partner. Armstrong shall be designated, as the tax matters partner of the Company pursuant to §623 l(a)(7) of the Code, Any Member designated as tax matters partner shall take such action as may be necessary to cause each other Member to
become a notice partner within the meaning of §6223 of the Code. The Company shall indemnify the tax matters partner of the Company from and against any and all judgments, penalties (including excise and similar taxes and punitive damages),
fines, settlements and reasonable expenses, (including without limitation attorneys fees) actually incurred by such Member in performing its duties as the tax matters partner of the Company; provided that the Company shall not be liable to any
Person acting as the tax matters partner of the Company for any portion of such judgments, penalties, fines, settlements or reasonable expenses resulting from such persons gross negligence or willful misconduct. 

7.12 Meetings of the Board of Managers. 
 (a) Meetings. The Board of Managers will have an annual meeting and such quarterly meetings as may be established by the Company. The Board of Managers will have such special meetings as are called
in accordance with the provisions of this Agreement, Any annual, quarterly or special meeting of the Board of Managers is to be held at such place as may be designated by the Company or in a waiver of notice executed by all Managers. If there is a
failure to designate a place for any such meeting, the same is to be held at the principal place of business of the Company. The annual and quarterly meetings of the Board of Managers is to be held each year within sixty (60) days prior to the
beginning of the Fiscal Year, but in no event prior to the time the Managing Member delivers the projected annual Project Budget of the Company to the Managers and the Members pursuant to Section 7.7(n), for the establishment of the Project
Budget and the transaction of such other business as may come before the meeting. Special meetings of the Board of Managers may be called at any time by the Company or by a Manager and are to be held on such dates and at such times as are set forth
in the notice calling the meeting. 
 (b) Quorum. A Manager appointed by Cyprus and a Manager appointed by
Armstrong attending such meeting constitutes a quorum of Managers for all purposes, and no quorum shall exist unless a Manager appointed by both Cyprus and Armstrong shall be in attendance. 

(c) Notice of Meetings. Written or printed notice of each meeting of the Board of Managers stating the place, day
and hour of the meeting and, in the case of special meetings, the purpose or purposes for which the meeting is called must be delivered or given: (i) in the case of regular meetings, not less than ten (10) nor more than forty
(40) days before the date of the meeting; and (ii) in the case of special meetings, not less than five (5) Business Days nor more than thirty (30) days before the date of the meeting; in each case either

  
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personally or by mail. Notice of an annual meeting of the Board of Managers is to be given by the Company. Notice of a special meeting of the Board of Managers is to be given by the Company or
the Manager calling the meeting. Any notice required by this Section may be waived by the Managers by signing a waiver of notice before or after the time of such meeting and such waiver is equivalent to the giving of such notice. 

(d) Proxies. A Manager may vote at any meeting either in person or by proxy executed in writing by the Manager or
its duly authorized attorney in fact. Such proxy must be filed with the Company before or at the time of the meeting. No proxy is valid after 11 months from the date of execution unless otherwise provided in the proxy. 

(e) Informal Action by Managers. Any action required by this Agreement to be taken at a meeting of the Board of
Managers, or any action which may be taken at a meeting of the Board of Managers, may be taken without a meeting if all of the Managers sign written consents that set forth the action so taken. Such consents have the same force and effect as a
unanimous vote of the Managers at a meeting duly held. The Company is to file such consents with the minutes of the meetings of the Board of Managers. 
 (f) Tele-Participation in Meetings. Managers may participate in a meeting of the Board of Managers by means of a conference telephone or similar communications equipment whereby all individuals
participating in the meeting can hear each other. Participation in a meeting in this manner constitutes presence in person at the meeting. 
 8. Transfers of Interests; Admission.  
 8.1 Transfer
Restrictions. Except as otherwise set forth in this Section 8, no Member may sell, assign, transfer, pledge, hypothecate or otherwise dispose of its Member Interest unless unanimously approved by the Members, including, without limitation,
a Member’s distributional interest as described in §18-702 of the Act (“Distributional Interest”). Any transfer of a Member’s interest in violation of this Agreement shall be void and of no effect; provided, however, that
Armstrong shall be permitted to pledge its Distributional Interest only to PNC Bank or the successor agent of the existing PNC credit facility or successor primary lender to Armstrong (“Lender”). Notwithstanding the foregoing [imitations,
the parties acknowledge and agree that, under the limited circumstances set forth in Section 8.7, the Lender shall have the right to sell and transfer all of Armstrong’s Member Interest (not limited to its Distributional Interest) upon
compliance with the provisions of Section 8.7, 
 8.2 Right of First Refusal. If a Member receives a bona fide offer
(“Offer”) which the Member (“Selling Member”) proposes to accept, whether or not solicited, to sell or otherwise dispose of its entire Member Interest in the Company, then the Selling Member shall furnish to the non-selling
Member written notice of the receipt of the Offer together with the principal terms and conditions of the sale, including the minimum price (“Sale Price”) at which such interest is proposed to be sold, and a statement as to the identity of
the real party in interest making the Offer. The non-selling Member, shall then have the right to purchase the Member Interest (“Offered Interest”) proposed to be sold by the Selling Member upon and subject to the terms and conditions as
set forth in this Section 8.2. This Section 8.2 shall not apply to any sale pursuant to the procedures of Section 8.7. 
 (a) The price at which the Offered Interest may be purchased shall be the price contained in the Offer. If the price contained in the Offer shall consist (in whole or in part) of consideration other than
cash, payable at the closing thereof or at a later date, the cash equivalent fair market value of such other consideration shall be included in the price at which the Offered Interest may be so purchased. 

  
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 (b) The non-selling Member shall have sixty (60) days after receipt of
the notice to elect to purchase the Offered Interest. The purchase transaction (unless otherwise agreed to with third-party purchasers) shall be consummated at a closing to be held at the principal executive offices of the Company, or at such other
location as may be agreed by the parties, within sixty(60) days following the date of the non-selling Member’s election to purchase the Offered Interest. At the closing, unless otherwise stipulated in the Offer, the non-selling Member shall
deliver to the Selling Member the full purchase price against delivery of an instrument appropriately transferring the Offered Interest sold thereby. 
 (c) If the non-selling Member does not elect to purchase the Offered Interest, then the Selling Member may accept the Offer and, pursuant thereto, sell the Offered Interest and, notwithstanding anything
to the contrary contained herein (including, without limitation, Section 8.5 hereof), upon such sale of the Offered Interest and the execution by the transferee of this Agreement, the transferee shall become a Member of the Company. However, if
the Selling Member does not sell the Offered Interest pursuant to the Offer within ninety (90) days after the termination (by passage of time or otherwise) of the rights of first refusal created under this Section 8.2, the Selling Member
may not thereafter transfer the Offered Interest, without again complying with the provisions of this Section 8.2. 
 8.3
Buy-Sell Option. Except under circumstances where the procedures set forth in Section 8.7 applies following a Foreclosure Assignment (as defined below), upon the occurrence of any of the following events, each Member shall have the right
of purchase and sale provided by this Section 8.3 to be exercised by a Member (“Electing Member”) by delivering a written notice (“Election Notice”) to the other Member (“Notice Member”): 

(a) a Member or the Managing Member seeks in good faith for approval for an action that requires approval of the Board of
Managers or the Members pursuant to Section 3.2, Section 6.2, Section 7.4(g), or Section 7.5, and the Board of Managers or the Members, as applicable, reach a full and final deadlock on whether to approve the requested action
after attempting in good faith to negotiate a mutually agreed outcome; 
 (b) the Notice Member, acting as a
Managing Member or Member, or any Manager appointed by the Notice Member takes any action or transaction described in Section 7.4 or 7.5 without the consent of the Board of Managers or Members, as applicable; 

(c) the Notice Member has breached the Representations and Warranties in Section 6.1; 

(d) the Notice Member has breached Section 6.3; 

(e) the Notice Member has breached its duties and obligations set forth in Section 6.6(a),(b) or (c); 

(f) a Member other than the Managing Member elects to exercise this provision pursuant to the provisions set forth in
Section 6.6(e); 
 (g) a Change of Control with respect to either Member occurs; or 

  
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 (h) the voluntary election of either Member at any time on or after
January 1, 2020. 
 Such Election Notice shall state a dollar amount equal to the value placed by the Electing Member on all of the issued
and outstanding membership interests in the Company, calculated on a pari passu basis taking into consideration the relative equity interest of the Electing Member, and shall constitute an irrevocable offer by the Electing Member either to
purchase all, but not less than all, of the Member Interest in the Company of the Notice Member from the Notice Member, or to sell all, but not less than all, of the Electing Member’s Member Interest in the Company to the Notice Member. The
purchase price at which the Member Interest of any Member is purchased and sold under this Section 8.3 shall be the value for all of the interests in the Company, as stated in the Election Notice, multiplied by the selling Member’s
Percentage Interest in the Company. 
 (i) For a period of time not exceeding sixty (60) days from the
receipt of the Election Notice by the Notice Member (“Consideration Period), the Notice Member shall have the right to elect to purchase all of the Electing Member’s Member Interest in the Company by providing written notice
(“Purchase Notice”) to the Electing Member of the Notice Member’s intent to purchase the Electing Member’s Member Interest. If the Notice Member does not provide the Purchase Notice to the Electing Member within the above
referenced sixty (60) day time period, the Notice Member shall become obligated to sell its Member Interest in the Company to the Electing Member. 
 (ii) The closing of the purchase and sale shall occur within sixty (60) days from the earlier of the expiration of the Consideration Period, or the date the Electing Member receives a Purchase Notice
from the Notice Member. In either event, at the closing of the purchase and sale transaction described in this Section 8.3, the purchase price must be paid in cash (either by certified check or by wire transfer), unless otherwise agreed upon by
the Electing Member and the Notice Member. 
 (iii) At the closing on the sale of a Member’s Member Interest
pursuant to this Section 8.3, there shall be a final accounting among the Members with respect to all amounts due them from the Company. With respect to the indebtedness and obligations for which any Member is responsible, the purchasing Member
shall, as a condition to closing (but said condition may be waived in writing by the selling Member), cause the repayment of such indebtedness. The Members agree, upon request of any other Member, to execute such certificates or other documents and
perform such other acts as may be reasonably requested by such requesting Member from time to time in connection with such sale. 

8.4 Completion of Sale. If a Member becomes obligated to sell its Member Interest in the Company pursuant to Sections 8.2 or
8.3 of this Agreement, each Member covenants and agrees that it will take such actions and execute such instruments of transfer and other documents as reasonably requested by the other Member to further evidence and complete the sale of the
Member’s Member Interest, Additionally, as a condition precedent to the consummation of the sale of the Percentage Interest, a purchasing Member must arrange for the complete release of all guarantees provided by the selling Member as security
for indebtedness of the Company. 
 8.5 Admissions. All transfers of an interest in the Company by a Member shall entitle
the transferee only the rights afforded a transferee of a Distributional Interest pursuant to § 18-702 of the Act except as otherwise expressly provided herein. These rights are the rights to receive allocations and 

  
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 distributions to which the transferring Member would otherwise have been entitled, but shall not allow the
transferee any additional rights, nor shall the transferee become a Member of the Company upon such transfer. The transferee shall only become a Member of the Company by receiving the written consent of all Members of the Company and executing this
Agreement. The consent of the Members to admit any transferee of a distributional interest into the Company shall be given in the sole and absolute discretion of each Member. 
 8.6 Distributions and Allocations in Respect to Transferred Interests. If any Member’s interest is sold, assigned or transferred, or any Person is otherwise admitted as a Member during any
Fiscal Year in compliance with the provisions of this Agreement, net profits, net losses, each item thereof, and all other items attributable to such interest for such Fiscal Year shall be allocated among the Members by taking into account their
varying interests during such Fiscal Year in accordance with Code §706(d). Unless otherwise required by the applicable treasury regulations, such sale, assignment, transfer or admission shall be deemed to have occurred at the end of the
calendar month during which such event shall have actually occurred, and such allocations shall be determined and made pursuant to a pro forma closing of the books of the Company as of the end of such month. With respect to a transferred
Member’s interest or any interest therein, all distributions on or before the deemed date of such transfer shall be made to the transferor and all distributions thereafter shall be made to the transferee. The Company shall not incur any
liability for making allocations and distributions in accordance with this provision. 
 8.7 Right of First Offer and Sale
Procedure Following Foreclosure by Armstrong’s Lender. The procedures of this Section 8.7 shall apply only in the event Armstrong’s interest has been assigned to Lender or its designee (“Lender Interest Holder”) upon the
exercise of Lender’s default remedies pursuant to the pledge referenced in Section 8.1 (such event being referred to as a “Foreclosure Assignment”), it being understood that any such Lender Interest Holder’s are limited to
that of the holder of a Distributional Interest and the Lender or its designee or assignee may acquire all rights and attributes of Armstrong’s Membership Interest in the Company only pursuant to the procedures of this Section 8.7.

 (a) If, at any time, the Lender Interest Holder proposes to initiate a sale of Armstrong’s Member Interest to a third party, it
shall provide written notice of such intention to Cyprus (“Election Notice”), and Cyprus shall have a right of first offer to purchase Lender Interest Holder’s Percentage Interest for a price equal to the Fair Value for all the Member
Interests in the Company multiplied by the Lender Interest Holder’s Percentage Interest in the Company (the “Offer Price”), 

(b) As used herein, “Fair Value” shall mean the fair market value of the entire Company, as determined by the following process. The
parties shall have a period of 60 days following the date of the Election Notice in which to agree on the Fair Value of the Company, which period may be extended by mutual consent, which consent shall not be unreasonably withheld. If they are
unable to so agree during such 60-day period (as such period may be extended by mutual consent), then the parties shall submit in writing to the other a list of three neutral and impartial mining valuation consultants. The first name that matches on
both lists shall be retained to determine the Fair Value of the Company. If there are no matches on the lists, the parties shall submit new lists of three names within two business days, and this process shall continue until an appraiser is
selected. The selected appraiser shall have a period of sixty (60) days (which 60-day period shall be extended if the appraiser believes it is necessary to complete its appraisal) in which to render the appraisal and provide each of the parties
with a copy, which appraisal shall be final and binding upon all the parties. All parties agree to give the appraiser full access to the mining operations, mine management and all requested financial, business and operational information that the
appraiser may reasonably request. 
 (c) The period beginning on the date on which the Fair Value is determined (whether by mutual agreement
or by appraisal) and lasting for 180 days thereafter shall constitute the “Sale Period.” For the first thirty (30) days of the Sale Period, Cyprus shall have the option to elect to purchase all of the Lender Interest 

  
 - 23 -

 Holder’s Percentage Interest for the Offer Price (the “Right of First Offer”). If Cyprus does
not deliver notice of its election to purchase within such 30-day period, Lender Interest Holder shall have the right to sell Lender Interest Holder’s Percentage Interest to any other Person, so long as the total purchase price is not less than
90% of the Offer Price; however, if, during the Sale Period, Lender Interest Holder notifies Cyprus in writing of a proposed sale of Lender Interest Holder’s Percentage Interest for a total purchase price less than 90% of the Offer Price, which
notice (the “ROFR Notice”) shall include a description of the principal terms and conditions of the sale, then Cyprus shall have the right to elect to purchase the interest at the price identified in the ROFR, which election shall be
delivered within 60 days of the date of its receipt of the ROFR Notice, and if Cyprus shall fail to timely deliver written notice of its election to purchase, then Lender Interest Holder may sell its Percentage Interest on the price and on the
terms set forth in the ROFR Notice, so long as such sale is completed within 120 days after the date of Cyprus’ receipt of the ROFR Notice. Any sale by Lender Interest Holder that conforms with the provisions of this Section 8.7 shall
be effective to vest in the purchaser all Member Interest rights relating to the Percentage Interest sold, and such purchaser shall automatically become a Member of the Company upon such transfer upon such the purchaser executing an agreement
agreeing to be bound by the terms of this Agreement. If, however, Lender Interest Holder does not consummate the sale during the Sale Period (or, as applicable, within 120 days from the date of Cyprus’ receipt of the ROFR Notice), then the
Right of First Offer shall apply to any subsequent sale by Lender Interest Holder. 
 (d) If Cyprus elects to exercise the Right of First
Offer or its rights upon receipt of an ROFR Notice, the closing of the sale shall occur within 60 days of the start of the Sale Period. Each of Cyprus and Lender Interest Holder covenants and agrees that it will take such actions and execute
such instruments of transfer and other documents as reasonably requested by the other to further evidence and complete the sale of the Lender Interest Holder’s Percentage Interest. The provisions of Section 8.6 shall apply to the interest
being transferred. The purchase price shall be paid in cash unless the parties mutually agree otherwise, and the Lender Interest Holder’s interest shall be free and clear of any liens and encumbrances. 

9. Dissolution Acts. The Company shall only be dissolved upon the occurrence of any one of the following events:
(i) the completion of the term of the Company as set forth in the Certificate; (ii) written consent of all Members upon exhaustion of the economically mineable coal reserves from the Project; (iii) the sale of all or substantially all
of the assets of the Company; (iv) written consent of all Members, or (v) as required by Section 10 below. Except as otherwise agreed to herein below in Section 10, upon dissolution, the Company shall liquidate and distribute its
assets in the following priority: 
 9.1 First, to pay all debts owed by the Company to non-Members; 

9.2 Second, to pay any outstanding Member Loans; 
 9.3 Third, to each Member in accordance with the positive balance of Member’s capital account; and 
 9.4 Fourth, to the Members in proportion to each Member’s Percentage Interest. 
 10. Withdrawal and Disassociation. Except as otherwise agreed to herein below in this Section 10, no Member shall be allowed to withdraw or disassociate from the Company. Any
attempted disassociation or withdrawal by a Member shall be null and void and not recognized by the Company, If an event disassociation occurs for any reason whatsoever, the Company shall not dissolve and the Member causing the disassociation, if
any, shall be liable to the Company for such wrongful disassociation. In no event shall the disassociated Member be entitled to have its Percentage Interest purchased by the Company. Notwithstanding any provision of this Agreement, if the Company
has not established commercially viable mining operations in the Kentucky #8 seam of coal by January 5,2016, then either Member shall have the right to provide the other 

  
 - 24 -

 Member with notice of withdrawal from the Company (“Notice of Withdrawal”). Neither Member shall
have the right to provide Notice of Withdrawal from the Company prior to January 5, 2016. In the event either Member provides Notice of Withdrawal under this Section due to the Company’s failure to establish commercially viable mining
operations in the Kentucky #8 seam of coal by January 5, 2016, the Company shall liquidate all assets of the Company, other than the assets contributed pursuant to the Contribution Schedule identified in Exhibit A hereto and pay all debts
or other amounts owed by the Company to: (i) non-Members; then to (ii) pay any outstanding Member Loans; then to (iii) the Members is accordance with the positive balance of their the Member’s capital account; then to
(iv) the Members in proportion to each Member’s Percentage Interest. After all amounts identified in subsections (i) through (iii) of the preceding sentence have been paid in full, the Company will distribute the remaining assets
identified on Exhibit A hereto to the Member who originally contributed such assets as part of that Member’s Initial Capital Contribution. In the event the Company is unable to satisfy its debts after liquidating all assets other than
those identified in Exhibit A hereto, then all remaining assets will be subject to the liquidation and distribution of assets pursuant to Section 9 of this Agreement unless otherwise unanimously agreed to by the Members. Armstrong
covenants and agrees that it will not interfere or compete with Cyprus’ primary rights to renegotiate or seek an extension to the Rogers #8 Lease during the Non-interference Period (as defined below). Notwithstanding any disassociation
hereunder or stated herein in this Section 10, Armstrong hereby covenants and agrees for itself, its successors and assigns and its and their Affiliates, and any successor owner of any ownership interest in the assets that were contributed by
Armstrong under Section 3 hereof, including without limitation, the successors in title to the 1,977 acres of surface lands, that it and they will not, during the Noninterference Period (as defined below), seek to or obtain a lease from the
Rogers of any coal reserves described in the Rogers #8 Lease of Kentucky #8 Reserves identified on Exhibit A hereto, or accept the assignment of any sublease of the such coal reserves, or take any action which could ultimately lead to the
non-development or delayed development of the Cyprus owned Kentucky #8 Reserves either separately, jointly or in conjunction with the Rogers Kentucky #8 Reserves. This covenant and agreement shall survive the disassociation and termination of this
Agreement and shall be deemed a covenant running with said land for a period of five (5) years from the date of withdrawal and disassociation or from the date the Company is otherwise dissolved (the “Non-Interference Period”).

 11. Management of Workforce. Managing Member shall have the right, power and obligation to exercise any control
over the hiring or supervision of the workforce of the Company, necessary to manage the Company, including, but not limited to, any employment benefits or other terms and conditions of employment for the employees of the Company, Cyprus shall take
no part in, and shall have no right, power or obligation with respect to, any matter relating to the hiring of miners; provided, however, that Armstrong shall not hire miners previously terminated by Armstrong without first receiving consent from
the Board of Managers. The Managing Member shall provide written notification to the Board of Managers of the lateral transfer miners from Armstrong’s other operations to the Company within thirty (30) days of such transfer. 

12. Applicant Violator System. Each Member represents and warrants that such member, its officers, shareholders,
members, subsidiaries, affiliates and any other entity that can be attributed to it under the “ownership and control” regulations issued by the office of Surface Mining (collectively, “Member Entities”) are not currently permit
blocked under the Surface Mining Control and Reclamation Act of 1977 (“SMCRA”). No Member will allow to exist any violation of SMCRA or any comparable state law at any operation of a Member Entity that would cause any other Member or its
Member Entities to be permit blocked. Any Member Entity which becomes permit blocked under SMCRA or any comparable state law shall provide written notice of such event to the other Members within five (5) days and shall take any and all actions
necessary for the removal of such permit block within twenty (20) days’ provided, however, that if the permit block does not then or thereafter adversely affect the other Member(s) (by permit block or otherwise), the permit blocked entity
may contest the permit block in good faith and by appropriate legal proceedings, provided further, however, that if the permit block does adversely affect the other Members (by permit block or 

  
 - 25 -

 otherwise), the non-permit blocked Member(s) may (i) undertake to remove the condition causing the
permit block, at the permit blocked Member’s expense or (ii) purchase such permit blocked Member’s interest in the Company at the fair market value of such permit blocked Member’s interest. 

13. Relationship with Company.  
 13.1 Promotion of Company. Subject to Section 7.9 above, each Member shall use reasonable efforts to promote the activities of the Company and to ensure its success. 

13.2 Information. Subject to any applicable restriction of law, all Members shall be fully and currently informed of the activities
of the Company. To the extent that there are any applicable laws or regulations which would have the effect of limiting the right of a Member to be so informed, the other Members) shall use all reasonable efforts to obtain waivers thereof in favor
of the Company and the member so limited and, failing the obtaining of such waivers, the Members shall make such arrangements as shall be practicable to preserve the Company the benefits of the contacts or projects to which such secrecy agreements
or laws or regulations relate. Each Member shall not, except as required by law and except for disclosure to its officers, directors, employees, shareholders, members, partners, attorneys, accountants, and Affiliates (who shall be bound by the
confidentiality provisions of this Agreement), divulge to any person any confidential or proprietary information concerning the business of the Company, including, without limitation, the terms of this Agreement. 

14. Miscellaneous Matters.  
 14.1 Offset. Whenever the Company is to pay any sum to any Member, any amounts that the Member owes the Company may be deducted from that sum before payment. 

14.2 Captions. Section and paragraph titles or captions contained in this Agreement are inserted only as a matter of convenience
and for reference and in no way define, limit extend or describe the scope of this Agreement or the intent of any provision hereof. 
 14.3 Variation in Pronouns. All pronouns and any variation thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons.

 14.4 Governing Law; Severability. This Agreement is governed by and shall be construed in accordance with the law of
the State of Delaware. If any provision of this Agreement or the application thereof to any Person or circumstance is held invalid or unenforceable to any extent, the remainder of this Agreement and the application of that provision to other Persons
or circumstances is not affected thereby and that provision shall be enforced to the greatest extent permitted by law. 
 14.5
Validity. In the event that any provision of this Agreement shall be held to be invalid, the same shall not affect in any respect whatsoever the validity of the remainder of this Agreement. 

14.6 Benefit. Except as herein otherwise provided to the contrary, this Agreement shall be binding upon and inure to the benefit of
the Members, their heirs, personal representatives, successors and assigns. 
 14.7 Notice. Any notice or communication
required or permitted to be given by any provision of this Agreement shall be in writing and shall be deemed to have been given and received by the person to whom directed (a) when personally delivered, (b) when sent by telefacsimile,
telecopier or similar transmission, at the number of the recipient set forth herein, followed with mailing by regular United States 

  
 - 26 -

 mail, (c) one (1) business day after deposited for overnight delivery with an overnight courier
such as Federal Express, Airborne, United Postal Service or other overnight courier service, or (d) three (3) business days after deposited in the U. S. mail, sent by certified mail, postage prepaid, return receipt requested, and such
notices are addressed to the person to which directed at the address or facsimile number of which such person has notified the Company and all of the Members. The initial addresses and facsimile numbers of the parties are reflected on the signature
page of this Agreement. 
 14.8 Further Assurances. In connection with this Agreement and the transactions contemplated
hereby, each Member shall execute and deliver any additional documents and instruments and perform any additional acts that may be necessary or appropriate to effectuate and perform the provisions of this Agreement. 

14.9 Entire Agreement/Amendment. This Agreement embodies the entire agreement and understanding of the Members relating to the
subject matter hereof and supersedes all prior representations, agreements and understandings, oral or written, relating to such subject matter. This Agreement may be amended only by a written instrument executed by all the Members. 

14.10 Waiver and Consent. No consent or waiver, express or implied, by a Member to or of any breach or default by the other Member
in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of such other Member of the same or any other obligation of such member hereunder.

 14.11 Legal Fees. Except as otherwise provided herein, all legal and other costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby are to be paid by the Member incurring such costs and expenses. In the event the Company or any Member brings suit to construe or enforce the terms hereof, or raises this Agreement as a
defense in a suit brought by the Company or another Member, the prevailing Person is entitled to recover its attorneys’ fees and expenses. 
 14.12 Waiver of Dissolution under the Act. Any dissolution of the Company shall occur only as provided herein, and each Member hereby waives and renounces its rights, if any, under the Act to seek
a court decree of dissolution, to seek the appointment of a liquidator of the Company, and to seek a partition of the Company property. 
 14.13 Relationship of the Members. The relationship between the Members shall be limited to the performance of the transactions contemplated by this Agreement and by the Formation Agreement and in
accordance with their terms. Nothing herein shall be construed to authorize a Member to act as general agent for the other Member(s). 
 14.14 Agreement in Counterparts. This Agreement may be executed in as many counterparts as may be deemed necessary and convenient. Each counterpart when so executed shall be deemed an original, but
all counterparts shall constitute one and the same instrument. 
 [remainder of page blank; signature page follows]

  
 - 27 -

 The Members execute this Agreement effective as of the date first above written. 

 

			
	Members:
	
	Cyprus Creek Land Resources, LLC
		
	By:	 	 /s/ T. L. Bethel

	Name:	 	T. L. Bethel
	Its:	 	VP

  

			
	Official Address:	 	701 Market Street
		 	St. Louis, MO 83101
		 	Attention: President
		 	Facsimile No: (314) 342-7697

  

			
	Armstrong Coal Company, Inc.
		
	By:	 	 /s/ Martin D. Wilson

	Name:	 	Martin D. Wilson
	Its:	 	President

  

			
	Official Address:	 	407 Brown Road
		 	Madisonville, KY 42431
		 	Attention: President
		 	Facsimile No: (270) 821-4245

  

			
	Company:
	
	Survant Mining Company, LLC
		
	By:	 	 /s/ Martin D. Wilson

	Name:	 	Martin D. Wilson
	Its:	 	Managing Member

  

			
	Official Address:	 	407 Brown Road
		 	Madisonville, KY 42431
		 	Attention: Vice President
		 	Facsimile No.: (270) 821-4245

  
 - 28 -

 Exhibit ‘A’ 

Contribution Schedule 

Scheduled Capital Contributions: 
 I. Milestone
1. Initial Capital (Permitting Phase) 
 Milestone 1 will occur upon the execution of the Operating Agreement of the Company, the Management
Agreement and Sales Representation Agreement. Following the occurrence of Milestone 1, the Company will work to obtain permits for the slope site, the airshaft site, the other surface operations, and the #8 reserves being contributed by Cyprus.

 Contributions: 
 -Armstrong contributes $30,000 in cash 
 -Cyprus contributes
$30,000 in cash 
 -Each Member grants rights of entry as necessary to facilitate permitting 

II. Milestone 2 
 Milestone 2 will occur
upon the completion of permitting as determined by the Board of Managers (projected to occur in August 2012). Following the occurrence of Milestone 2, the Company will begin work on slope construction and airshaft construction. 

Contributions: 

-Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to complete construction of the mine,
including slope, airshafts, coal handling equipment, power drops, communication, rock dust, etc. 
 -Members to contribute, in
proportion to each Member’s Percentage Interest, cash sufficient for down payments on mining equipment, as determined by the Board of Managers. 
 -Armstrong to contribute surface property, equipment, buildings and facilities as follows: 

Contribution by Armstrong and/or its Affiliates by deed to the Company of the surface properties (approximately 1977 acres) and improvements (Parkway prep
plant) as described on Schedule 1 attached hereto and made a part hereof. PNC Mortgages and financing statements affecting those properties will be released. See Exhibit D for form of deed. 

Grant and/or assignment by Armstrong and/or its Affiliates of access and unlimited usage of all waterlines and unlimited withdrawal rights from the any
impoundment, reservoir or body of water associated therewith, including but not limited to the Overland Slurry/Water Supply,Lines servicing the Project, with rights of ingress and egress over any surface properties of Armstrong and/or its Affiliates
for the purpose of maintaining, reconstructing, modifying or otherwise servicing the waterlines and any impoundment, reservoir or body of water associated therewith, together with the right to permit such facilities. 

Conveyance and sublease of all equipment from Armstrong’s Parkway #9 operations, which shall include all substantially all of the owned and leased
equipment that is primarily used in connection with Armstrong’s Parkway #9 operations (supporting both surface and underground operations) on Milestone 2 (“Equipment”). At the time of conveyance and sublease of all Equipment,
Armstrong shall prepare complete exhibits to be 

  
 - 29 -

 
attached as exhibits to the Bill of Sale and Sublease attached hereto in Exhibit D, All owned Equipment shall be by bill of sale. Conveyance of leased Equipment shall be by means of a
sublease whereby the Company will receive the benefit of use of such equipment and the residual interest (if any) in the equipment upon satisfaction of the underlying lease obligations (without mark-up or additional rental owed to Armstrong). The
Company will provide Armstrong the first-priority, rent-free right to possess and use all of the Equipment pursuant to a Use Agreement consistent with the terms stated herein and the further terms set forth on Exhibit D. Armstrong shall be
responsible to pay all underlying lease obligations for so long as any leased Equipment is being used in Armstrong’s Parkway #9 operations. Pursuant to the Use Agreement, Armstrong shall be responsible to pay all operating costs associated with
or arising from operation of Parkway prep plant and Equipment, including but not limited to any utilities and maintenance costs, until such time as the Company begins mining the #8 seam of coal. When the Company begins mining the #8 seam, the
Company and Armstrong shall prorate the operation costs of the Parkway prep plant and related Equipment, excluding Equipment dedicated solely to the #9 mining operations, based on their production from both seams. As Armstrong depletes the #9 seam
reserves at Parkway and ceases using particular items of Equipment, the Use Agreement shall terminate as to such items, and possession will be delivered to the Company. 
 Contribution by Armstrong and/or its Affiliates of rights to the Gibraltar Haulroad and Access Road pursuant to a Non-Exclusive Haulroad Easement Agreement. 

-Cyprus to contribute reserves and property rights as follows: 
 Contribution to the Company by Cyprus and/or its Affiliates of all Kentucky #8 coal reserves located within the Comprehensive Mining Area, now or hereafter owned or leased by Cyprus or its Affiliates, by
the Lease and Sublease Agreement described on Exhibit D, all such leased and subleased interests being contributed free from and not subject to any obligations of royalty interests, overriding royalty interests, premiums or rentals to any
Person, except for the royalty obligations due to any original Lessor of the subleased interests. Company will reimburse Cyprus for advance royalties paid in 2012 for leased Rogers #8 coal reserves. 1 

Contribution by Cyprus and/or its Affiliates of rights to the Gibraltar Haulroad and Access Road pursuant to Non-Exclusive Haulroad Easement Agreements.

 III. Milestone 3 
 Milestone 3 occurs
upon the completion of mine construction as determined by the Board of Managers (projected to occur in August 2013). 

Contributions: 

-Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to acquire a full underground unit of
equipment as determined by the Board of Managers, which is projected to include two JOY 1415 continuous miners, four BH10 battery haulers, two Fletcher double boom roof bolters, one BF17 JOY feeder, two scoops, two 14 place mantrips, three tow man
rides, power distribution equipment, coal handling equipment (headers, etc.) and any other equipment or supplies necessary to operate one split air supersection. 

 

	1	Upon completion of permitting Cyprus shall acquire a new #8 coal lease from the Rogers to extend the existing 1993 lease and will subsequently sublease those leasehold
interests to the Company. 

  
 - 30 -

 IV. Milestone 4 
 Milestone 4 occurs following the completion of mine construction and prior to mining as determined by the Board of Managers (projected to occur in August 2013). Following the occurrence of Milestone
4, the Company will begin mining the #8 seam. 
 Contributions: 

-Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to upgrade the Parkway preparation plant
to allow for processing of additional tonnage as determined by the Board of Managers. Cost of operation of the preparation plant will be shared on a prorata basis by Armstrong and Survant as long as Armstrong continues to operate in the #9 seam.

 VI. TV A Contract. To the extent any coal is sold by the Company under Armstrong’s existing contract with Tennessee Valley Authority, TVA
Contract No, 40685, Armstrong shall remit to the Company the net proceeds attributable to the sale of such coal, without mark-up or additional costs or charges to the Company pursuant to a pass-through agreement acceptable to the Board of Managers.
The Sales Representation Agreement requires payment for all coal mined removed and sold by the Company, including any coal passed through Armstrong contracts. 
 Notwithstanding any provision of this Agreement, neither Member is making any representation or warranty concerning the condition or quality of its properties being contributed hereunder, and neither
Member shall be determined to have failed to remit its capital contributions or be liable to the Company or the other Member based on any subsequent determination that any portion of the Member’s capital contributions consisting of owned or
leased real property is unable to be used, developed or mined for any reason or is not used, mined and/or developed for any reason or the Member’s title to any such property is found to be defective or the estimated tonnages of any coal
reserves provided for herein are determined to be inaccurate or due to any aspect of the condition, fitness or serviceability of any of the Equipment, Buildings, or other facilities described herein. The Members agree that certain surface properties
(being those tracts subdivided by the “New Division Line”) to be contributed to the Company by Armstrong will be surveyed to effectively subdivide the tracts and that neither Member will be entitled to seek adjustment of their respective
Percentage Interests in the Company or otherwise be liable to the Company or the other Member by reason of any determination of any deviation between the representations contained in the lease and the surveyed acreage of those surface properties.

  
 - 31 -

 EXHIBIT B 
 COMPREHENSIVE MINING AREA 

  
 - 32 -

 

 

 EXHIBIT C 
 EXCLUSION AREAS 

  
 - 33 -

 

 

 EXHIBIT D 
 TO 
 OPERATING AGREEMENT 

Forms of Contribution Conveyancing Documents 
 1. Coal Mining Lease and Sublease — CCLR & Survant — Owned #8 Coal, Leased 1993 and 2013 Rogers #8 Coal, and Leased Duncan #8 Coal. 

2. Memorandum of Coal Mining Lease and Sublease — CCLR & Survant — Owned #8 Coal, Leased 1993 and 2013 Rogers #8 Coal, and Lease Duncan
#8 Coal. 
 3. Rogers Consent to Sublease 1993 #8 Leased Coal. 
 4. Rogers Consent to Sublease 2013 #8 Leased Coal. 
 5. Duncan Consent to Sublease Portions of #8
Coal. 
 6. Non-Exclusive Haulroad & Access Easement — CCLC & Survant — Under review by Armstrong. To be mutually
agreed by the parties within 30 days of the date of the Operating Agreement. 
 7. Non-Exclusive Haulroad Easement — CCLC &
Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of the Operating Agreement. 
 8.
Non-Exclusive Haulroad Easement — CCLC & Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of the Operating Agreement. 

9. Quitclaim Deed — WMD and WLC — 39.45% interest 4,782 acres of Owned Gibraltar Surface. 

10. Quitclaim Deed — WMD and WLC — 39.45% interest in 661.54 acres of Owned Parkway Surface. 

11. Special Warranty Deed — WLC and Survant — 100% Interest in 1,977 acres of Owned Surface with deed-in provisions (1,628 acres from Gibraltar;
349 acres from Parkway). 
 12. Rogers Partial Release of Right of First Refusal to Purchase — Rogers, WLC, Survant. 

13. Non-Exclusive Haulroad Easement (Gibraltar HR and Access Road — WLC, Armstrong, Survant — Under review by Armstrong. To be mutually agreed
by the parties within 30 days of the date of the Operating Agreement. 

  
 - 34 -

 14. Bill of Sale — Armstrong Owned Equipment — Armstrong & Survant. 

15. Equipment Sublease — Armstrong Leased Equipment — Armstrong & Survant. 
 16. Use Agreement — To be drafted post-closing and mutually agreed by the parties within 30 days of the date of the Operating Agreement, which agreement will contain the following basic terms:

 - Armstrong shall have the first-priority, rent-free right to possess and use all of the Equipment as needed
in its #9 seam mining operations. 
 -Armstrong shall have no obligation to pay rent or use fees for the
Equipment. 
 -Armstrong shall insure and maintain the Equipment at its cost until possession is delivered to
Survant. 
 -Armstrong shall pay operating costs. 

-Armstrong shall indemnify Survant for any liabilities and claims related to Armstrong’s use of the Equipment.

 -As Armstrong depletes the #9 seam reserves at Parkway and ceases using particular items of Equipment, the Use
Agreement shall terminate as to such items, and possession will be delivered to the Company. 

  
 - 35 -

 Exhibit T 
 EXHIBIT T 
 TO 

ASSET PURCHASE AGREEMENT 
 Sales Representation Agreement 
 for Survant Mining Company, LLC

 SALES REPRESENTATION AGREEMENT 

THIS SALES REPRESENTATION AGREEMENT (“Agreement”) made and entered into as of the 29th day of December, 2011, by and
among Survant Mining Company, LLC, a Delaware limited liability company (“SURVANT”) with a mailing address of 407 Brown Road, Madisonville, KY 42431 and PEABODY COALSALES, LLC, a Delaware limited liability company with its principal place
of business at 701 Market Street, St. Louis, Missouri 63101 (“COALSALES”). 
 W I T N E S S E T H: 

WHEREAS, SURVANT is a coal company which owns, leases or otherwise controls Kentucky #8 seam coal reserves located in Muhlenberg
County, Kentucky (the “SURVANT Reserves”) and is jointly owned by Armstrong Coal Company, Inc. (“Armstrong”) and Cyprus Creek Land Resources, LLC (“Cyprus”); and 

WHEREAS, SURVANT is governed by the terms and conditions contained in a certain Limited Liability Company Agreement dated the 29th
day of December, 2011 (the “Operating Agreement”); and 
 WHEREAS, SURVANT desires to find customers and
develop markets for coal to be produced from the SURVANT Reserves; and 
 WHEREAS, COALSALES has particular expertise and
knowledge in the area of coal sales, marketing, domestic and export sales and related services and represents producers of similar coals in domestic markets; and 
 WHEREAS, COALSALES is willing to serve as sales agent and/or to purchase coal from SURVANT upon the terms and conditions set forth in this Agreement; 

WHEREAS, SURVANT and COALSALES wish to establish the terms and conditions under which COALSALES shall market and sell coal
produced by SURVANT and to compensate COALSALES for the same; 
 NOW THEREFORE, in consideration of the foregoing
premises, the mutual covenants and promises herein contained, and for other good and valuable consideration, the reciept and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 

ARTICLE ONE — SALES AGENCIES 
 1.1 SURVANT hereby appoints COALSALES, and COALSALES hereby accepts the appointment, to act as Survant’s agent for the sale of coal (subject to the procedures under Article Two) from the
SURVANT Reserves which is to be sold in domestic markets. 
 1.2 It is further expressly understood that while COALSALES
will sell coal produced, owned, or marketed by companies other than SURVANT and will also act as agent for such other companies in the sale of their coal, COALSALES shall give fair representation in accordance with industry trade practices and
customs to SURVANT at 

  
 1 

 
all times and will, where the coal quality and rail access requirements of a potential purchaser can be satisfied by SURVANT’s coal from the SURVANT Reserves and COALSALES has no superior
obligation to any other company which it represents, due to a previously executed representation agreement, give preference to SURVANT’s coal from the SURVANT Reserves. 
 1.3 SURVANT and its affiliates hereby represent and warrant to COALSALES that there is no current sales representation agreement between SURVANT and any other third party with respect to the
SURVANT Reserves and SURVANT and its affiliates, hereby agree not to enter into any other new sales representation agreement with respect to the SURVANT Reserves that would prevent COALSALES from receiving its commission described in section 2.2.

 1.4 The relationship of SURVANT and COALSALES shall be that of an independent contractor, and nothing contained in this
Agreement shall be construed or interpreted as: (i) establishing a relationship of partners, co-owners or otherwise as participants in a joint venture; (ii) creating a franchisor-franchisee or employer-employee relationship;
(iii) constituting SURVANT, its respective agents or employees as the agents or employees of COALSALES or to grant to SURVANT any power or authority to act for, bind or otherwise create or assume any obligation on behalf of COALSALES; or
(iv) constituting COALSALES, its agents or employees as the agents or employees of any of SURVANT (except for the appointment as sales agent as set forth herein) or to grant to COALSALES any power or authority to act for, bind or otherwise
create or assume any obligation on behalf of SURVANT. All offers, proposals and other submissions to customers by COALSALES in its sales agent capacity shall be subject to acceptance of such offer or proposal by SURVANT. 

ARTICLE TWO — COMPENSATION 
 2.1 All costs and expenses of whatever kind and nature incurred by COALSALES as a result of the sales representation of coal pursuant to Article One hereof, shall be solely for its own account
and SURVANT shall have no obligation to advance to COALSALES, or reimburse it for, any such cost or expense. 
 2.2 For
all coal produced and sold from the SURVANT Reserves during the Term of this Agreement; COALSALES shall be paid a commission of Twenty-Five cents ($0.25) per ton on a monthly basis, payable by the 25th day of the following month. 

2.3 Compensation Due Under Armstrong Sales Contracts. The parties understand and agree that coal produced from the Survant
Reserves may be sold under supply agreements and contracts between Armstrong and third party customers, including but not limited to TVA, and that COALSALES will be paid the commission described in Section 2.2 above for all coal from the
Survant Reserves sold under any such agreement or contract. 
 ARTICLE THREE — RESPONSIBILITY FOR 

PERFORMANCE OF COAL CONTRACTS, INDEMNIFICATION 
 3.1 SURVANT shall be solely responsible for the full and due performance of all contracts which it enters into with COALSALES or any third party as a result of this Agreement and SURVANT shall
indemnify COALSALES against liability for any loss, 

  
 2 

 
damage, or injury suffered by COALSALES arising out of or related to SURVANT’s performance or non-performance of any contract, unless such liability is proximately caused by the willful acts
or gross negligence acts of COALSALES. SURVANT shall be solely responsible for the costs of any analysis, washability, or reserves studies. 
 3.2 COALSALES shall: (i) respond promptly to any reasonable request by SURVANT for market information affecting the market for all coal; (ii) cooperate with SURVANT in dealing with any
customer complaints concerning sales of coal hereunder; and (iii) assist SURVANT with other customer support activities related to such coal sales orders. 
 3.3 SURVANT shall: (i) communicate promptly to COALSALES all inquiries from customers for purposes of handling and quotation; (ii) comply with the terms of all such coal sales orders; and
(iii) communicate to COALSALES, in writing, at least once prior to the end of each month of their anticipated monthly shipments by destination, coal type and tonnage, and any planned mine outages or potential shipping/delivery problems, for the
following month. This communication should compare anticipated monthly availability of such coal products against anticipated sales to provide COALSALES with projected supply shortfalls and/or uncommitted tonnage. 

3.4 Disclaimer of Fiduciary Obligation. SURVANT agrees and acknowledges that COALSALES acts as a sales agent or sales
representative, or both, for other producers (including its affiliates), brokers coal, and buys and sells coal on its own behalf and on behalf of its affiliates. COALSALES expressly disclaims any fiduciary obligation to SURVANT, or any other
obligation not expressly set forth herein. 
 3.5 Compliance with Laws. The parties shall comply with all laws,
orders, rules, regulations, and requirements of every duly constituted governmental authority, agency, or instrumentality, which may be applicable to this Agreement or its subject matter, including but not limited to US Anti-trust and state unfair
competition laws and the Foreign Corrupt Practices Act and The Patriot Act. 
 3.6 Joint Customers. In the event a
solicitation is requested from a prospective customer which COALSALES is also submitting a bid for its own account, then SURVANT will deliver the bid to such prospective customer, with its price independent of COALSALES. If SURVANT is successful in
obtaining the sale, COALSALES will handle the ongoing relationship with the customer in accordance with this Agreement. 

ARTICLE FOUR — TERM AND TERMINATION 
 4.1 Subject to earlier termination as provided for in Section 4.2 below, this Agreement shall be for an initial term of three (3) years beginning on the date first above written, and
shall be automatically renewed from year to year thereafter without further action of the parties required, as long as SURVANT remains in existence and coal is produced from the SURVANT Reserves (the “Term”). 

  
 3 

 4.2 Events of Default. An event of default (“Event of
Default”) with respect to SURVANT shall mean any of the following: (i) the failure of SURVANT to pay when due any required payment under this Agreement and such failure is not remedied within five (5) business days after written
notice thereof; (ii) the failure of SURVANT to comply with its other material obligations under this Agreement; (iii) SURVANT shall be subject to a Bankruptcy Proceeding; or (iv) any representation or warranty made by SURVANT under
this Agreement shall prove to be untrue when made in any material respect. An Event of Default with respect to COALSALES shall mean any of the following: (i) the failure of COALSALES to comply with its material obligations under this Agreement;
and (ii) any representation or warranty made by COALSALES under this Agreement shall prove to be untrue when made in any material respect. If any default, other than a payment default (as to which the 5 business day cure period above applies),
is curable, it may be cured (and no Event of Default will have occurred) if the defaulting party (“Defaulting Party”), as the case may be, after receiving written notice demanding cure of such default (1) shall cure the default within
thirty (30) days; or (2) if the cure requires more than thirty (30) days, shall immediately initiate reasonable steps sufficient to cure the default and thereafter continue and complete all reasonable and necessary steps sufficient to
cure the breach as soon as reasonably practical. Upon the occurrence and during the continuation of an Event of Default as to the Defaulting Party, the other party (the “Non-Defaulting Party”) may, in its sole discretion, accelerate
and liquidate the Defaulting Party’s obligations under this Agreement by establishing and notifying the Defaulting Party of, an early termination date (which shall be no earlier than the date of such notice) on which the Term of this Agreement
shall terminate (“Early Termination Date”). If notice of an Early Termination Date is given under this Section 4.2, the Early Termination Date will occur on the designated date, whether or not the relevant Event of Default is
then continuing. Any rights of a Non-Defaulting Party under this Section 5.2 shall be in addition to such Non-Defaulting Party’s other rights under this Agreement. In the event Cyprus ceases to be a member of SURVANT pursuant to the
Operating Agreement, SURVANT shall have the right to terminate the Term of this Agreement effective on the date Cyprus ceases to be a member. 
 ARTICLE FIVE — GENERAL PROVISIONS 
 5.1 ASSIGNMENT.
Neither party may assign its rights or obligations under this Agreement without the written consent of the other party. 
 5.2
NOTICE. Notice sent by certified mail, or hand delivered, addressed to the president or a vice president of the party to whom such notice is given at the address listed in this Agreement shall be sufficient notice in any case requiring
notice under this Agreement. At any time, any party may specify in writing a new address for notifications hereunder. 
 5.3
LIABILITY AND INDEMNIFICATION. As between the parties hereto, any party shall be liable to the others for the death of or injury to any employee of the other parties, or loss of or damage to the property of the other parties, unless
proximately caused by the assertly liable party’s negligence or willful action. Each party shall indemnify the other party against any liability for the death of or injury to any of its own employees, or loss of or damage to its own property,
unless caused by the sole negligence or willful action of the other party. Each party shall indemnify the other party against any liability for any loss, damage, or injury suffered by any third party and arising out of the parties’ performance
of this Agreement except where such loss is proximately caused solely by one party’s negligence or willful action, and the parties shall bear equal liability for such loss, damage or injury where caused by their joint negligence or willful
actions. 

  
 4 

 5.4 COMPLIANCE WITH LAWS. SURVANT and COALSALES represent that they will
comply with all applicable laws and regulations. 
 5.5 ACCESS TO INFORMATION. Each party shall have access to
applicable data in the possession of the other parties in order to fulfill their respective obligations to third parties. However, each party shall maintain such data on a confidential basis and not disclose such data to third parties without the
prior written consent of the other parties. This provision shall survive termination of this Agreement. 
 5.6 FORCE
MAJEURE. In the event the obligations of the parties under this Agreement shall be prevented, delayed, suspended or reduced by Force Majeure, then the party experiencing such Force Majeure shall promptly notify the other party and, to the
extent caused by Force Majeure, performance hereunder shall be excused. A “Force Majeure” event shall mean: acts of God, acts of local, state, tribal or federal government, war, labor shortage, strikes or similar labor interruptions,
accidents, or any other cause, whether of like or dissimilar nature, beyond the control of any party. 
 5.7
NON-WAIVER. The failure by any party to insist on compliance with one or more of the provisions of this Agreement shall not serve as a waiver of any other provisions of this Agreement. 

5.8 PERMITS AND RECLAMATION. SURVANT represents and warrants that it will conduct all of its mining and other operations in
accordance with all federal and state requirements and abide by the terms and conditions of all of its permits. SURVANT has or will acquire and maintain all of the necessary permits and licenses required to conduct its mining and other operations on
the SURVANT Reserves and will perform reclamation in accordance with its permits. 
 5.9 COUNTERPARTS. This
Agreement may be signed in counterparts, including facsimile signatures, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument. 

5.10 CONSENT TO JURSIDICTION. SURVANT and COALSALES agree that any action or proceeding initiated by or on behalf of any
party regarding any dispute under this Agreement, shall be commenced and maintained in the District Court of the United States for the Eastern District of Missouri, or the Circuit Court of St. Louis County, St. Louis, Missouri, or any other court of
applicable jurisdiction located in St. Louis County, Missouri. The parties also agree that a summons and complaint commencing an action or proceeding in any such Missouri court by or on behalf of such party or parties shall be properly served and
shall confer personal jurisdiction on a party (to which jurisdiction each party consents and submits itself, waiving any objection based upon forum non conveniens and any objection to venue of any action instituted hereunder), if
(i) served personally or by certified mail to each other party at its respective address set forth in this Agreement, or (ii) as otherwise provided under the laws of the State of Missouri. 

  
 5 

 5.11 WAIVER OF JURY TRIAL. Each of the parties hereto hereby irrevocably
waives any and all rights each may have to a trial by jury in any action, proceeding or claim of any nature relating to this Agreement, any documents executed in connection 
 with this Agreement, or any transaction contemplated herein. Each of the parties acknowledges that the foregoing waiver is knowing and voluntary. 

5.12 GOVERNING LAW. This Agreement shall be governed by and interpreted in accordance with the laws of the State of
Missouri, without regard to any conflict of laws principles. 
 5.13 ENTIRE AGREEMENT. This Agreement and the
Operating Agreement constitute the entire Agreement of the parties, and supersedes all prior negotiations, understandings and writings between the parties, as to the matters covered herein. Any and all sales contracts entered into during the term of
this Agreement shall be governed solely by the provisions of such contracts and of this Agreement. Where the provisions of a sales contract is at variance with this Agreement, the two documents shall, to the extent possible, be interpreted in a
harmonious manner; provided, however, that where it is not possible to harmoniously interpret the two documents, the provision of the sales contract shall prevail. In the event of a conflict between the terms of this Agreement and the Operating
Agreement, the terms of the Operating Agreement shall prevail. This Agreement may only be modified by written amendment executed by all parties. 
 5.14 THIRD PARTIES. Nothing in this Agreement is intended or shall be construed to confer any rights, remedies or benefits on any person or entity other than SURVANT and COALSALES.

 5.15 CAPTIONS. Section and paragraph titles or captions contained in this Agreement are inserted only as a
matter of convenience and for reference and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision hereof. 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly constituted officers as of the day and year first written above. 

 

							
	SURVANT MINING COMPANY, LLC	  	PEABODY COALSALES, LLC
				
	By:	 	  
	  	By:	 	  

	Title:	 	  
	  	Title:	 	  

  
 6EX-10.48

 Exhibit 10.48 
 FORMATION AND TRANSFER AGREEMENT 
 THIS
FORMATION AND TRANSFER AGREEMENT (this “Agreement”) is made, entered into and effective as of the
29th day of December, 2011 by and among Cyprus Creek
Land Resources, LLC, a Delaware limited liability company with principal offices at 701 Market Street, Suite 798, St. Louis, Missouri 63101 (“Cyprus”) and Cyprus Creek Land Company, a Delaware corporation with its offices
at 701 Market Street, Suite 772, St. Louis, Missouri 63101; and Armstrong Coal Company, Inc., a Delaware corporation with principal offices at 7733 Forsyth Boulevard, Suite 1625, St. Louis, Missouri 63105 (herein
“Armstrong”), and Western Land Company, LLC, a Kentucky limited liability company with its office at 407 Brown Road, Madisonville, Kentucky 42431. 
 RECITALS 
 A. Cyprus and Armstrong desire to form a limited
liability company under the laws of the State of Delaware and intend to enter into a Certificate of Formation and a Limited Liability Company Agreement, as described herein (collectively, the “Organization Documents”), to form the proposed
limited liability company under the name Survant Mining Company, LLC (herein the “Company”). The parties acknowledge and ratify the filing of the Certificate of Formation for the Company on November 29, 2011 with the Secretary of
State of Delaware. 
 B. Cyprus and Armstrong desire to set out in this Agreement the documents and procedures to be taken
in connection with the formation of the Company and the fulfillment of the initial capital contributions and scheduled capital contributions to the Company as further described in the Organization Documents. 

C. The parties to this Agreement further desire to set out in this Agreement (i) certain conditions to the closing of the
formation of the Company and the completion of the initial capital contributions and scheduled capital contributions, and (ii) certain other terms, provisions, representations and warranties relating to the formation of the Company and the
assets comprising the initial capital contributions and scheduled capital contributions to the Company. 
 D. Cyprus Creek
Land Company is an affiliate of Cyprus and desires to join in the execution of this Agreement for the purpose of acknowledging its agreement to join in the execution of the Conveyance Documents. 

E. Western Land Company, LLC is an affiliate of Armstrong and desires to join in the execution of this Agreement for the purpose of
acknowledging its agreement to join in the execution of the Conveyance Documents. Pursuant to Section 4 of that certain Royalty Deferment and Option Agreement dated October 11, 2011, Western Mineral Development, LLC is contractually
obligated to quitclaim its interests in the Armstrong Assets to Western Land Company, LLC. 
 12/28/11 

  
 1 

 AGREEMENT 

In consideration of the foregoing Recitals which are incorporated herein, the mutual covenants contained in this Agreement and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows: 
 1. Definitions. As used herein, the following terms shall have the following meanings: 
 1.1 Agreement: This Formation and Transfer Agreement, including all exhibits hereto. 
 1.2 Armstrong: Armstrong Coal Company, Inc., a Delaware corporation. 
 1.3
Armstrong Assets: As defined in Section 4.2. 
 1.4 Armstrong Representations and Warranties: As defined in
Section 9. 
 1.5 Closing: As defined in Section 8. 

1.6 Closing Agenda: As defined in Section 7. 
 1.7 Closing Date: As defined in Section 8. 
 1.8 Closing
Documents: As defined in Section 7. 
 1.9 Company: Survant Mining Company, LLC, a Delaware limited liability
company to be formed pursuant to the terms of this Agreement. 
 1.10 Conveyance Documents: The deeds, leases, subleases,
agreements and instruments listed on Schedule 1 attached hereto, substantially in the forms attached hereto but with such modifications that are reasonably requested by either party that do not alter in any material respect the nature or extent
of the Scheduled Capital Contributions or the substantive rights of the parties pursuant to the Organization Documents. 
 1.11
Cyprus: Cyprus Creek Land Resources, LLC, a Delaware limited liability company. 
 1.12 Cyprus Assets: As defined
in Section 4.1. 
 1.13 Cyprus Representations and Warranties: As defined in Section 10. 

1.14 Indemnity Claim: As defined in Section 11.2. 
 1.15 Initial Capital Contributions: The Initial Capital Contributions described in Section 4. 
 1.16 Members: Cyprus and Armstrong and their respective successors, if any, under the Organization Documents. 
 1.17 Notices: As defined in Section 13.7. 
 1.18 Organization
Documents: As defined in Recital A. 
 1.18 Scheduled Capital Contributions: The Scheduled Capital Contributions
described in Section 4. 

  
 2 

 2. Formation of the Company. Subject to the terms and conditions of this
Agreement, Cyprus and Armstrong hereby agree to form the Company under the laws of the State of Delaware, and further agree to make their respective Initial Capital Contributions and Scheduled Capital Contributions to the Company as described in
Section 4. The Company shall be established upon the execution of the Limited Liability Company Agreement attached hereto as Exhibit A. The terms of the Organization Documents shall govern the rights, interests, duties and obligations of
the Members relative to the Company, and shall govern over any conflicting provisions contained in this Agreement. 

3. Members’ Interest in the Company. Upon the Closing and formation of the Company, Armstrong shall have a member
interest in the Company of 51% and Cyprus shall have a member interest in the Company of 49%, as further set forth in, and governed by the terms of, the Limited Liability Company Agreement. 

4. Initial Capital Contributions and Scheduled Capital Contributions to the Company. Subject to the terms and provisions of
this Agreement and upon the fulfillment of the conditions precedent set out or described in Section 6 and the execution of the Organization Documents by both Members, (a) each Member shall, upon execution of the Organization Documents by
both members, make its initial capital contribution to the Company of $30,000.00 in cash (the “Initial Capital Contributions”), and (b) on the milestone dates set forth in the “Contribution Schedule” attached as
Exhibit A to the Limited Liability Company Agreement (the “Contribution Schedule”), each Member shall make their respective additional contributions of property as indicated in the Contribution Schedule (collectively, the
“Scheduled Capital Contributions”). 
 4.1 Scheduled Capital Contribution by Cyprus. Cyprus shall contribute to
the Company, by means of the applicable Conveyance Documents, those assets, agreements and interests in real property described on the Contribution Schedule (“Cyprus Assets”), consisting primarily of coal reserves and property rights
located in Muhlenberg County, Kentucky. The parties agree that the fair market value of the Cyprus Assets is $44,492,000.00. Cyprus Creek Land Company hereby agrees to join in the execution of the Conveyance Documents. 

4.2 Scheduled Capital Contribution by Armstrong. Armstrong shall contribute to the Company, by means of the applicable Conveyance
Documents, those assets, agreements and interests in real property described on the Contribution Schedule (the “Armstrong Assets”). The parties agree that the fair market value of the Armstrong Assets is $46,308,000.00. Western Land
Company, LLC hereby agrees to join in the execution of the Conveyance Documents. 
 5. Closing. The Closing of the
transactions contemplated by this Agreement shall be conducted in accordance with Section 8 hereto and the operations of the Company shall commence as of the Closing Date. 
 6. Conditions Precedent to Formation. The obligations of both Cyprus and Armstrong to execute (or cause the execution of) the Organization Documents and make, or cause to be made, the Initial
Capital Contributions and complete the other transactions described in this Agreement are subject to the completion of all of the items comprising the Closing Agenda, or the mutual waiver by Cyprus and Armstrong of completion of any items not so
completed. It is a further condition each party’s obligation to close the transactions set forth in this Agreement that all representations and warranties made by the other party in Subsection 9 and 10 respectively remain true and accurate as
of the Closing Date. 

  
 3 

 7. Closing Agenda. The contribution by the Company Members of their respective
Initial Capital Contributions, and the completion of the other transactions set forth herein, shall be effected by the execution and delivery of all the documents listed on Schedule 7 to this Agreement and such other documents as are necessary
or desirable in connection therewith or which are otherwise referred to in this Agreement (the “Closing Documents”). The Closing Documents shall be in form and substance acceptable to both Cyprus and Armstrong and shall be consistent with
the terms of this Agreement. Cyprus and Armstrong acknowledge that included within the Closing Documents are certain third-party consents, certificates, opinions and approvals. The parties agree to cooperate and proceed diligently with the
acquisition of such third-party items, but do not waive the requirement that all Closing Documents, including the third-party consents listed in the Closing Documents, be obtained or be hereafter waived in writing by Cyprus and Armstrong as a
condition to Closing. All of the activities described in this Section 7 are collectively described as the “Closing Agenda.” 
 8. Closing Date. The parties shall proceed diligently with the preparation of the Closing Documents, and the fulfillment of the other conditions precedent set out in Section 6, so that
the formation and effectiveness of the Company, and the completion of the Initial Capital Contributions by the Company Members (collectively, the “Closing”) occurs on or prior to December 29th, 2011 (the “Closing Date”). If the Closing does not occur
by the Closing Date for any reason, and the Closing is not extended by the mutual agreement of Cyprus and Armstrong, then this Agreement shall terminate and be null and void and of no further force or effect. 

9. Representation and Warranties of Armstrong. Armstrong hereby represents and warrants to Cyprus as follows, which
representations and warranties constitute a material inducement to Cyprus’s entering into this Agreement, and performing hereunder, including, without limitation, making its Initial Capital Contribution and Scheduled Capital Contributions. The
representations and warranties of Armstrong set forth herein or in any of the Closing Documents (collectively the “Armstrong Representations and Warranties”) shall be deemed to be remade as of the Closing and shall survive the Closing,
including the execution and delivery of the Closing Documents. 
 9.1 Due Organization. Armstrong is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware, has the power and authority to own its property and carry on its business as owned and carried on as of the date hereof. 

9.2 Due Authorization. Armstrong has the requisite power and authority to execute and deliver this Agreement and the Closing
Documents to which it is a party and to perform its obligations hereunder and thereunder. The execution, delivery, and performance of this Agreement and the Closing Documents to which Armstrong is a party have been duly authorized by Armstrong. This
Agreement has been, and the Closing Documents when executed and delivered by Armstrong will be, duly executed and delivered by Armstrong. This Agreement constitutes, and the Closing Documents when so executed shall constitute, the legal, valid and
binding obligations of Armstrong enforceable in accordance with their respective terms. 

  
 4 

 9.3 No Conflict with Restrictions; No Default. Neither the execution, delivery or
performance of this Agreement or the Closing Documents by Armstrong shall: (i) conflict with, violate or result in a breach of any of the terms, conditions or provisions of any law, regulation, order, writ, injunction, decree, determination or
award of any court, any governmental department, board, agency or instrumentality, domestic or foreign, or any arbitrator which are applicable to Armstrong; (ii) conflict with or violate any of the terms, conditions or provisions of the
certificate of incorporation of Armstrong; or (iii) result in the creation or imposition of any lien upon the Company (except the pledge of members interests in favor of PNC Bank, as contemplated in the Limited Liability Company Agreement) or
any of the Armstrong Assets. 
 9.4 Governmental Authorizations and Third-Party Consents. There is no registration,
declaration or filing with, or consent, approval, license, permit or authorization or order by any governmental or regulatory authority, domestic or foreign, or by any third party which is required in connection with the valid execution, delivery
and acceptance by Armstrong of this Agreement or the Closing Documents that has not been obtained. 
 9.5 Permittee
Status. Armstrong represents and warrants that, to Armstrong’s knowledge, neither it nor any of its owners, nor any entity owned or controlled by any of its owners, has been notified by any state or federal agency that any of the entities
listed above is ineligible to receive coal mining permits in any state. 
 9.6 Litigation. Except as disclosed on
Schedule 9.6 to this Agreement, there are no claims, actions, suits, proceedings or investigations pending before or being conducted by any court, government officer or agency, or arbitrator relating to Armstrong which could reasonably be
expected to materially affect Armstrong’s ability to enter into this Agreement, to complete the actions contained in the Closing Agenda, or to make its Initial Capital Contribution. To the best of the knowledge of Armstrong, no such claims,
actions, suits, proceedings or investigations are threatened. 
 10. Representation and Warranties of Cyprus. Cyprus
hereby represents and warrants to Armstrong as follows, which representations and warranties constitute a material inducement to Armstrong entering into this Agreement and making its Initial Capital Contribution and Scheduled Capital Contributions.
The representations and warranties of Cyprus set forth herein or in any of the Closing Documents (collectively the “Cyprus Representations and Warranties”) shall be deemed to be remade as of the Closing and shall survive the Closing,
including the execution and delivery of the Closing Documents. 
 10.1 Due Formation. Cyprus is a Delaware limited
liability company and has the power and authority to own its property and carry on its business as owned and carried on as of the date hereof. 
 10.2 Due Authorization. Cyprus has the power and authority to execute and deliver this Agreement and to perform its obligations hereunder and thereunder. The execution and delivery of this
Agreement has been duly authorized by its sole member. This Agreement has been, and the Closing Documents when authorized, executed and delivered by Cyprus will have been, duly executed and delivered by Cyprus. This Agreement constitutes, and the
Closing Documents when so executed shall constitute, the legal, valid and binding obligations of Cyprus enforceable in accordance with their respective terms. 

  
 5 

 10.3 No Conflict With Restrictions; No Default. Neither the execution, delivery or
performance of this Agreement or the Closing Documents by Cyprus shall: (i) conflict with, violate or result in a breach of any of the terms, conditions or provisions of any law, regulation, order, writ, injunction, decree, determination or
award of any court, any governmental department, board, agency or instrumentality, domestic or foreign, or any arbitrator which are applicable to Cyprus; (ii) conflict with or violate any of the terms, conditions or provisions of the
organizational agreements of Cyprus; or (iii) result in the creation or imposition of any lien upon the Company or any of the Cyprus Assets. 
 10.4 Governmental Authorizations and Third-Party Consents. There is no registration, declaration or filing with, or consent, approval, license, permit or authorization or order by any governmental
or regulatory authority, domestic or foreign, or by any third party which is required in connection with the valid execution, delivery or acceptance by Cyprus of this Agreement or the Closing Documents that has not been obtained. 

10.5 Permittee Status. Cyprus represents and warrants that, to its knowledge, neither it nor any of its owners, nor any entity
owned or controlled by any of its owners, has been notified by any state or federal agency that any of the entities listed above is ineligible to receive coal mining permits in any state. 

10.6 Litigation. Except as disclosed on Schedule 10.6 to this Agreement, there are no claims, actions, suits, proceedings or
investigations pending before or being conducted by any court, government officer or agency, or arbitrator relating to Cyprus which could reasonably be expected to materially affect Cyprus’s ability to enter into this Agreement, to complete the
actions contained in the Closing Agenda, or to make its Initial Capital Contribution. To the best of the knowledge of Cyprus, no such claims, actions, suits, proceedings or investigations are threatened. 

11. Indemnification. In addition to any other indemnity obligations set out in this Agreement, Armstrong hereby agrees to
indemnify and hold Cyprus harmless, and Cyprus hereby agrees to indemnify and hold Armstrong harmless, from and against any and all claims, demands, suits, proceedings, judgments, losses, liabilities, damages, costs and expenses of every kind and
nature (including, but not limited to, reasonable attorneys’ fees and any and all related litigation costs and expenses as a consequence of any such proceedings described in this Section 11), imposed upon or incurred by the indemnified
party as a result of or in connection with (i) any misrepresentation or breach of warranty or failure of any of the representations and warranties made by the indemnifying party in or pursuant to this Agreement (or any Closing Document) to have
been true and complete in all material respects as of the Closing (“Representation Indemnity Claim”) or (ii) any breach of any covenant or agreement of the indemnifying party set forth herein or in any of the Closing Documents
(“Covenant Indemnity Claim”; Representation Indemnity Claims and Covenant Indemnity Claims are collectively referred to as “Indemnity Claims”). 
 11.1 Notice of Indemnity Claim. If a party intends to assert an Indemnity Claim, it shall provide the other party with written notice of such Indemnity Claim promptly after the facts providing the
basis for such Indemnity Claim are known. No Representation Indemnity Claim may be asserted after 18 months from the Closing Date, but any Representation Indemnity Claim made prior to 18 months from the Closing Date shall remain valid and
enforceable. Except for statutes of limitation under applicable law, there are no time limits for Covenant Indemnity Claims. An Indemnity Claim notice shall set forth, in detail, the specific character and factual basis for each individual Indemnity
Claim asserted therein. At the time the Indemnity Claim is made and thereafter, any party asserting the Indemnity Claim shall provide 

  
 6 

 
the other party with copies of any materials in its possession describing the facts or containing information providing the basis for the Indemnity Claim. If the indemnity Claim involves a claim
by a third party, the party against which the Indemnity Claim is asserted may assume, at its sole expense, the defense of the claim by the third party if such party against which the Indemnity Claim is asserted agrees in writing with respect to such
Indemnity Claim that it is obligated hereunder to indemnify and hold the party asserting the Indemnity Claim harmless in accordance with the terms of this Section 11.1. The failure of the party against which the Indemnity Claim is asserted to
assume the defense of any such claim shall not affect any indemnification obligation under this Agreement. 

12. Brokers. Each party hereto hereby represents and warrants to the other parties hereto that there are no claims for
brokerage or other commissions or finders or other similar fees as of the date hereof in connection with the transactions contemplated by this Agreement. Each party hereto hereby agrees to indemnify and hold harmless the other party and the Company
from and against all liabilities, costs, damages, and expenses from any such claim resulting from its action. 

13. Miscellaneous.  
 13.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky. 

13.2 Entire Agreement; Modification. This Agreement and the Closing Documents constitute the entire agreement of the parties hereto
pertaining to the subject matter hereof and supersede any previously written or oral discussions or representations. No supplement, modification or waiver (except as provided herein relative to conditions precedent) of this Agreement or the Closing
Documents, or any provision hereof or thereof, shall be binding unless in writing and executed by the parties. 
 13.3 No
Third-Party Beneficiaries. Nothing in this Agreement shall entitle any person other than the parties named in and executing this Agreement to any claim, cause of action, remedy or right of any kind except that the Company shall be beneficiaries
of this Agreement. 
 13.4 Expenses. Except as set forth below, each party shall be liable for its own expenses in
connection with the preparation and performance of this Agreement, the Closing Documents, and the acquisition of government approvals for the Closing. 
 13.5 Assignment. This Agreement may not be assigned, in whole or in part, by any party without the consent of the other parties. Any attempted assignment without the consent of all parties shall be
void. Subject to the foregoing, this Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns. 
 13.6 Further Assurances. The parties hereto shall take such further actions and execute such further documents after the Closing as may be required to fulfill the intentions of the parties
expressed herein and in the Closing Documents relative to the formation of the Company and the Initial Capital Contributions and Scheduled Capital Contributions. 

  
 7 

 13.7 Notices. All notices, consents, elections, requests, reports, demands and other
communications hereunder (collectively, “Notices”) shall be in writing and shall be personally delivered or mailed by registered or certified mail, postage prepaid and addressed as follows: 

 

			
	                        Cyprus Creek Land Resources,
LLC	  	Armstrong Coal Company, Inc.
	                        701 Market Street,
Suite 708	  	7733 Forsyth Boulevard, Suite 1625
	                        St. Louis, Missouri 63101	  	St. Louis, Missouri 63105
		
		  	Armstrong Energy, Inc.
		  	Attn: Martin D. Wilson, President
		  	7733 Forsyth Boulevard, Suite 1625
		  	St. Louis, Missouri 63105

 or to such other address or to such other person as any party hereto shall have last designated by notice to the other
party in accordance with the foregoing. All such Notices shall be effective as of the date received by the addressee. If such addressee refuses to accept delivery of any such Notice, such Notice shall be deemed to have been delivered on the date of
such refusal. 
 13.8 Survival. The terms of this Agreement shall survive the closing and the formation of the Company.

 -remainder of page intentionally left blank- 

  
 8 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and date
first above written. 
  

			
	CYPRUS CREEK LAND RESOURCES, LLC
		
	By:	 	/s/ T.L. Bethel
	Its:	 	VP
	
	CYPRUS CREEK LAND COMPANY
		
	By:	 	/s/ T.L. Bethel
	Its:	 	VP
	
	ARMSTRONG COAL COMPANY, INC.
		
	By:	 	/s/ Martin D. Wilson
	It:	 	President
	
	WESTERN LAND COMPANY, LLC
		
	By:	 	/s/ Martin D. Wilson
	It:	 	Manager

  
 9 

 Schedule 7 

TO 

FORMATION AND TRANSFER AGREEMENT 
  

	1.	Execution of Organization Documents 

  

	 	•	 	 Certificate of Formation 

  

	 	•	 	 Limited Liability Company Agreement 

  

	2.	Execution of the Company agreements 

  

	 	•	 	 the Management Agreement (attached hereto as Appendix 1) 

 

	 	•	 	 the Sales Representation Agreement (attached hereto as Appendix 2) 

  
 10 

 Appendix 1 

 MANAGEMENT AGREEMENT 

This is a Management Agreement (this “Agreement”) dated December 29, 2011, between Survant Mining Company, LLC, a
Delaware limited liability company (the “Company”) and Armstrong Coal Company, Inc., a Delaware corporation (the “Manager”). 
 RECITALS 
 A. Whereas, the Company desires to enter into a contractual arrangement
setting forth the terms and conditions for the Manager’s management of the Company pursuant to Section 7 of the Company’s Limited Liability Company Agreement, also called the Operating Agreement (the “Operating Agreement”),
a copy of which has been provided to Manager, and is attached hereto and made a part hereof as Exhibit A; and 
 B. Whereas,
the Manager desires to enter into such contractual arrangement and to provide management services to the Company on the terms and conditions herein set forth; and 
 C. Whereas, even though the Company will have its own workforce, it is anticipated that employees of the Manager will be involved in the operations, budgeting, accounting, permitting, human resources,
maintenance and other areas of the management of the Company and its day-to-day operations (“Technical Services”); and 

D. Whereas, even though the Company will generally operate using its own leased or owned equipment and enter into its own vendor and
supplier contracts, it is anticipated that the Manager or third-party suppliers contracted by the Manager will, from time to time, arrange for services, equipment or supplies to be provided to the Company (“Pass-Through Services”), and
that the Manager will provide needed equipment to the Company on a short-term basis (“Borrowed Equipment”). 
 NOW,
THEREFORE, in consideration of the foregoing and of the covenants herein contained, the parties hereto agree as follows: 

1. Management. The Company hereby retains the Manager as the manager of the Company, and vests all authority and
responsibility for the management of the day-to-day operations of the Company in the Manager (except as may otherwise be provided in the Operating Agreement), and the Manager accepts such position, all on the terms and conditions set forth herein.
The Manager initially appoints Kenneth Allen, Vice President of Operations of the Manager, as the individual who will be responsible for the day-to-day management of the Company. The Manager may appoint replacement or additional individuals to be
responsible for the day-to-day management of the Company, provided such individuals shall be selected with the input and consent of the Board of Managers of the Company. 

  
 1 

 2. Term. The term of this Agreement shall be a one-year (1) period
commencing on the date hereof (the “Initial Term”) unless terminated sooner pursuant to Section 7 below. After the Initial Term, this Agreement shall be automatically renewed on a year-to-year basis (the “Additional
Term(s)”), unless the Manager or the Managing Member (as such term is defined in the Operating Agreement) of the Company provides prior written notice of its intention for this Agreement not to be renewed, which written notice shall be provided
not less than ninety (90) days prior to the expiration of the Initial Term or any Additional Term. The Initial Term and any Additional Term, if any, will each be referred to as a “Term” and collectively as the “Term”).

 3. Duties; Limitation on Liability; Indemnification.  

(a) Duties. The Manager shall have full, exclusive, and complete discretion, power and authority to manage, control, administer,
and operate the business and affairs of the Company and to make decisions affecting the business and affairs of the Company; provided, however, that the Manager shall not enter into or conduct any transactions that require either unanimous or
majority consent of the Board of Managers or unanimous consent of the Members as established under Sections 3.2, 7.4 or 7.5 of the Operating Agreement, or take any actions inconsistent with the Operating Agreement, and shall use its
commercially reasonable efforts to ensure that the Company at all times engages in prudent mining operations, hiring and reclamation practices and complies with all applicable laws in all material respects. The Manager shall perfom its duties
hereunder, including those set forth in the Operating Agreement, in good faith, using good faith efforts and reasonable diligence. 
 (b) Limitation on Liability. Neither the Manager nor any officer, director, employee, agent, stockholder, or partner of the Manager (each, an “Indemnitee”) shall be liable to the Company
or to any other person or entity for any debts owed by the Company, or for any actions taken or omissions made in good faith and reasonably believed to be in the best interests of the Company, except for acts or omissions of gross negligence,
willful misconduct, intentional misconduct, or a knowing violation of the law. 
 (c) Indemnification. The Company shall
indemnify and hold harmless any Indemnitee, from and against any claim, loss, damage, liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of investigation and appeal) actually incurred by any such
Indemnitee by reason of, or arising from, the operations, business, or affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent any of the foregoing (A) is determined by final, nonappealable order of a
court of competent jurisdiction (or by any other means approved by the Board of Managers) to have been primarily caused by any fraud, breach of fiduciary duties established under this Agreement, gross negligence or willful misconduct of such person
or (B) is actually incurred as a result of any claim (other than a claim for indemnification under this Agreement) asserted by the Indemnitee as plaintiff against the Company; provided that if (for purposes of clause (A) immediately above)
the fraud, breach of fiduciary duties established under this Agreement, gross negligence or willful misconduct of any person claiming indemnification shall consist of a conviction of or plea of no contest to a felony, then such person shall not be
entitled to indemnification unless it is determined, by final, nonappealable order of a court of competent jurisdiction (or by any other means approved by the Board of Managers), that indemnification should be granted in whole or part. 

4. Reporting Relationship. The Manager shall report to the Board of Managers of the Company. 

  
 2 

 5. Management Fee. The Manager shall receive a management
fee of fifty cents ($0.50) per ton (the “Management Fee”) of #8 seam coal sold by the Company on a monthly basis and shall be payable by the 25th day of the following month. The Management Fee shall be the compensation of the Manager for duties performed under
this Agreement (other than as provided in Section 6). 
 6. Payment for Technical Services, Borrowed
Equipment and Pass-Through Services. As and when needed by the Company, in the reasonable discretion of the Manager, the Manager may furnish or arrange for Technical Services, Borrowed Equipment and Pass-Through Services to be provided to the
Company. The Company agrees to reimburse the Manager for such services on a monthly basis, payable on or before the
25th day of the following month. The Manager shall submit
a written reimbursement request to the Board of Managers for review and, upon request of the Company or any of its Managers or Members, provide back-up documents and other reasonable verification for the expenses and charges being requested. The
following additional provisions shall govern reimbursement for such services; provided, however, that the method for determining amounts to be paid may be modified from time to time by the Board of Managers. 

(a) Technical Services. For Technical Services provided by each employee of the Manager during a given month, the
amount shall be determined as follows: (i) for the employees identified on Schedule 1 attached hereto, the amount set forth on Schedule 1; (ii) for employees not listed on Schedule 1, the product of (a) the percentage of
such employee’s time in such month spent on the business of the Company, multiplied by (b) the total cost to the Manager of salary and benefits, excluding bonuses, for such employee during such month. The amount of employee time
allocated to the Company shall be determined by the Manager using commercially reasonable practices and using its best efforts to fairly and equitably allocate such time. 

(b) Pass-Through Services. Pass-Through Services shall be charged to the Company on a direct pass-through basis,
with no mark-up for profit or administrative fees. If allocation is necessary because the contract underlying the Pass-Through Services is common to the Company and other operations run by the Manager, the amount allocated to the Company shall be
determined by the Manager using commercially reasonable practices and using its best efforts to fairly and equitably allocate such services with full disclosure to the Board of Managers. 

(c) Borrowed Equipment. For Borrowed Equipment, the amount shall be a fair and equitable charge reasonably set by
the Manager, but not to exceed the amount for which the Company could have obtained use of equivalent equipment from a third party at prevailing market rates. 
 7. Termination. 
 (a) Events of Termination.
Notwithstanding any other provision of this Agreement to the contrary, this Agreement and the Manager’s retention under the terms of this Agreement will terminate immediately upon the first of the following events to occur: 

  
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 (i) the Manager’s corporate dissolution or liquidation;

 (ii) the Manager ceasing to be the Managing Member pursuant to the Operating Agreement; or 

(iii) the occurrence of a Triggering Event, as defined under the Operating Agreement. 

(b) Compensation Upon Termination. In the event of termination of the Manager due to an event of termination pursuant to
Section 7(a) above, the Manager shall be entitled to be paid for services rendered up to the time of actual termination. 

8. Use of Company Facilities by the Manager. The Manager shall have the right to utilize the Company’s surface facilities
and employees for processing and handling coal from Armstrong’s Parkway mining operations in the #9 seam of coal and from adjacent mining operations, provided (i) such utilization is at such times and in such manner as will not interfere
with the Company’s operations or reduce the coal output of the Company, and (ii) the Manager pays the Company for usage of the surface facilities, which charge shall be charged to the Manager on a direct pass-through basis, with no mark-up
for profit or administrative fees. 
 9. No Assignment by Manager. The services to be rendered by the Manager under
this Agreement are unique and personal, and the Manager shall not assign any of its rights or delegate any of its duties under this Agreement, except to an employee or a corporate affiliate of Manager. 

10. Assumption by Cyprus. In the event Cyprus Creek Land Resources, LLC (“Cyprus”) exercises its rights to assume
this Management Agreement pursuant to Section 7.1 of the Operating Agreement then this Agreement shall be construed and enforced to provide Cyprus with all of the Manager’s rights and entitlements hereunder, including but not limited to
the right to receive the Management Fee provided for hereunder. In the event Cyprus assumes the status as “Manager” hereunder, Cyprus shall have no obligation to continue to utilize the goods or services previously provided by or through
Armstrong under Section 6, and shall be authorized to make arrangements and outsource such services in its sole discretion, subject to the limitations on the authority of the Manager contained in Section 6 and elsewhere in this Agreement
and the Operating Agreement. 
 11. Severability and No Violation. If any provision of this Agreement or its
application shall be invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of all other applications of that provision and of all other provisions and applications hereof shall not in any way be affected or
impaired. The Manager represents that in signing this Agreement it will not violate any other agreement to which it is a party. 

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

  
 4 

 13. Non-Waiver. A delay or failure by either party to exercise a right under
this Agreement, or a partial or single exercise of that right, shall not constitute a waiver of that or any other right. 

14. Counterparts. This Agreement may be executed in two or more counterparts (including via facsimile), each of which shall be
deemed an original but all of which together shall constitute one and the same agreement. 
 15. Entire Contract.
This Agreement and the Operating Agreement constitute the entire understanding and agreement between the parties hereto with regard to all matters herein and supersedes any prior agreements and discussions between the parties. There are no other
agreements, conditions or representations, oral or written, expressed or implied with regard thereto. In the event of a conflict between this Agreement and the Operating Agreement, the terms contained in the Operating Agreement shall control. This
Agreement may be amended only in writing, signed by both parties. Any further agreement of the parties on any matter, including matters unrelated to this Agreement, shall be binding and enforceable only if in writing, and signed by both parties.

 16. Headings. The headings in this Agreement have been inserted solely for convenience of reference and shall not
be considered in the interpretation or construction of this Agreement. 
 [remainder of page intentionally left blank]

  
 5 

 IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to
execute this Agreement effective as of the date set forth above. 
  

			
	Armstrong Coal Company, Inc. (the “Manager”)
		
	By:	 	/s/ Kenneth R. Allen
		 	Kenneth Allen, Vice President of Operations
	
	Survant Mining Company, LLC (the “Company”)
		
	By:	 	Armstrong Coal Company, Inc., its Managing Member
		
	By:	 	/s/ Kenneth R. Allen
		 	Kenneth Allen, Vice President of Operations
	
	Approved by:
	
	Cyprus Creek Land Resources, LLC, Member of Survant Mining Company, LLC
		
	By:	 	/s/ T.L. Bethel
	Title:	 	VP

  
 6 

 Schedule 1 
 Technical Services 
 (Specified Armstrong Employees) 

 

					
	 Employee
	  	Amount to Be Reimbursed	 
	 Vice President of Operations
	  	$	0 – included in the Management Fee	  
	 Vice President of Corporate Development
	  	$	0 – included in the Management Fee	  
	 Underground Mine Superintendent
	  	$	0 – included in the Management Fee	  
	 Chief Electrician (1)
	  	$	0 – included in the Management Fee	  
	 Director of Training
	  	$	0 – included in the Management Fee	  
	 Director of Safety
	  	$	0 – included in the Management Fee	  
	 Underground Engineer
	  	$	0 – included in the Management Fee	  
	 IT Director
	  	$	0 – included in the Management Fee	  
	 Manager of Underground IT
	  	$	0 – included in the Management Fee	  
	 HR Director
	  	$	0 – included in the Management Fee	  
	 Transportation Sales Coordinator
	  	$	0 – included in the Management Fee	  

  
 7 

 Exhibit A 

  

 NOTICE: THIS AGREEMENT CONTAINS AN ARBITRATION PROVISION 

SURVANT MINING COMPANY, LLC 
 LIMITED LIABILITY COMPANY AGREEMENT 
 (THE OPERATING AGREEMENT)

 THIS LIMITED LIABILITY COMPANY AGREEMENT, also called the “Operating Agreement” (collectively herein, the
“Agreement”) effective as of the     day of December, 2011, is entered into by and among Cyprus Creek Land Resources, LLC (“Cyprus”) and Armstrong Coal Company, Inc. (“Armstrong”). 

 WHEREAS, the Members (hereafter defined) desire to form a limited liability company under the laws of the State of
Delaware to be known as Survant Mining Company, LLC (the “Company”) for the purposes set out in this Agreement, and to carry on such other legally permissible business and activities as the Company, in accordance with applicable laws and
this Limited Liability Company Agreement, shall determine from time to time; 
 WHEREAS, the Members desire to enter into
this Limited Liability Company Agreement to govern the conduct of the business and affairs of the Company and to set forth the understanding of the Members regarding all other matters concerning the Company which may be covered in a Limited
Liability Company Agreement; 
 NOW, THEREFORE, in consideration of mutual promises and covenants contained herein and
other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, do hereby agree as follows: 

1. Certain Definitions.  
 When used herein, the following terms shall have the meanings set forth below: 

1.1 “Act” means the Delaware Limited Liability Company Act, Title 6, Chapter 18 of the Delaware Code (as amended). All
references herein to specific sections of the Act shall be deemed to refer to the corresponding provisions of succeeding law. 

1.2 “Affiliate” means: (i) any Person which, directly or indirectly, is in Control of, is Controlled by or is under common
Control with the 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. 
 1.3 “Agreement” means this Limited Liability Company Agreement as the same may be amended and
supplemented from time to time. 
 1.4 “Armstrong” means Armstrong Coal Company, Inc., a Delaware corporation.

 1.5 “Available Cash” means all cash determined by the Managing Member to be available to the Company for
distribution to the Members after the payment of all current expenses and other liabilities then due, establishing reserves for capital improvements, working capital needs, contingent liabilities and unforeseen contingencies, all determined
reasonably and in good faith by the Managing Member. 
 1.6 “Board of Managers” has the meaning set forth in
Section 7.1. 

 1.7 “Capital Expenditure” means all expenditures (excluding interest capitalized
during construction) which must be capitalized under generally accepted accounting principles (GAAP). 
 1.8
“Certificate” means the Certificate of Formation, and all amendments thereto, executed and filed pursuant to applicable laws and the terms of this Agreement. 
 1.9 “Change of Control,” with respect to Armstrong, means any transfer or other action that results in (a) Armstrong ceasing to be Controlled, directly or indirectly, by the Yorktown
Parties unless as a result of an initial or secondary public offering of stock, (b) any Person, other than the Yorktown Parties or Persons Controlled by the Yorktown Parties, acquiring a 50% or greater ownership interest, directly or
indirectly, in Armstrong, or (c) any private or public company or entity primarily engaged in the business of coal mining gaining Control, directly or indirectly, over Armstrong or over Yorktown Parties that have Control over Armstrong.
“Change of Control,” with respect to a Member other than Armstrong, means any transfer or other action that results in such Member ceasing to be Controlled, directly or indirectly, by the same Persons or an Affiliate of the Persons who
Controlled such Member as of the date of such Member’s admission to the Company. 
 1.10 “Closing” means the
execution of the Operating Agreement, Management Agreement, Sales Representation Agreement and the contributions of initial capital as set forth in Milestone I of Exhibit A hereto by Cyprus and Armstrong, 

1.11 “Closing Date” means the date set for the Closing. 
 1.12 “Code” means the Internal Revenue Code of 1986, as amended. All references herein to specific sections of the Code shall be deemed to refer also to the corresponding provisions of
succeeding law. 
 1.13 “Company” means Survant Mining Company, LLC, a Delaware limited liability company, 

1.14 “Company Minimum Gain” has the same meaning as the phrase “Partnership minimum gain” as set forth in treasury
regulation § 1,704-2(d), 
 1.15 “Consideration Period” has the meaning set forth in Section 8.3(a).

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

1.17 “Cyprus” means Cyprus Creek Land Resources, LLC, a Delaware limited liability company, 

  
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 1.18 “Deficit Capital Account” means with respect to any Member, the deficit
balance, if any, in such Member’s capital account as of the end of the taxable year, after giving effect to the following adjustments: 
 (a) credit to such capital account that amount which such Member is obligated to restore under Section 1.704-1 (b)(2)(ii)(c) of the treasury regulations, as well as any addition thereto pursuant to
the next to last sentence of treasury regulation §§1.704-2(g)(l) and (i)(5), after taking into account thereunder any changes during such year in Partnership (Company) Minimum Gain (as determined in accordance with treasury regulation
§ 1.704-2(d) and in the minimum gain attributable to any Partner (Member) for nonrecourse debt (as determined under treasury regulation §l,704-2(i)(3); and 

(b) debit to such capital account items described in treasury regulation §§1.704-l(b)(2)(ii)(d)(4), (5) and
(6). 
 The definition of Deficit Capital Account is intended to comply with the provisions of treasury regulations
§§1.704-l(b)(2)(ii)(d) and 1,704-2, and will be interpreted consistently with those provisions. 
 1.19
“Designated Representative” has the meaning set forth in Section 6.8(d). 
 1.20 “Distributional
Interest” has the meaning set forth in Section 8.1, 
 1.21 “Fair Value” has the meaning set forth in
Section 8.7. 
 1.22 “Fiscal Year” means the Company’s fiscal year which shall correspond to the calendar
year, except that (i) the Company’s first fiscal year shall commence on the date of the filing of the Certificate and (ii) such term shall also include any period for which the Company is required to allocate net profits, net losses
and other items of Company income, gain, loss or deduction pursuant to this Agreement or the Code. 
 1.23 “Foreclosure
Assignment” has the meaning set forth in Section 8.7. 
 1.24 “Indemnitee” shall mean (i) any Manager,
(ii) any Managing Member, (iii) any Member, or (iv) any officer, director, employee, agent, stockholder, member or partner of the Company, or a Member. 
 1.25 “Lender” has the meaning set forth in Section 8.1. 
 1.26
“Lender Interest Holder” has the meaning set forth in Section 8.7. 
 1.27 “Lien” means any mortgage,
deed of trust, security agreement, pledge, hypothecation, assignment, deposit arrangement, lien (statutory or otherwise), security interest, financing statement, overriding royalty agreement or preferential arrangement of any kind or nature
whatsoever, including any conditional sale or other title retention agreement, 
 1.28 “Major Decisions” shall mean
those acts and decisions described in the subsections of Section 7.4. 
 1.29 “Managing Member” shall have the
meaning set forth in Section 7.2. 
 1.30 “Manager” and “Managers” shall have the meanings set forth in
Section 7.1. 
 1.31 “Member Interest” shall include any and all rights of a Member under this Agreement, the Act
and other applicable law, including without limitation all Distributional Rights, economic rights, voting and consent rights, notice rights, contract rights and management rights. 

  
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 1.32 “Member Loan” means any loan to the Company by a Member. 

1.33 “Member Nonrecourse Debt Minimum Gain” has the same meaning as the phrase “Company nonrecourse debt minimum gain”
as set forth in treasury regulation §1.704-2(i). 
 1.34 “Member Nonrecourse Deduction” has the same meaning as
the phrase “Survant nonrecourse deduction” as set forth in treasury regulation §1.704-2(i). 
 1.35 “Member
Nonrecourse Loan” means a loan made to, or credit arrangement for the benefit of, the Company by a Member or by any person related to a Member (as defined in treasury regulation § 1,752-4(b)) which by its terms exculpates the Members from
personal liability on the debt, but under which such Member or related person bears the ultimate economic risk of loss within the meaning of treasury regulation §1.752-2. 
 1.36 “Member” means any Person who becomes a Member in the Company as provided herein, initially Cyprus and Armstrong. 
 1.37 “Non-Managing Member” has the meaning set forth in Section 6.6(e). 
 1.38 “Offer Price” has the meaning set forth in Section 8.7. 
 1.39
“Percentage Interest” means 51% for Armstrong and 49% for Cyprus, unless adjusted in accordance with Section 3.3. 

1.40 “Person” means any individual, limited liability company, limited liability partnership, partnership, corporation, trust or
other person or entity. 
 1.41 “Profit Distribution Share” shall mean 50% for each Member without regard to each
Member’s Percentage Interest; provided, however, that if the Members’ Percentage Interests are ever adjusted pursuant to the provisions of Section 3.3, then, starting as of the date of such adjustment, the “Profit Distribution
Share” for each Member shall be equal to the Percentage Interest of each Member. 
 1.42 “Project” means the
development of the Kentucky #8 seam of coal reserves identified on the map attached hereto as Exhibit B, located in Muhlenberg County, Kentucky. 
 1.43 “Project Budget” means the pro forma revenue and expense statement for the Project approved by the Board of Managers in accordance with Section 7.4. 

1.44 “Right of First Offer” has the meaning set forth in Section 8.7. 

1.45 “Sale Period” has the meaning set forth in Section 8.7, 

1.46 “Subsidiary” means any Person, more than 50% of the voting securities of which, is owned (whether directly or indirectly
through one or more Subsidiaries) by the Company. 
 1.47 “Triggering Event” shall mean the occurrence of any of the
following: (a) Armstrong resigns as the Managing Member, (b) Armstrong is removed from the Managing Member position by the Board of Managers acting upon the majority consent of all of the Managers, (c) Armstrong ceases to be a Member,
(d) Armstrong files for bankruptcy, (e) the Management Agreement, referenced in Section 7.1, is terminated pursuant to its terms and conditions, (f) a Change of Control with respect to Armstrong occurs,
(g)

  
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the willful engaging by the Managing Member or its principals in gross misconduct materially or demonstrably injurious to the Company, (h) the conviction of the Managing Member or its
principals of a felony involving fraudulent or dishonest conduct, or (i) the occurrence of a Foreclosure Assignment pursuant to Section 8.7, 
 1.48 “Yorktown Parties” shall mean Yorktown Energy Partners VI, L.P., Yorktown Energy Partners VII, L.P., Yorktown Energy Partners VIII, L.P. and their Affiliates. 

1.49 Other Definitions. Unless otherwise provided in this Agreement, any other term used in this Agreement which is elsewhere
defined in this Agreement shall have the same meaning as such term is respectively given by this Agreement. The definitions in this section shall apply equally to both the singular and plural forms of the terms defined. 

2. Organization.  
 2.1 Formation. The Members hereby agree to form the Company and to associate themselves as Members of the Company. Accordingly, commensurate with the execution of this Agreement, the Members of the
Company shall adopt the Certificate that was filed with the Office of the Delaware Secretary of State. 
 2.2 Registered
Office and Agent The initial registered office of the Company in Delaware shall be located at The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. The Company’s primary business office
shall be at 407 Brown Road, Madisonville, KY 42431, or such other location as may hereafter be determined by the Members. The Company’s registered agent for service of process in Delaware shall be The Corporation Trust Company, Corporation
Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. 
 2.3 Foreign Qualifications. Prior to the Company’s
conducting business in any jurisdiction other than Delaware, the Members shall cause the Company to comply, to the extent procedures are available and those matters are reasonably within the control of the Members, with all requirements necessary to
qualify the Company as a foreign limited liability company in that jurisdiction. At the request of the Managing Member, each Member shall execute, acknowledge, swear to, and deliver all certificates and other instruments conforming with this
Agreement that are necessary or appropriate to qualify, continue, and terminate the Company as a foreign limited liability company in all such other jurisdictions in which the Company may conduct business. 

2.4 Limited Liability Company. The Members intend that the Company not be a partnership (including, without limitation, a limited
partnership) or joint venture, and that no Member be a partner or joint venturer of any other Member, for any purposes other than federal and state tax purposes, and this Agreement may not be construed to suggest otherwise. 

2.5 Term. The existence of the Company shall be perpetual, unless terminated or dissolved as set forth herein, 

2.6 Annual Reporting. Beginning with the first full calendar year following the year in which the Company is organized, the Company
shall prepare and file with the Delaware Secretary of State an annual report as required by the Act or Delaware law. 

  
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 3. Capital Contributions, Member Loans, and Related Matters.  

3.1 Scheduled Capital. Contributions. At Closing, each Member shall make its initial capital contribution to the Company of
$30,000.00 in cash and the Members shall, on the milestone dates set forth on Exhibit A attached hereto (the “Contribution Schedule”), make their respective additional contributions of property as indicated on the Contribution
Schedule (collectively, the “Scheduled Capita! Contributions”), Notwithstanding any provision of this Agreement, neither Member is making any representation or warranty concerning the condition or quality of its properties being
contributed hereunder, and neither Member shall be determined to have failed to remit its capital contribution or be liable to the Company or the other Member based on any subsequent determination that any portion of the Member’s capital
contribution consisting of owned or leased real property is unable to be used, developed or mined for any reason or is not used, mined and/or developed for any reason or the Member’s title to any such property is found to be defective or the
estimated tonnages of any coal reserves are determined to be inaccurate or due to any aspect of the condition, fitness or serviceability of any of the Equipment, Buildings, or other facilities described in Exhibit A hereto. All contributions,
including but not limited to the surface properties, coal reserves, mining facilities, buildings and equipment described in Exhibit A and more particularly described in Exhibit D hereto, shall be contributed to Company free and clear of all
liens and encumbrances, Each Member hereby represents and warrants to the other Member, that prior to entering into this Operating Agreement it has obtained all necessary consents, commitments and authorizations from any party holding current
security interests in the properties that will be contributed to the Company pursuant to this Section 3.1 .Each Member shall make its contributions substantially in the same form of the conveyancing documents attached hereto and made a part
hereof as Exhibit D. 
 3.2 Additional Capital Contributions: Loans. Each Member acknowledges that, in addition to
the foregoing, additional capital contributions will be required for the continued development and operation of the Company and each Member agrees to make the additional capital contributions in the amounts and at the times indicated on the Project
Budget or the Contribution Schedule, as well as any additional capital contributions unanimously agreed to by the Board of Managers in a timely fashion. Any additional capital contributions to the Company shall be made in proportion to each
Member’s Percentage Interest. In the event the Managing Member reasonably determines that additional cash is necessary in order to fund the Company’s operations in the ordinary course of business or to fund the cash needs in accordance
with the approved Project Budget, but the Members do not unanimously agree on the amount of an additional capital contribution, the Managing Member shall have the right (but not the obligation), following reasonable notice to the other Members, to
make a loan to the Company, and the terms of Section 3.3 applicable to the priority and repayment of Member Loans shall apply. 
 3.3 Non-Compliance. In the event a Member (for the purposes of this Section 3.3 the “Non-Contributing Member”) fails to remit (i) its Scheduled Capital Contributions pursuant to
Section 3.1, or (ii) its portion of any additional capital contribution unanimously agreed to by the Board of Managers, when due and such non-compliance is not cured within ten (10) days after written notice is delivered to the Non-
Contributing Member by the other Member requesting that such funds be remitted to the Company, the other Member (for the purposes of this Section 3.3 the “Contributing Member”) may make the capital contribution or loan owed by the
Non-Contributing Member and elect to treat such amount as an additional capita! contribution or as a Member Loan to the Company. Such election must be set forth in a written notice delivered to the Non-Contributing Member within thirty
(30) days after the funds are contributed to the Company by the Contributing Member, on behalf of the Non-Contributing Member. If the written notice is not delivered within the thirty (30) day time period, the additional funds contributed
to the Company shall be deemed a Member Loan by the Contributing Member to the Company. If the Contributing Member elects to treat the contribution as an additional capital contribution and provides written notice of election to the Non-
Contributing Member, then the Percentage Interest of each Member shall be adjusted to reflect the percentage that each Member’s total capital contributions bear to the total of all capital contributions made to the Company. If such funds are
classified as a Member Loan, the loan shall accrue interest at the prime rate posted 

  
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by the lending institution at which the Company has its primary operating account, plus two (2) percentage points. AH Member Loans, whether made under this section, Section 3.2, or
otherwise, shall be a priority and no distributions to the Members shall be made until such loan is repaid without the written consent of the Member who made the Member Loan. 
 3.4 Withdrawal of Capital. The Members shall only be entitled to withdraw or to receive distributions of capital in accordance with the terms and conditions of this Agreement. 

3.5 Capital Accounts. A single capital account shall be maintained for each Member in accordance with the capital accounting rules
of section 704(b) of the Code and the tax regulations thereunder (including treasury regulation 1.704(b)(2)(iv)), The capital account of each Member shall be credited with the fair market value of such Member’s capita! contributions, such
Member’s distributive share of profits, income or gain, and the amount of any Company liabilities assumed by such Member or which are secured by any property distributed to such Member. The capital account of each Member shall be debited with
the amount of cash and the value of any property distributed to such Member pursuant to any provision of this Agreement, such Member’s distributive share of losses and expense, and the amount of any liabilities of such Member assumed by the
Company or which are secured by any property contributed by such Member to the Company. 
 3.6 Revaluation of Capital
Accounts. The capital accounts of the Members shall be adjusted to reflect revaluation of Company assets in all cases required by treasury regulation § 1.704-l(b) and in all optional circumstances to the extent allowed by treasury
regulation § 1.704-l(b)(2)(iv)(f) unless the Board of Managers determines that such revaluation would not be beneficial or fair under the circumstances. If there is a revaluation under this Section 3.6, then the Company shall make special
allocations consistent with the principles of Section 704(c) of the Code. In determining such allocations, the Company shall use the traditional method with curative allocations described in treasury regulation § 1,704~3(c) for any
Contributed Asset. 
 4. Allocations.  

4.1 Allocation of Profit Loss. Income, Gain. Deduction, and Credit. Subject to Section 4.2, profits and losses of the Company
and, items of taxable income, gain, loss, deduction and credit, shall be apportioned among the Members in accordance with each Member’s Profit Distribution Share. 
 4.2 Tax Allocations Contributed Property. With respect to any asset contributed by a Member to the Company (“Contributed Asset”) that has a tax basis different from its agreed upon fair
market value on the date of the contribution, the Company shall make the special allocations required by Section 704(c) of the Code, These special allocations apply solely for Federal, state, and local income tax purposes. They shall not affect
or be taken into account in computing a Member’s capital account, or share of profits, losses, or distributions pursuant to any provision of this Agreement. In making these special allocations, the Company shall use the traditional method with
curative allocations described in treasury regulation § 1.704-3(c) for any Contributed Asset. 
 4.3 754 Election and
Other Tax Elections. In the event of a distribution of property to a Member, or a transfer of any interest in the Company permitted under the Act or this Agreement, the Company, upon written request of the transferor or transferee, shall file a
timely election under this section 754 of the Code and the regulations thereunder to adjust the basis of the Company’s assets under section 734(b) or 743(b) of the Code and a corresponding election under the applicable provisions of state and
local law, and the Person making such request shall pay all costs incurred by the Company in connection therewith, including reasonable ??? accountants’ fees. Other tax elections and elections relating to Taxes not specifically governed by
another provision of this Agreement shall be made as agreed by the Board of Managers. 

  
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 5. Distributions.  

5.1 Distribution to Members. On or before the last business day of each calendar quarter, the Company may make distributions of
cash or cash equivalents to the Members based upon the Available Cash of the Company. The Managing Member shall first determine the amount of Available Cash of the Company available for distribution, and then the Board of Managers shall determine
the aggregate amount of distributions which may be made to the Members and the Members shall share in such total distributions in accordance with each Member’s Profit Distribution Share. 

5.2 Distributions in Kind. Except as may be provided in this Agreement or an amendment to this Agreement, no Member, regardless of
the nature of the Member’s contribution to capital, may demand or receive a distribution from the Company in any form other than cash or cash equivalents. 
 5.3 Limitation on Distributions. No distribution shall be made by the Company if after giving effect to the distribution; (a) the Company would not be able to pay its debts as they become due
in the usual course of business; or (b) the assets of the Company would be less than the sum of its liabilities plus, the amount that would be needed, if the Company were to be dissolved at the time of the distribution, to satisfy the
preferential rights of other Members upon dissolution which are superior to the rights of the Member receiving the distribution. 
 6. Members.  
 6.1 Representations and Warranties. Each
Member hereby represents and warrants to the Company and each other Member that: (a) it is duly organized, validly existing and in good standing under the laws of its formation and is duly qualified and in good standing in the jurisdiction of
its principal place of business; (b) it has full power and authority to execute and agree to this Agreement and to perform its obligations hereunder; (c) it has duly executed and delivered this Agreement; and (d) its authorization,
execution, delivery, and performance of this Agreement does not conflict with any other agreement or arrangement to which that Member is a party or by which it is bound. 
 6.2 Additional Members. It is not intended that additional Members will be admitted into the Company. Nonetheless, if the Members unanimously agree, additional Members may be admitted on such terms
and conditions as the Members may determine at the time of admission, 
 6.3 Prohibited Transfers. No Member may transfer
all or any part of such Member’s Percentage Interests if such transfer will (a) violate in any material respect any applicable federal or state securities laws or regulations, or subject the Company to registration as an investment company
or election as a “business development company” under the Investment Company Act of 1940; (b) require any Member or any Affiliate of a Member to register as an investment adviser under the Investment Advisers Act of 1940;
(c) effect a termination of the Company under Section 708 of the Code; or (d) cause the Company to be treated as an association taxable as a corporation for federal income tax purposes. 

6.4 Information. The Members acknowledge that from time to time, they may receive information from or regarding the Company in the
nature of trade secrets or that otherwise is confidential, the release of which may be damaging to the Company or Persons with which it does business. Each Member shall hold in strict confidence any information it receives regarding the Company that
is identified as being confidential (and if that information is provided in writing, that is so marked) and may not disclose it to any Person other than another Member, except for disclosures (i) compelled by law (but the Member must notify the
other Members, as appropriate, promptly of any request for that information, before disclosing it, if 

  
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practicable), (ii) to advisers or representatives of the Member or Persons to which that Member’s interest may be disposed as permitted by this Agreement, but only if the recipients
have agreed to be bound by the provisions of this Section, or (iii) of information that Member also has received from a source independent of the Company that the Member reasonably believes obtained that information without breach of any
obligation of confidentially. The Members acknowledge that breach of the provisions of this Section may cause irreparable injury to the Company for which monetary damages are inadequate, difficult to compute, or both. The Members agree that the
provisions of this section may be enforced by specific performance, 
 6.5 Liabilities to Third Parties; Indemnification.
Except as otherwise expressly agreed in writing, no Member shall be liable for the debts, obligations or liabilities of the Company, including under a judgment decree or order of a court; provided, however, that notwithstanding any other provision
of this Agreement, each Member shall indemnify and hold harmless the Company and the other Member from and against any claim, loss, damage, liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of
investigation and appeal) actually incurred by the Company or the other Member by reason of, or arising from, the operations, business, or affairs of, or any action taken or failure to act, of or by the other Member or its Affiliates prior to
formation of this Company. The parties acknowledge that a claim has been filed against the Armstrong Parties in US District Court, Western District of Kentucky, Civil Action No. 4:11 cv 114, alleging the existence of an existing overriding
royalty that is alleged to apply to #8 seam coal to be mined by the Company, and the parties agree in the event that such claims are adjudged to apply to any #8 seam coal mined by the Company (but only with respect to #8 seam coal mined by the
Company), the Company shall not be entitled to be indemnified or held harmless by Armstrong relating to such obligations. 
 6.6
Fiduciary Duties. 
 (a) Duty of Loyalty. Each Member’s, Manager’s and Managing
Member’s duty of loyalty to the Company and the other Members is limited to account to the Company and to hold as trustee for the Company any property, profit or benefit derived by the Member, Manager or Managing Member in the conduct or
winding up of the Company’s business. A Member, Manager or Managing Member does not violate the duty of loyalty by engaging in a competing business or pursuing other business opportunities, even if the business opportunity could have been
pursued by the Company. 
 (b) Duty of Care. Each Member’s, Manager’s and Managing Member’s
duty of care to the Company and the other Members in the conduct of and winding up of the Company’s business is limited to refraining from engaging in gross negligence, reckless conduct, intentional misconduct, or a knowing violation of law,

 (c) Good Faith and Fair Dealing. Each Member, Manager and Managing Member shall discharge its duties
and exercise any of its rights consistently with the obligation of good faith and fair dealing which it owes to the Company and the other Members, A Member, Manager or Managing Member does not violate a duty of good faith or fair dealing to the
Company merely because the Member’s, Manager’s or Managing Member’s conduct furthers the Member’s, Manager’s or Managing Member’s, as the case may be, own interest. Further, a Member, Manager, or Managing Member does
not violate the duty of good faith and fair dealing by engaging in a competing business or pursing other business opportunities, even if the business opportunity could have been pursued by the Company; provided, however, that each Member, Manager
and Managing Member shall not engage in a competing business involving any coal reserves described in the Rogers #8 Lease of Kentucky #8 Reserves identified on Exhibit B hereto without the express written consent of the other Member.

  
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 (d) Indemnification of Members, Managers and Managing Member. To the
fullest extent allowed by law, the Members, Managers, and Managing Member shall be indemnified and held harmless by the Company for any liability resulting from any act performed or omission made by them in good faith on behalf of the Company,
except for acts or omissions of gross negligence, willful misconduct, intentional misconduct, or a knowing violation of the law. Notwithstanding anything contained in this Agreement to the contrary, no Member, Manager or Managing Member, nor any
officer, director, employee, agent, stockholder, member or partner of any Member or the Managing Member shall be liable, responsible, or accountable in monetary damages to the Company or any Member by reason of, or arising from, the operations,
business, or affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent that any of the foregoing is primarily caused by any acts or omissions of gross negligence, willful misconduct, intentional misconduct, or
knowing violation of the law of such Person; provided, however, that the rights of either Member with respect to the buy-sell triggers set forth in Section 8.3 shall not be limited to or conditioned upon acts or omissions of gross negligence,
willful misconduct, intentional misconduct, or knowing violation of the law. 
 (e) Duty of Care for Managing
Member. The Managing Member shall perform its duties hereunder, including but not limited to those expressly stated in Section 7.6, in good faith, using reasonable good faith efforts and with reasonable diligence. In the event the other
Member (“Non-Managing Member”) determines that the Managing Member is not performing its duties hereunder consistent with the standards set forth in this Section 6.6(e), the Non-Managing Member may deliver written notice of such
determination to the Managing Member, which notice shall set forth in reasonable detail the basis for the Non-Managing Member’s determination that the Managing Member is not performing its duties hereunder consistent with the standards set
forth in this Section 6.6(e). If, after sixty (60) days after delivery of the foregoing notice, the Non-Managing Member reasonably determines that the Managing Member continues to not perform its duties hereunder consistent with the
standards set forth in this Section 6.6(e), the Non-Managing Member may exercise the buy-sell option set forth in Section 8.3 hereof. 
 6.7 Alternate Dispute Resolution. If a dispute, controversy or claim (whether based upon contract, tort, statute, common law or otherwise) (collectively a “Dispute”) arises from or
relates directly or indirectly to the subject matter hereof, and if the Dispute cannot be settled through direct discussions, the parties shall first endeavor to resolve the Dispute by participating in a mediation administered by the American
Arbitration Association (“AAA”) under its Commercial Mediation Rules before resorting to arbitration. Thereafter, any unresolved Dispute shall be settled by binding arbitration administered by the AAA in accordance with its Commercial
Arbitration Rules and judgment on the award rendered by the arbitrator, after the review rights set forth below have been exhausted, may be entered in any court having jurisdiction. Any arbitration proceeding shall be conducted in St. Louis,
Missouri on an expedited basis before a neutral arbitrator (or multiple arbitrators if called for by the Commercial Arbitration Rules), Each arbitrator shall be selected in the manner determined by the AAA. Upon the request of either party, the
arbitrator’s award shall include findings of fact and conclusions of law provided that such findings may be in summary form. Either party may seek review of the arbitrator’s award before an arbitrations review panel comprised of three
arbitrators qualified in the same manner as the initial arbitrator(s) (as set forth above) by submitting a written request to the AAA. The right of review shall be deemed waived unless requested in writing within ten (10) days of the receipt of
the initial arbitrator’s award. The arbitration review panel shall be entitled to review all findings of fact and conclusions of law in whatever manner it deems appropriate and may modify the award of the initial arbitrator(s) in its
discretion. The prevailing party in any arbitration proceeding shall be entitled to 

  
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an award of all reasonable out of pocket costs and expenses (including attorneys’ and arbitrators tees) related to the entire arbitration proceeding (including review if applicable). Upon
request of either party, the arbitrator(s) may require that the subject arbitration proceedings be kept confidential and no party shall disclose or permit the disclosure of any information produced or disclosed in the arbitration proceedings until
the award is final. A party shall not be prevented from seeking temporary injunctive relief before a court of competent jurisdiction in an emergency situation, but responsibility for resolution of the Dispute shall be appropriately transferred to
the arbitrator(s) upon appointment in accordance with the provisions hereof. 
 6.8 Meetings of Members. 

(a) Meetings. The Members will have an annual meeting as may be established by the Managing Member. The Members
will have such special meetings as are called in accordance with the provisions of this Agreement. Any annual or special meeting of the Members is to be held at such place as may be designated by the Managing Member or in a waiver of notice executed
by all Members, If there is a failure to designate a place for any such meeting, the same is to be held at the principal place of business of the Company. The annual meeting of the Members is to be held each year within sixty (60) days of the
beginning of the Fiscal Year for the transaction of such other business as may come before the meeting. Special meetings of the Members may be called at any time by the Managing Member or by Members possessing not less than one-third of the
Percentage Interests and are to be held on such dates and at such times as are set forth in the notice calling the meeting. 
 (b) Quorum. A majority of ail the Percentage Interests represented in person or by proxy at such meeting constitutes a quorum of Members for all purposes. Less than such quorum has the right to
adjourn the meeting to a specified date not longer than ninety (90) days after such adjournment, with notice of such adjournment to Members to be given in the manner for special meetings of the Members. Except where the affirmative vote of all
of the Members or unanimous agreement of the Members is required herein, the act of a majority (computed with reference to Percentage Interests) of the Members present at any duly called meeting at which a quorum of Members is present is the act of
the Members. 
 (c) Notice of Meetings. Written or printed notice of each meeting of Members stating the
place, day and hour of the meeting and, in the case of special meetings, the purpose or purposes for which the meeting is called must be delivered or given: (i) in the case of regular meetings, not less than ten (10) nor more than forty
(40) days before the date of the meeting; and (ii) in the case of special meetings, not less than five (5) Business Days nor more than thirty (30) days before the date of the meeting; in each case either personally or by mail.
Notice of an annual meeting of the Members is to be given by the Company, Notice of a special meeting of the Members is to be given by the Company or the Member calling the meeting. Any notice required by this Section may be waived by the Members by
signing a waiver of notice before or after the time of such meeting and such waiver is equivalent to the giving of such notice. 
 (d) Designated Representative(s). Each Member shall designate in writing to the Company and the other Members the names of up to two (2) officers, directors, partner’s, members, employees
or other affiliates of the Member who are to serve as the “Designated Representatives” of the Member at all meetings and in all votes, consents and approvals of the Members required pursuant to this Agreement. The designated individual(s)
shall be the official Designated Representative(s) of the designating Member. One of such Designated Representatives shall be the primary voting representative of the Member and the other (if 

  
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any) shall be the alternative voting representative. Both Designated Representatives of a Member may attend meetings of the Members, but only one (1) Designated Representative shall cast the
Member’s official vote on any matter. The initial Designated Representatives of the entity Members are as follow: 
  

			
	        Cyprus	  	T.L. Bethel
		  	Vice President, Cyprus
		
		  	Tom Benner
		  	Vice President Operations Underground,
		  	Peabody Midwest Group
		
	        Armstrong	  	Kenneth Allen
		  	Vice President Operations,
		  	Armstrong
		
		  	Martin Wilson
		  	President,
		  	Armstrong

 If neither Designated Representative of a Member is able to attend a particular meeting of the Members,
such Member may designate in writing another officer, director, partner, member, employee or affiliate of the Member to have voting privileges for that specific meeting. A Member may change either or both of its Designated Representatives at any
time by giving written notice thereof to the Company and the other Members. 
 (e) Informal Action by
Members. Any action required by this Agreement to be taken at a meeting of the Members, or any action which may be taken at a meeting of the Members, may be taken without a meeting if all of the Members sign written consents that set forth the
action so taken. Such consents have the same force and effect as a unanimous vote of the Members at a meeting duly held. The Company is to file such consents with the minutes of the meetings of the Members. 

(f) Tele-Participation in Meetings. Members may participate in a meeting of the Members by means of a conference
telephone or similar communications equipment whereby all individuals participating in the meeting can hear each other. Participation in a meeting in this manner constitutes presence in person at the meeting. 

7. Management of the Company.  
 7.1 Board of Managers. The management of the Company is vested in a Board of Managers consisting initially of four (4) individuals acting as Managers (individually a “Manager” and
collectively the “Managers”) of the Company, two (2) selected by Armstrong (or its successor or permitted assign) and the other two (2) selected by Cyprus (or its successor or permitted assign). Initially, Armstrong selects
Kenneth Allen, Vice President of Operations of Armstrong and Martin Wilson, President of Armstrong as its representatives on the Board of Managers and Cyprus selects T. L. Bethel, Vice President of Cyprus and Tom Benner, Vice President Operations
Underground, Peabody Midwest Group as its representatives on the Board of Managers. Except as provided herein, the decisions of the Board of Managers shall be binding upon 

  
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the Company and may be relied upon by other persons or entities. A Manager may at any time be changed or removed and replaced by the Member which has appointed such Manager, but not by any other
Member. In the event that Armstrong or Cyprus (or such party’s successor or permitted assign) ceases to be a Member, the Managers appointed by such Member shall be removed at such time and replaced by the affirmative vote of all of the Members.
Except as set forth in Section 3.2 and Section 7.12(e), the Board of Managers shall act solely upon the majority consent of all of the Managers, which requires an affirmative vote of at least three (3) of the four (4) Managers,
including the affirmative vote of at least one (1) Manager appointed by each of Armstrong and Cyprus, and each Manager shall have one (1) vote. No Manager shall be required to devote all of such Manager’s time or business efforts to
the affairs of the Company but shall devote so much of such Manager’s time and attention to the Company as is reasonably necessary and advisable to manage the affairs of the Company to the best advantage of the Company. The Managing Member is
hereby authorized to execute, in such capacity, all documents and agreements that do not require consent of the Board of Managers, For documents and agreements that require such consent, the Board of Managers may, in connection with its approval
thereof, authorize the Managing Member and/or all or less than all of the Managers to execute any and all documents necessary or convenient to carry out those actions approved by a majority of the Managers, If the Board of Managers approves
executing a document or agreement without specifically authorizing signers, then the Managing Member and each of the Managers, acting individually, may execute such document or agreement on behalf of the Company. The Company shall enter into a
Management Agreement (the “Management Agreement”) which shall initially engage Armstrong to be the manager of the Company’s day-to-day operations and the development of the Project, in accordance with the terms and conditions
contained in the Management Agreement and this Agreement. Pursuant to the terms of this Agreement Armstrong shall serve as the Managing Member until the occurrence of a Triggering Event or is removed by the Board of Managers, at which time Cyprus
shall have the authority, in its sole discretion, to assume the position of Managing Member without consent or action from any other Member or the Board of Managers and shall also have the authority, in its sole discretion, to assume the position of
manager under the Management Agreement, both elections being entirely independent from the other. 
 7.2 Authority and Duties
of the Managing Member. Except for Major Decisions, the Managing Member shall have authority over and control and management of the day-to-day affairs of the Company, including, without limitation, the authority to carry out the duties set forth
in Section 7,6, below. The Managing Member shall be appointed by the Board of Managers and may be removed by the Board of Managers, with or without cause. The initial Managing Member shall be Armstrong. Armstrong shall remain the Managing
Member until the occurrence of a Triggering Event or removed by the Board of Managers acting upon the majority consent of all of the Managers, Without limiting the foregoing, the Managing Member shall have all of the following specific rights and
powers to implement the business and affairs of the Company: 
 (a) Execute and deliver contracts and other
agreements necessary to conduct the efficient and safe day to day operations of the Project and to facilitate the development of the Project and in the ordinary course of business; 

(b) Retain or employ and coordinate the services (both on site and off site) of employees, independent contractors,
supervisors, accountants, attorneys and other persons necessary or appropriate to carry out the business and purposes of the Company, subject to the provisions of Section 7,4(d); 

(c) Pay all debts and other obligations of the Company, to the extent that funds of the Company are available therefor;

  
 - 13 -

 (d) Execute for and on behalf of the Company, and with respect to the
Project, all such applications for permits and licenses as the Managing Member deems necessary and advisable; 

(e) Perform all ministerial acts and duties relating to the payment of all indebtedness, taxes, and assessments due or to
become due with regard to the Project, and to give and receive notices, reports, and other communications arising out of or in connection with the ownership, indebtedness, or maintenance of the Project; and 

(f) Take such other actions or execute such other documents or agreements on behalf of the Company that do not expressly
require the consent of the Board of Managers or the Members hereunder. 
 7.3 Delegation of Duties. The Managing Member
may delegate such authority and duties as the Managing Member deems advisable, excluding any authority or duty which the Act requires to be exercised by the Members or which is a Major Decision. Any delegation pursuant to this Section may be revoked
at any time by the Managing Member, 
 7.4 Major Decisions. Notwithstanding Sections 7,2 and 7.6, the Managing
Member, on behalf of the Company, may not enter into or conduct any of the following transactions (“Major Decisions”) without the majority consent of the Board of Managers: 

(a) admit a Person as a Member except as provided in this Agreement; 

(b) change the status of the Company from one in which management of the Company is vested in managers to one in which
management of the Company is vested in the members and vice versa; 
 (c) assign the Company’s property in
trust for creditors or on the assignee’s promise to pay the Debts of the Company; 
 (d) select, retain or
employ any attorneys or legal advisors to institute or defend any claims, litigation or other legal proceeding brought by or brought on behalf of or against the Company, in which the amount in controversy exceeds $250,000.00; 

(e) institute or settle any litigation, arbitration or other legal proceeding by or on behalf of the Company, or confess a
judgment against the Company, in which the amount in controversy exceeds $250,000.00, except that the Managing Member, without consent of the Board of Managers, may negotiate and settle disputes on behalf of the Company with the Mine Safety and
Health Administration (MSHA), with authority to commit the Company to pay any associated fines, costs or other liabilities in an aggregate amount of $1,000,000.00 in any given Fiscal Year; 

(f) sell, convey, lease, assign, exchange or otherwise dispose of any real property or any combination thereof or any
other material asset of the Company with a fair market value in excess of $250,000.00 in the aggregate during any Fiscal Year without consent of the Board of Managers, provided, however, that the Managing Member shall have the authority to sell,
transfer, dispose, abandon or lease any movable equipment in the ordinary course of business which are no longer necessary or required in the conduct of the Company’s business; 

  
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 (g) borrow money in the name of the Company in excess of $250,000.00 in the
aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal Year or issue evidences of indebtedness of the Company, or refinance, recast, modify or extend the same, or secure the same by mortgage, deed
of trust, pledge or other Lien; 
 (h) commit to make, or make, any expenditure (including Capital Expenditures)
in excess of $250,000.00 in the aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal Year; 
 (i) acquire by purchase, lease or otherwise, any real property in excess of $250,000.00 in the aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal
Year or make any investment in securities or any ownership or controlling interests in any corporation, partnership, limited partnership, limited liability company or other Person; 

(j) possess any property of the Company, or assign the rights of the Company in specific property, for other than a
Company purpose; 
 (k) approve the Project Budget for each Fiscal Year and any amendments thereto; 

(1) cause the Company to enter into one or more transactions with a Member (other than in its capacity as a Member) or an
Affiliate of a Member except as otherwise specifically permitted hereunder and in the Management Agreement; 

(m) change the name of the Company at any time; 

(n) form, organize, acquire, sell, dispose of, reorganize or liquidate a Subsidiary; 

(o) to make any loan or advance to other Persons in excess of $10,000.00 to any such Person (including Members and
Affiliates of Members) or in excess of $50,000.00 in the aggregate during any Fiscal Year, other than (i) trade credit extended on usual and customary terms in the ordinary course of business; and (ii) investments of Company cash in
certificates of deposit, treasuries, high-grade commercial paper or similar investment products; 
 (p) enter
into any modification of the Management Agreement or. Sales Representation Agreement; or 
 (q) enter into or
modify any lease or agreement between the Company and the Managing Member or any of its Affiliates except to the extent permitted under the Management Agreement. 
 7.5 Actions Requiring Unanimous Approval of Members. Notwithstanding Sections 7.1, 7.2, 7.4 and 7,6, neither the Company, the Managers, the Managing Member nor any other Member may, without
the unanimous consent of all the Members, do any of the following: 
 (a) any act materially in contravention of
this Agreement; 
 (b) amend this Agreement or the Certificate; 

  
 - 15 -

 (c) approve a merger or consolidation of the Company with another Person;

 (d) modify, compromise or release the amount and character of the Scheduled Capital Contributions which a
Member is to make or promises to make hereunder; 
 (e) any act which would make it impossible to carry on the
ordinary business of the Company; 
 (f) to dissolve or wind up the Company, except as otherwise expressly
provided in this Agreement; or 
 (g) any and all elections required or permitted to be made by the Company under
the Code. 
 7.6 Managing Member’s Duties. The Managing Member shall be responsible for the good faith performance of
the following functions in a commercially reasonable manner consistent with practices found in the development of properties similar to the Project: 
 (a) Protect and preserve the title and interest of the Company with respect to the Project and other assets now or hereafter owned by the Company; 

(b) Pay from the funds of the Company in a business-like manner all taxes, assessments and other obligations associated
with the Project; 
 (c) Prepare and implement the Project Budget as modified from time to time in accordance
with the terms of this Agreement; 
 (d) Report to the Managers on a quarterly basis regarding the status of the
development of the Project and compliance with the Project Budget for that Fiscal Year; 
 (e) Negotiate, enter
into and supervise the performance of contracts covering all aspects of development of the Project; provided however, that the Sales Representation Agreement shall control the conduct of the parties regarding the sale and marketing of coal from the
Project and the Management Agreement shall control the conduct of the parties regarding the day to day management and development of the Project; 
 (f) Keep all books and accounts and other records required by the Company, including detailed information regarding all expenditures, preserve and store in a safe place all such books and records for at
least a seven (7) year period after termination of each fiscal year; and permit the Members, or any person designated by any Member, with reasonable advance notice and at reasonable times to examine or audit the books, records and accounts
relating to the Company, including but not limited to the assets of the business of the Company’s contractual obligations and forecast for performance by the Company; 

(g) Cause an annual financial statement to be prepared by a firm of certified public accountants of recognized standing,
which financial statements shall be audited if required by any Member; 
 (h) Pay from funds of the Company all
obligations of the Company; 

  
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 (i) Maintain all funds of the Company in financial institutions of
recognized credit standing or in certificates of deposit, treasuries, high-grade commercial paper or similar products; 
 (j) Supervise all matters coming within the terms of this Agreement, including direct observation, inspection and supervision of the development of the Project and production of coal therefrom in a safe
and efficient manner; 
 (k) Develop, manage and operate the Project in a commercially reasonable and safe
manner, which includes but is not limited to 1) submitting the appropriate applications for encroachment permits to mine the Kentucky #8 seam of coal under (i) state and federal highways, including the Wendell Ford Parkway (f/k/a Western
Kentucky Parkway), and (ii) the Paducah and Louisville Railway, and 2) obtaining satisfactory opinions of title on all coal tracts prior to entering upon or mining upon such tracts; 

(1) Acquire appropriate insurance for the Company and the Project in amounts determined by the Managing Member in
consultation with the Board of Managers; 
 (m) Supervise the management of the Project and the production of
coal therefrom; 
 (n) No later than one hundred twenty (120) days prior to the end of the Fiscal Year, the
Managing Member shall start the budgetary process for the next Fiscal Year and no later than ninety (90) days prior to the end of the Fiscal Year shall prepare and deliver to the Members and Managers the projected annual Project Budget of the
Company which itemizes projected sources of revenue and anticipated expense items for the next Fiscal Year; 

(o) No later than ninety (90) days after the end of the Fiscal Year, the Managing Member shall prepare a business
report (“Annual Business Report”) of the past Fiscal Year, The Annual Business Report shall be delivered to the Members to advise and inform each Member of the current status of the Project. The Annual Business Report shall include:
(i) description of activities taken place during the past Fiscal Year; (ii) an annual income statement; (iii) a marketing plan for the next Fiscal Year; (iv) a coal production schedule; and (v) any other information that the
Members reasonably request be included in the Annual Business Report; 
 (p) The Managing Member shall cause all
required Federal, state and local income, franchise, property and other tax returns of the Company, including information returns, to be timely filed with the appropriate office of the relevant taxing jurisdiction or agency. With respect to the
Federal and state income tax returns of the Company, the Company shall submit to each Member drafts of the proposed returns as soon as possible, but in no event later than March 15 of each year, to permit review and approval of such returns by
each Member prior to filing. All expenses incurred in connection with such tax returns and information returns, as well as for the Annual Business Report referred to in Section 7.7(o) hereof, shall be expenses of the Company; 

(q) No later than one hundred eighty (180) days after formation of the Company, the Managing Member shall cause all
tracts being subdivided by the “New Division Line”, or subdivided for any other reason, to be surveyed and to obtain a legal description and survey plat of said tracts. The survey plat shall be recorded and the legal description used in
the Special Warranty Deed from Armstrong to the Company; and 

  
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 (r) In general, supervise the business and affairs of the Company for the
benefit of the Members. 
 7.7 Exclusion Areas. Notwithstanding any other provision of this Agreement, the Company may not
mine or enter upon any portion of the Kentucky #8 seam of coal situated within the “No Mining Boundary” depicted on the map attached hereto and incorporated herein by reference as Exhibit C (herein referred to as the “Exclusion
Areas”) without the prior written consent of Cyprus granting the Company the right to mine or enter upon all or any portion of the Exclusion Areas. The granting of any such consent shall be within the sole discretion of Cyprus and its refusal
to provide any such consent shall not constitute a failure by Cyprus to remit its initial capital contribution or otherwise constitute a material act in contravention of this Agreement. The Company shall subordinate its interests in the coal
reserves located within the Exclusion Areas upon request of the surface owner or its lessee of those areas. In the event Cyprus, in its sole discretion, grants consent to lift the prohibition against mining within the Exclusion Areas, the Company
shall have the first right to mine the Kentucky #8 seam of coal situated within the No Mining Boundary. 
 7.8 Development and
Due Diligence Expenses. Each party shall bear its own costs and expenses for developing the Project and its own due diligence activities until this Agreement is executed. 
 7.9 Conflicts of Interest. The pursuit of other ventures and activities by the Members, Managers and Managing Member are hereby consented to by the Members and shall not be deemed wrongful or
improper. No Member, Manager or Managing Member shall be obligated to present any particular investment opportunity to the Company, even if such opportunity is of a character which, if presented to the Company, could be taken by the Company. The
Company may enter into agreements with a Member, or an affiliate of a Member, to provide other services to the Company; provided such agreement must be at competitive rates and terms and, if applicable, approved by the Board of Managers in
accordance with Section 7.4. 
 7.10 Indemnification. 

(a) Indemnities and Indemnifiable Claims. The Company shall indemnify and hold harmless any Indemnitee, from and against any claim,
loss, damage, liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of investigation and appeal) actually incurred by any such Indemnitee by reason of, or arising from, the operations, business, or
affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent any of the foregoing (A) is determined by final, nonappealable order of a court of competent jurisdiction (or by any other means approved by the
Board of Managers) to have been primarily caused by any fraud, breach of fiduciary duties established under this Agreement, gross negligence or willful misconduct of such person or (B) is actually incurred as a result of any claim (other than a
claim for indemnification under this Agreement) asserted by the Indemnitee as plaintiff against the Company; provided that if (for purposes of clause (A) immediately above) the fraud, breach of fiduciary duties established under this Agreement,
gross negligence or willful misconduct of any person claiming indemnification shall consist of a conviction of or plea of no contest to a felony, then such person shall not be entitled to indemnification unless it is determined, by final,
nonappealable order of a court of competent jurisdiction (or by any other means approved by the Board of Managers), that indemnification should be granted in whole or part. 

  
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 (b) Advancement of Expenses, Unless a determination has been made (by final,
nonappealable order of a court of competent jurisdiction or by any other means approved by the Board of Managers) that indemnification is not required, the Company shall, upon the request of any Indemnitee and except for any claim of the type
described in clause (B) of Section 7.10(a) of this Agreement, advance or promptly reimburse such Indemnitee’s reasonable costs of investigation, litigation, or appeal, including reasonable attorneys’ fees; provided that the
affected Indemnitee shall, as a condition of such Indemnitee’s right to receive such advances and reimbursements, undertake in writing to promptly repay the Company for all such advancements or reimbursements if a court of competent
jurisdiction determines, by final, nonappealable order, that such Indemnitee is not then entitled to indemnification under this Section 7.10. The written undertaking described in the immediately preceding sentence to repay the amount paid or
reimbursed to an Indemnitee by the Company must be an unlimited general obligation of the Indemnitee but need not be secured and it may be accepted without reference to financial ability to make repayment, 

7.11 Tax Matters Partner. Armstrong shall be designated, as the tax matters partner of the Company pursuant to §623 l(a)(7) of
the Code, Any Member designated as tax matters partner shall take such action as may be necessary to cause each other Member to become a notice partner within the meaning of §6223 of the Code. The Company shall indemnify the tax matters partner
of the Company from and against any and all judgments, penalties (including excise and similar taxes and punitive damages), fines, settlements and reasonable expenses, (including without limitation attorneys fees) actually incurred by such Member in
performing its duties as the tax matters partner of the Company; provided that the Company shall not be liable to any Person acting as the tax matters partner of the Company for any portion of such judgments, penalties, fines, settlements or
reasonable expenses resulting from such persons gross negligence or willful misconduct. 
 7.12 Meetings of the Board of
Managers. 
 (a) Meetings. The Board of Managers will have an annual meeting and such quarterly
meetings as may be established by the Company. The Board of Managers will have such special meetings as are called in accordance with the provisions of this Agreement, Any annual, quarterly or special meeting of the Board of Managers is to be held
at such place as may be designated by the Company or in a waiver of notice executed by all Managers. If there is a failure to designate a place for any such meeting, the same is to be held at the principal place of business of the Company. The
annual and quarterly meetings of the Board of Managers is to be held each year within sixty (60) days prior to the beginning of the Fiscal Year, but in no event prior to the time the Managing Member delivers the projected annual Project Budget
of the Company to the Managers and the Members pursuant to Section 7.7(n), for the establishment of the Project Budget and the transaction of such other business as may come before the meeting. Special meetings of the Board of Managers may be
called at any time by the Company or by a Manager and are to be held on such dates and at such times as are set forth in the notice calling the meeting. 
 (b) Quorum. A Manager appointed by Cyprus and a Manager appointed by Armstrong attending such meeting constitutes a quorum of Managers for all purposes, and no quorum shall exist unless a Manager
appointed by both Cyprus and Armstrong shall be in attendance. 
 (c) Notice of Meetings. Written or
printed notice of each meeting of the Board of Managers stating the place, day and hour of the meeting and, in the case of special meetings, the purpose or purposes for which the meeting is called must be delivered or given: (i) in the case of
regular meetings, not less than ten (10) nor more than forty (40) days before the date of the meeting; and (ii) in the case of special meetings, not less than five (5) Business Days nor more than thirty (30) days before the
date of the meeting; in each case either 

  
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personally or by mail. Notice of an annual meeting of the Board of Managers is to be given by the Company. Notice of a special meeting of the Board of Managers is to be given by the Company or
the Manager calling the meeting. Any notice required by this Section may be waived by the Managers by signing a waiver of notice before or after the time of such meeting and such waiver is equivalent to the giving of such notice. 

(d) Proxies. A Manager may vote at any meeting either in person or by proxy executed in writing by the Manager or
its duly authorized attorney in fact. Such proxy must be filed with the Company before or at the time of the meeting. No proxy is valid after 11 months from the date of execution unless otherwise provided in the proxy. 

(e) Informal Action by Managers. Any action required by this Agreement to be taken at a meeting of the Board of
Managers, or any action which may be taken at a meeting of the Board of Managers, may be taken without a meeting if all of the Managers sign written consents that set forth the action so taken. Such consents have the same force and effect as a
unanimous vote of the Managers at a meeting duly held. The Company is to file such consents with the minutes of the meetings of the Board of Managers. 
 (f) Tele-Participation in Meetings. Managers may participate in a meeting of the Board of Managers by means of a conference telephone or similar communications equipment whereby all individuals
participating in the meeting can hear each other. Participation in a meeting in this manner constitutes presence in person at the meeting. 
 8. Transfers of Interests; Admission. 
 8.1 Transfer
Restrictions. Except as otherwise set forth in this Section 8, no Member may sell, assign, transfer, pledge, hypothecate or otherwise dispose of its Member Interest unless unanimously approved by the Members, including, without limitation,
a Member’s distributional interest as described in §18-702 of the Act (“Distributional Interest”). Any transfer of a Member’s interest in violation of this Agreement shall be void and of no effect; provided, however, that
Armstrong shall be permitted to pledge its Distributional Interest only to PNC Bank or the successor agent of the existing PNC credit facility or successor primary lender to Armstrong (“Lender”). Notwithstanding the foregoing [imitations,
the parties acknowledge and agree that, under the limited circumstances set forth in Section 8.7, the Lender shall have the right to sell and transfer all of Armstrong’s Member Interest (not limited to its Distributional Interest) upon
compliance with the provisions of Section 8.7, 
 8.2 Right of First Refusal. If a Member receives a bona fide offer
(“Offer”) which the Member (“Selling Member”) proposes to accept, whether or not solicited, to sell or otherwise dispose of its entire Member Interest in the Company, then the Selling Member shall furnish to the non-selling
Member written notice of the receipt of the Offer together with the principal terms and conditions of the sale, including the minimum price (“Sale Price”) at which such interest is proposed to be sold, and a statement as to the identity of
the real party in interest making the Offer. The non-selling Member, shall then have the right to purchase the Member Interest (“Offered Interest”) proposed to be sold by the Selling Member upon and subject to the terms and conditions as
set forth in this Section 8.2. This Section 8.2 shall not apply to any sale pursuant to the procedures of Section 8.7. 
 (a) The price at which the Offered Interest may be purchased shall be the price contained in the Offer. If the price contained in the Offer shall consist (in whole or in part) of consideration other than
cash, payable at the closing thereof or at a later date, the cash equivalent fair market value of such other consideration shall be included in the price at which the Offered Interest may be so purchased. 

  
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 (b) The non-selling Member shall have sixty (60) days after receipt of
the notice to elect to purchase the Offered Interest. The purchase transaction (unless otherwise agreed to with third-party purchasers) shall be consummated at a closing to be held at the principal executive offices of the Company, or at such other
location as may be agreed by the parties, within sixty(60) days following the date of the non-selling Member’s election to purchase the Offered Interest. At the closing, unless otherwise stipulated in the Offer, the non-selling Member shall
deliver to the Selling Member the full purchase price against delivery of an instrument appropriately transferring the Offered Interest sold thereby. 
 (c) If the non-selling Member does not elect to purchase the Offered Interest, then the Selling Member may accept the Offer and, pursuant thereto, sell the Offered Interest and, notwithstanding anything
to the contrary contained herein (including, without limitation, Section 8.5 hereof), upon such sale of the Offered Interest and the execution by the transferee of this Agreement, the transferee shall become a Member of the Company. However, if
the Selling Member does not sell the Offered Interest pursuant to the Offer within ninety (90) days after the termination (by passage of time or otherwise) of the rights of first refusal created under this Section 8.2, the Selling Member
may not thereafter transfer the Offered Interest, without again complying with the provisions of this Section 8.2. 
 8.3
Buy-Sell Option. Except under circumstances where the procedures set forth in Section 8.7 applies following a Foreclosure Assignment (as defined below), upon the occurrence of any of the following events, each Member shall have the right
of purchase and sale provided by this Section 8.3 to be exercised by a Member (“Electing Member”) by delivering a written notice (“Election Notice”) to the other Member (“Notice Member”): 

(a) a Member or the Managing Member seeks in good faith for approval for an action that requires approval of the Board of
Managers or the Members pursuant to Section 3.2, Section 6.2, Section 7.4(g), or Section 7.5, and the Board of Managers or the Members, as applicable, reach a full and final deadlock on whether to approve the requested action
after attempting in good faith to negotiate a mutually agreed outcome; 
 (b) the Notice Member, acting as a
Managing Member or Member, or any Manager appointed by the Notice Member takes any action or transaction described in Section 7.4 or 7.5 without the consent of the Board of Managers or Members, as applicable; 

(c) the Notice Member has breached the Representations and Warranties in Section 6.1; 

(d) the Notice Member has breached Section 6.3; 

(e) the Notice Member has breached its duties and obligations set forth in Section 6.6(a),(b) or (c); 

(f) a Member other than the Managing Member elects to exercise this provision pursuant to the provisions set forth in
Section 6.6(e); 
 (g) a Change of Control with respect to either Member occurs; or 

  
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 (h) the voluntary election of either Member at any time on or after
January 1, 2020. 
 Such Election Notice shall state a dollar amount equal to the value placed by the Electing Member on all
of the issued and outstanding membership interests in the Company, calculated on a pari passu basis taking into consideration the relative equity interest of the Electing Member, and shall constitute an irrevocable offer by the Electing
Member either to purchase all, but not less than all, of the Member Interest in the Company of the Notice Member from the Notice Member, or to sell all, but not less than all, of the Electing Member’s Member Interest in the Company to the
Notice Member. The purchase price at which the Member Interest of any Member is purchased and sold under this Section 8.3 shall be the value for all of the interests in the Company, as stated in the Election Notice, multiplied by the selling
Member’s Percentage Interest in the Company. 
 (i) For a period of time not exceeding sixty (60) days
from the receipt of the Election Notice by the Notice Member (“Consideration Period), the Notice Member shall have the right to elect to purchase all of the Electing Member’s Member Interest in the Company by providing written notice
(“Purchase Notice”) to the Electing Member of the Notice Member’s intent to purchase the Electing Member’s Member Interest. If the Notice Member does not provide the Purchase Notice to the Electing Member within the above
referenced sixty (60) day time period, the Notice Member shall become obligated to sell its Member Interest in the Company to the Electing Member. 
 (ii) The closing of the purchase and sale shall occur within sixty (60) days from the earlier of the expiration of the Consideration Period, or the date the Electing Member receives a Purchase Notice
from the Notice Member. In either event, at the closing of the purchase and sale transaction described in this Section 8.3, the purchase price must be paid in cash (either by certified check or by wire transfer), unless otherwise agreed upon by
the Electing Member and the Notice Member. 
 (iii) At the closing on the sale of a Member’s Member Interest
pursuant to this Section 8.3, there shall be a final accounting among the Members with respect to all amounts due them from the Company. With respect to the indebtedness and obligations for which any Member is responsible, the purchasing Member
shall, as a condition to closing (but said condition may be waived in writing by the selling Member), cause the repayment of such indebtedness. The Members agree, upon request of any other Member, to execute such certificates or other documents and
perform such other acts as may be reasonably requested by such requesting Member from time to time in connection with such sale. 

8.4 Completion of Sale. If a Member becomes obligated to sell its Member Interest in the Company pursuant to Sections 8.2 or
8.3 of this Agreement, each Member covenants and agrees that it will take such actions and execute such instruments of transfer and other documents as reasonably requested by the other Member to further evidence and complete the sale of the
Member’s Member Interest, Additionally, as a condition precedent to the consummation of the sale of the Percentage Interest, a purchasing Member must arrange for the complete release of all guarantees provided by the selling Member as security
for indebtedness of the Company. 
 8.5 Admissions. All transfers of an interest in the Company by a Member shall entitle
the transferee only the rights afforded a transferee of a Distributional Interest pursuant to § 18-702 of the Act except as otherwise expressly provided herein. These rights are the rights to receive allocations and

  
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distributions to which the transferring Member would otherwise have been entitled, but shall not allow the transferee any additional rights, nor shall the transferee become a Member of the
Company upon such transfer. The transferee shall only become a Member of the Company by receiving the written consent of all Members of the Company and executing this Agreement. The consent of the Members to admit any transferee of a distributional
interest into the Company shall be given in the sole and absolute discretion of each Member. 
 8.6 Distributions and
Allocations in Respect to Transferred Interests. If any Member’s interest is sold, assigned or transferred, or any Person is otherwise admitted as a Member during any Fiscal Year in compliance with the provisions of this Agreement, net
profits, net losses, each item thereof, and all other items attributable to such interest for such Fiscal Year shall be allocated among the Members by taking into account their varying interests during such Fiscal Year in accordance with Code
§706(d). Unless otherwise required by the applicable treasury regulations, such sale, assignment, transfer or admission shall be deemed to have occurred at the end of the calendar month during which such event shall have actually occurred, and
such allocations shall be determined and made pursuant to a pro forma closing of the books of the Company as of the end of such month. With respect to a transferred Member’s interest or any interest therein, all distributions on or before the
deemed date of such transfer shall be made to the transferor and all distributions thereafter shall be made to the transferee. The Company shall not incur any liability for making allocations and distributions in accordance with this provision.

 8.7 Right of First Offer and Sale Procedure Following Foreclosure by Armstrong’s Lender. The procedures of this
Section 8.7 shall apply only in the event Armstrong’s interest has been assigned to Lender or its designee (“Lender Interest Holder”) upon the exercise of Lender’s default remedies pursuant to the pledge referenced in
Section 8.1 (such event being referred to as a “Foreclosure Assignment”), it being understood that any such Lender Interest Holder’s are limited to that of the holder of a Distributional Interest and the Lender or its designee or
assignee may acquire all rights and attributes of Armstrong’s Membership Interest in the Company only pursuant to the procedures of this Section 8.7. 
 (a) If, at any time, the Lender Interest Holder proposes to initiate a sale of Armstrong’s Member Interest to a third party, it shall provide written notice of such intention to Cyprus
(“Election Notice”), and Cyprus shall have a right of first offer to purchase Lender Interest Holder’s Percentage Interest for a price equal to the Fair Value for all the Member Interests in the Company multiplied by the Lender
Interest Holder’s Percentage Interest in the Company (the “Offer Price”), 
 (b) As used herein, “Fair Value” shall
mean the fair market value of the entire Company, as determined by the following process. The parties shall have a period of 60 days following the date of the Election Notice in which to agree on the Fair Value of the Company, which period may
be extended by mutual consent, which consent shall not be unreasonably withheld. If they are unable to so agree during such 60-day period (as such period may be extended by mutual consent), then the parties shall submit in writing to the other a
list of three neutral and impartial mining valuation consultants. The first name that matches on both lists shall be retained to determine the Fair Value of the Company. If there are no matches on the lists, the parties shall submit new lists of
three names within two business days, and this process shall continue until an appraiser is selected. The selected appraiser shall have a period of sixty (60) days (which 60-day period shall be extended if the appraiser believes it is necessary
to complete its appraisal) in which to render the appraisal and provide each of the parties with a copy, which appraisal shall be final and binding upon all the parties. All parties agree to give the appraiser full access to the mining operations,
mine management and all requested financial, business and operational information that the appraiser may reasonably request. 
 (c) The
period beginning on the date on which the Fair Value is determined (whether by mutual agreement or by appraisal) and lasting for 180 days thereafter shall constitute the “Sale Period.” For the first thirty (30) days of the Sale
Period, Cyprus shall have the option to elect to purchase all of the Lender Interest 

  
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Holder’s Percentage Interest for the Offer Price (the “Right of First Offer”). If Cyprus does not deliver notice of its election to purchase within such 30-day period, Lender
Interest Holder shall have the right to sell Lender Interest Holder’s Percentage Interest to any other Person, so long as the total purchase price is not less than 90% of the Offer Price; however, if, during the Sale Period, Lender Interest
Holder notifies Cyprus in writing of a proposed sale of Lender Interest Holder’s Percentage Interest for a total purchase price less than 90% of the Offer Price, which notice (the “ROFR Notice”) shall include a description of the
principal terms and conditions of the sale, then Cyprus shall have the right to elect to purchase the interest at the price identified in the ROFR, which election shall be delivered within 60 days of the date of its receipt of the ROFR Notice,
and if Cyprus shall fail to timely deliver written notice of its election to purchase, then Lender Interest Holder may sell its Percentage Interest on the price and on the terms set forth in the ROFR Notice, so long as such sale is completed within
120 days after the date of Cyprus’ receipt of the ROFR Notice. Any sale by Lender Interest Holder that conforms with the provisions of this Section 8.7 shall be effective to vest in the purchaser all Member Interest rights relating to
the Percentage Interest sold, and such purchaser shall automatically become a Member of the Company upon such transfer upon such the purchaser executing an agreement agreeing to be bound by the terms of this Agreement. If, however, Lender Interest
Holder does not consummate the sale during the Sale Period (or, as applicable, within 120 days from the date of Cyprus’ receipt of the ROFR Notice), then the Right of First Offer shall apply to any subsequent sale by Lender Interest
Holder. 
 (d) If Cyprus elects to exercise the Right of First Offer or its rights upon receipt of an ROFR Notice, the closing of the sale
shall occur within 60 days of the start of the Sale Period. Each of Cyprus and Lender Interest Holder covenants and agrees that it will take such actions and execute such instruments of transfer and other documents as reasonably requested by
the other to further evidence and complete the sale of the Lender Interest Holder’s Percentage Interest. The provisions of Section 8.6 shall apply to the interest being transferred. The purchase price shall be paid in cash unless the
parties mutually agree otherwise, and the Lender Interest Holder’s interest shall be free and clear of any liens and encumbrances. 
 9. Dissolution Acts. The Company shall only be dissolved upon the occurrence of any one of the following events: (i) the completion of the term of the Company as set forth in the
Certificate; (ii) written consent of all Members upon exhaustion of the economically mineable coal reserves from the Project; (iii) the sale of all or substantially all of the assets of the Company; (iv) written consent of all
Members, or (v) as required by Section 10 below. Except as otherwise agreed to herein below in Section 10, upon dissolution, the Company shall liquidate and distribute its assets in the following priority: 

9.1 First, to pay all debts owed by the Company to non-Members; 
 9.2 Second, to pay any outstanding Member Loans; 
 9.3 Third, to each Member in
accordance with the positive balance of Member’s capital account; and 
 9.4 Fourth, to the Members in proportion to each
Member’s Percentage Interest. 
 10. Withdrawal and Disassociation. Except as otherwise agreed to herein
below in this Section 10, no Member shall be allowed to withdraw or disassociate from the Company. Any attempted disassociation or withdrawal by a Member shall be null and void and not recognized by the Company, If an event disassociation
occurs for any reason whatsoever, the Company shall not dissolve and the Member causing the disassociation, if any, shall be liable to the Company for such wrongful disassociation. In no event shall the disassociated Member be entitled to have its
Percentage Interest purchased by the Company. Notwithstanding any provision of this Agreement, if the Company has not established commercially viable mining operations in the Kentucky #8 seam of coal by January 5,2016, then either Member shall
have the right to provide the other 

  
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Member with notice of withdrawal from the Company (“Notice of Withdrawal”). Neither Member shall have the right to provide Notice of Withdrawal from the Company prior to January 5,
2016. In the event either Member provides Notice of Withdrawal under this Section due to the Company’s failure to establish commercially viable mining operations in the Kentucky #8 seam of coal by January 5, 2016, the Company shall
liquidate all assets of the Company, other than the assets contributed pursuant to the Contribution Schedule identified in Exhibit A hereto and pay all debts or other amounts owed by the Company to: (i) non-Members; then to (ii) pay
any outstanding Member Loans; then to (iii) the Members is accordance with the positive balance of their the Member’s capital account; then to (iv) the Members in proportion to each Member’s Percentage Interest. After all amounts
identified in subsections (i) through (iii) of the preceding sentence have been paid in full, the Company will distribute the remaining assets identified on Exhibit A hereto to the Member who originally contributed such assets as part
of that Member’s Initial Capital Contribution. In the event the Company is unable to satisfy its debts after liquidating all assets other than those identified in Exhibit A hereto, then all remaining assets will be subject to the
liquidation and distribution of assets pursuant to Section 9 of this Agreement unless otherwise unanimously agreed to by the Members. Armstrong covenants and agrees that it will not interfere or compete with Cyprus’ primary rights to
renegotiate or seek an extension to the Rogers #8 Lease during the Non-interference Period (as defined below). Notwithstanding any disassociation hereunder or stated herein in this Section 10, Armstrong hereby covenants and agrees for itself,
its successors and assigns and its and their Affiliates, and any successor owner of any ownership interest in the assets that were contributed by Armstrong under Section 3 hereof, including without limitation, the successors in title to the
1,977 acres of surface lands, that it and they will not, during the Noninterference Period (as defined below), seek to or obtain a lease from the Rogers of any coal reserves described in the Rogers #8 Lease of Kentucky #8 Reserves identified on
Exhibit A hereto, or accept the assignment of any sublease of the such coal reserves, or take any action which could ultimately lead to the non-development or delayed development of the Cyprus owned Kentucky #8 Reserves either separately,
jointly or in conjunction with the Rogers Kentucky #8 Reserves. This covenant and agreement shall survive the disassociation and termination of this Agreement and shall be deemed a covenant running with said land for a period of five (5) years
from the date of withdrawal and disassociation or from the date the Company is otherwise dissolved (the “Non-Interference Period”). 
 11. Management of Workforce. Managing Member shall have the right, power and obligation to exercise any control over the hiring or supervision of the workforce of the Company, necessary to
manage the Company, including, but not limited to, any employment benefits or other terms and conditions of employment for the employees of the Company, Cyprus shall take no part in, and shall have no right, power or obligation with respect to, any
matter relating to the hiring of miners; provided, however, that Armstrong shall not hire miners previously terminated by Armstrong without first receiving consent from the Board of Managers. The Managing Member shall provide written notification to
the Board of Managers of the lateral transfer miners from Armstrong’s other operations to the Company within thirty (30) days of such transfer. 
 12. Applicant Violator System. Each Member represents and warrants that such member, its officers, shareholders, members, subsidiaries, affiliates and any other entity that can be
attributed to it under the “ownership and control” regulations issued by the office of Surface Mining (collectively, “Member Entities”) are not currently permit blocked under the Surface Mining Control and Reclamation Act of 1977
(“SMCRA”). No Member will allow to exist any violation of SMCRA or any comparable state law at any operation of a Member Entity that would cause any other Member or its Member Entities to be permit blocked. Any Member Entity which becomes
permit blocked under SMCRA or any comparable state law shall provide written notice of such event to the other Members within five (5) days and shall take any and all actions necessary for the removal of such permit block within twenty
(20) days’ provided, however, that if the permit block does not then or thereafter adversely affect the other Member(s) (by permit block or otherwise), the permit blocked entity may contest the permit block in good faith and by appropriate
legal proceedings, provided further, however, that if the permit block does adversely affect the other Members (by permit block or otherwise), the non-permit blocked Member(s) may (i) undertake to remove the condition causing the permit block,
at the permit blocked Member’s expense or (ii) purchase such permit blocked Member’s interest in the Company at the fair market value of such permit blocked Member’s interest. 

  
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 13. Relationship with Company. 

13.1 Promotion of Company. Subject to Section 7.9 above, each Member shall use reasonable efforts to promote the activities of
the Company and to ensure its success. 
 13.2 Information. Subject to any applicable restriction of law, all Members
shall be fully and currently informed of the activities of the Company. To the extent that there are any applicable laws or regulations which would have the effect of limiting the right of a Member to be so informed, the other Members) shall use all
reasonable efforts to obtain waivers thereof in favor of the Company and the member so limited and, failing the obtaining of such waivers, the Members shall make such arrangements as shall be practicable to preserve the Company the benefits of the
contacts or projects to which such secrecy agreements or laws or regulations relate. Each Member shall not, except as required by law and except for disclosure to its officers, directors, employees, shareholders, members, partners, attorneys,
accountants, and Affiliates (who shall be bound by the confidentiality provisions of this Agreement), divulge to any person any confidential or proprietary information concerning the business of the Company, including, without limitation, the terms
of this Agreement. 
 14. Miscellaneous Matters. 

14.1 Offset. Whenever the Company is to pay any sum to any Member, any amounts that the Member owes the Company may be deducted
from that sum before payment. 
 14.2 Captions. Section and paragraph titles or captions contained in this Agreement are
inserted only as a matter of convenience and for reference and in no way define, limit extend or describe the scope of this Agreement or the intent of any provision hereof. 
 14.3 Variation in Pronouns. All pronouns and any variation thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons.

 14.4 Governing Law; Severability. This Agreement is governed by and shall be construed in accordance with the law of
the State of Delaware. If any provision of this Agreement or the application thereof to any Person or circumstance is held invalid or unenforceable to any extent, the remainder of this Agreement and the application of that provision to other Persons
or circumstances is not affected thereby and that provision shall be enforced to the greatest extent permitted by law. 
 14.5
Validity. In the event that any provision of this Agreement shall be held to be invalid, the same shall not affect in any respect whatsoever the validity of the remainder of this Agreement. 

14.6 Benefit. Except as herein otherwise provided to the contrary, this Agreement shall be binding upon and inure to the benefit of
the Members, their heirs, personal representatives, successors and assigns. 
 14.7 Notice. Any notice or communication
required or permitted to be given by any provision of this Agreement shall be in writing and shall be deemed to have been given and received by the person to whom directed (a) when personally delivered, (b) when sent by telefacsimile,
telecopier or similar transmission, at the number of the recipient set forth herein, followed with mailing by regular United States 

  
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mail, (c) one (1) business day after deposited for overnight delivery with an overnight courier such as Federal Express, Airborne, United Postal Service or other overnight courier
service, or (d) three (3) business days after deposited in the U. S. mail, sent by certified mail, postage prepaid, return receipt requested, and such notices are addressed to the person to which directed at the address or facsimile number
of which such person has notified the Company and all of the Members. The initial addresses and facsimile numbers of the parties are reflected on the signature page of this Agreement. 

14.8 Further Assurances. In connection with this Agreement and the transactions contemplated hereby, each Member shall execute and
deliver any additional documents and instruments and perform any additional acts that may be necessary or appropriate to effectuate and perform the provisions of this Agreement. 

14.9 Entire Agreement/Amendment. This Agreement embodies the entire agreement and understanding of the Members relating to the
subject matter hereof and supersedes all prior representations, agreements and understandings, oral or written, relating to such subject matter. This Agreement may be amended only by a written instrument executed by all the Members. 

14.10 Waiver and Consent. No consent or waiver, express or implied, by a Member to or of any breach or default by the other Member
in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of such other Member of the same or any other obligation of such member hereunder.

 14.11 Legal Fees. Except as otherwise provided herein, all legal and other costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby are to be paid by the Member incurring such costs and expenses. In the event the Company or any Member brings suit to construe or enforce the terms hereof, or raises this Agreement as a
defense in a suit brought by the Company or another Member, the prevailing Person is entitled to recover its attorneys’ fees and expenses. 
 14.12 Waiver of Dissolution under the Act. Any dissolution of the Company shall occur only as provided herein, and each Member hereby waives and renounces its rights, if any, under the Act to seek
a court decree of dissolution, to seek the appointment of a liquidator of the Company, and to seek a partition of the Company property. 
 14.13 Relationship of the Members. The relationship between the Members shall be limited to the performance of the transactions contemplated by this Agreement and by the Formation Agreement and in
accordance with their terms. Nothing herein shall be construed to authorize a Member to act as general agent for the other Member(s). 
 14.14 Agreement in Counterparts. This Agreement may be executed in as many counterparts as may be deemed necessary and convenient. Each counterpart when so executed shall be deemed an original, but
all counterparts shall constitute one and the same instrument. 
 [remainder of page blank; signature page follows]

  
 - 27 -

 The Members execute this Agreement effective as of the date first above written. 

 

			
	Members:
	
	Cyprus Creek Land Resources, LLC
		
	By:	 	/s/ T. L. Bethel
	Name:	 	T. L. Bethel
	Its:	 	VP
	
	Official Address:    701 Market Street
	     St. Louis, MO 83101

	     Attention: President

	     Facsimile No: (314) 342-7697

	
	Armstrong Coal Company, Inc.
		
	By:	 	/s/ Martin D. Wilson
	Name:	 	Martin D. Wilson
	Its:	 	President
	
	Official Address:    407 Brown Road
	     Madisonville, KY 42431

	     Attention: President

	     Facsimile No: (270) 821-4245

	
	Company:
	
	Survant Mining Company, LLC
		
	By:	 	/s/ Martin D. Wilson
	Name:	 	Martin D. Wilson
	Its:	 	Managing Member
	
	Official Address:    407 Brown Road
	     Madisonville, KY 42431

	     Attention: Vice President

	     Facsimile No.: (270) 821-4245

  
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 Exhibit ‘A’ 

Contribution Schedule 

Scheduled Capital Contributions: 
 I. Milestone
1. Initial Capital (Permitting Phase) 
 Milestone 1 will occur upon the execution of the Operating Agreement of the Company, the Management
Agreement and Sales Representation Agreement. Following the occurrence of Milestone 1, the Company will work to obtain permits for the slope site, the airshaft site, the other surface operations, and the #8 reserves being contributed by Cyprus.

 Contributions: 
 • Armstrong contributes $30,000 in cash 
 • Cyprus contributes $30,000 in
cash 
 • Each Member grants rights of entry as necessary to facilitate permitting 

II. Milestone 2 
 Milestone 2 will occur
upon the completion of permitting as determined by the Board of Managers (projected to occur in August 2012). Following the occurrence of Milestone 2, the Company will begin work on slope construction and airshaft construction. 

Contributions: 

• Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to complete construction of the
mine, including slope, airshafts, coal handling equipment, power drops, communication, rock dust, etc. 
 • Members to
contribute, in proportion to each Member’s Percentage Interest, cash sufficient for down payments on mining equipment, as determined by the Board of Managers. 
 • Armstrong to contribute surface property, equipment, buildings and facilities as follows: 

Contribution by Armstrong and/or its Affiliates by deed to the Company of the surface properties (approximately 1977 acres) and improvements (Parkway prep
plant) as described on Schedule 1 attached hereto and made a part hereof. PNC Mortgages and financing statements affecting those properties will be released. See Exhibit D for form of deed. 

Grant and/or assignment by Armstrong and/or its Affiliates of access and unlimited usage of all waterlines and unlimited withdrawal rights from the any
impoundment, reservoir or body of water associated therewith, including but not limited to the Overland Slurry/Water Supply,Lines servicing the Project, with rights of ingress and egress over any surface properties of Armstrong and/or its Affiliates
for the purpose of maintaining, reconstructing, modifying or otherwise servicing the waterlines and any impoundment, reservoir or body of water associated therewith, together with the right to permit such facilities. 

Conveyance and sublease of all equipment from Armstrong’s Parkway #9 operations, which shall include all substantially all of the owned and leased
equipment that is primarily used in connection with Armstrong’s Parkway #9 operations (supporting both surface and underground operations) on Milestone 2 (“Equipment”). At the time of conveyance and sublease of all Equipment,
Armstrong shall prepare complete exhibits to be 

  
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attached as exhibits to the Bill of Sale and Sublease attached hereto in Exhibit D, All owned Equipment shall be by bill of sale. Conveyance of leased Equipment shall be by means of a
sublease whereby the Company will receive the benefit of use of such equipment and the residual interest (if any) in the equipment upon satisfaction of the underlying lease obligations (without mark-up or additional rental owed to Armstrong). The
Company will provide Armstrong the first-priority, rent-free right to possess and use all of the Equipment pursuant to a Use Agreement consistent with the terms stated herein and the further terms set forth on Exhibit D. Armstrong shall be
responsible to pay all underlying lease obligations for so long as any leased Equipment is being used in Armstrong’s Parkway #9 operations. Pursuant to the Use Agreement, Armstrong shall be responsible to pay all operating costs associated with
or arising from operation of Parkway prep plant and Equipment, including but not limited to any utilities and maintenance costs, until such time as the Company begins mining the #8 seam of coal. When the Company begins mining the #8 seam, the
Company and Armstrong shall prorate the operation costs of the Parkway prep plant and related Equipment, excluding Equipment dedicated solely to the #9 mining operations, based on their production from both seams. As Armstrong depletes the #9 seam
reserves at Parkway and ceases using particular items of Equipment, the Use Agreement shall terminate as to such items, and possession will be delivered to the Company. 
 Contribution by Armstrong and/or its Affiliates of rights to the Gibraltar Haulroad and Access Road pursuant to a Non-Exclusive Haulroad Easement Agreement. 

• Cyprus to contribute reserves and property rights as follows: 
 Contribution to the Company by Cyprus and/or its Affiliates of all Kentucky #8 coal reserves located within the Comprehensive Mining Area, now or hereafter owned or leased by Cyprus or its Affiliates, by
the Lease and Sublease Agreement described on Exhibit D, all such leased and subleased interests being contributed free from and not subject to any obligations of royalty interests, overriding royalty interests, premiums or rentals to any
Person, except for the royalty obligations due to any original Lessor of the subleased interests. Company will reimburse Cyprus for advance royalties paid in 2012 for leased Rogers #8 coal reserves. 1 

Contribution by Cyprus and/or its Affiliates of rights to the Gibraltar Haulroad and Access Road pursuant to Non-Exclusive Haulroad Easement Agreements.

 III. Milestone 3 
 Milestone 3
occurs upon the completion of mine construction as determined by the Board of Managers (projected to occur in August 2013). 
 Contributions: 
 • Members to contribute, in proportion to each Member’s
Percentage Interest, cash sufficient to acquire a full underground unit of equipment as determined by the Board of Managers, which is projected to include two JOY 1415 continuous miners, four BH10 battery haulers, two Fletcher double boom roof
bolters, one BF17 JOY feeder, two scoops, two 14 place mantrips, three tow man rides, power distribution equipment, coal handling equipment (headers, etc.) and any other equipment or supplies necessary to operate one split air supersection.

  

	1	Upon completion of permitting Cyprus shall acquire a new #8 coal lease from the Rogers to extend the existing 1993 lease and will subsequently sublease those leasehold
interests to the Company. 

  
 - 30 -

 IV. Milestone 4 
 Milestone 4 occurs following the completion of mine construction and prior to mining as determined by the Board of Managers (projected to occur in August 2013). Following the occurrence of Milestone
4, the Company will begin mining the #8 seam. 
 Contributions: 

• Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to upgrade the Parkway preparation
plant to allow for processing of additional tonnage as determined by the Board of Managers. Cost of operation of the preparation plant will be shared on a prorata basis by Armstrong and Survant as long as Armstrong continues to operate in the #9
seam. 
 VI. TV A Contract. To the extent any coal is sold by the Company under Armstrong’s existing contract with Tennessee Valley
Authority, TVA Contract No, 40685, Armstrong shall remit to the Company the net proceeds attributable to the sale of such coal, without mark-up or additional costs or charges to the Company pursuant to a pass-through agreement acceptable to the
Board of Managers. The Sales Representation Agreement requires payment for all coal mined removed and sold by the Company, including any coal passed through Armstrong contracts. 
 Notwithstanding any provision of this Agreement, neither Member is making any representation or warranty concerning the condition or quality of its properties being contributed hereunder, and neither
Member shall be determined to have failed to remit its capital contributions or be liable to the Company or the other Member based on any subsequent determination that any portion of the Member’s capital contributions consisting of owned or
leased real property is unable to be used, developed or mined for any reason or is not used, mined and/or developed for any reason or the Member’s title to any such property is found to be defective or the estimated tonnages of any coal
reserves provided for herein are determined to be inaccurate or due to any aspect of the condition, fitness or serviceability of any of the Equipment, Buildings, or other facilities described herein. The Members agree that certain surface properties
(being those tracts subdivided by the “New Division Line”) to be contributed to the Company by Armstrong will be surveyed to effectively subdivide the tracts and that neither Member will be entitled to seek adjustment of their respective
Percentage Interests in the Company or otherwise be liable to the Company or the other Member by reason of any determination of any deviation between the representations contained in the lease and the surveyed acreage of those surface properties.

  
 - 31 -

 EXHIBIT B 
 COMPREHENSIVE MINING AREA 
  
 

 

  
 - 32 -

 EXHIBIT C 
 EXCLUSION AREAS 
  
 

 

  
 - 33 -

 EXHIBIT D 
 TO 
 OPERATING AGREEMENT 

Forms of Contribution Conveyancing Documents 
 1. Coal Mining Lease and Sublease — CCLR & Survant — Owned #8 Coal, Leased 1993 and 2013 Rogers #8 Coal, and Leased Duncan #8 Coal. 

2. Memorandum of Coal Mining Lease and Sublease — CCLR & Survant — Owned #8 Coal, Leased 1993 and 2013 Rogers #8 Coal, and Lease Duncan
#8 Coal. 
 3. Rogers Consent to Sublease 1993 #8 Leased Coal. 
 4. Rogers Consent to Sublease 2013 #8 Leased Coal. 
 5. Duncan Consent to Sublease Portions of #8
Coal. 
 6. Non-Exclusive Haulroad & Access Easement — CCLC & Survant — Under review by Armstrong. To be mutually
agreed by the parties within 30 days of the date of the Operating Agreement. 
 7. Non-Exclusive Haulroad Easement — CCLC &
Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of the Operating Agreement. 
 8.
Non-Exclusive Haulroad Easement — CCLC & Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of the Operating Agreement. 

9. Quitclaim Deed — WMD and WLC — 39.45% interest 4,782 acres of Owned Gibraltar Surface. 

 

	10.	Quitclaim Deed — WMD and WLC — 39.45% interest in 661.54 acres of Owned Parkway Surface. 

11. Special Warranty Deed — WLC and Survant — 100% Interest in 1,977 acres of Owned Surface with deed-in provisions (1,628 acres from Gibraltar;
349 acres from Parkway). 
  

	12.	Rogers Partial Release of Right of First Refusal to Purchase — Rogers, WLC, Survant. 

 13. Non-Exclusive Haulroad Easement (Gibraltar HR and Access Road — WLC, Armstrong, Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of
the Operating Agreement. 

  
 - 34 -

	14.	Bill of Sale — Armstrong Owned Equipment — Armstrong & Survant. 

 

	15.	Equipment Sublease — Armstrong Leased Equipment — Armstrong & Survant. 

 16. Use Agreement — To be drafted post-closing and mutually agreed by the parties within 30 days of the date of the Operating Agreement, which agreement will contain the following basic terms:

 Ÿ Armstrong shall have the first-priority, rent-free right to possess and use all of the Equipment as needed in its #9 seam mining operations. 

Ÿ Armstrong shall have no obligation to pay rent or use fees for the Equipment. 
 Ÿ Armstrong shall insure and maintain the Equipment at its cost until
possession is delivered to Survant. 

Ÿ Armstrong shall pay operating costs. 
 Ÿ Armstrong shall indemnify Survant for any liabilities and claims related to Armstrong’s use of the Equipment. 

Ÿ As Armstrong depletes the #9 seam reserves at Parkway and ceases using particular items of Equipment, the Use Agreement shall terminate as to such items, and possession will be delivered to the Company.

  
 - 35 -

 Appendix 2 
 SALES REPRESENTATION AGREEMENT 
 THIS SALES REPRESENTATION AGREEMENT
(“Agreement”) made and entered into as of the 29th day of December, 2011, by and among Survant Mining Company, LLC, a Delaware limited liability company (“SURVANT”) with a mailing address of 407 Brown Road, Madisonville, KY
42431 and PEABODY COALSALES, LLC, a Delaware limited liability company with its principal place of business at 701 Market Street, St. Louis, Missouri 63101 (“COALSALES”). 

W I T N E S S E T H: 
 WHEREAS, SURVANT is a coal company which owns, leases or otherwise controls Kentucky #8 seam coal reserves located in Muhlenberg County, Kentucky (the “SURVANT Reserves”) and is jointly
owned by Armstrong Coal Company, Inc. (“Armstrong”) and Cyprus Creek Land Resources, LLC (“Cyprus”); and 

WHEREAS, SURVANT is governed by the terms and conditions contained in a certain Limited Liability Company Agreement dated the 29th
day of December, 2011 (the “Operating Agreement”); and 
 WHEREAS, SURVANT desires to find customers and
develop markets for coal to be produced from the SURVANT Reserves; and 
 WHEREAS, COALSALES has particular expertise and
knowledge in the area of coal sales, marketing, domestic and export sales and related services and represents producers of similar coals in domestic markets; and 
 WHEREAS, COALSALES is willing to serve as sales agent and/or to purchase coal from SURVANT upon the terms and conditions set forth in this Agreement; 

WHEREAS, SURVANT and COALSALES wish to establish the terms and conditions under which COALSALES shall market and sell coal
produced by SURVANT and to compensate COALSALES for the same; 
 NOW THEREFORE, in consideration of the foregoing
premises, the mutual covenants and promises herein contained, and for other good and valuable consideration, the reciept and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 

ARTICLE ONE — SALES AGENCIES 
 1.1 SURVANT hereby appoints COALSALES, and COALSALES hereby accepts the appointment, to act as Survant’s agent for the sale of coal (subject to the procedures under Article Two) from the
SURVANT Reserves which is to be sold in domestic markets. 
 1.2 It is further expressly understood that while COALSALES
will sell coal produced, owned, or marketed by companies other than SURVANT and will also act as agent for such other companies in the sale of their coal, COALSALES shall give fair representation in accordance with industry trade practices and
customs to SURVANT at all times and will, where the coal quality and rail access requirements of a potential purchaser can be satisfied by SURVANT’s coal from the SURVANT Reserves and COALSALES has no superior obligation to any other company
which it represents, due to a previously executed representation agreement, give preference to SURVANT’s coal from the SURVANT Reserves. 

  
 1 

 1.3 SURVANT and its affiliates hereby represent and warrant to COALSALES that there
is no current sales representation agreement between SURVANT and any other third party with respect to the SURVANT Reserves and SURVANT and its affiliates, hereby agree not to enter into any other new sales representation agreement with respect to
the SURVANT Reserves that would prevent COALSALES from receiving its commission described in section 2.2. 
 1.4 The
relationship of SURVANT and COALSALES shall be that of an independent contractor, and nothing contained in this Agreement shall be construed or interpreted as: (i) establishing a relationship of partners, co-owners or otherwise as participants
in a joint venture; (ii) creating a franchisor-franchisee or employer-employee relationship; (iii) constituting SURVANT, its respective agents or employees as the agents or employees of COALSALES or to grant to SURVANT any power or
authority to act for, bind or otherwise create or assume any obligation on behalf of COALSALES; or (iv) constituting COALSALES, its agents or employees as the agents or employees of any of SURVANT (except for the appointment as sales agent as
set forth herein) or to grant to COALSALES any power or authority to act for, bind or otherwise create or assume any obligation on behalf of SURVANT. All offers, proposals and other submissions to customers by COALSALES in its sales agent capacity
shall be subject to acceptance of such offer or proposal by SURVANT. 
 ARTICLE TWO — COMPENSATION 

2.1 All costs and expenses of whatever kind and nature incurred by COALSALES as a result of the sales representation of coal
pursuant to Article One hereof, shall be solely for its own account and SURVANT shall have no obligation to advance to COALSALES, or reimburse it for, any such cost or expense. 

2.2 For all coal produced and sold from the SURVANT Reserves during the Term of this Agreement; COALSALES shall be paid a
commission of Twenty-Five cents ($0.25) per ton on a monthly basis, payable by the 25th day of the following month. 
 2.3
Compensation Due Under Armstrong Sales Contracts. The parties understand and agree that coal produced from the Survant Reserves may be sold under supply agreements and contracts between Armstrong and third party customers, including but
not limited to TVA, and that COALSALES will be paid the commission described in Section 2.2 above for all coal from the Survant Reserves sold under any such agreement or contract. 

ARTICLE THREE — RESPONSIBILITY FOR 
 PERFORMANCE OF COAL CONTRACTS, INDEMNIFICATION 
 3.1 SURVANT shall
be solely responsible for the full and due performance of all contracts which it enters into with COALSALES or any third party as a result of this Agreement and SURVANT shall indemnify COALSALES against liability for any loss, damage, or injury
suffered by COALSALES arising out of or related to SURVANT’s performance or non-performance of any contract, unless such liability is proximately caused by the willful acts or gross negligence acts of COALSALES. SURVANT shall be solely
responsible for the costs of any analysis, washability, or reserves studies. 

  
 2 

 3.2 COALSALES shall: (i) respond promptly to any reasonable request by SURVANT
for market information affecting the market for all coal; (ii) cooperate with SURVANT in dealing with any customer complaints concerning sales of coal hereunder; and (iii) assist SURVANT with other customer support activities related to
such coal sales orders. 
 3.3 SURVANT shall: (i) communicate promptly to COALSALES all inquiries from customers for
purposes of handling and quotation; (ii) comply with the terms of all such coal sales orders; and (iii) communicate to COALSALES, in writing, at least once prior to the end of each month of their anticipated monthly shipments by
destination, coal type and tonnage, and any planned mine outages or potential shipping/delivery problems, for the following month. This communication should compare anticipated monthly availability of such coal products against anticipated sales to
provide COALSALES with projected supply shortfalls and/or uncommitted tonnage. 
 3.4 Disclaimer of Fiduciary
Obligation. SURVANT agrees and acknowledges that COALSALES acts as a sales agent or sales representative, or both, for other producers (including its affiliates), brokers coal, and buys and sells coal on its own behalf and on behalf of its
affiliates. COALSALES expressly disclaims any fiduciary obligation to SURVANT, or any other obligation not expressly set forth herein. 
 3.5 Compliance with Laws. The parties shall comply with all laws, orders, rules, regulations, and requirements of every duly constituted governmental authority, agency, or instrumentality,
which may be applicable to this Agreement or its subject matter, including but not limited to US Anti-trust and state unfair competition laws and the Foreign Corrupt Practices Act and The Patriot Act. 

3.6 Joint Customers. In the event a solicitation is requested from a prospective customer which COALSALES is also submitting
a bid for its own account, then SURVANT will deliver the bid to such prospective customer, with its price independent of COALSALES. If SURVANT is successful in obtaining the sale, COALSALES will handle the ongoing relationship with the customer in
accordance with this Agreement. 
 ARTICLE FOUR — TERM AND TERMINATION 

4.1 Subject to earlier termination as provided for in Section 4.2 below, this Agreement shall be for an initial term of three
(3) years beginning on the date first above written, and shall be automatically renewed from year to year thereafter without further action of the parties required, as long as SURVANT remains in existence and coal is produced from the SURVANT
Reserves (the “Term”). 

  
 3 

 4.2 Events of Default. An event of default (“Event of
Default”) with respect to SURVANT shall mean any of the following: (i) the failure of SURVANT to pay when due any required payment under this Agreement and such failure is not remedied within five (5) business days after written
notice thereof; (ii) the failure of SURVANT to comply with its other material obligations under this Agreement; (iii) SURVANT shall be subject to a Bankruptcy Proceeding; or (iv) any representation or warranty made by SURVANT under
this Agreement shall prove to be untrue when made in any material respect. An Event of Default with respect to COALSALES shall mean any of the following: (i) the failure of COALSALES to comply with its material obligations under this Agreement;
and (ii) any representation or warranty made by COALSALES under this Agreement shall prove to be untrue when made in any material respect. If any default, other than a payment default (as to which the 5 business day cure period above applies),
is curable, it may be cured (and no Event of Default will have occurred) if the defaulting party (“Defaulting Party”), as the case may be, after receiving written notice demanding cure of such default (1) shall cure the default within
thirty (30) days; or (2) if the cure requires more than thirty (30) days, shall immediately initiate reasonable steps sufficient to cure the default and thereafter continue and complete all reasonable and necessary steps sufficient to
cure the breach as soon as reasonably practical. Upon the occurrence and during the continuation of an Event of Default as to the Defaulting Party, the other party (the “Non-Defaulting Party”) may, in its sole discretion, accelerate
and liquidate the Defaulting Party’s obligations under this Agreement by establishing and notifying the Defaulting Party of, an early termination date (which shall be no earlier than the date of such notice) on which the Term of this Agreement
shall terminate (“Early Termination Date”). If notice of an Early Termination Date is given under this Section 4.2, the Early Termination Date will occur on the designated date, whether or not the relevant Event of Default is
then continuing. Any rights of a Non-Defaulting Party under this Section 5.2 shall be in addition to such Non-Defaulting Party’s other rights under this Agreement. In the event Cyprus ceases to be a member of SURVANT pursuant to the
Operating Agreement, SURVANT shall have the right to terminate the Term of this Agreement effective on the date Cyprus ceases to be a member. 
 ARTICLE FIVE — GENERAL PROVISIONS 
 5.1 ASSIGNMENT.
Neither party may assign its rights or obligations under this Agreement without the written consent of the other party. 
 5.2
NOTICE. Notice sent by certified mail, or hand delivered, addressed to the president or a vice president of the party to whom such notice is given at the address listed in this Agreement shall be sufficient notice in any case requiring
notice under this Agreement. At any time, any party may specify in writing a new address for notifications hereunder. 

5.3 LIABILITY AND INDEMNIFICATION. As between the parties hereto, any party shall be liable to the others for the
death of or injury to any employee of the other parties, or loss of or damage to the property of the other parties, unless proximately caused by the assertly liable party’s negligence or willful action. Each party shall indemnify the other
party against any liability for the death of or injury to any of its own employees, or loss of or damage to its own property, unless caused by the sole negligence or willful action of the other party. Each party shall indemnify the other party
against any liability for any loss, damage, or injury suffered by any third party and arising out of the parties’ performance of this Agreement except where such loss is proximately caused solely by one party’s negligence or willful
action, and the parties shall bear equal liability for such loss, damage or injury where caused by their joint negligence or willful actions. 

  
 4 

 5.4 COMPLIANCE WITH LAWS. SURVANT and COALSALES represent that they will
comply with all applicable laws and regulations. 
 5.5 ACCESS TO INFORMATION. Each party shall have access to
applicable data in the possession of the other parties in order to fulfill their respective obligations to third parties. However, each party shall maintain such data on a confidential basis and not disclose such data to third parties without the
prior written consent of the other parties. This provision shall survive termination of this Agreement. 
 5.6 FORCE
MAJEURE. In the event the obligations of the parties under this Agreement shall be prevented, delayed, suspended or reduced by Force Majeure, then the party experiencing such Force Majeure shall promptly notify the other party and, to the
extent caused by Force Majeure, performance hereunder shall be excused. A “Force Majeure” event shall mean: acts of God, acts of local, state, tribal or federal government, war, labor shortage, strikes or similar labor interruptions,
accidents, or any other cause, whether of like or dissimilar nature, beyond the control of any party. 
 5.7
NON-WAIVER. The failure by any party to insist on compliance with one or more of the provisions of this Agreement shall not serve as a waiver of any other provisions of this Agreement. 

5.8 PERMITS AND RECLAMATION. SURVANT represents and warrants that it will conduct all of its mining and other operations in
accordance with all federal and state requirements and abide by the terms and conditions of all of its permits. SURVANT has or will acquire and maintain all of the necessary permits and licenses required to conduct its mining and other operations on
the SURVANT Reserves and will perform reclamation in accordance with its permits. 
 5.9 COUNTERPARTS. This
Agreement may be signed in counterparts, including facsimile signatures, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument. 

5.10 CONSENT TO JURSIDICTION. SURVANT and COALSALES agree that any action or proceeding initiated by or on behalf of any
party regarding any dispute under this Agreement, shall be commenced and maintained in the District Court of the United States for the Eastern District of Missouri, or the Circuit Court of St. Louis County, St. Louis, Missouri, or any other court of
applicable jurisdiction located in St. Louis County, Missouri. The parties also agree that a summons and complaint commencing an action or proceeding in any such Missouri court by or on behalf of such party or parties shall be properly served and
shall confer personal jurisdiction on a party (to which jurisdiction each party consents and submits itself, waiving any objection based upon forum non conveniens and any objection to venue of any action instituted hereunder), if
(i) served personally or by certified mail to each other party at its respective address set forth in this Agreement, or (ii) as otherwise provided under the laws of the State of Missouri. 

5.11 WAIVER OF JURY TRIAL. Each of the parties hereto hereby irrevocably waives any and all rights each may have to a trial
by jury in any action, proceeding or claim of any nature relating to this Agreement, any documents executed in connection with this Agreement, or any transaction contemplated herein. Each of the parties acknowledges that the foregoing waiver is
knowing and voluntary. 

  
 5 

 5.12 GOVERNING LAW. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of Missouri, without regard to any conflict of laws principles. 
 5.13 ENTIRE
AGREEMENT. This Agreement and the Operating Agreement constitute the entire Agreement of the parties, and supersedes all prior negotiations, understandings and writings between the parties, as to the matters covered herein. Any and all sales
contracts entered into during the term of this Agreement shall be governed solely by the provisions of such contracts and of this Agreement. Where the provisions of a sales contract is at variance with this Agreement, the two documents shall, to the
extent possible, be interpreted in a harmonious manner; provided, however, that where it is not possible to harmoniously interpret the two documents, the provision of the sales contract shall prevail. In the event of a conflict between the terms of
this Agreement and the Operating Agreement, the terms of the Operating Agreement shall prevail. This Agreement may only be modified by written amendment executed by all parties. 

5.14 THIRD PARTIES. Nothing in this Agreement is intended or shall be construed to confer any rights, remedies or benefits
on any person or entity other than SURVANT and COALSALES. 
 5.15 CAPTIONS. Section and paragraph titles or
captions contained in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision hereof. 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly constituted officers as of the day
and year first written above. 
  

							
	SURVANT MINING COMPANY, LLC	    	PEABODY COALSALES, LLC
				
	By:	 	 	    	By:	  	 
	Title:	 	 	    	Title:	  	 

  
 6 

 Schedule 9.6 

TO 

FORMATION AND TRANSFER AGREEMENT 

  
 11 

 Schedule 10.6 

TO 

FORMATION AND TRANSFER AGREEMENT 

  
 12 

 Exhibit A 
 NOTICE: THIS AGREEMENT CONTAINS AN ARBITRATION PROVISION  

SURVANT MINING COMPANY, LLC 
 LIMITED LIABILITY COMPANY AGREEMENT 
 (THE OPERATING AGREEMENT)

 THIS LIMITED LIABILITY COMPANY AGREEMENT, also called the “Operating Agreement” (collectively herein, the
“Agreement”) effective as of the     day of December, 2011, is entered into by and among Cyprus Creek Land Resources, LLC (“Cyprus”) and Armstrong Coal Company, Inc. (“Armstrong”). 

 WHEREAS, the Members (hereafter defined) desire to form a limited liability company under the laws of the State of
Delaware to be known as Survant Mining Company, LLC (the “Company”) for the purposes set out in this Agreement, and to carry on such other legally permissible business and activities as the Company, in accordance with applicable laws and
this Limited Liability Company Agreement, shall determine from time to time; 
 WHEREAS, the Members desire to enter into
this Limited Liability Company Agreement to govern the conduct of the business and affairs of the Company and to set forth the understanding of the Members regarding all other matters concerning the Company which may be covered in a Limited
Liability Company Agreement; 
 NOW, THEREFORE, in consideration of mutual promises and covenants contained herein and
other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, do hereby agree as follows: 

1. Certain Definitions.  
 When used herein, the following terms shall have the meanings set forth below: 

1.1 “Act” means the Delaware Limited Liability Company Act, Title 6, Chapter 18 of the Delaware Code (as amended). All
references herein to specific sections of the Act shall be deemed to refer to the corresponding provisions of succeeding law. 

1.2 “Affiliate” means: (i) any Person which, directly or indirectly, is in Control of, is Controlled by or is under common
Control with the 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. 
 1.3 “Agreement” means this Limited Liability Company Agreement as the same may be amended and
supplemented from time to time. 
 1.4 “Armstrong” means Armstrong Coal Company, Inc., a Delaware corporation.

 1.5 “Available Cash” means all cash determined by the Managing Member to be available to the Company for
distribution to the Members after the payment of all current expenses and other liabilities then due, establishing reserves for capital improvements, working capital needs, contingent liabilities and unforeseen contingencies, all determined
reasonably and in good faith by the Managing Member. 
 1.6 “Board of Managers” has the meaning set forth in
Section 7.1. 

 1.7 “Capital Expenditure” means all expenditures (excluding interest capitalized
during construction) which must be capitalized under generally accepted accounting principles (GAAP). 
 1.8
“Certificate” means the Certificate of Formation, and all amendments thereto, executed and filed pursuant to applicable laws and the terms of this Agreement. 
 1.9 “Change of Control,” with respect to Armstrong, means any transfer or other action that results in (a) Armstrong ceasing to be Controlled, directly or indirectly, by the Yorktown
Parties unless as a result of an initial or secondary public offering of stock, (b) any Person, other than the Yorktown Parties or Persons Controlled by the Yorktown Parties, acquiring a 50% or greater ownership interest, directly or
indirectly, in Armstrong, or (c) any private or public company or entity primarily engaged in the business of coal mining gaining Control, directly or indirectly, over Armstrong or over Yorktown Parties that have Control over Armstrong.
“Change of Control,” with respect to a Member other than Armstrong, means any transfer or other action that results in such Member ceasing to be Controlled, directly or indirectly, by the same Persons or an Affiliate of the Persons who
Controlled such Member as of the date of such Member’s admission to the Company. 
 1.10 “Closing” means the
execution of the Operating Agreement, Management Agreement, Sales Representation Agreement and the contributions of initial capital as set forth in Milestone I of Exhibit A hereto by Cyprus and Armstrong, 

1.11 “Closing Date” means the date set for the Closing. 
 1.12 “Code” means the Internal Revenue Code of 1986, as amended. All references herein to specific sections of the Code shall be deemed to refer also to the corresponding provisions of
succeeding law. 
 1.13 “Company” means Survant Mining Company, LLC, a Delaware limited liability company, 

1.14 “Company Minimum Gain” has the same meaning as the phrase “Partnership minimum gain” as set forth in treasury
regulation § 1,704-2(d), 
 1.15 “Consideration Period” has the meaning set forth in Section 8.3(a).

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

1.17 “Cyprus” means Cyprus Creek Land Resources, LLC, a Delaware limited liability company, 

1.18 “Deficit Capital Account” means with respect to any Member, the deficit balance, if any, in such Member’s capital
account as of the end of the taxable year, after giving effect to the following adjustments: 
 (a) credit to
such capital account that amount which such Member is obligated to restore under Section 1.704-1 (b)(2)(ii)(c) of the treasury regulations, as well as any addition 

  
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thereto pursuant to the next to last sentence of treasury regulation §§1.704-2(g)(l) and (i)(5), after taking into account thereunder any changes during such year in Partnership
(Company) Minimum Gain (as determined in accordance with treasury regulation § 1.704-2(d) and in the minimum gain attributable to any Partner (Member) for nonrecourse debt (as determined under treasury regulation §l,704-2(i)(3); and

 (b) debit to such capital account items described in treasury regulation §§1.704-l(b)(2)(ii)(d)(4),
(5) and (6). 
 The definition of Deficit Capital Account is intended to comply with the provisions of treasury regulations
§§1.704-l(b)(2)(ii)(d) and 1,704-2, and will be interpreted consistently with those provisions. 
 1.19
“Designated Representative” has the meaning set forth in Section 6.8(d). 
 1.20 “Distributional
Interest” has the meaning set forth in Section 8.1, 
 1.21 “Fair Value” has the meaning set forth in
Section 8.7. 
 1.22 “Fiscal Year” means the Company’s fiscal year which shall correspond to the calendar
year, except that (i) the Company’s first fiscal year shall commence on the date of the filing of the Certificate and (ii) such term shall also include any period for which the Company is required to allocate net profits, net losses
and other items of Company income, gain, loss or deduction pursuant to this Agreement or the Code. 
 1.23 “Foreclosure
Assignment” has the meaning set forth in Section 8.7. 
 1.24 “Indemnitee” shall mean (i) any Manager,
(ii) any Managing Member, (iii) any Member, or (iv) any officer, director, employee, agent, stockholder, member or partner of the Company, or a Member. 
 1.25 “Lender” has the meaning set forth in Section 8.1. 
 1.26
“Lender Interest Holder” has the meaning set forth in Section 8.7. 
 1.27 “Lien” means any mortgage,
deed of trust, security agreement, pledge, hypothecation, assignment, deposit arrangement, lien (statutory or otherwise), security interest, financing statement, overriding royalty agreement or preferential arrangement of any kind or nature
whatsoever, including any conditional sale or other title retention agreement, 
 1.28 “Major Decisions” shall mean
those acts and decisions described in the subsections of Section 7.4. 
 1.29 “Managing Member” shall have the
meaning set forth in Section 7.2. 
 1.30 “Manager” and “Managers” shall have the meanings set forth in
Section 7.1. 
 1.31 “Member Interest” shall include any and all rights of a Member under this Agreement, the Act
and other applicable law, including without limitation all Distributional Rights, economic rights, voting and consent rights, notice rights, contract rights and management rights. 

  
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 1.32 “Member Loan” means any loan to the Company by a Member. 

1.33 “Member Nonrecourse Debt Minimum Gain” has the same meaning as the phrase “Company nonrecourse debt minimum gain”
as set forth in treasury regulation §1.704-2(i). 
 1.34 “Member Nonrecourse Deduction” has the same meaning as
the phrase “Survant nonrecourse deduction” as set forth in treasury regulation §1.704-2(i). 
 1.35 “Member
Nonrecourse Loan” means a loan made to, or credit arrangement for the benefit of, the Company by a Member or by any person related to a Member (as defined in treasury regulation § 1,752-4(b)) which by its terms exculpates the Members from
personal liability on the debt, but under which such Member or related person bears the ultimate economic risk of loss within the meaning of treasury regulation §1.752-2. 
 1.36 “Member” means any Person who becomes a Member in the Company as provided herein, initially Cyprus and Armstrong. 
 1.37 “Non-Managing Member” has the meaning set forth in Section 6.6(e). 
 1.38 “Offer Price” has the meaning set forth in Section 8.7. 
 1.39
“Percentage Interest” means 51% for Armstrong and 49% for Cyprus, unless adjusted in accordance with Section 3.3. 

1.40 “Person” means any individual, limited liability company, limited liability partnership, partnership, corporation, trust or
other person or entity. 
 1.41 “Profit Distribution Share” shall mean 50% for each Member without regard to each
Member’s Percentage Interest; provided, however, that if the Members’ Percentage Interests are ever adjusted pursuant to the provisions of Section 3.3, then, starting as of the date of such adjustment, the “Profit Distribution
Share” for each Member shall be equal to the Percentage Interest of each Member. 
 1.42 “Project” means the
development of the Kentucky #8 seam of coal reserves identified on the map attached hereto as Exhibit B, located in Muhlenberg County, Kentucky. 
 1.43 “Project Budget” means the pro forma revenue and expense statement for the Project approved by the Board of Managers in accordance with Section 7.4. 

1.44 “Right of First Offer” has the meaning set forth in Section 8.7. 

1.45 “Sale Period” has the meaning set forth in Section 8.7, 

1.46 “Subsidiary” means any Person, more than 50% of the voting securities of which, is owned (whether directly or indirectly
through one or more Subsidiaries) by the Company. 
 1.47 “Triggering Event” shall mean the occurrence of any of the
following: (a) Armstrong resigns as the Managing Member, (b) Armstrong is removed from the Managing Member position by the Board of Managers acting upon the majority consent of all of the Managers, (c) Armstrong ceases to be a Member,
(d) Armstrong files for bankruptcy, (e) the Management Agreement, referenced in Section 7.1, is terminated pursuant to its terms and conditions, (f) a Change of Control with respect to Armstrong occurs,
(g)

  
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the willful engaging by the Managing Member or its principals in gross misconduct materially or demonstrably injurious to the Company, (h) the conviction of the Managing Member or its
principals of a felony involving fraudulent or dishonest conduct, or (i) the occurrence of a Foreclosure Assignment pursuant to Section 8.7, 
 1.48 “Yorktown Parties” shall mean Yorktown Energy Partners VI, L.P., Yorktown Energy Partners VII, L.P., Yorktown Energy Partners VIII, L.P. and their Affiliates. 

1.49 Other Definitions. Unless otherwise provided in this Agreement, any other term used in this Agreement which is elsewhere
defined in this Agreement shall have the same meaning as such term is respectively given by this Agreement. The definitions in this section shall apply equally to both the singular and plural forms of the terms defined. 

2. Organization.  
 2.1 Formation. The Members hereby agree to form the Company and to associate themselves as Members of the Company. Accordingly, commensurate with the execution of this Agreement, the Members of the
Company shall adopt the Certificate that was filed with the Office of the Delaware Secretary of State. 
 2.2 Registered
Office and Agent The initial registered office of the Company in Delaware shall be located at The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. The Company’s primary business office
shall be at 407 Brown Road, Madisonville, KY 42431, or such other location as may hereafter be determined by the Members. The Company’s registered agent for service of process in Delaware shall be The Corporation Trust Company, Corporation
Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. 
 2.3 Foreign Qualifications. Prior to the Company’s
conducting business in any jurisdiction other than Delaware, the Members shall cause the Company to comply, to the extent procedures are available and those matters are reasonably within the control of the Members, with all requirements necessary to
qualify the Company as a foreign limited liability company in that jurisdiction. At the request of the Managing Member, each Member shall execute, acknowledge, swear to, and deliver all certificates and other instruments conforming with this
Agreement that are necessary or appropriate to qualify, continue, and terminate the Company as a foreign limited liability company in all such other jurisdictions in which the Company may conduct business. 

2.4 Limited Liability Company. The Members intend that the Company not be a partnership (including, without limitation, a limited
partnership) or joint venture, and that no Member be a partner or joint venturer of any other Member, for any purposes other than federal and state tax purposes, and this Agreement may not be construed to suggest otherwise. 

2.5 Term. The existence of the Company shall be perpetual, unless terminated or dissolved as set forth herein, 

2.6 Annual Reporting. Beginning with the first full calendar year following the year in which the Company is organized, the Company
shall prepare and file with the Delaware Secretary of State an annual report as required by the Act or Delaware law. 

  
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 3. Capital Contributions, Member Loans, and Related Matters.  

3.1 Scheduled Capital. Contributions. At Closing, each Member shall make its initial capital contribution to the Company of
$30,000.00 in cash and the Members shall, on the milestone dates set forth on Exhibit A attached hereto (the “Contribution Schedule”), make their respective additional contributions of property as indicated on the Contribution
Schedule (collectively, the “Scheduled Capita! Contributions”), Notwithstanding any provision of this Agreement, neither Member is making any representation or warranty concerning the condition or quality of its properties being
contributed hereunder, and neither Member shall be determined to have failed to remit its capital contribution or be liable to the Company or the other Member based on any subsequent determination that any portion of the Member’s capital
contribution consisting of owned or leased real property is unable to be used, developed or mined for any reason or is not used, mined and/or developed for any reason or the Member’s title to any such property is found to be defective or the
estimated tonnages of any coal reserves are determined to be inaccurate or due to any aspect of the condition, fitness or serviceability of any of the Equipment, Buildings, or other facilities described in Exhibit A hereto. All contributions,
including but not limited to the surface properties, coal reserves, mining facilities, buildings and equipment described in Exhibit A and more particularly described in Exhibit D hereto, shall be contributed to Company free and clear of all
liens and encumbrances, Each Member hereby represents and warrants to the other Member, that prior to entering into this Operating Agreement it has obtained all necessary consents, commitments and authorizations from any party holding current
security interests in the properties that will be contributed to the Company pursuant to this Section 3.1 .Each Member shall make its contributions substantially in the same form of the conveyancing documents attached hereto and made a part
hereof as Exhibit D. 
 3.2 Additional Capital Contributions: Loans. Each Member acknowledges that, in addition to
the foregoing, additional capital contributions will be required for the continued development and operation of the Company and each Member agrees to make the additional capital contributions in the amounts and at the times indicated on the Project
Budget or the Contribution Schedule, as well as any additional capital contributions unanimously agreed to by the Board of Managers in a timely fashion. Any additional capital contributions to the Company shall be made in proportion to each
Member’s Percentage Interest. In the event the Managing Member reasonably determines that additional cash is necessary in order to fund the Company’s operations in the ordinary course of business or to fund the cash needs in accordance
with the approved Project Budget, but the Members do not unanimously agree on the amount of an additional capital contribution, the Managing Member shall have the right (but not the obligation), following reasonable notice to the other Members, to
make a loan to the Company, and the terms of Section 3.3 applicable to the priority and repayment of Member Loans shall apply. 
 3.3 Non-Compliance. In the event a Member (for the purposes of this Section 3.3 the “Non-Contributing Member”) fails to remit (i) its Scheduled Capital Contributions pursuant to
Section 3.1, or (ii) its portion of any additional capital contribution unanimously agreed to by the Board of Managers, when due and such non-compliance is not cured within ten (10) days after written notice is delivered to the Non-
Contributing Member by the other Member requesting that such funds be remitted to the Company, the other Member (for the purposes of this Section 3.3 the “Contributing Member”) may make the capital contribution or loan owed by the
Non-Contributing Member and elect to treat such amount as an additional capita! contribution or as a Member Loan to the Company. Such election must be set forth in a written notice delivered to the Non-Contributing Member within thirty
(30) days after the funds are contributed to the Company by the Contributing Member, on behalf of the Non-Contributing Member. If the written notice is not delivered within the thirty (30) day time period, the additional funds contributed
to the Company shall be deemed a Member Loan by the Contributing Member to the Company. If the Contributing Member elects to treat the contribution as an additional capital contribution and provides written notice of election to the Non-
Contributing Member, then the Percentage Interest of each Member shall be adjusted to reflect the percentage that each Member’s total capital contributions bear to the total of all capital contributions made to the Company. If such funds are
classified as a Member Loan, the loan shall accrue interest at the prime rate posted 

  
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by the lending institution at which the Company has its primary operating account, plus two (2) percentage points. AH Member Loans, whether made under this section, Section 3.2, or
otherwise, shall be a priority and no distributions to the Members shall be made until such loan is repaid without the written consent of the Member who made the Member Loan. 
 3.4 Withdrawal of Capital. The Members shall only be entitled to withdraw or to receive distributions of capital in accordance with the terms and conditions of this Agreement. 

3.5 Capital Accounts. A single capital account shall be maintained for each Member in accordance with the capital accounting rules
of section 704(b) of the Code and the tax regulations thereunder (including treasury regulation 1.704(b)(2)(iv)), The capital account of each Member shall be credited with the fair market value of such Member’s capita! contributions, such
Member’s distributive share of profits, income or gain, and the amount of any Company liabilities assumed by such Member or which are secured by any property distributed to such Member. The capital account of each Member shall be debited with
the amount of cash and the value of any property distributed to such Member pursuant to any provision of this Agreement, such Member’s distributive share of losses and expense, and the amount of any liabilities of such Member assumed by the
Company or which are secured by any property contributed by such Member to the Company. 
 3.6 Revaluation of Capital
Accounts. The capital accounts of the Members shall be adjusted to reflect revaluation of Company assets in all cases required by treasury regulation § 1.704-l(b) and in all optional circumstances to the extent allowed by treasury
regulation § 1.704-l(b)(2)(iv)(f) unless the Board of Managers determines that such revaluation would not be beneficial or fair under the circumstances. If there is a revaluation under this Section 3.6, then the Company shall make special
allocations consistent with the principles of Section 704(c) of the Code. In determining such allocations, the Company shall use the traditional method with curative allocations described in treasury regulation § 1,704~3(c) for any
Contributed Asset. 
 4. Allocations.  

4.1 Allocation of Profit Loss. Income, Gain. Deduction, and Credit. Subject to Section 4.2, profits and losses of the Company
and, items of taxable income, gain, loss, deduction and credit, shall be apportioned among the Members in accordance with each Member’s Profit Distribution Share. 
 4.2 Tax Allocations Contributed Property. With respect to any asset contributed by a Member to the Company (“Contributed Asset”) that has a tax basis different from its agreed upon fair
market value on the date of the contribution, the Company shall make the special allocations required by Section 704(c) of the Code, These special allocations apply solely for Federal, state, and local income tax purposes. They shall not affect
or be taken into account in computing a Member’s capital account, or share of profits, losses, or distributions pursuant to any provision of this Agreement. In making these special allocations, the Company shall use the traditional method with
curative allocations described in treasury regulation § 1.704-3(c) for any Contributed Asset. 
 4.3 754 Election and
Other Tax Elections. In the event of a distribution of property to a Member, or a transfer of any interest in the Company permitted under the Act or this Agreement, the Company, upon written request of the transferor or transferee, shall file a
timely election under this section 754 of the Code and the regulations thereunder to adjust the basis of the Company’s assets under section 734(b) or 743(b) of the Code and a corresponding election under the applicable provisions of state and
local law, and the Person making such request shall pay all costs incurred by the Company in connection therewith, including reasonable ??? accountants’ fees. Other tax elections and elections relating to Taxes not specifically governed by
another provision of this Agreement shall be made as agreed by the Board of Managers. 

  
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 5. Distributions.  

5.1 Distribution to Members. On or before the last business day of each calendar quarter, the Company may make distributions of
cash or cash equivalents to the Members based upon the Available Cash of the Company. The Managing Member shall first determine the amount of Available Cash of the Company available for distribution, and then the Board of Managers shall determine
the aggregate amount of distributions which may be made to the Members and the Members shall share in such total distributions in accordance with each Member’s Profit Distribution Share. 

5.2 Distributions in Kind. Except as may be provided in this Agreement or an amendment to this Agreement, no Member, regardless of
the nature of the Member’s contribution to capital, may demand or receive a distribution from the Company in any form other than cash or cash equivalents. 
 5.3 Limitation on Distributions. No distribution shall be made by the Company if after giving effect to the distribution; (a) the Company would not be able to pay its debts as they become due
in the usual course of business; or (b) the assets of the Company would be less than the sum of its liabilities plus, the amount that would be needed, if the Company were to be dissolved at the time of the distribution, to satisfy the
preferential rights of other Members upon dissolution which are superior to the rights of the Member receiving the distribution. 
 6. Members.  
 6.1 Representations and Warranties. Each
Member hereby represents and warrants to the Company and each other Member that: (a) it is duly organized, validly existing and in good standing under the laws of its formation and is duly qualified and in good standing in the jurisdiction of
its principal place of business; (b) it has full power and authority to execute and agree to this Agreement and to perform its obligations hereunder; (c) it has duly executed and delivered this Agreement; and (d) its authorization,
execution, delivery, and performance of this Agreement does not conflict with any other agreement or arrangement to which that Member is a party or by which it is bound. 
 6.2 Additional Members. It is not intended that additional Members will be admitted into the Company. Nonetheless, if the Members unanimously agree, additional Members may be admitted on such terms
and conditions as the Members may determine at the time of admission, 
 6.3 Prohibited Transfers. No Member may transfer
all or any part of such Member’s Percentage Interests if such transfer will (a) violate in any material respect any applicable federal or state securities laws or regulations, or subject the Company to registration as an investment company
or election as a “business development company” under the Investment Company Act of 1940; (b) require any Member or any Affiliate of a Member to register as an investment adviser under the Investment Advisers Act of 1940;
(c) effect a termination of the Company under Section 708 of the Code; or (d) cause the Company to be treated as an association taxable as a corporation for federal income tax purposes. 

6.4 Information. The Members acknowledge that from time to time, they may receive information from or regarding the Company in the
nature of trade secrets or that otherwise is confidential, the release of which may be damaging to the Company or Persons with which it does business. Each Member shall hold in strict confidence any information it receives regarding the Company that
is identified as being confidential (and if that information is provided in writing, that is so marked) and may not disclose it to any Person other than another Member, except for disclosures (i) compelled by law (but the Member must notify the
other Members, as appropriate, promptly of any request for that information, before disclosing it, if 

  
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practicable), (ii) to advisers or representatives of the Member or Persons to which that Member’s interest may be disposed as permitted by this Agreement, but only if the recipients
have agreed to be bound by the provisions of this Section, or (iii) of information that Member also has received from a source independent of the Company that the Member reasonably believes obtained that information without breach of any
obligation of confidentially. The Members acknowledge that breach of the provisions of this Section may cause irreparable injury to the Company for which monetary damages are inadequate, difficult to compute, or both. The Members agree that the
provisions of this section may be enforced by specific performance, 
 6.5 Liabilities to Third Parties; Indemnification.
Except as otherwise expressly agreed in writing, no Member shall be liable for the debts, obligations or liabilities of the Company, including under a judgment decree or order of a court; provided, however, that notwithstanding any other provision
of this Agreement, each Member shall indemnify and hold harmless the Company and the other Member from and against any claim, loss, damage, liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of
investigation and appeal) actually incurred by the Company or the other Member by reason of, or arising from, the operations, business, or affairs of, or any action taken or failure to act, of or by the other Member or its Affiliates prior to
formation of this Company. The parties acknowledge that a claim has been filed against the Armstrong Parties in US District Court, Western District of Kentucky, Civil Action No. 4:11 cv 114, alleging the existence of an existing overriding
royalty that is alleged to apply to #8 seam coal to be mined by the Company, and the parties agree in the event that such claims are adjudged to apply to any #8 seam coal mined by the Company (but only with respect to #8 seam coal mined by the
Company), the Company shall not be entitled to be indemnified or held harmless by Armstrong relating to such obligations. 
 6.6
Fiduciary Duties. 
 (a) Duty of Loyalty. Each Member’s, Manager’s and Managing
Member’s duty of loyalty to the Company and the other Members is limited to account to the Company and to hold as trustee for the Company any property, profit or benefit derived by the Member, Manager or Managing Member in the conduct or
winding up of the Company’s business. A Member, Manager or Managing Member does not violate the duty of loyalty by engaging in a competing business or pursuing other business opportunities, even if the business opportunity could have been
pursued by the Company. 
 (b) Duty of Care. Each Member’s, Manager’s and Managing Member’s
duty of care to the Company and the other Members in the conduct of and winding up of the Company’s business is limited to refraining from engaging in gross negligence, reckless conduct, intentional misconduct, or a knowing violation of law,

 (c) Good Faith and Fair Dealing. Each Member, Manager and Managing Member shall discharge its duties
and exercise any of its rights consistently with the obligation of good faith and fair dealing which it owes to the Company and the other Members, A Member, Manager or Managing Member does not violate a duty of good faith or fair dealing to the
Company merely because the Member’s, Manager’s or Managing Member’s conduct furthers the Member’s, Manager’s or Managing Member’s, as the case may be, own interest. Further, a Member, Manager, or Managing Member does
not violate the duty of good faith and fair dealing by engaging in a competing business or pursing other business opportunities, even if the business opportunity could have been pursued by the Company; provided, however, that each Member, Manager
and Managing Member shall not engage in a competing business involving any coal reserves described in the Rogers #8 Lease of Kentucky #8 Reserves identified on Exhibit B hereto without the express written consent of the other Member.

  
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 (d) Indemnification of Members, Managers and Managing Member. To the
fullest extent allowed by law, the Members, Managers, and Managing Member shall be indemnified and held harmless by the Company for any liability resulting from any act performed or omission made by them in good faith on behalf of the Company,
except for acts or omissions of gross negligence, willful misconduct, intentional misconduct, or a knowing violation of the law. Notwithstanding anything contained in this Agreement to the contrary, no Member, Manager or Managing Member, nor any
officer, director, employee, agent, stockholder, member or partner of any Member or the Managing Member shall be liable, responsible, or accountable in monetary damages to the Company or any Member by reason of, or arising from, the operations,
business, or affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent that any of the foregoing is primarily caused by any acts or omissions of gross negligence, willful misconduct, intentional misconduct, or
knowing violation of the law of such Person; provided, however, that the rights of either Member with respect to the buy-sell triggers set forth in Section 8.3 shall not be limited to or conditioned upon acts or omissions of gross negligence,
willful misconduct, intentional misconduct, or knowing violation of the law. 
 (e) Duty of Care for Managing
Member. The Managing Member shall perform its duties hereunder, including but not limited to those expressly stated in Section 7.6, in good faith, using reasonable good faith efforts and with reasonable diligence. In the event the other
Member (“Non-Managing Member”) determines that the Managing Member is not performing its duties hereunder consistent with the standards set forth in this Section 6.6(e), the Non-Managing Member may deliver written notice of such
determination to the Managing Member, which notice shall set forth in reasonable detail the basis for the Non-Managing Member’s determination that the Managing Member is not performing its duties hereunder consistent with the standards set
forth in this Section 6.6(e). If, after sixty (60) days after delivery of the foregoing notice, the Non-Managing Member reasonably determines that the Managing Member continues to not perform its duties hereunder consistent with the
standards set forth in this Section 6.6(e), the Non-Managing Member may exercise the buy-sell option set forth in Section 8.3 hereof. 
 6.7 Alternate Dispute Resolution. If a dispute, controversy or claim (whether based upon contract, tort, statute, common law or otherwise) (collectively a “Dispute”) arises from or
relates directly or indirectly to the subject matter hereof, and if the Dispute cannot be settled through direct discussions, the parties shall first endeavor to resolve the Dispute by participating in a mediation administered by the American
Arbitration Association (“AAA”) under its Commercial Mediation Rules before resorting to arbitration. Thereafter, any unresolved Dispute shall be settled by binding arbitration administered by the AAA in accordance with its Commercial
Arbitration Rules and judgment on the award rendered by the arbitrator, after the review rights set forth below have been exhausted, may be entered in any court having jurisdiction. Any arbitration proceeding shall be conducted in St. Louis,
Missouri on an expedited basis before a neutral arbitrator (or multiple arbitrators if called for by the Commercial Arbitration Rules), Each arbitrator shall be selected in the manner determined by the AAA. Upon the request of either party, the
arbitrator’s award shall include findings of fact and conclusions of law provided that such findings may be in summary form. Either party may seek review of the arbitrator’s award before an arbitrations review panel comprised of three
arbitrators qualified in the same manner as the initial arbitrator(s) (as set forth above) by submitting a written request to the AAA. The right of review shall be deemed waived unless requested in writing within ten (10) days of the receipt of
the initial arbitrator’s award. The arbitration review panel shall be entitled to review all findings of fact and conclusions of law in whatever manner it deems appropriate and may modify the award of the initial arbitrator(s) in its
discretion. The prevailing party in any arbitration proceeding shall be entitled to 

  
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 an award of all reasonable out of pocket costs and expenses (including attorneys’ and arbitrators tees)
related to the entire arbitration proceeding (including review if applicable). Upon request of either party, the arbitrator(s) may require that the subject arbitration proceedings be kept confidential and no party shall disclose or permit the
disclosure of any information produced or disclosed in the arbitration proceedings until the award is final. A party shall not be prevented from seeking temporary injunctive relief before a court of competent jurisdiction in an emergency situation,
but responsibility for resolution of the Dispute shall be appropriately transferred to the arbitrator(s) upon appointment in accordance with the provisions hereof. 
 6.8 Meetings of Members. 
 (a) Meetings. The Members
will have an annual meeting as may be established by the Managing Member. The Members will have such special meetings as are called in accordance with the provisions of this Agreement. Any annual or special meeting of the Members is to be held at
such place as may be designated by the Managing Member or in a waiver of notice executed by all Members, If there is a failure to designate a place for any such meeting, the same is to be held at the principal place of business of the Company. The
annual meeting of the Members is to be held each year within sixty (60) days of the beginning of the Fiscal Year for the transaction of such other business as may come before the meeting. Special meetings of the Members may be called at any
time by the Managing Member or by Members possessing not less than one-third of the Percentage Interests and are to be held on such dates and at such times as are set forth in the notice calling the meeting. 

(b) Quorum. A majority of ail the Percentage Interests represented in person or by proxy at such meeting
constitutes a quorum of Members for all purposes. Less than such quorum has the right to adjourn the meeting to a specified date not longer than ninety (90) days after such adjournment, with notice of such adjournment to Members to be given in
the manner for special meetings of the Members. Except where the affirmative vote of all of the Members or unanimous agreement of the Members is required herein, the act of a majority (computed with reference to Percentage Interests) of the Members
present at any duly called meeting at which a quorum of Members is present is the act of the Members. 
 (c)
Notice of Meetings. Written or printed notice of each meeting of Members stating the place, day and hour of the meeting and, in the case of special meetings, the purpose or purposes for which the meeting is called must be delivered or given:
(i) in the case of regular meetings, not less than ten (10) nor more than forty (40) days before the date of the meeting; and (ii) in the case of special meetings, not less than five (5) Business Days nor more than thirty
(30) days before the date of the meeting; in each case either personally or by mail. Notice of an annual meeting of the Members is to be given by the Company, Notice of a special meeting of the Members is to be given by the Company or the
Member calling the meeting. Any notice required by this Section may be waived by the Members by signing a waiver of notice before or after the time of such meeting and such waiver is equivalent to the giving of such notice. 

(d) Designated Representative(s). Each Member shall designate in writing to the Company and the other Members the
names of up to two (2) officers, directors, partner’s, members, employees or other affiliates of the Member who are to serve as the “Designated Representatives” of the Member at all meetings and in all votes, consents and
approvals of the Members required pursuant to this Agreement. The designated individual(s) shall be the official Designated Representative(s) of the designating Member. One of such Designated Representatives shall be the primary voting
representative of the Member and the other (if 

  
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any) shall be the alternative voting representative. Both Designated Representatives of a Member may attend meetings of the Members, but only one (1) Designated Representative shall cast the
Member’s official vote on any matter. The initial Designated Representatives of the entity Members are as follow: 
  

							
	        Cyprus	 		  	T.L. Bethel	  	
		 		  	Vice President, Cyprus	  	
				
		 		  	Tom Benner	  	
		 		  	Vice President Operations Underground,	  	
		 		  	Peabody Midwest Group	  	
				
	        Armstrong	 		  	Kenneth Allen	  	
		 		  	Vice President Operations,	  	
		 		  	Armstrong	  	
				
		 		  	Martin Wilson	  	
		 		  	President,	  	
		 		  	Armstrong	  	

 If neither Designated Representative of a Member is able to attend a particular meeting of the Members,
such Member may designate in writing another officer, director, partner, member, employee or affiliate of the Member to have voting privileges for that specific meeting. A Member may change either or both of its Designated Representatives at any
time by giving written notice thereof to the Company and the other Members. 
 (e) Informal Action by
Members. Any action required by this Agreement to be taken at a meeting of the Members, or any action which may be taken at a meeting of the Members, may be taken without a meeting if all of the Members sign written consents that set forth the
action so taken. Such consents have the same force and effect as a unanimous vote of the Members at a meeting duly held. The Company is to file such consents with the minutes of the meetings of the Members. 

(f) Tele-Participation in Meetings. Members may participate in a meeting of the Members by means of a conference
telephone or similar communications equipment whereby all individuals participating in the meeting can hear each other. Participation in a meeting in this manner constitutes presence in person at the meeting. 

7. Management of the Company.  
 7.1 Board of Managers. The management of the Company is vested in a Board of Managers consisting initially of four (4) individuals acting as Managers (individually a “Manager” and
collectively the “Managers”) of the Company, two (2) selected by Armstrong (or its successor or permitted assign) and the other two (2) selected by Cyprus (or its successor or permitted assign). Initially, Armstrong selects
Kenneth Allen, Vice President of Operations of Armstrong and Martin Wilson, President of Armstrong as its representatives on the Board of Managers and Cyprus selects T. L. Bethel, Vice President of Cyprus and Tom Benner, Vice President Operations
Underground, Peabody Midwest Group as its representatives on the Board of Managers. Except as provided herein, the decisions of the Board of Managers shall be binding upon 

  
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the Company and may be relied upon by other persons or entities. A Manager may at any time be changed or removed and replaced by the Member which has appointed such Manager, but not by any other
Member. In the event that Armstrong or Cyprus (or such party’s successor or permitted assign) ceases to be a Member, the Managers appointed by such Member shall be removed at such time and replaced by the affirmative vote of all of the Members.
Except as set forth in Section 3.2 and Section 7.12(e), the Board of Managers shall act solely upon the majority consent of all of the Managers, which requires an affirmative vote of at least three (3) of the four (4) Managers,
including the affirmative vote of at least one (1) Manager appointed by each of Armstrong and Cyprus, and each Manager shall have one (1) vote. No Manager shall be required to devote all of such Manager’s time or business efforts to
the affairs of the Company but shall devote so much of such Manager’s time and attention to the Company as is reasonably necessary and advisable to manage the affairs of the Company to the best advantage of the Company. The Managing Member is
hereby authorized to execute, in such capacity, all documents and agreements that do not require consent of the Board of Managers, For documents and agreements that require such consent, the Board of Managers may, in connection with its approval
thereof, authorize the Managing Member and/or all or less than all of the Managers to execute any and all documents necessary or convenient to carry out those actions approved by a majority of the Managers, If the Board of Managers approves
executing a document or agreement without specifically authorizing signers, then the Managing Member and each of the Managers, acting individually, may execute such document or agreement on behalf of the Company. The Company shall enter into a
Management Agreement (the “Management Agreement”) which shall initially engage Armstrong to be the manager of the Company’s day-to-day operations and the development of the Project, in accordance with the terms and conditions
contained in the Management Agreement and this Agreement. Pursuant to the terms of this Agreement Armstrong shall serve as the Managing Member until the occurrence of a Triggering Event or is removed by the Board of Managers, at which time Cyprus
shall have the authority, in its sole discretion, to assume the position of Managing Member without consent or action from any other Member or the Board of Managers and shall also have the authority, in its sole discretion, to assume the position of
manager under the Management Agreement, both elections being entirely independent from the other. 
 7.2 Authority and Duties
of the Managing Member. Except for Major Decisions, the Managing Member shall have authority over and control and management of the day-to-day affairs of the Company, including, without limitation, the authority to carry out the duties set forth
in Section 7,6, below. The Managing Member shall be appointed by the Board of Managers and may be removed by the Board of Managers, with or without cause. The initial Managing Member shall be Armstrong. Armstrong shall remain the Managing
Member until the occurrence of a Triggering Event or removed by the Board of Managers acting upon the majority consent of all of the Managers, Without limiting the foregoing, the Managing Member shall have all of the following specific rights and
powers to implement the business and affairs of the Company: 
 (a) Execute and deliver contracts and other
agreements necessary to conduct the efficient and safe day to day operations of the Project and to facilitate the development of the Project and in the ordinary course of business; 

(b) Retain or employ and coordinate the services (both on site and off site) of employees, independent contractors,
supervisors, accountants, attorneys and other persons necessary or appropriate to carry out the business and purposes of the Company, subject to the provisions of Section 7,4(d); 

(c) Pay all debts and other obligations of the Company, to the extent that funds of the Company are available therefor;

  
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 (d) Execute for and on behalf of the Company, and with respect to the
Project, all such applications for permits and licenses as the Managing Member deems necessary and advisable; 

(e) Perform all ministerial acts and duties relating to the payment of all indebtedness, taxes, and assessments due or to
become due with regard to the Project, and to give and receive notices, reports, and other communications arising out of or in connection with the ownership, indebtedness, or maintenance of the Project; and 

(f) Take such other actions or execute such other documents or agreements on behalf of the Company that do not expressly
require the consent of the Board of Managers or the Members hereunder. 
 7.3 Delegation of Duties. The Managing Member
may delegate such authority and duties as the Managing Member deems advisable, excluding any authority or duty which the Act requires to be exercised by the Members or which is a Major Decision. Any delegation pursuant to this Section may be revoked
at any time by the Managing Member, 
 7.4 Major Decisions. Notwithstanding Sections 7,2 and 7.6, the Managing
Member, on behalf of the Company, may not enter into or conduct any of the following transactions (“Major Decisions”) without the majority consent of the Board of Managers: 

(a) admit a Person as a Member except as provided in this Agreement; 

(b) change the status of the Company from one in which management of the Company is vested in managers to one in which
management of the Company is vested in the members and vice versa; 
 (c) assign the Company’s property in
trust for creditors or on the assignee’s promise to pay the Debts of the Company; 
 (d) select, retain or
employ any attorneys or legal advisors to institute or defend any claims, litigation or other legal proceeding brought by or brought on behalf of or against the Company, in which the amount in controversy exceeds $250,000.00; 

(e) institute or settle any litigation, arbitration or other legal proceeding by or on behalf of the Company, or confess a
judgment against the Company, in which the amount in controversy exceeds $250,000.00, except that the Managing Member, without consent of the Board of Managers, may negotiate and settle disputes on behalf of the Company with the Mine Safety and
Health Administration (MSHA), with authority to commit the Company to pay any associated fines, costs or other liabilities in an aggregate amount of $1,000,000.00 in any given Fiscal Year; 

(f) sell, convey, lease, assign, exchange or otherwise dispose of any real property or any combination thereof or any
other material asset of the Company with a fair market value in excess of $250,000.00 in the aggregate during any Fiscal Year without consent of the Board of Managers, provided, however, that the Managing Member shall have the authority to sell,
transfer, dispose, abandon or lease any movable equipment in the ordinary course of business which are no longer necessary or required in the conduct of the Company’s business; 

  
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 (g) borrow money in the name of the Company in excess of $250,000.00 in the
aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal Year or issue evidences of indebtedness of the Company, or refinance, recast, modify or extend the same, or secure the same by mortgage, deed
of trust, pledge or other Lien; 
 (h) commit to make, or make, any expenditure (including Capital Expenditures)
in excess of $250,000.00 in the aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal Year; 
 (i) acquire by purchase, lease or otherwise, any real property in excess of $250,000.00 in the aggregate during any Fiscal Year which is not included within the approved Project Budget for that Fiscal
Year or make any investment in securities or any ownership or controlling interests in any corporation, partnership, limited partnership, limited liability company or other Person; 

(j) possess any property of the Company, or assign the rights of the Company in specific property, for other than a
Company purpose; 
 (k) approve the Project Budget for each Fiscal Year and any amendments thereto; 

(1) cause the Company to enter into one or more transactions with a Member (other than in its capacity as a Member) or an
Affiliate of a Member except as otherwise specifically permitted hereunder and in the Management Agreement; 

(m) change the name of the Company at any time; 

(n) form, organize, acquire, sell, dispose of, reorganize or liquidate a Subsidiary; 

(o) to make any loan or advance to other Persons in excess of $10,000.00 to any such Person (including Members and
Affiliates of Members) or in excess of $50,000.00 in the aggregate during any Fiscal Year, other than (i) trade credit extended on usual and customary terms in the ordinary course of business; and (ii) investments of Company cash in
certificates of deposit, treasuries, high-grade commercial paper or similar investment products; 
 (p) enter
into any modification of the Management Agreement or. Sales Representation Agreement; or 
 (q) enter into or
modify any lease or agreement between the Company and the Managing Member or any of its Affiliates except to the extent permitted under the Management Agreement. 
 7.5 Actions Requiring Unanimous Approval of Members. Notwithstanding Sections 7.1, 7.2, 7.4 and 7,6, neither the Company, the Managers, the Managing Member nor any other Member may, without
the unanimous consent of all the Members, do any of the following: 
 (a) any act materially in contravention of
this Agreement; 
 (b) amend this Agreement or the Certificate; 

  
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 (c) approve a merger or consolidation of the Company with another Person;

 (d) modify, compromise or release the amount and character of the Scheduled Capital Contributions which a
Member is to make or promises to make hereunder; 
 (e) any act which would make it impossible to carry on the
ordinary business of the Company; 
 (f) to dissolve or wind up the Company, except as otherwise expressly
provided in this Agreement; or 
 (g) any and all elections required or permitted to be made by the Company under
the Code. 
 7.6 Managing Member’s Duties. The Managing Member shall be responsible for the good faith performance of
the following functions in a commercially reasonable manner consistent with practices found in the development of properties similar to the Project: 
 (a) Protect and preserve the title and interest of the Company with respect to the Project and other assets now or hereafter owned by the Company; 

(b) Pay from the funds of the Company in a business-like manner all taxes, assessments and other obligations associated
with the Project; 
 (c) Prepare and implement the Project Budget as modified from time to time in accordance
with the terms of this Agreement; 
 (d) Report to the Managers on a quarterly basis regarding the status of the
development of the Project and compliance with the Project Budget for that Fiscal Year; 
 (e) Negotiate, enter
into and supervise the performance of contracts covering all aspects of development of the Project; provided however, that the Sales Representation Agreement shall control the conduct of the parties regarding the sale and marketing of coal from the
Project and the Management Agreement shall control the conduct of the parties regarding the day to day management and development of the Project; 
 (f) Keep all books and accounts and other records required by the Company, including detailed information regarding all expenditures, preserve and store in a safe place all such books and records for at
least a seven (7) year period after termination of each fiscal year; and permit the Members, or any person designated by any Member, with reasonable advance notice and at reasonable times to examine or audit the books, records and accounts
relating to the Company, including but not limited to the assets of the business of the Company’s contractual obligations and forecast for performance by the Company; 

(g) Cause an annual financial statement to be prepared by a firm of certified public accountants of recognized standing,
which financial statements shall be audited if required by any Member; 
 (h) Pay from funds of the Company all
obligations of the Company; 

  
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 (i) Maintain all funds of the Company in financial institutions of
recognized credit standing or in certificates of deposit, treasuries, high-grade commercial paper or similar products; 
 (j) Supervise all matters coming within the terms of this Agreement, including direct observation, inspection and supervision of the development of the Project and production of coal therefrom in a safe
and efficient manner; 
 (k) Develop, manage and operate the Project in a commercially reasonable and safe
manner, which includes but is not limited to 1) submitting the appropriate applications for encroachment permits to mine the Kentucky #8 seam of coal under (i) state and federal highways, including the Wendell Ford Parkway (f/k/a Western
Kentucky Parkway), and (ii) the Paducah and Louisville Railway, and 2) obtaining satisfactory opinions of title on all coal tracts prior to entering upon or mining upon such tracts; 

(1) Acquire appropriate insurance for the Company and the Project in amounts determined by the Managing Member in
consultation with the Board of Managers; 
 (m) Supervise the management of the Project and the production of
coal therefrom; 
 (n) No later than one hundred twenty (120) days prior to the end of the Fiscal Year, the
Managing Member shall start the budgetary process for the next Fiscal Year and no later than ninety (90) days prior to the end of the Fiscal Year shall prepare and deliver to the Members and Managers the projected annual Project Budget of the
Company which itemizes projected sources of revenue and anticipated expense items for the next Fiscal Year; 

(o) No later than ninety (90) days after the end of the Fiscal Year, the Managing Member shall prepare a business
report (“Annual Business Report”) of the past Fiscal Year, The Annual Business Report shall be delivered to the Members to advise and inform each Member of the current status of the Project. The Annual Business Report shall include:
(i) description of activities taken place during the past Fiscal Year; (ii) an annual income statement; (iii) a marketing plan for the next Fiscal Year; (iv) a coal production schedule; and (v) any other information that the
Members reasonably request be included in the Annual Business Report; 
 (p) The Managing Member shall cause all
required Federal, state and local income, franchise, property and other tax returns of the Company, including information returns, to be timely filed with the appropriate office of the relevant taxing jurisdiction or agency. With respect to the
Federal and state income tax returns of the Company, the Company shall submit to each Member drafts of the proposed returns as soon as possible, but in no event later than March 15 of each year, to permit review and approval of such returns by
each Member prior to filing. All expenses incurred in connection with such tax returns and information returns, as well as for the Annual Business Report referred to in Section 7.7(o) hereof, shall be expenses of the Company; 

(q) No later than one hundred eighty (180) days after formation of the Company, the Managing Member shall cause all
tracts being subdivided by the “New Division Line”, or subdivided for any other reason, to be surveyed and to obtain a legal description and survey plat of said tracts. The survey plat shall be recorded and the legal description used in
the Special Warranty Deed from Armstrong to the Company; and 

  
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 (r) In general, supervise the business and affairs of the Company for the
benefit of the Members. 
 7.7 Exclusion Areas. Notwithstanding any other provision of this Agreement, the Company may not
mine or enter upon any portion of the Kentucky #8 seam of coal situated within the “No Mining Boundary” depicted on the map attached hereto and incorporated herein by reference as Exhibit C (herein referred to as the “Exclusion
Areas”) without the prior written consent of Cyprus granting the Company the right to mine or enter upon all or any portion of the Exclusion Areas. The granting of any such consent shall be within the sole discretion of Cyprus and its refusal
to provide any such consent shall not constitute a failure by Cyprus to remit its initial capital contribution or otherwise constitute a material act in contravention of this Agreement. The Company shall subordinate its interests in the coal
reserves located within the Exclusion Areas upon request of the surface owner or its lessee of those areas. In the event Cyprus, in its sole discretion, grants consent to lift the prohibition against mining within the Exclusion Areas, the Company
shall have the first right to mine the Kentucky #8 seam of coal situated within the No Mining Boundary. 
 7.8 Development and
Due Diligence Expenses. Each party shall bear its own costs and expenses for developing the Project and its own due diligence activities until this Agreement is executed. 
 7.9 Conflicts of Interest. The pursuit of other ventures and activities by the Members, Managers and Managing Member are hereby consented to by the Members and shall not be deemed wrongful or
improper. No Member, Manager or Managing Member shall be obligated to present any particular investment opportunity to the Company, even if such opportunity is of a character which, if presented to the Company, could be taken by the Company. The
Company may enter into agreements with a Member, or an affiliate of a Member, to provide other services to the Company; provided such agreement must be at competitive rates and terms and, if applicable, approved by the Board of Managers in
accordance with Section 7.4. 
 7.10 Indemnification. 

(a) Indemnities and Indemnifiable Claims. The Company shall indemnify and hold harmless any Indemnitee, from and against any claim,
loss, damage, liability, or reasonable expense (including reasonable attorneys’ fees, court costs, and costs of investigation and appeal) actually incurred by any such Indemnitee by reason of, or arising from, the operations, business, or
affairs of, or any action taken or failure to act on behalf of, the Company, except to the extent any of the foregoing (A) is determined by final, nonappealable order of a court of competent jurisdiction (or by any other means approved by the
Board of Managers) to have been primarily caused by any fraud, breach of fiduciary duties established under this Agreement, gross negligence or willful misconduct of such person or (B) is actually incurred as a result of any claim (other than a
claim for indemnification under this Agreement) asserted by the Indemnitee as plaintiff against the Company; provided that if (for purposes of clause (A) immediately above) the fraud, breach of fiduciary duties established under this Agreement,
gross negligence or willful misconduct of any person claiming indemnification shall consist of a conviction of or plea of no contest to a felony, then such person shall not be entitled to indemnification unless it is determined, by final,
nonappealable order of a court of competent jurisdiction (or by any other means approved by the Board of Managers), that indemnification should be granted in whole or part. 

  
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 (b) Advancement of Expenses, Unless a determination has been made (by final,
nonappealable order of a court of competent jurisdiction or by any other means approved by the Board of Managers) that indemnification is not required, the Company shall, upon the request of any Indemnitee and except for any claim of the type
described in clause (B) of Section 7.10(a) of this Agreement, advance or promptly reimburse such Indemnitee’s reasonable costs of investigation, litigation, or appeal, including reasonable attorneys’ fees; provided that the
affected Indemnitee shall, as a condition of such Indemnitee’s right to receive such advances and reimbursements, undertake in writing to promptly repay the Company for all such advancements or reimbursements if a court of competent
jurisdiction determines, by final, nonappealable order, that such Indemnitee is not then entitled to indemnification under this Section 7.10. The written undertaking described in the immediately preceding sentence to repay the amount paid or
reimbursed to an Indemnitee by the Company must be an unlimited general obligation of the Indemnitee but need not be secured and it may be accepted without reference to financial ability to make repayment, 

7.11 Tax Matters Partner. Armstrong shall be designated, as the tax matters partner of the Company pursuant to §623 l(a)(7) of
the Code, Any Member designated as tax matters partner shall take such action as may be necessary to cause each other Member to become a notice partner within the meaning of §6223 of the Code. The Company shall indemnify the tax matters partner
of the Company from and against any and all judgments, penalties (including excise and similar taxes and punitive damages), fines, settlements and reasonable expenses, (including without limitation attorneys fees) actually incurred by such Member in
performing its duties as the tax matters partner of the Company; provided that the Company shall not be liable to any Person acting as the tax matters partner of the Company for any portion of such judgments, penalties, fines, settlements or
reasonable expenses resulting from such persons gross negligence or willful misconduct. 
 7.12 Meetings of the Board of
Managers. 
 (a) Meetings. The Board of Managers will have an annual meeting and such quarterly
meetings as may be established by the Company. The Board of Managers will have such special meetings as are called in accordance with the provisions of this Agreement, Any annual, quarterly or special meeting of the Board of Managers is to be held
at such place as may be designated by the Company or in a waiver of notice executed by all Managers. If there is a failure to designate a place for any such meeting, the same is to be held at the principal place of business of the Company. The
annual and quarterly meetings of the Board of Managers is to be held each year within sixty (60) days prior to the beginning of the Fiscal Year, but in no event prior to the time the Managing Member delivers the projected annual Project Budget
of the Company to the Managers and the Members pursuant to Section 7.7(n), for the establishment of the Project Budget and the transaction of such other business as may come before the meeting. Special meetings of the Board of Managers may be
called at any time by the Company or by a Manager and are to be held on such dates and at such times as are set forth in the notice calling the meeting. 
 (b) Quorum. A Manager appointed by Cyprus and a Manager appointed by Armstrong attending such meeting constitutes a quorum of Managers for all purposes, and no quorum shall exist unless a Manager
appointed by both Cyprus and Armstrong shall be in attendance. 
 (c) Notice of Meetings. Written or
printed notice of each meeting of the Board of Managers stating the place, day and hour of the meeting and, in the case of special meetings, the purpose or purposes for which the meeting is called must be delivered or given: (i) in the case of
regular meetings, not less than ten (10) nor more than forty (40) days before the date of the meeting; and (ii) in the case of special meetings, not less than five (5) Business Days nor more than thirty (30) days before the
date of the meeting; in each case either 

  
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personally or by mail. Notice of an annual meeting of the Board of Managers is to be given by the Company. Notice of a special meeting of the Board of Managers is to be given by the Company or
the Manager calling the meeting. Any notice required by this Section may be waived by the Managers by signing a waiver of notice before or after the time of such meeting and such waiver is equivalent to the giving of such notice. 

(d) Proxies. A Manager may vote at any meeting either in person or by proxy executed in writing by the Manager or
its duly authorized attorney in fact. Such proxy must be filed with the Company before or at the time of the meeting. No proxy is valid after 11 months from the date of execution unless otherwise provided in the proxy. 

(e) Informal Action by Managers. Any action required by this Agreement to be taken at a meeting of the Board of
Managers, or any action which may be taken at a meeting of the Board of Managers, may be taken without a meeting if all of the Managers sign written consents that set forth the action so taken. Such consents have the same force and effect as a
unanimous vote of the Managers at a meeting duly held. The Company is to file such consents with the minutes of the meetings of the Board of Managers. 
 (f) Tele-Participation in Meetings. Managers may participate in a meeting of the Board of Managers by means of a conference telephone or similar communications equipment whereby all individuals
participating in the meeting can hear each other. Participation in a meeting in this manner constitutes presence in person at the meeting. 
 8. Transfers of Interests; Admission. 
 8.1 Transfer
Restrictions. Except as otherwise set forth in this Section 8, no Member may sell, assign, transfer, pledge, hypothecate or otherwise dispose of its Member Interest unless unanimously approved by the Members, including, without limitation,
a Member’s distributional interest as described in §18-702 of the Act (“Distributional Interest”). Any transfer of a Member’s interest in violation of this Agreement shall be void and of no effect; provided, however, that
Armstrong shall be permitted to pledge its Distributional Interest only to PNC Bank or the successor agent of the existing PNC credit facility or successor primary lender to Armstrong (“Lender”). Notwithstanding the foregoing [imitations,
the parties acknowledge and agree that, under the limited circumstances set forth in Section 8.7, the Lender shall have the right to sell and transfer all of Armstrong’s Member Interest (not limited to its Distributional Interest) upon
compliance with the provisions of Section 8.7, 
 8.2 Right of First Refusal. If a Member receives a bona fide offer
(“Offer”) which the Member (“Selling Member”) proposes to accept, whether or not solicited, to sell or otherwise dispose of its entire Member Interest in the Company, then the Selling Member shall furnish to the non-selling
Member written notice of the receipt of the Offer together with the principal terms and conditions of the sale, including the minimum price (“Sale Price”) at which such interest is proposed to be sold, and a statement as to the identity of
the real party in interest making the Offer. The non-selling Member, shall then have the right to purchase the Member Interest (“Offered Interest”) proposed to be sold by the Selling Member upon and subject to the terms and conditions as
set forth in this Section 8.2. This Section 8.2 shall not apply to any sale pursuant to the procedures of Section 8.7. 
 (a) The price at which the Offered Interest may be purchased shall be the price contained in the Offer. If the price contained in the Offer shall consist (in whole or in part) of consideration other than
cash, payable at the closing thereof or at a later date, the cash equivalent fair market value of such other consideration shall be included in the price at which the Offered Interest may be so purchased. 

  
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 (b) The non-selling Member shall have sixty (60) days after receipt of
the notice to elect to purchase the Offered Interest. The purchase transaction (unless otherwise agreed to with third-party purchasers) shall be consummated at a closing to be held at the principal executive offices of the Company, or at such other
location as may be agreed by the parties, within sixty(60) days following the date of the non-selling Member’s election to purchase the Offered Interest. At the closing, unless otherwise stipulated in the Offer, the non-selling Member shall
deliver to the Selling Member the full purchase price against delivery of an instrument appropriately transferring the Offered Interest sold thereby. 
 (c) If the non-selling Member does not elect to purchase the Offered Interest, then the Selling Member may accept the Offer and, pursuant thereto, sell the Offered Interest and, notwithstanding anything
to the contrary contained herein (including, without limitation, Section 8.5 hereof), upon such sale of the Offered Interest and the execution by the transferee of this Agreement, the transferee shall become a Member of the Company. However, if
the Selling Member does not sell the Offered Interest pursuant to the Offer within ninety (90) days after the termination (by passage of time or otherwise) of the rights of first refusal created under this Section 8.2, the Selling Member
may not thereafter transfer the Offered Interest, without again complying with the provisions of this Section 8.2. 
 8.3
Buy-Sell Option. Except under circumstances where the procedures set forth in Section 8.7 applies following a Foreclosure Assignment (as defined below), upon the occurrence of any of the following events, each Member shall have the right
of purchase and sale provided by this Section 8.3 to be exercised by a Member (“Electing Member”) by delivering a written notice (“Election Notice”) to the other Member (“Notice Member”): 

(a) a Member or the Managing Member seeks in good faith for approval for an action that requires approval of the Board of
Managers or the Members pursuant to Section 3.2, Section 6.2, Section 7.4(g), or Section 7.5, and the Board of Managers or the Members, as applicable, reach a full and final deadlock on whether to approve the requested action
after attempting in good faith to negotiate a mutually agreed outcome; 
 (b) the Notice Member, acting as a
Managing Member or Member, or any Manager appointed by the Notice Member takes any action or transaction described in Section 7.4 or 7.5 without the consent of the Board of Managers or Members, as applicable; 

(c) the Notice Member has breached the Representations and Warranties in Section 6.1; 

(d) the Notice Member has breached Section 6.3; 

(e) the Notice Member has breached its duties and obligations set forth in Section 6.6(a),(b) or (c); 

(f) a Member other than the Managing Member elects to exercise this provision pursuant to the provisions set forth in
Section 6.6(e); 
 (g) a Change of Control with respect to either Member occurs; or 

  
 - 21 -

 (h) the voluntary election of either Member at any time on or after
January 1, 2020. 
 Such Election Notice shall state a dollar amount equal to the value placed by the Electing Member on all
of the issued and outstanding membership interests in the Company, calculated on a pari passu basis taking into consideration the relative equity interest of the Electing Member, and shall constitute an irrevocable offer by the Electing
Member either to purchase all, but not less than all, of the Member Interest in the Company of the Notice Member from the Notice Member, or to sell all, but not less than all, of the Electing Member’s Member Interest in the Company to the
Notice Member. The purchase price at which the Member Interest of any Member is purchased and sold under this Section 8.3 shall be the value for all of the interests in the Company, as stated in the Election Notice, multiplied by the selling
Member’s Percentage Interest in the Company. 
 (i) For a period of time not exceeding sixty (60) days
from the receipt of the Election Notice by the Notice Member (“Consideration Period), the Notice Member shall have the right to elect to purchase all of the Electing Member’s Member Interest in the Company by providing written notice
(“Purchase Notice”) to the Electing Member of the Notice Member’s intent to purchase the Electing Member’s Member Interest. If the Notice Member does not provide the Purchase Notice to the Electing Member within the above
referenced sixty (60) day time period, the Notice Member shall become obligated to sell its Member Interest in the Company to the Electing Member. 
 (ii) The closing of the purchase and sale shall occur within sixty (60) days from the earlier of the expiration of the Consideration Period, or the date the Electing Member receives a Purchase Notice
from the Notice Member. In either event, at the closing of the purchase and sale transaction described in this Section 8.3, the purchase price must be paid in cash (either by certified check or by wire transfer), unless otherwise agreed upon by
the Electing Member and the Notice Member. 
 (iii) At the closing on the sale of a Member’s Member Interest
pursuant to this Section 8.3, there shall be a final accounting among the Members with respect to all amounts due them from the Company. With respect to the indebtedness and obligations for which any Member is responsible, the purchasing Member
shall, as a condition to closing (but said condition may be waived in writing by the selling Member), cause the repayment of such indebtedness. The Members agree, upon request of any other Member, to execute such certificates or other documents and
perform such other acts as may be reasonably requested by such requesting Member from time to time in connection with such sale. 

8.4 Completion of Sale. If a Member becomes obligated to sell its Member Interest in the Company pursuant to Sections 8.2 or
8.3 of this Agreement, each Member covenants and agrees that it will take such actions and execute such instruments of transfer and other documents as reasonably requested by the other Member to further evidence and complete the sale of the
Member’s Member Interest, Additionally, as a condition precedent to the consummation of the sale of the Percentage Interest, a purchasing Member must arrange for the complete release of all guarantees provided by the selling Member as security
for indebtedness of the Company. 
 8.5 Admissions. All transfers of an interest in the Company by a Member shall entitle
the transferee only the rights afforded a transferee of a Distributional Interest pursuant to § 18-702 of the Act except as otherwise expressly provided herein. These rights are the rights to receive allocations and

  
 - 22 -

 
distributions to which the transferring Member would otherwise have been entitled, but shall not allow the transferee any additional rights, nor shall the transferee become a Member of the
Company upon such transfer. The transferee shall only become a Member of the Company by receiving the written consent of all Members of the Company and executing this Agreement. The consent of the Members to admit any transferee of a distributional
interest into the Company shall be given in the sole and absolute discretion of each Member. 
 8.6 Distributions and
Allocations in Respect to Transferred Interests. If any Member’s interest is sold, assigned or transferred, or any Person is otherwise admitted as a Member during any Fiscal Year in compliance with the provisions of this Agreement, net
profits, net losses, each item thereof, and all other items attributable to such interest for such Fiscal Year shall be allocated among the Members by taking into account their varying interests during such Fiscal Year in accordance with Code
§706(d). Unless otherwise required by the applicable treasury regulations, such sale, assignment, transfer or admission shall be deemed to have occurred at the end of the calendar month during which such event shall have actually occurred, and
such allocations shall be determined and made pursuant to a pro forma closing of the books of the Company as of the end of such month. With respect to a transferred Member’s interest or any interest therein, all distributions on or before the
deemed date of such transfer shall be made to the transferor and all distributions thereafter shall be made to the transferee. The Company shall not incur any liability for making allocations and distributions in accordance with this provision.

 8.7 Right of First Offer and Sale Procedure Following Foreclosure by Armstrong’s Lender. The procedures of this
Section 8.7 shall apply only in the event Armstrong’s interest has been assigned to Lender or its designee (“Lender Interest Holder”) upon the exercise of Lender’s default remedies pursuant to the pledge referenced in
Section 8.1 (such event being referred to as a “Foreclosure Assignment”), it being understood that any such Lender Interest Holder’s are limited to that of the holder of a Distributional Interest and the Lender or its designee or
assignee may acquire all rights and attributes of Armstrong’s Membership Interest in the Company only pursuant to the procedures of this Section 8.7. 
 (a) If, at any time, the Lender Interest Holder proposes to initiate a sale of Armstrong’s Member Interest to a third party, it shall provide written notice of such intention to Cyprus
(“Election Notice”), and Cyprus shall have a right of first offer to purchase Lender Interest Holder’s Percentage Interest for a price equal to the Fair Value for all the Member Interests in the Company multiplied by the Lender
Interest Holder’s Percentage Interest in the Company (the “Offer Price”), 
 (b) As used herein, “Fair Value” shall
mean the fair market value of the entire Company, as determined by the following process. The parties shall have a period of 60 days following the date of the Election Notice in which to agree on the Fair Value of the Company, which period may
be extended by mutual consent, which consent shall not be unreasonably withheld. If they are unable to so agree during such 60-day period (as such period may be extended by mutual consent), then the parties shall submit in writing to the other a
list of three neutral and impartial mining valuation consultants. The first name that matches on both lists shall be retained to determine the Fair Value of the Company. If there are no matches on the lists, the parties shall submit new lists of
three names within two business days, and this process shall continue until an appraiser is selected. The selected appraiser shall have a period of sixty (60) days (which 60-day period shall be extended if the appraiser believes it is necessary
to complete its appraisal) in which to render the appraisal and provide each of the parties with a copy, which appraisal shall be final and binding upon all the parties. All parties agree to give the appraiser full access to the mining operations,
mine management and all requested financial, business and operational information that the appraiser may reasonably request. 
 (c) The
period beginning on the date on which the Fair Value is determined (whether by mutual agreement or by appraisal) and lasting for 180 days thereafter shall constitute the “Sale Period.” For the first thirty (30) days of the Sale
Period, Cyprus shall have the option to elect to purchase all of the Lender Interest 

  
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Holder’s Percentage Interest for the Offer Price (the “Right of First Offer”). If Cyprus does not deliver notice of its election to purchase within such 30-day period, Lender
Interest Holder shall have the right to sell Lender Interest Holder’s Percentage Interest to any other Person, so long as the total purchase price is not less than 90% of the Offer Price; however, if, during the Sale Period, Lender Interest
Holder notifies Cyprus in writing of a proposed sale of Lender Interest Holder’s Percentage Interest for a total purchase price less than 90% of the Offer Price, which notice (the “ROFR Notice”) shall include a description of the
principal terms and conditions of the sale, then Cyprus shall have the right to elect to purchase the interest at the price identified in the ROFR, which election shall be delivered within 60 days of the date of its receipt of the ROFR Notice,
and if Cyprus shall fail to timely deliver written notice of its election to purchase, then Lender Interest Holder may sell its Percentage Interest on the price and on the terms set forth in the ROFR Notice, so long as such sale is completed within
120 days after the date of Cyprus’ receipt of the ROFR Notice. Any sale by Lender Interest Holder that conforms with the provisions of this Section 8.7 shall be effective to vest in the purchaser all Member Interest rights relating to
the Percentage Interest sold, and such purchaser shall automatically become a Member of the Company upon such transfer upon such the purchaser executing an agreement agreeing to be bound by the terms of this Agreement. If, however, Lender Interest
Holder does not consummate the sale during the Sale Period (or, as applicable, within 120 days from the date of Cyprus’ receipt of the ROFR Notice), then the Right of First Offer shall apply to any subsequent sale by Lender Interest
Holder. 
 (d) If Cyprus elects to exercise the Right of First Offer or its rights upon receipt of an ROFR Notice, the closing of the sale
shall occur within 60 days of the start of the Sale Period. Each of Cyprus and Lender Interest Holder covenants and agrees that it will take such actions and execute such instruments of transfer and other documents as reasonably requested by
the other to further evidence and complete the sale of the Lender Interest Holder’s Percentage Interest. The provisions of Section 8.6 shall apply to the interest being transferred. The purchase price shall be paid in cash unless the
parties mutually agree otherwise, and the Lender Interest Holder’s interest shall be free and clear of any liens and encumbrances. 
 9. Dissolution Acts. The Company shall only be dissolved upon the occurrence of any one of the following events: (i) the completion of the term of the Company as set forth in the
Certificate; (ii) written consent of all Members upon exhaustion of the economically mineable coal reserves from the Project; (iii) the sale of all or substantially all of the assets of the Company; (iv) written consent of all
Members, or (v) as required by Section 10 below. Except as otherwise agreed to herein below in Section 10, upon dissolution, the Company shall liquidate and distribute its assets in the following priority: 

9.1 First, to pay all debts owed by the Company to non-Members; 
 9.2 Second, to pay any outstanding Member Loans; 
 9.3 Third, to each Member in
accordance with the positive balance of Member’s capital account; and 
 9.4 Fourth, to the Members in proportion to each
Member’s Percentage Interest. 
 10. Withdrawal and Disassociation. Except as otherwise agreed to herein
below in this Section 10, no Member shall be allowed to withdraw or disassociate from the Company. Any attempted disassociation or withdrawal by a Member shall be null and void and not recognized by the Company, If an event disassociation
occurs for any reason whatsoever, the Company shall not dissolve and the Member causing the disassociation, if any, shall be liable to the Company for such wrongful disassociation. In no event shall the disassociated Member be entitled to have its
Percentage Interest purchased by the Company. Notwithstanding any provision of this Agreement, if the Company has not established commercially viable mining operations in the Kentucky #8 seam of coal by January 5,2016, then either Member shall
have the right to provide the other 

  
 - 24 -

 
Member with notice of withdrawal from the Company (“Notice of Withdrawal”). Neither Member shall have the right to provide Notice of Withdrawal from the Company prior to January 5,
2016. In the event either Member provides Notice of Withdrawal under this Section due to the Company’s failure to establish commercially viable mining operations in the Kentucky #8 seam of coal by January 5, 2016, the Company shall
liquidate all assets of the Company, other than the assets contributed pursuant to the Contribution Schedule identified in Exhibit A hereto and pay all debts or other amounts owed by the Company to: (i) non-Members; then to (ii) pay
any outstanding Member Loans; then to (iii) the Members is accordance with the positive balance of their the Member’s capital account; then to (iv) the Members in proportion to each Member’s Percentage Interest. After all amounts
identified in subsections (i) through (iii) of the preceding sentence have been paid in full, the Company will distribute the remaining assets identified on Exhibit A hereto to the Member who originally contributed such assets as part
of that Member’s Initial Capital Contribution. In the event the Company is unable to satisfy its debts after liquidating all assets other than those identified in Exhibit A hereto, then all remaining assets will be subject to the
liquidation and distribution of assets pursuant to Section 9 of this Agreement unless otherwise unanimously agreed to by the Members. Armstrong covenants and agrees that it will not interfere or compete with Cyprus’ primary rights to
renegotiate or seek an extension to the Rogers #8 Lease during the Non-interference Period (as defined below). Notwithstanding any disassociation hereunder or stated herein in this Section 10, Armstrong hereby covenants and agrees for itself,
its successors and assigns and its and their Affiliates, and any successor owner of any ownership interest in the assets that were contributed by Armstrong under Section 3 hereof, including without limitation, the successors in title to the
1,977 acres of surface lands, that it and they will not, during the Noninterference Period (as defined below), seek to or obtain a lease from the Rogers of any coal reserves described in the Rogers #8 Lease of Kentucky #8 Reserves identified on
Exhibit A hereto, or accept the assignment of any sublease of the such coal reserves, or take any action which could ultimately lead to the non-development or delayed development of the Cyprus owned Kentucky #8 Reserves either separately,
jointly or in conjunction with the Rogers Kentucky #8 Reserves. This covenant and agreement shall survive the disassociation and termination of this Agreement and shall be deemed a covenant running with said land for a period of five (5) years
from the date of withdrawal and disassociation or from the date the Company is otherwise dissolved (the “Non-Interference Period”). 
 11. Management of Workforce. Managing Member shall have the right, power and obligation to exercise any control over the hiring or supervision of the workforce of the Company, necessary to
manage the Company, including, but not limited to, any employment benefits or other terms and conditions of employment for the employees of the Company, Cyprus shall take no part in, and shall have no right, power or obligation with respect to, any
matter relating to the hiring of miners; provided, however, that Armstrong shall not hire miners previously terminated by Armstrong without first receiving consent from the Board of Managers. The Managing Member shall provide written notification to
the Board of Managers of the lateral transfer miners from Armstrong’s other operations to the Company within thirty (30) days of such transfer. 
 12. Applicant Violator System. Each Member represents and warrants that such member, its officers, shareholders, members, subsidiaries, affiliates and any other entity that can be
attributed to it under the “ownership and control” regulations issued by the office of Surface Mining (collectively, “Member Entities”) are not currently permit blocked under the Surface Mining Control and Reclamation Act of 1977
(“SMCRA”). No Member will allow to exist any violation of SMCRA or any comparable state law at any operation of a Member Entity that would cause any other Member or its Member Entities to be permit blocked. Any Member Entity which becomes
permit blocked under SMCRA or any comparable state law shall provide written notice of such event to the other Members within five (5) days and shall take any and all actions necessary for the removal of such permit block within twenty
(20) days’ provided, however, that if the permit block does not then or thereafter adversely affect the other Member(s) (by permit block or otherwise), the permit blocked entity may contest the permit block in good faith and by appropriate
legal proceedings, provided further, however, that if the permit block does adversely affect the other Members (by permit block or 

  
 - 25 -

 
otherwise), the non-permit blocked Member(s) may (i) undertake to remove the condition causing the permit block, at the permit blocked Member’s expense or (ii) purchase such permit
blocked Member’s interest in the Company at the fair market value of such permit blocked Member’s interest. 

13. Relationship with Company.  
 13.1 Promotion of Company. Subject to Section 7.9 above, each Member shall use reasonable efforts to promote the activities of the Company and to ensure its success. 

13.2 Information. Subject to any applicable restriction of law, all Members shall be fully and currently informed of the activities
of the Company. To the extent that there are any applicable laws or regulations which would have the effect of limiting the right of a Member to be so informed, the other Members) shall use all reasonable efforts to obtain waivers thereof in favor
of the Company and the member so limited and, failing the obtaining of such waivers, the Members shall make such arrangements as shall be practicable to preserve the Company the benefits of the contacts or projects to which such secrecy agreements
or laws or regulations relate. Each Member shall not, except as required by law and except for disclosure to its officers, directors, employees, shareholders, members, partners, attorneys, accountants, and Affiliates (who shall be bound by the
confidentiality provisions of this Agreement), divulge to any person any confidential or proprietary information concerning the business of the Company, including, without limitation, the terms of this Agreement. 

14. Miscellaneous Matters.  
 14.1 Offset. Whenever the Company is to pay any sum to any Member, any amounts that the Member owes the Company may be deducted from that sum before payment. 

14.2 Captions. Section and paragraph titles or captions contained in this Agreement are inserted only as a matter of convenience
and for reference and in no way define, limit extend or describe the scope of this Agreement or the intent of any provision hereof. 
 14.3 Variation in Pronouns. All pronouns and any variation thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons.

 14.4 Governing Law; Severability. This Agreement is governed by and shall be construed in accordance with the law of
the State of Delaware. If any provision of this Agreement or the application thereof to any Person or circumstance is held invalid or unenforceable to any extent, the remainder of this Agreement and the application of that provision to other Persons
or circumstances is not affected thereby and that provision shall be enforced to the greatest extent permitted by law. 
 14.5
Validity. In the event that any provision of this Agreement shall be held to be invalid, the same shall not affect in any respect whatsoever the validity of the remainder of this Agreement. 

14.6 Benefit. Except as herein otherwise provided to the contrary, this Agreement shall be binding upon and inure to the benefit of
the Members, their heirs, personal representatives, successors and assigns. 
 14.7 Notice. Any notice or communication
required or permitted to be given by any provision of this Agreement shall be in writing and shall be deemed to have been given and received by the person to whom directed (a) when personally delivered, (b) when sent by telefacsimile,
telecopier or similar transmission, at the number of the recipient set forth herein, followed with mailing by regular United States 

  
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mail, (c) one (1) business day after deposited for overnight delivery with an overnight courier such as Federal Express, Airborne, United Postal Service or other overnight courier
service, or (d) three (3) business days after deposited in the U. S. mail, sent by certified mail, postage prepaid, return receipt requested, and such notices are addressed to the person to which directed at the address or facsimile number
of which such person has notified the Company and all of the Members. The initial addresses and facsimile numbers of the parties are reflected on the signature page of this Agreement. 

14.8 Further Assurances. In connection with this Agreement and the transactions contemplated hereby, each Member shall execute and
deliver any additional documents and instruments and perform any additional acts that may be necessary or appropriate to effectuate and perform the provisions of this Agreement. 

14.9 Entire Agreement/Amendment. This Agreement embodies the entire agreement and understanding of the Members relating to the
subject matter hereof and supersedes all prior representations, agreements and understandings, oral or written, relating to such subject matter. This Agreement may be amended only by a written instrument executed by all the Members. 

14.10 Waiver and Consent. No consent or waiver, express or implied, by a Member to or of any breach or default by the other Member
in the performance of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of such other Member of the same or any other obligation of such member hereunder.

 14.11 Legal Fees. Except as otherwise provided herein, all legal and other costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby are to be paid by the Member incurring such costs and expenses. In the event the Company or any Member brings suit to construe or enforce the terms hereof, or raises this Agreement as a
defense in a suit brought by the Company or another Member, the prevailing Person is entitled to recover its attorneys’ fees and expenses. 
 14.12 Waiver of Dissolution under the Act. Any dissolution of the Company shall occur only as provided herein, and each Member hereby waives and renounces its rights, if any, under the Act to seek
a court decree of dissolution, to seek the appointment of a liquidator of the Company, and to seek a partition of the Company property. 
 14.13 Relationship of the Members. The relationship between the Members shall be limited to the performance of the transactions contemplated by this Agreement and by the Formation Agreement and in
accordance with their terms. Nothing herein shall be construed to authorize a Member to act as general agent for the other Member(s). 
 14.14 Agreement in Counterparts. This Agreement may be executed in as many counterparts as may be deemed necessary and convenient. Each counterpart when so executed shall be deemed an original, but
all counterparts shall constitute one and the same instrument. 
 [remainder of page blank; signature page follows]

  
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 The Members execute this Agreement effective as of the date first above written. 

 

			
	Members:
	
	Cyprus Creek Land Resources, LLC
		
	By:	 	 /s/ T. L. Bethel

	Name:	 	T. L. Bethel
	Its:	 	VP

  

			
	Official Address:	 	701 Market Street
		 	St. Louis, MO 83101
		 	Attention: President
		 	Facsimile No: (314) 342-7697

  

			
	Armstrong Coal Company, Inc.
		
	By:	 	 /s/ Martin D. Wilson

	Name:	 	Martin D. Wilson
	Its:	 	President

  

			
	Official Address:	 	407 Brown Road
		 	Madisonville, KY 42431
		 	Attention: President
		 	Facsimile No: (270) 821-4245

  

			
	Company:
	
	Survant Mining Company, LLC
		
	By:	 	 /s/ Martin D. Wilson

	Name:	 	Martin D. Wilson
	Its:	 	Managing Member

  

			
	Official Address:	 	407 Brown Road
		 	Madisonville, KY 42431
		 	 Attention: Vice President

		 	 Facsimile No.: (270) 821-4245

  
 - 28 -

 Exhibit ‘A’ 

Contribution Schedule 

Scheduled Capital Contributions: 
 I. Milestone
1. Initial Capital (Permitting Phase) 
 Milestone 1 will occur upon the execution of the Operating Agreement of the Company, the Management
Agreement and Sales Representation Agreement. Following the occurrence of Milestone 1, the Company will work to obtain permits for the slope site, the airshaft site, the other surface operations, and the #8 reserves being contributed by Cyprus.

 Contributions: 
 Ÿ Armstrong contributes $30,000 in cash 

Ÿ
Cyprus contributes $30,000 in cash 
 Ÿ Each Member grants rights of entry as necessary to facilitate permitting 
 II. Milestone 2

 Milestone 2 will occur upon the completion of permitting as determined by the Board of Managers (projected to occur in August 2012).
Following the occurrence of Milestone 2, the Company will begin work on slope construction and airshaft construction. 

Contributions: 

Ÿ
Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to complete construction of the mine, including slope, airshafts, coal handling equipment, power drops, communication, rock dust, etc. 

Ÿ
Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient for down payments on mining equipment, as determined by the Board of Managers. 
 Ÿ Armstrong to contribute surface property, equipment, buildings and
facilities as follows: 
 Contribution by Armstrong and/or its Affiliates by deed to the Company of the surface properties (approximately 1977
acres) and improvements (Parkway prep plant) as described on Schedule 1 attached hereto and made a part hereof. PNC Mortgages and financing statements affecting those properties will be released. See Exhibit D for form of deed. 

Grant and/or assignment by Armstrong and/or its Affiliates of access and unlimited usage of all waterlines and unlimited withdrawal rights from the any
impoundment, reservoir or body of water associated therewith, including but not limited to the Overland Slurry/Water Supply,Lines servicing the Project, with rights of ingress and egress over any surface properties of Armstrong and/or its Affiliates
for the purpose of maintaining, reconstructing, modifying or otherwise servicing the waterlines and any impoundment, reservoir or body of water associated therewith, together with the right to permit such facilities. 

Conveyance and sublease of all equipment from Armstrong’s Parkway #9 operations, which shall include all substantially all of the owned and leased
equipment that is primarily used in connection with Armstrong’s Parkway #9 operations (supporting both surface and underground operations) on Milestone 2 (“Equipment”). At the time of conveyance and sublease of all Equipment,
Armstrong shall prepare complete exhibits to be 

  
 - 29 -

 
attached as exhibits to the Bill of Sale and Sublease attached hereto in Exhibit D, All owned Equipment shall be by bill of sale. Conveyance of leased Equipment shall be by means of a
sublease whereby the Company will receive the benefit of use of such equipment and the residual interest (if any) in the equipment upon satisfaction of the underlying lease obligations (without mark-up or additional rental owed to Armstrong). The
Company will provide Armstrong the first-priority, rent-free right to possess and use all of the Equipment pursuant to a Use Agreement consistent with the terms stated herein and the further terms set forth on Exhibit D. Armstrong shall be
responsible to pay all underlying lease obligations for so long as any leased Equipment is being used in Armstrong’s Parkway #9 operations. Pursuant to the Use Agreement, Armstrong shall be responsible to pay all operating costs associated with
or arising from operation of Parkway prep plant and Equipment, including but not limited to any utilities and maintenance costs, until such time as the Company begins mining the #8 seam of coal. When the Company begins mining the #8 seam, the
Company and Armstrong shall prorate the operation costs of the Parkway prep plant and related Equipment, excluding Equipment dedicated solely to the #9 mining operations, based on their production from both seams. As Armstrong depletes the #9 seam
reserves at Parkway and ceases using particular items of Equipment, the Use Agreement shall terminate as to such items, and possession will be delivered to the Company. 
 Contribution by Armstrong and/or its Affiliates of rights to the Gibraltar Haulroad and Access Road pursuant to a Non-Exclusive Haulroad Easement Agreement. 

Ÿ
Cyprus to contribute reserves and property rights as follows: 
 Contribution to the Company by Cyprus and/or its Affiliates of all Kentucky #8
coal reserves located within the Comprehensive Mining Area, now or hereafter owned or leased by Cyprus or its Affiliates, by the Lease and Sublease Agreement described on Exhibit D, all such leased and subleased interests being contributed free
from and not subject to any obligations of royalty interests, overriding royalty interests, premiums or rentals to any Person, except for the royalty obligations due to any original Lessor of the subleased interests. Company will reimburse Cyprus
for advance royalties paid in 2012 for leased Rogers #8 coal reserves. 1 
 Contribution by Cyprus and/or its Affiliates of rights to the
Gibraltar Haulroad and Access Road pursuant to Non-Exclusive Haulroad Easement Agreements. 
 III. Milestone 3 

Milestone 3 occurs upon the completion of mine construction as determined by the Board of Managers (projected to occur in August 2013). 

Contributions: 

Ÿ
Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to acquire a full underground unit of equipment as determined by the Board of Managers, which is projected to include two JOY 1415 continuous miners,
four BH10 battery haulers, two Fletcher double boom roof bolters, one BF17 JOY feeder, two scoops, two 14 place mantrips, three tow man rides, power distribution equipment, coal handling equipment (headers, etc.) and any other equipment or supplies
necessary to operate one split air supersection. 
  

	1	Upon completion of permitting Cyprus shall acquire a new #8 coal lease from the Rogers to extend the existing 1993 lease and will subsequently sublease those leasehold
interests to the Company. 

  
 - 30 -

 IV. Milestone 4 
 Milestone 4 occurs following the completion of mine construction and prior to mining as determined by the Board of Managers (projected to occur in August 2013). Following the occurrence of Milestone
4, the Company will begin mining the #8 seam. 
 Contributions: 

Ÿ
Members to contribute, in proportion to each Member’s Percentage Interest, cash sufficient to upgrade the Parkway preparation plant to allow for processing of additional tonnage as determined by the Board of Managers. Cost of operation of the
preparation plant will be shared on a prorata basis by Armstrong and Survant as long as Armstrong continues to operate in the #9 seam. 
 VI. TV
A Contract. To the extent any coal is sold by the Company under Armstrong’s existing contract with Tennessee Valley Authority, TVA Contract No, 40685, Armstrong shall remit to the Company the net proceeds attributable to the sale of such coal,
without mark-up or additional costs or charges to the Company pursuant to a pass-through agreement acceptable to the Board of Managers. The Sales Representation Agreement requires payment for all coal mined removed and sold by the Company, including
any coal passed through Armstrong contracts. 
 Notwithstanding any provision of this Agreement, neither Member is making any representation or
warranty concerning the condition or quality of its properties being contributed hereunder, and neither Member shall be determined to have failed to remit its capital contributions or be liable to the Company or the other Member based on any
subsequent determination that any portion of the Member’s capital contributions consisting of owned or leased real property is unable to be used, developed or mined for any reason or is not used, mined and/or developed for any reason or the
Member’s title to any such property is found to be defective or the estimated tonnages of any coal reserves provided for herein are determined to be inaccurate or due to any aspect of the condition, fitness or serviceability of any of the
Equipment, Buildings, or other facilities described herein. The Members agree that certain surface properties (being those tracts subdivided by the “New Division Line”) to be contributed to the Company by Armstrong will be surveyed to
effectively subdivide the tracts and that neither Member will be entitled to seek adjustment of their respective Percentage Interests in the Company or otherwise be liable to the Company or the other Member by reason of any determination of any
deviation between the representations contained in the lease and the surveyed acreage of those surface properties. 

  
 - 31 -

 EXHIBIT B 
 COMPREHENSIVE MINING AREA 
  
 

 

  
 - 32 -

 EXHIBIT C 
 EXCLUSION AREAS 
  
 

 

  
 - 33 -

 EXHIBIT D 
 TO 
 OPERATING AGREEMENT 

Forms of Contribution Conveyancing Documents 
 1. Coal Mining Lease and Sublease — CCLR & Survant — Owned #8 Coal, Leased 1993 and 2013 Rogers #8 Coal, and Leased Duncan #8 Coal. 

2. Memorandum of Coal Mining Lease and Sublease — CCLR & Survant — Owned #8 Coal, Leased 1993 and 2013 Rogers #8 Coal, and Lease Duncan
#8 Coal. 
 3. Rogers Consent to Sublease 1993 #8 Leased Coal. 
 4. Rogers Consent to Sublease 2013 #8 Leased Coal. 
 5. Duncan Consent to Sublease Portions of #8
Coal. 
 6. Non-Exclusive Haulroad & Access Easement — CCLC & Survant — Under review by Armstrong. To be mutually
agreed by the parties within 30 days of the date of the Operating Agreement. 
 7. Non-Exclusive Haulroad Easement — CCLC &
Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of the Operating Agreement. 
 8.
Non-Exclusive Haulroad Easement — CCLC & Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of the Operating Agreement. 

9. Quitclaim Deed — WMD and WLC — 39.45% interest 4,782 acres of Owned Gibraltar Surface. 

 

	10.	Quitclaim Deed — WMD and WLC — 39.45% interest in 661.54 acres of Owned Parkway Surface. 

11. Special Warranty Deed — WLC and Survant — 100% Interest in 1,977 acres of Owned Surface with deed-in provisions (1,628 acres from Gibraltar;
349 acres from Parkway). 
  

	12.	Rogers Partial Release of Right of First Refusal to Purchase — Rogers, WLC, Survant. 

 13. Non-Exclusive Haulroad Easement (Gibraltar HR and Access Road — WLC, Armstrong, Survant — Under review by Armstrong. To be mutually agreed by the parties within 30 days of the date of
the Operating Agreement. 

  
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 14. Bill of Sale — Armstrong Owned Equipment — Armstrong & Survant. 

15. Equipment Sublease — Armstrong Leased Equipment — Armstrong & Survant. 
 16. Use Agreement — To be drafted post-closing and mutually agreed by the parties within 30 days of the date of the Operating Agreement, which agreement will contain the following basic terms:

 Ÿ Armstrong shall have the first-priority, rent-free right to possess and use all of the Equipment as needed in its #9 seam mining operations. 

Ÿ
Armstrong shall have no obligation to pay rent or use fees for the Equipment. 
 Ÿ Armstrong shall insure and maintain the Equipment at its cost until possession is delivered to Survant. 

Ÿ
Armstrong shall pay operating costs. 
 Ÿ Armstrong shall indemnify Survant for any liabilities and claims related to Armstrong’s use of the Equipment. 
 Ÿ As Armstrong depletes the #9 seam reserves at Parkway and ceases using
particular items of Equipment, the Use Agreement shall terminate as to such items, and possession will be delivered to the Company. 

  
 - 35 -

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