CARTER METALLURGICAL COAL PROJECT McDOWELL COUNTY, WEST VIRGINIA Endurance Gold Corporation (EDG) Endurance Resources Inc. (ERI) Prepared by: Duncan McIvor, President and CEO Endurance Gold Corporation Vancouver, B.C., Canada February, 2009
PROJECT LOCATION Carter Coal Project, West Virginia Endurance Gold Corporation TSX.V: EDG
TERMS Wholly owned EDG subsidiary ERI has executed a one year Option to Lease Agreement with Carter Land Company, for consideration of $24,000 and A Finders Fee of 200,000 shares payable to a third party. ERI has right to explore and define coal resources for one year (to February, 2010), at which point it may execute a five year mining lease, automatically renewable for an additional five years, in which to mine commercially viable coal deposits on property. Lease terms are annual advance royalty payment of $24,000, and a royalty, payable to the Lessor, of 8% on coal mined by surface methods, and 5% on coal mined by underground methods, of the average gross selling price per net ton. Additional override royalty of 0.5% on surface mined coal and 0.33% on underground mined coal to third party.
THE PROPERTY Privately owned 2600 acre property, with exceptional infrastructure. Located 3 miles south of the coal mining town of Iaeger, in southern West Virginia. River, Rail, Highway, Grid Power on eastern boundary of property. Property located 4 ½ miles south of large coal preparation plant & rail load-out facility, owned and operated by Alpha Natural Resources, the largest producer of metallurgical coal in the United States. Property situated in historic Flat Top Pocahontas Coal Field, with historic coal production of 3.5 Billion tons dating to the 1880 s, and one of the highest quality metallurgical coal fields in the world. State geological survey records show production from at least 21 separate mines on property, all exploiting the uppermost Douglas coal seam. Regional well documented stratigraphic succession suggests potential from four additional flat lying coal seams beneath the Douglas seam.
PROJECT LOCATION
McDOWELL COUNTY
McDOWELL COUNTY A History in Coal
McDOWELL COUNTY A History in Coal
McDOWELL COUNTY A History in Coal
WEST VIRGINIA COAL FIELD GEOLOGY Carter Coal Project Endurance Gold Corporation
LOCAL STRATIGRAPHIC COLUMN Elevation 2005 ft. Thickness (est.) 1800 ft. Douglas Coal Seam (known location) Approx. 2.5 ft. sandstone 1463 ft. shale Iaeger Coal Seam (estimated location) Approx. 2 4 ft. 1150 ft. concealed concealed sand & boulders Sewell Coal Seam (estimated location) Local Drainage Elevation. Unknown thickness (statewide avg. 3 10 ft.) 920 ft. 808 ft. 680 ft. Beckley Coal Seam (known location) Fire Creek Coal Seam (known location) 3 10 ft. 2.5 ft. (range 0 5 ft.)
A freight train passes gondola cars just loaded at the Litwar preparation plant, barely visible in the background. REGIONAL INFRASTRUCTURE
DOUGLAS COAL SEAM MINING POTENTIAL
DOUGLAS COAL SEAM ELEVATION MODEL
AVERAGE COAL CHARACTERISTICS (from Keystone Coal Industry Manual, McGraw Hill, 1980) High BTU Coking Coals Thickness BTU Sulphur Ash Content Volatility Matter (approx.) (unwashed) Douglas Seam Mid-Volatility 2.5 ft. 14,450 1.0% 6.5% 26.1% Iaeger Seam Mid-Volatility 2 4 ft. 15,120 0.7% 3.8% 24.3% Sewell Seam Low-Volatility 3 10 ft. 14,700 0.6% 6.2% 20.8% Beckley Seam Low-Volatility 3 10 ft. 14,110 0.7% 9.6% 17.7% Fire Creek Seam Low-Volatility 0 5 ft. 14,600 0.8% 6.8% 18.4%
TONNAGE POTENTIAL Potential Remaining Douglas Seam Approximately 1,000,000 Tons Remaining Seam Potential requires drilling to determine.
METALLURGICAL COAL WHY NOW? Best Met coal in the world. Equivalents sold for US$200 to $300 per ton in 2007 2008 Price collapses late 2008 Preliminary 2009 contract pricing indications US$100 to $150, but; Market collapse allows ERI to do highly favourable acquisitions. In-house ability to quickly expand portfolio. Five to ten year opportunity to produce in dramatically improved market. Unparalleled infrastructure equals low mining costs, low capital requirements. Cash flow potential rare in junior sector, and provides immunity to current market conditions.
Endurance Gold Corporation Endurance Resources Inc. Endurance Gold Corporation Suite 906 1112 West Pender St. Vancouver, B.C., Canada V6E 2S1 www. endurancegold.com TSX.V: EDG