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Massive Mining Pkg 1 24 09

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Coal Mining Partner in Kentucky Needed!

Coal Mining Partner in Kentucky Needed!

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  • 1. Eastern Energy Company Massive Mining Project Letcher, Kentucky January 2009 Prepared By: Chris Headrick Mbl: 865.680.7750 Fax: 866.655.6799 Email: cheadrick@gmail.com
  • 2. Eastern Energy Company Massive Mining Project , Kentucky January 24, 2009 - Photos Pg 1 of 2 2/14
  • 3. Eastern Energy Company Massive Mining Project , Kentucky January 24, 2009 - Photos-II Pg 2 of 2 3/14
  • 4. Eastern Energy Company Monthly Cash Flow Projection Startup TOTAL 400,000 400,000 430,250 758,688 1,210,313 1,785,125 2,483,125 3,181,125 3,879,125 4,577,125 5,275,125 5,973,125 6,671,125 2. CASH RECEIPTS (a) Cash Sales @ $90 ton 900,000 1,350,000 1,800,000 2,250,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 27,900,000 (b) Misc Income 0 (c) Loan or Other Cash Injection 0 900,000 1,350,000 1,800,000 2,250,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 27,900,000 1,300,000 1,780,250 2,558,688 3,460,313 4,485,125 5,183,125 5,881,125 6,579,125 7,277,125 7,975,125 8,673,125 9,371,125 5. CASH PAID OUT (a) Contract Miner- $47 per ton 250,000 705,000 940,000 1,175,000 1,410,000 1,410,000 1,410,000 1,410,000 1,410,000 1,410,000 1,410,000 1,410,000 14,350,000 (b) Royalties 72,000 108,000 144,000 180,000 216,000 216,000 216,000 216,000 216,000 216,000 216,000 216,000 2,232,000 (c) Engineer @ $1.35 per ton 13,500 20,250 27,000 33,750 40,500 40,500 40,500 40,500 40,500 40,500 40,500 40,500 418,500 (d) Executive Salaries 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000 (e) Employee Benefits & Profit Sharing 4,500 6,750 9,000 11,250 13,500 13,500 13,500 13,500 13,500 13,500 13,500 13,500 139,500 (f) Supplies (Office and operating) 200 200 200 200 200 200 200 200 200 200 200 200 2,400 (f) Repairs and Maintenance-(equipment) 500 750 1,000 1,250 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 15,500 (g) Advertising- (Employment Ads) 200 200 200 200 200 200 200 200 200 200 200 200 2,400 (h) Auto Expenses 0 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 55,000 (i) Professional Fees 2,500 3,750 5,000 6,250 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 77,500 (j) Rent 0 0 0 0 0 0 0 0 0 0 0 0 0 (k) Telephone 800 800 800 800 800 800 800 800 800 800 800 800 9,600 (l) Utilities 400 400 400 400 400 400 400 400 400 400 400 400 4,800 (m) Insurance & Bonding 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000 (n) Taxes (F&E,Severance) 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 (o) Permits & Licenses 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 (p) Travel Expenses 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 (q) Bank Charges 25 25 25 25 25 25 25 25 25 25 25 25 300 (r) Equipment Maintenance 0 (r-1) Haul & Crush 75,000 112,500 150,000 187,500 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 2,325,000 (s) Fuel 0 (t) Subtotal 0 454,125 998,125 1,317,125 1,636,125 1,955,125 1,955,125 1,955,125 1,955,125 1,955,125 1,955,125 1,955,125 1,955,125 (u) Loan Principal Payment 0 (v) Capital Purchases 400,000 400,000 (w) Other Start-up Costs 3,125 4,688 6,250 7,813 9,375 9,375 9,375 9,375 9,375 9,375 9,375 9,375 96,875 (x) Reclamation 12,500 18,750 25,000 31,250 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 387,500 (y) Dividends 0 0 869,750 1,021,563 1,348,375 1,675,188 2,002,000 2,002,000 2,002,000 2,002,000 2,002,000 2,002,000 2,002,000 2,002,000 20,930,875 430,250 758,688 1,210,313 1,785,125 2,483,125 3,181,125 3,879,125 4,577,125 5,275,125 5,973,125 6,671,125 7,369,125 Mining Cost per Ton 87 68 67 67 67 67 67 67 67 67 67 67 Monthly Production-Tons 10,000 15,000 20,000 25,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 310,000 Remaining Coal 3,500,000 3,490,000 3,475,000 3,455,000 3,430,000 3,400,000 3,370,000 3,340,000 3,310,000 3,280,000 3,250,000 3,220,000 3,190,000 1st Year Massive Mining 1st Month 2nd Month 3rd Month 4th Month 5th Month 6th Month 7th Month 8th Month 9th Month 10th Month 11th Month 12th Month 1. CASH ON HAND [Beginning of month] 3. TOTAL CASH RECEIPTS [2a + 2b + 2c=3] 4. TOTAL CASH AVAILABLE [Before cash out] (1 + 3) 6. TOTAL CASH PAID OUT [Total 5a thru 5w] 7. CASH POSITION [End of month] (4 minus 6) ESSENTIAL OPERATING DATA [Non-cash flow information] 4/14
  • 5. Eastern Energy Company Monthly Cash Flow Projection Start TOTAL 7,369,125 7,369,125 8,067,125 8,765,125 9,463,125 10,900,250 12,830,125 14,760,000 16,689,875 18,619,750 20,549,625 22,479,500 24,409,375 2. CASH RECEIPTS (a) Cash Sales @ $90 ton 2,700,000 2,700,000 2,700,000 5,400,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 71,100,000 (b) Misc Income - (c) Loan or Other Cash Injection - - 2,700,000 2,700,000 2,700,000 5,400,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 71,100,000 7,369,125 10,069,125 10,767,125 11,465,125 14,863,125 18,100,250 20,030,125 21,960,000 23,889,875 25,819,750 27,749,625 29,679,500 31,609,375 5. CASH PAID OUT (a) Contract Miner- $47 per ton 1,410,000 1,410,000 1,410,000 2,820,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 37,130,000 (b) Royalties 216,000 216,000 216,000 432,000 576,000 576,000 576,000 576,000 576,000 576,000 576,000 576,000 5,688,000 (c) Engineer @ $1.35 per ton 40,500 40,500 40,500 81,000 108,000 108,000 108,000 108,000 108,000 108,000 108,000 108,000 1,066,500 (d) Executive Salaries 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000 (e) Employee Benefits & Profit Sharing 13,500 13,500 13,500 27,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 355,500 (f) Supplies (Office and operating) 200 200 200 200 200 200 200 200 200 200 200 200 2,400 (f) Repairs and Maintenance-(equipment) 1,500 1,500 1,500 3,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 39,500 (g) Advertising- (Employment Ads) 200 200 200 200 200 200 200 200 200 200 200 200 2,400 (h) Auto Expenses 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000 (i) Professional Fees 7,500 7,500 7,500 15,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 197,500 (j) Rent 0 0 0 0 0 0 0 0 0 0 0 0 - (k) Telephone 800 800 800 800 800 800 800 800 800 800 800 800 9,600 (l) Utilities 400 400 400 400 400 400 400 400 400 400 400 400 4,800 (m) Insurance & Bonding 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000 (n) Taxes (F&E,Severance) 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 (o) Permits & Licenses 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 (p) Travel Expenses 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 (q) Bank Charges 25 25 25 25 25 25 25 25 25 25 25 25 300 (r) Equipment Maintenance - (r-1) Haul & Crush 225,000 225,000 225,000 450,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 5,925,000 (s) Fuel - (t) Subtotal - 1,955,125 1,955,125 1,955,125 3,869,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 (u) Loan Principal Payment - (v) Capital Purchases - (w) Other Start-up Costs 9,375 9,375 9,375 18,750 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 246,875 (x) Reclamation 37,500 37,500 37,500 75,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 987,500 (y) Dividends - - 2,002,000 2,002,000 2,002,000 3,962,875 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 52,129,875 7,369,125 8,067,125 8,765,125 9,463,125 10,900,250 12,830,125 14,760,000 16,689,875 18,619,750 20,549,625 22,479,500 24,409,375 26,339,250 Mining Cost Per Ton 66.73 66.73 66.73 66.05 65.88 65.88 65.88 65.88 65.88 65.88 65.88 65.88 Monthly Production-Tons 30,000 30,000 30,000 60,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 790000 Remaining Coal 3,190,000 3,160,000 3,130,000 3,100,000 3,040,000 2,960,000 2,880,000 2,800,000 2,720,000 2,640,000 2,560,000 2,480,000 2,400,000 2nd Year Mining – Masive 1st Month 2nd Month 3rd Month 4th Month 5th Month 6th Month 7th Month 8th Month 9th Month 10th Month 11th Month 12th Month 1. CASH ON HAND [Beginning of month] 3. TOTAL CASH RECEIPTS [2a + 2b + 2c=3] 4. TOTAL CASH AVAILABLE [Before cash out] (1 + 3) 6. TOTAL CASH PAID OUT [Total 5a thru 5w] 7. CASH POSITION [End of month] (4 minus 6) ESSENTIAL OPERATING DATA [Non-cash flow information] 5/14
  • 6. Eastern Energy Company Monthly Cash Flow Projection Start TOTAL 26,339,250 26,339,250 28,269,125 30,199,000 32,128,875 34,058,750 35,988,625 37,918,500 39,848,375 41,778,250 43,708,125 45,638,000 47,567,875 2. CASH RECEIPTS (a) Cash Sales @ $90 ton 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 86,400,000 (b) Misc Income - (c) Loan or Other Cash Injection - 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 86,400,000 33,539,250 35,469,125 37,399,000 39,328,875 41,258,750 43,188,625 45,118,500 47,048,375 48,978,250 50,908,125 52,838,000 54,767,875 5. CASH PAID OUT (a) Contract Miner- $47 per ton 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 45,120,000 (b) Royalties 576,000 576,000 576,000 576,000 576,000 576,000 576,000 576,000 576,000 576,000 576,000 576,000 6,912,000 (c) Engineer @ $1.35 per ton 108,000 108,000 108,000 108,000 108,000 108,000 108,000 108,000 108,000 108,000 108,000 108,000 1,296,000 (d) Executive Salaries 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000 (e) Employee Benefits & Profit Sharing 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 432,000 (f) Supplies (Office and operating) 200 200 200 200 200 200 200 200 200 200 200 200 2,400 (f) Repairs and Maintenance-(equipment) 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000 (g) Advertising- (Employment Ads) 200 200 200 200 200 200 200 200 200 200 200 200 2,400 (h) Auto Expenses 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000 (i) Professional Fees 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000 (j) Rent 0 0 0 0 0 0 0 0 0 0 0 0 - (k) Telephone 800 800 800 800 800 800 800 800 800 800 800 800 9,600 (l) Utilities 400 400 400 400 400 400 400 400 400 400 400 400 4,800 (m) Insurance & Bonding 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000 (n) Taxes (F&E,Severance) 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 (o) Permits & Licenses 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 (p) Travel Expenses 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 (q) Bank Charges 25 25 25 25 25 25 25 25 25 25 25 25 300 (r) Equipment Maintenance - (r-1) Haul & Crush 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 7,200,000 (s) Fuel - (t) Subtotal 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 (u) Loan Principal Payment - (v) Capital Purchases - (w) Other Start-up Costs 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000 (x) Reclamation 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,200,000 (y) Dividends - 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 63,241,500 28,269,125 30,199,000 32,128,875 34,058,750 35,988,625 37,918,500 39,848,375 41,778,250 43,708,125 45,638,000 47,567,875 49,497,750 Mining Cost Per Ton 65.88 65.88 65.88 65.88 65.88 65.88 65.88 65.88 65.88 65.88 65.88 65.88 Monthly Production-Tons 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 960,000 Remaining Coal 2,400,000 2,320,000 2,240,000 2,160,000 2,080,000 2,000,000 1,920,000 1,840,000 1,760,000 1,680,000 1,600,000 1,520,000 1,440,000 3rd Year Mining – Massive 1st Month 2nd Month 3rd Month 4th Month 5th Month 6th Month 7th Month 8th Month 9th Month 10th Month 11th Month 12th Month 1. CASH ON HAND [Beginning of month] 3. TOTAL CASH RECEIPTS [2a + 2b + 2c=3] 4. TOTAL CASH AVAILABLE [Before cash out] (1 + 3) 6. TOTAL CASH PAID OUT [Total 5a thru 5w] 7. CASH POSITION [End of month] (4 minus 6) ESSENTIAL OPERATING DATA [Non-cash flow information] 6/14
  • 7. Eastern Energy Company Monthly Cash Flow Projection Start TOTAL 49,497,750 49,497,750 51,427,625 53,357,500 55,287,375 57,217,250 59,147,125 61,077,000 63,006,875 64,936,750 66,866,625 68,796,500 70,726,375 2. CASH RECEIPTS (a) Cash Sales @ $90 ton 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 86,400,000 (b) Misc Income - (c) Loan or Other Cash Injection - - 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 86,400,000 49,497,750 56,697,750 58,627,625 60,557,500 62,487,375 64,417,250 66,347,125 68,277,000 70,206,875 72,136,750 74,066,625 75,996,500 77,926,375 5. CASH PAID OUT (a) Contract Miner- $47 per ton 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 45,120,000 (b) Royalties 576,000 576,000 576,000 576,000 576,000 576,000 576,000 576,000 576,000 576,000 576,000 576,000 6,912,000 (c) Engineer @ $1.35 per ton 108,000 108,000 108,000 108,000 108,000 108,000 108,000 108,000 108,000 108,000 108,000 108,000 1,296,000 (d) Executive Salaries 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000 (e) Employee Benefits & Profit Sharing 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 432,000 (f) Supplies (Office and operating) 200 200 200 200 200 200 200 200 200 200 200 200 2,400 (f) Repairs and Maintenance-(equipment) 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000 (g) Advertising- (Employment Ads) 200 200 200 200 200 200 200 200 200 200 200 200 2,400 (h) Auto Expenses 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000 (i) Professional Fees 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 240,000 (j) Rent 0 0 0 0 0 0 0 0 0 0 0 0 - (k) Telephone 800 800 800 800 800 800 800 800 800 800 800 800 9,600 (l) Utilities 400 400 400 400 400 400 400 400 400 400 400 400 4,800 (m) Insurance & Bonding 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000 (n) Taxes (F&E,Severance) 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 (o) Permits & Licenses 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 (p) Travel Expenses 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 (q) Bank Charges 25 25 25 25 25 25 25 25 25 25 25 25 300 (r) Equipment Maintenance - (r-1) Haul & Crush 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 7,200,000 (s) Fuel - (t) Subtotal - 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 (u) Loan Principal Payment - (v) Capital Purchases - (w) Other Start-up Costs 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000 (x) Reclamation 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,200,000 (y) Dividends - - 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 63,241,500 49,497,750 51,427,625 53,357,500 55,287,375 57,217,250 59,147,125 61,077,000 63,006,875 64,936,750 66,866,625 68,796,500 70,726,375 72,656,250 Mining Cost Per Ton 65.88 65.88 65.88 65.88 65.88 65.88 65.88 65.88 65.88 65.88 65.88 65.88 Monthly Production-Tons 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 960,000 Remaining Coal 1,440,000 1,360,000 1,280,000 1,200,000 1,120,000 1,040,000 960,000 880,000 800,000 720,000 640,000 560,000 480,000 4th Year Mining – Massive 1st Month 2nd Month 3rd Month 4th Month 5th Month 6th Month 7th Month 8th Month 9th Month 10th Month 11th Month 12th Month 1. CASH ON HAND [Beginning of month] 3. TOTAL CASH RECEIPTS [2a + 2b + 2c=3] 4. TOTAL CASH AVAILABLE [Before cash out] (1 + 3) 6. TOTAL CASH PAID OUT [Total 5a thru 5w] 7. CASH POSITION [End of month] (4 minus 6) ESSENTIAL OPERATING DATA [Non-cash flow information] 7/14
  • 8. Eastern Energy Company Monthly Cash Flow Projection Start TOTAL 72,656,250 72,656,250 74,586,125 76,516,000 78,445,875 80,375,750 82,305,625 84,235,500 2. CASH RECEIPTS (a) Cash Sales @ $90 ton 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 43,200,000 (b) Misc Income - (c) Loan or Other Cash Injection - - 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 7,200,000 43,200,000 72,656,250 79,856,250 81,786,125 83,716,000 85,645,875 87,575,750 89,505,625 84,235,500 5. CASH PAID OUT (a) Contract Miner- $47 per ton 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 3,760,000 22,560,000 (b) Royalties 576,000 576,000 576,000 576,000 576,000 576,000 3,456,000 (c) Engineer @ $1.35 per ton 108,000 108,000 108,000 108,000 108,000 108,000 648,000 (d) Executive Salaries 25,000 25,000 25,000 25,000 25,000 25,000 150,000 (e) Employee Benefits & Profit Sharing 36,000 36,000 36,000 36,000 36,000 36,000 216,000 (f) Supplies (Office and operating) 200 200 200 200 200 200 1,200 (f) Repairs and Maintenance-(equipment) 4,000 4,000 4,000 4,000 4,000 4,000 24,000 (g) Advertising- (Employment Ads) 200 200 200 200 200 200 1,200 (h) Auto Expenses 5,000 5,000 5,000 5,000 5,000 5,000 30,000 (i) Professional Fees 20,000 20,000 20,000 20,000 20,000 20,000 120,000 (j) Rent 0 0 0 0 0 0 - (k) Telephone 800 800 800 800 800 800 4,800 (l) Utilities 400 400 400 400 400 400 2,400 (m) Insurance & Bonding 3,000 3,000 3,000 3,000 3,000 3,000 18,000 (n) Taxes (F&E,Severance) 2,500 2,500 2,500 2,500 2,500 2,500 15,000 (o) Permits & Licenses 2,500 2,500 2,500 2,500 2,500 2,500 15,000 (p) Travel Expenses 1,500 1,500 1,500 1,500 1,500 1,500 9,000 (q) Bank Charges 25 25 25 25 25 25 150 (r) Equipment Maintenance - (r-1) Haul & Crush 600,000 600,000 600,000 600,000 600,000 600,000 3,600,000 (s) Fuel - (t) Subtotal - 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 5,145,125 (u) Loan Principal Payment - (v) Capital Purchases - (w) Other Start-up Costs 25,000 25,000 25,000 25,000 25,000 25,000 150,000 (x) Reclamation 100,000 100,000 100,000 100,000 100,000 100,000 600,000 (y) Dividends - - 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 5,270,125 - - - - - - 31,620,750 72,656,250 74,586,125 76,516,000 78,445,875 80,375,750 82,305,625 84,235,500 84,235,500 - - - - - Mining Cost Per Ton 65.88 65.88 65.88 65.88 65.88 65.88 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Monthly Production-Tons 80,000 80,000 80,000 80,000 80,000 80,000 480,000 Remaining Coal 480,000 400,000 320,000 240,000 160,000 80,000 0 0 0 0 0 0 0 5th Year Mining– Massive 1st Month 2nd Month 3rd Month 4th Month 5th Month 6th Month 7th Month 8th Month 9th Month 10th Month 11th Month 12th Month 1. CASH ON HAND [Beginning of month] 3. TOTAL CASH RECEIPTS [2a + 2b + 2c=3] 4. TOTAL CASH AVAILABLE [Before cash out] (1 + 3) 6. TOTAL CASH PAID OUT [Total 5a thru 5w] 7. CASH POSITION [End of month] (4 minus 6) ESSENTIAL OPERATING DATA [Non-cash flow information] 8/14
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  • 11. PARTNERSHIP AGREEMENT This PARTNERSHIP AGREEMENT is made on January 16, 2009 between Ernie Eisenhower, Ron Scott, John Gargis and Chris Headrick or assigns, all residents of the State of Tennessee. 1. NAME AND BUSINESS. The parties hereby form a partnership under the name of Eastern Energy Company to explore and operate a coal mining company located in the State of Kentucky and better described as: Massive Mining Inc. on Permit #: 867-5195, Letcher, Kentucky. The principal office of the business shall be located in the State of Tennessee. 2. TERM. The partnership shall begin on January 16, 2009, and shall continue until terminated as herein provided. 3. CAPITAL. The capital of the partnership shall be contributed in cash by the partners as follows: Each partner shall contribute Twenty-five dollars ($25.00). A separate capital account shall be maintained for each partner. Neither partner shall withdraw any part of his capital account. Upon the demand of either partner, the capital accounts of the partners shall be maintained at all times in the proportions in which the partners share in the profits and losses of the partnership. 4. PROFIT AND LOSS. The net profits of the partnership shall be divided equally between the partners and the net losses shall be borne equally by them. A separate income account shall be maintained for each partner. Partnership profits and losses shall be charged or credited to the separate income account of each partner. If a partner has no credit balance in his income account, losses shall be charged to his capital account. 5. SALARIES AND DRAWINGS. Neither partner shall receive any salary for services rendered to the partnership. Each partner may, from time to time, withdraw the credit balance in his income account. 6. INTEREST. No interest shall be paid on the initial contributions to the capital of the partnership or on any subsequent contributions of capital. 7. MANAGEMENT DUTIES AND RESTRICTIONS. The partners shall have equal rights in the management of the partnership business, and partner's shall duly elect a managing partner for the business. No partner without the written consent of the other partner's shall engage in or attempt to on behalf of the partnership borrow or lend money, or make, deliver, or accept any commercial paper, or execute any mortgage, security agreement, bond, or lease, or purchase or contract to purchase, or sell or contract to sell any property for or of the partnership other than the type of property bought and sold in the regular course of its business. 8. BANKING. All funds of the partnership shall be deposited in its name in such checking account or accounts as shall be designated by the partners. All withdrawals therefrom are to be made upon checks signed by two and acknowledged in writing by all four partner's. 9. BOOKS. The partnership books shall be maintained at the principal office of the partnership, and each partner shall at all times have access thereto. The books shall be kept on a fiscal year basis, commencing on the first day of February and ending on the last day January, and shall be closed and balanced at the end of each fiscal year. An audit shall be made as of the closing date. 10. VOLUNTARY TERMINATION. The partnership may be dissolved at any time by agreement of the partners, in which event the partners shall proceed with reasonable promptness to liquidate the business of the partnership. The partnership name shall be sold with the other assets of the business. The assets of the partnership business shall be used and distributed in the following order: (a) to pay or provide for the payment of all partnership liabilities and liquidating expenses and obligations; (b) to equalize the income accounts of the partners; (c) to discharge the balance of the income accounts of the partners; (d) to equalize the capital accounts of the partners; and (e) to discharge the balance of the capital accounts of the partners. 11/14
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