Rail Monthly Update #4

25, April 2007

SEVEN MAJOR RAIL PROJECTS SCHEDULED FOR 2007 PRODUCTION SEASON!! NEARLY ONE HUNDRED & SEVENTEEN MILES OF CWR TO BE INSTALLED ON THE TWO PROPERTIES DURING THE CONSTRUCTION SEASON.

¨ A thirty mile project of new 115# CWR is scheduled to start between Colony, WY and Sturgis, SD on Wednesday, April 25^th. This project will eliminate all jointed rail on the Upper Black Hills sub north of Rapid City. Rick Hanson will be the EIC ( Employee in Charge) for this project with Jim Nemec as Project Supervisor.

¨ A twenty-two mile project between Rapid City and Owanka and the installation of 10 turnouts was started this Monday, April 23^rd by the LA Colo contracting group. Bill Bussell is the EIC for this project, again with Jim Nemec as Project Supervisor. Another part of this project is the extension of Wall siding so that trains can meet more efficiently.

¨ A seven and one half mile 136# CWR project in the Pierre/Fort Pierre area will include the installation of rail as well as 7 new turnouts in the area. This rail project will also be done by the LA Colo group assisted by DM&E personnel for the switch and crossing installations.

¨ We are also scheduled to install 22 miles of rail between Sleepy Eye, MN and Mankato, MN in 2007. Along with the rail there will be 12 new turnouts installed in this corridor. The RJ Corman group has been selected to install this rail with the projected starting date near the end of June.

¨ On the west end of the IC&E’s Mason City sub we will have a CWR project of seven and one/half miles just west of Algona, IA. This new 115# CWR will also include the installation of 4 new turnouts and is scheduled for a June or July installation by a contractor who has not yet been selected.

¨ A Marquette sub project north of Dubuque, IA will include the installation of about 8 miles of new 136# rail and is scheduled for early May. This project will eliminate the jointed rail between Dubuque and Marquette. The RJ Corman group has been selected to install this rail with the project scheduled to start in mid-June.

¨ Another Marquette sub project of 15 miles of new 136# CWR will eliminate the jointed rail between Dubuque and Samoa, IA. This project also includes installation of new power assisted switches at Green Island to increase efficiency in this location. The RJ Corman group has been selected to install this rail with the project beginning on May 2^nd and being completed in early June.

¨ The total number of turnouts that will be installed with the CWR programs as well as other projects is now scheduled to be sixty-seven for the 2007 season.