Surfacing Weekly Update #1

16 April 2004

ON SCHEDULE

To date, we have surfaced 23 of the 800 pass miles to be surfaced in 2004, scheduled to be completed by November 24th. As of now, it appears we will meet that schedule. The surfacing is on track, greatly aided by the acquisition of (a) 53 air dump ballast cars to supplement our existing fleet and (b) a new Brandt truck which can pull up to 25 cars of ballast.

¨ 53 new Ballast cars were leased for 2 years.

¨ Surfacing started March 17, 2004 on the west end of DM&E.

¨ As of April 15, 2004 7,500 tons (100 car loads) of ballast has been delivered.

¨ 23 pass miles have been surfaced.