The Burnt River (East Zone)property is located along the east side of the Sukunka River between Boulder Creek and Skeeter Creek, on the western flank of Mount Suprenant, about 48 kilometres northwest of Tumbler Ridge.

Coal seams occur in the Lower Cretaceous Upper and Lower Gething Formation (Bullhead Group) interbedded with sandstone, siltstone, mudstone and minor conglomerate. The Bird, Skeeter and Chamberlain seams of the Upper Gething Formation have pinched out and thinned respectively in a northerly direction from the Sukunka area (093P 009) 3.8 kilometres to the south.

Several coal zones occur in the Lower Gething Formation, the B zone (in the upper 60 metres of the Lower Gething Formation), having the most potential. The B zone is divided in two by approximately 25 metres of sediments. The lower coal unit contains 1 to 2 metres of coal; while the upper unit contains 3 to 6 metres of coal over 4 to 10 metres of strata. Coal zones C to H are carbonaceous horizons which develop locally into coal sections of minor thickness and poor quality.

Structurally the area is divided by the northwest trending Bullmoose thrust fault into tightly folded Lower Cretaceous Fort St. John strata in the east, and a series of stacked Gething Formation thrust plates in the west. The thrust faults are northwest trending, southwest dipping and contain a series of tight northwest trending asymmetrical folds.

The Project deposit is located within Western Canadian Coal's Burnt River license area in the Peace River Regional District of northeastern British Columbia. This license area is within the Inner Foothills Belt of the Rocky Mountains, and is situated within the Liard Mining Division. Lower Cretaceous sediments of the Minnes, Bullhead and Fort St. John groups underlie this region. The adopted nomenclature and classification of the regional Lower Cretaceous units have been referenced from D.F. Stott, as discussed in the Geological Survey of Canada Bulletins 152, 219 and 328.

The Gething Formation stratigraphically overlies the Cadomin Formation (Bullhead Group). Comprising multiple fining-upward cyclotherms, typical of fluvial to deltaic depositional environments, there also appears to be some evidence of a near-shore transgressive sequence within the middle of the Gething Formation. The Gething sediments intertongue with conglomerates from the Cadomin Formation, and regionally the greatest accumulation of these sediments is in the immediate vicinity of Peace River. It is the middle of the Gething Formation that contains the primary coal-bearing sequences of the property.

Past exploration has identified three main coal seams in the middle of the Gething Formation. The uppermost seam, Seam 60, lies below fine- to medium-grained sandstones, shales and carbonaceous shale units. Seam 60 generally has an average thickness of 4.6 metres in the Project deposit area. Stratigraphically below Seam 60 are carbonaceous shales, minor siltstone units and a marker seam of an approximate thickness of 0.75 metre. The next seam located stratigraphically below Seam 60 is the Upper Seam. The offset distance is approximately 60 metres vertically on average. The offset distance varies from 50 metres in the southeast of the Brule deposit (093P 007) to 75 metres in the northwest. Bordered by fine- to medium-grained sandstones, siltstones and shales, the Upper Seam generally has an average thickness of 3 metres in the Project area. The Upper Seam is also shown to be split by a carbonaceous parting in various locations within the property, with an average parting thickness of 1 metre. In relatively close proximity below, and separated by approximately 15 metres vertically on average from the Upper Seam, is the thicker Lower Seam. Bordered by fine- to medium-grained sandstones, siltstones and shales, the Lower Seam generally has an average thickness of 4.6 metres and is shown to be split by a carbonaceous parting in various locations; the parting has an approximate thickness of 1.4 metres.

In 2007, Western Canadian Coal reported inferred resources of 2.361 million tonnes (Updated Technical Report on the Brule Coal Project, December 2007, page 19-2 www.sedar.com).