(Ph) 1. Company Profile

Phalen Colliery is one of 2 fedrally-owned collieries operated by Cape Breton Development Corporation (CBDC) on Cape Breton Island, Nova Scotia. Phalen Colliery mineable reserves amounted to 90 million tonnes and the annual target production was 2.5 million tonnes. Phalen Colliery commenced mining operations in 1984. It operated at a depth of more than 700 m below the Atlantic Ocean and produced coal using the retreat longwall mining method. It ceased operations during September 1999.