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Board Highlights JAN U ARY

The Regular Meeting of the Board of Directors of Powder River Energy Corporation was called to order at 9:32 a.m. on Tuesday, January 22, 2013 in Sundance by President Walt Christensen. All board members were present except for Pam Kinchen. Financials System sales for November 2012 are down 5.4% compared to November 2011. Manager of Accounting Karri Blasi gave an update on Accounts Receivable. Safety The safety minutes for the December 2012 safety meetings were approved. CEO Report CEO Easley provided updates on cooperative outreach, Forward Sheridan, renewable energy credits, and upcoming meeting with Basin Electric and WREA. Dialogue will continue at the next customer meeting on the strategy to reshape customer meetings. Walt Christensen will attend as a board representative.

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Approved Items • Develop an agreement with the Wyoming Business Council regarding the use of renewable energy credits for economic development. • Develop a proposal for long-term power service for the Cam-Plex in Gillette. • Purchase a backup 100 MVA 230/69kV transformer for the Wright area. • Transfer the unclaimed Capital Credit balance for 2012 to the Powder River Energy Foundation. • Move September Board of Directors meeting to Monday, September 16, at 9:30 a.m. in Sheridan. • Move October Board of Directors meeting to Tuesday, October 22, at 9:30 a.m., in Sundance.

Board Highlights

Legal Report Attorney Mark Hughes reported on legal issues relevant to PRECorp. Executive Staff Reports VP Mills presented the 2013 Random Drug Testing program. Sr. VP Engineering and Technical Services Matt Davis answered questions from the board regarding the ongoing Gillette Northern Drive line relocation. The project should be wrapping up within the next few months. Chief Information Officer Doug Wilson reviewed the 2012 Balanced Scorecard final results. The draft 2013 Balanced Scorecard was reviewed and will align with the Initiatives and Strategy Map. General Information Manager of System Operations Support Services Steve Eliason provided an update on the Mobile Radio Project, a Critical Priority initiative. The cutover was complete on December 17, 2012. Guests to the Meeting: PRECorp employees Libby Opstedahl, Karri Blasi, Curtis Mock, Tim Velder, John Tieman, Josh Gray, and Steve Eliason.

SUNDANCE – CORPORATE HEADQUARTERS 221 Main Street • P.O. Box 930 • Sundance, WY 82729 (800) 442-3630 Phone • (307) 283-3527 Fax

Tim Velder/PRECorp Marketing Communications

The inspection tags on this Newcastle area pole could soon be joined by a new marker as PRECorp performs pole and line inspections this year as part of its 2013 maintenance plan.

GILLETTE 200 Garner Lake Road • P.O. Box 937 • Gillette, WY 82718 (800) 442-3630 Phone • (307) 682-0733 Fax

SHERIDAN 1095 Brundage Lane • P.O. Box 5087 • Sheridan, WY 82801 (800) 442-3630 Phone • (307) 674-9018 Fax