Polo Resources has announced
execution of a memorandum of understanding with Peabody Energy Corporation and
Winsway Coking Coal Holdings for the sale of Polo”s 50% interest in the
Peabody-Polo Resources B.V. Mongolian joint venture. The JV was formed to hold
all of Polo”s coal and uranium assets in Mongolia. Polo chairman Neil
Herbert said, “We are pleased to be executing the divestment of our non-core
holding in the joint venture in Mongolia.”

Polo, Peabody and Winsway
will negotiate the terms of a sale of Polo”s interests in the JV for USD15
million in cash, and USD20m payable within 12 months. In addition Polo will
receive a 1% royalty for coal sold from licenses currently held in the JV.