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.