Source: Business Financial Newswire   Date: May 26, 2010

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.