Introduction

Polo aims to become a major international coal mining and exploration group with additional interests in uranium and iron ore. The Company is focused on acquiring and developing interests in projects that are strategically located to serve the increasing global demand for coal, in particular to feed the robust demand of Asia.

Polo holds a diversified portfolio of coal and uranium licences in Mongolia. The geology of Mongolia is highly prospective for significant mineral deposits; however, the countrys resources have been vastly under-explored and under-developed. Polo has specifically targeted areas of significant known coal resources that are near the necessary infrastructure to export coal into the growing energy markets of adjacent China and Russia.

Polos strategy in Mongolia is to fast track into development the Union Coal Project and the Ereen Coal Project in 2008. Polo is targeting total production of 1 Mt of coal per annum commencing in the fourth quarter of 2008. Polo also plans to define 1 Bt of high quality coal resources by 2010.

Polo also holds a strategic interest in GCM Resources plc, an AIM listed (ticker code: GCM) resource development company with a wholly owned subsidiary operating in Bangladesh and investments in South Africa. GCM Resources plc is developing a coal mine and power plant project in Bangladesh, the Phulbari Project.

Market cap: 190.408m

Major Shareholders

The Company's issued share capital consists of 1,170,622,425 Ordinary Shares of no par value.

The Company does not hold any Ordinary Shares in Treasury.

As of 17 March 2008 the Company is aware of the following persons who hold, directly or indirectly, voting rights representing 3% or more of the issued share capital of the Company to which voting rights are attached:

Name
Number of Ordinary Shares
Percentage of issued share capital

RAB Capital Plc
97,240,425
8.31%

TPG-Axon Partners (Offshore) Ltd
71,907,000
6.14%

Capital Research and Management Company
65,740,000
5.62%

Angstrom Capital Limited
60,000,000
5.13%

Chiropo Company SA
60,000,000
5.13%

Libra Advisors, LLC*
45,450,000
3.88%

Perella Weinberg Partners Xerion Master Fund Ltd
41,960,000
3.58%

TPG-Axon Capital
37,043,000
3.16%

Seamans Capital Management Ltd.
36,870,000
3.15%

* Note: Libra Advisors LLC is the investment manager of two funds, Libra Fund LP (holding 36,760,000 Ordinary Shares) and Libra Offshore Ltd (holding 8,690,000 Ordinary Shares).

Caledon Resources Starts To Deliver, Which Should Please Major Shareholder Polo Resources Too


By Rob Davies



In the mining markets a share price that shoots up from 40p to 140p and then back to 80p would normally be assumed to belong to an exploration company that had discovered a new deposit. So it went with Goldsource Mines and its recent coal discovery in Saskatchewan. But the share price movements mentioned above dont relate to any new discovery. Rather its the recent trading pattern of Caledon Resources, which is already up and running as coal producer.
Although some of the price action was due to the big increase in coal prices this year, most of it was due to Polo Resources, which earlier this year built up a 25 per cent stake in Caledon. Its average entry cost has been estimated at about 100p a share, so the current level of 80p is a bit painful. Since that buying spree, Polo has appointed two people to the Caledon Board. But what was slightly odd was that these appointments were made the day after the AGM was held, so shareholders didnt get a chance to vote. Mark Trevan, managing director of Caledon, said this was because the board meeting at which the appointments were made was itself held after the AGM.

Anyhow, one of the new appointees is Stephen Dattels, who was a former chairman of Caledon when it was a Chinese gold explorer. Older investors will recall that he used to be on the board of Barrick when it kicked off in the mid eighties. He was also heavily involved in Uramin before it was sold at great profit to Areva. But now that some of the dust has settled, Mark Trevan is unsure what Polos plans are now, but he ascribes the weakness in the share price to nothing more than the general malaise in equities, which is hitting smaller commodity stocks especially hard.

In any case, Caledon is now up and running and producing high quality coking coal at the rate of 55,000 tonnes a month, almost double the production rate at the start of the year. In the short term the target is to increase production to 100,000 tonnes a month in order to achieve the 600,000 to 700,000 tonnes production planned for this year. For the next three years output at the companys Cook mine then should stabilise at about one million tonnes a year, although Mark believes there is scope ultimately to take it to two million tonnes. On the companys projections total output rises to two million tonnes in 2013 and rises again to four million tonnes by 2015. However, by then about half Caledons output should be coming from the nearby and as yet undeveloped Minyango mine.

Unfortunately none of the required expansions can happen until the Queensland Government improves the infrastructure to allow the coal to be transported to the coast and put on a ship. The immediate constraint is the railway, but work is being done to improve the line by putting in passing places and other features to add capacity. Longer-term the issue is the port facilities. Studies have been carried out on building a new facility at Wiggins Island, but nothing will be built there for a year or two yet. Exactly who will finance it has not been resolved either. Mark thinks it could be an industry solution, although the costs wouldnt sit on the balance sheets of producers. The Queensland state government has certainly been keen to cash in on the coal boom by increasing the royalty from seven per cent to 10 per cent, but that extra revenue wont go into infrastructure. In fact with the coal price at US$280 a tonne, and then some, the state will be getting a big increase in income in any event, so the additional royalty really is cream on the cake.

Its well known that the run up in coal prices was partly due to heavy rain in Queensland earlier this year, which curtailed production. Nevertheless, demand is remaining firm even as supply comes back on stream, and Mark says the industry is expecting prices at next years contract negotiations to be rolled over from this years, or maybe even to go higher. Thats obviously good news, but with the massive increase in costs the industry has experienced in the last few years miners need those higher prices.

So now that production is approaching targeted levels, Marks focus is to reduce unit costs, and, as he says, the best way to do that in mining is to increase output. The mining method of using the new Magatar system with the ABM 25 miner allied to a mobile haulage unit is settling down well. Initially the rock bolting density was very high, but experience has shown this can be reduced with no adverse effects on ground conditions. Cutting down the number of rock bolts will save a lot of time, allowing the machine to be used for production instead. Another improvement will be using the new drift to access the pit bottom. This will save four kilometres of underground travelling for the workforce from the original access to the face. All these things should help productivity, profits and the share price. And that will undoubtedly please Polo Resources.

18 August 2008

POLO RESOURCES LIMITED

Drilling intersects coal on the Hud Project in South Gobi

Polo Resources (AIM:PRL), the natural resources investment and mining company, is pleased to announce the initial four diamond drill holes completed on its Hud Coal Project have intersected coal seams in every hole from a thickness of 4 to 6 metres at depths ranging from 10 to 35 metres. The holes are spread over a 3km distance with coal outcropping over 6km. The two month drill programme is ongoing and a total of fifteen, 200 metre deep drill holes are planned in five sections, each 400 metres apart.

Previous exploration on the Hud Coal Project has identified several coal seams with surface exposures from 10 to 30 metres in trench intervals. Mapping and trenching has located coal outcropping along the thrust contact of the Carboniferous Permian unconformity. Given the flat topography of this region of the Gobi, this location of coal is considered to be significant, as it is analogous to the thrusted area of Permian coal as exposed in the MAK and South Gobi Sands mines, in the western part of the Gobi Basin.


The Hud Coal Project covers 522km2 and is located 71 kilometres southwest of one of the worlds largest coking coal occurrences at Tavan Tolgoi. Coal has been field tested to show some coking properties and samples have been submitted to the Central Asia Laboratory for analysis. The Hud project is one of 11 coal occurrences that Polo Resources has acquired in the South Gobi coal basin, with the combined license area covering a total of 6,834km2 in the region.

Neil Herbert, Deputy Chairman of Polo Resources, said:

'We are very pleased to be able to announce the first drill results from our South Gobi region which are most encouraging and we look forward to completing the drill programme in September.

'We will continue to evaluate our other license areas in South Gobi and look forward to updating investors as we progress with our exploration as well as the mine development at Ereen.'
cyril

Polo Resources finds coal at Hud site, Mongolia

Aug 18 (Reuters) - Natural resources investment and mining company Polo Resources Ltd (3PO.L: Quote, Profile, Research, Stock Buzz) on Monday said it intersected coal seams from the initial four diamond drill holes completed on its Hud Coal Project in South Gobi in Mongolia.

The two-month drill programme is ongoing and a total of 15, 200-metre deep drill holes are planned in five sections, each 400 metres apart, the company said.

The Hud project is one of 11 coal occurrences that Polo Resources has acquired in the South Gobi coal basin, with the combined licence area covering a total of 6,834 square kilometres in the region, it said.

.

.19 August 2008

POLO RESOURCES LIMITED

Start of drill Programme on the Val Coal Project in South Gobi

Polo Resources (AIM: PRL), the natural resources investment and mining company, announces that drilling has commenced with two diamond drill rigs at the Val Coal Project in Mongolia, which has multi layered seams outcropping over 8 kilometres on the axis of folding in the Upper Permian Sedimentary sequence. Mapping of the coal shows the seams draped over tight anticlinal structures that display thickening of the seams up to 8 metres on the apex of the anticline hinge areas.

The Val Coal Project covers 22,089 hectares and is located 262 kilometres west of one of the world's largest coking coal occurrences at Tavan Tolgoi. The drill programme is planned to include a total of 25 200 metre deep drill holes in 12 sections along the 8 kilometres of outcrop.

Neil Herbert, Deputy Chairman of Polo Resources, said:

'We are very pleased to have begun a second drill programme in South Gobi following the acquisition and initial exploration of these properties. Initial exploration of the Val coal project has been encouraging and we look forward to announcing the results of this drilling programme in due course.'
cyril

l

Progressive Capital Management Ltd
Energy Sector (Small Cap)
Update August 22nd 2008

Polo Resources PLC (AIM, PRL)
Strong Buy 5.50 pence

Overview
Since listing Polo has made significant progress in achieving its aim to become a major international coal mining and exploration group with additional interests in uranium and iron ore. The Company is focused on acquiring and developing interests in projects that are strategically located to serve the increasing global demand for coal to feed the strong demand of China and to a lesser degree Russia and India.
Polo now holds a diversified portfolio of 11 coal and uranium licenses in Mongolia. The geology of Mongolia is highly prospective for significant mineral deposits and the countrys resources have been vastly under-explored and under-developed. Polo has specifically targeted areas of significant known coal resources that are near the necessary infrastructure to export coal into the growing adjacent energy markets.
Polos strategy in Mongolia is to fast track into development the Union Coal Project and the Ereen Coal Project in late 2008. Polo is targeting total production of 1 Mt of coal per annum commencing in the fourth quarter of 2008. Polo also plans to prove 1 Bt of high quality coal resources by 2010, a pleasingly aggressive business plan made achievable due to the enormous geographical expanse of Polos licences in Mongolia.
Polo also holds strategic interests in Caledon Resources plc (CDN) and GCM Resources plc (GCM), both AIM listed. GCM is a resource development company with a wholly owned subsidiary operating in Bangladesh and investments in South Africa. Of most relevance is the world class coal mine and power plant project GCM are developing in the Phulbari region, Bangladesh. Delays are largely due to the Bangladeshi government seeking to increase the royalty payment from 6% suggested by GCM to 13% to reflect the growth in coal prices since the agreement was originally signed in 2005. We anticipate the project should receive the green light later in 2008 and supporting this view was the more amiable reception towards the 8th coal policy draft recently submitted to the Bangladeshi Government Energy Advisory Committee. This latest draft policy not only endorses open-pit mining but also stresses the urgency of coal extraction in the face of falling domestic gas production. Polos stalled attempt to buy GCM on the cheap at 175p in anticipation of the Phulbari coal mine approval was a typically audacious move by Stephen Dattels and the GCM board was understandably cool in its response preferring to wait for value to be more fully realised post production. Nevertheless Polo acquired a tidy 29.9% of GCM at an average price of circa 140 pence a stake not to be sneezed at, and with the wider region continuing to suffer from a shortage of coal due to insatiable demand and production bottlenecks, the large minority acquisition could prove a steal if and when the mine secures approval.
Caledon Resources Plc was also on the receiving end of Polos aggressive acquisition program (PRL has acquired of 25% of CDN stock). Caledon appears to have resolved at least some of the logistical and production issues in Africa and output is to be stepped up to a sustainable ceiling in 2009/10. Interestingly, Polo negotiated seats on the CDN board in return for passing voting rights to CDN management, a promising and rare sign of the trust and singular focus of the combined management teams.
In summary, recent updates from the company reassure us that 2009 promises to be a year of fundamental change and achievement for Polo, with 2010 likely to see first significant earnings relative to the current oversold and depressed price of 5.5 pence. Our enthusiasm for PRL is clearly shared by a number of resource specialist institutions who during June 2008 raised 80.6m for PRL (620,000,000 shares at 13 pence). The successful fund raise was made all the more impressive with so many of the usual investors hoarding cash in an attempt to rebuild credit crunched balance sheets.

Coal The New Black Gold
Whilst many commodities have suffered truly mind-boggling price volatility over the past 9-12 months the strategic, fundamental and cyclical case for coal remains intact. Drivers for continued high prices include:
i. Chinese Demand China, after decades of exporting coal, is now an importer and the recently proposed tax on coal exports by the Beijing authorities will only serve to create a high and sustainable floor on international coal prices. Interestingly, despite the temporary reduction in Chinese industrial activity in an effort to cleanse the air around Beijing Olympic sites, power shortages persist as have electricity black-outs for tens-of-millions of Chinese. Exact figures are hard to establish but some energy commentators suggest coal will have to meet up to 90% of the electricity generation burden in China until at least 2012.
ii. Protectionist Policies India, despite its enormous coal reserves, also suffers significant shortfall in supply and the only noises coming out of Indian coal industry are positively and increasingly protectionist as the country continues to try, (and fails), to meet energy output and infrastructure targets. Similar protectionist noises are being heard from Russia, the 3rd leg of the BRIC empire. Such anti free-market gestures merely equate to continued abnormal profits for producers and the rush for proven assets is perfectly illustrated by BHP Billitons monopoly seeking move on Rio Tinto, at whatever price it takes.
iii. Production Bottlenecks and Exploration Bureaucracy Whilst demand continues to outstrip supply, production bottlenecks in Australia and the mind-numbing length of time it takes Energy Ministry bureaucrats to rubber stamp coal exploration and production licenses means the case for coal in 2008 is as bright as it was for both gold and oil in the not so distant past.

Earnings Visibility
Polos earnings visibility naturally contains a large element of subjective analysis on exploration success, production timetables, future coal prices, and the ability of Stephen Dattels and the rest of the PRL team to turn their vision into reality. Excluding GCM and CDN earnings we conservatively anticipate 2010 earnings per share to equate to 4.9 pence increasing to 9.1 pence by 2015. Forecasts of eps including pass-through earnings from CDN and GCM are more difficult to ascertain as the variation between worst case and best case scenarios are significantly dependent on the enormous Phulbari project start date and the yet to be agreed royalty rate. A PRL price target, excluding any CDN and GCM contribution, based on 10x earnings would lead to a share price of 49 pence within 2 years and 91 pence sometime thereafter. This figure is clearly vulnerable to new issue dilution but as we anticipate PRL to be cash flow positive in 2010 much of the costs relating to exploration and production expansion could be met without the need for new equity.

Disclaimer
This note contains forward looking statements relating to exploration that may or may not lead to the discovery of proven assets. Changes to government legislation and royalty rates may also impact on earnings and cash flow. Coal prices may fall temporarily or over a more prolonged period leading to a further impact on earnings. The ability of the PRL management team to execute the company business plan is also dependent on numerous factors some of which are beyond the Directors control.

This note is not for retail use, nor is it an instruction or recommendation to buy PRL stock at the current price. Progressive Capital Management Ltd, an independent company, and including its subsidiaries or related companies do not hold PRL stock or any instrument or derivative exposed to PRL stock and is not remunerated directly or indirectly by PRL or any company in which PRL has a legal relationship.

This report is available only to institutions and professional investors who are classified as expert or qualified investors. More detailed analysis of the coal sector and/or PRL is available on request at cost.

Stock classifications
Strong Buy stock anticipated to appreciate significantly within 24 month period.
Buy stock anticipated to appreciate moderately within 24 month period.
Hold no significant price appreciation or depreciation anticipated within 24 month period.
Sell stock vulnerable to moderate depreciation within 24 month period
Strong Sell stock vulnerable to significant depreciation within 24 month period

tipped in shares mag today I believe and the sp has gone down !.... usual kiss o' death! reaction to a mention in shars mag....(not in these myself)

lol -- lets hope this recovers asap

2 September, 2008


Polo Resources Limited
('Polo Resources', 'Polo' or 'the Company')


Polo intersects 33.5m of coal in South Gobi at Hud Project

Significant coal seam discovered in South Gobi license area

1,029 metre, nine hole appraisal drilling programme completed

Further appraisal of deeper coal seams planned

Polo has intersected a significant coal seam following the completion of a 1,029 metre, nine hole appraisal programme at its Hud project in the South Gobi Basin which is located 75 kilometres from the world class Tavan Tolgoi Mine site. A summary of the coal intersected in these holes is included below.




Significantly a coal seam of 16.5 metres apparent thickness was intersected at depth in hole HUD005 indicating that thicker coal is present at depth and the early holes only drilled the thinner upper seams and needs to be extended to depth. The prospect is displaying multilayered seams with continuity over 6 kilometres at surface. These holes are considered significant with drilling occurring over a strike of 1.5 kilometres.




Given the Permian Age of the host rocks which correlates to Tavan Tolgoi coal age and the high reflectance values of the coal intersected, this would suggest this coal needs to be tested for coking properties.


Neil Herbert, Deputy Chairman said:

'We are very pleased to be able to bring you these positive results from our South Gobi license area.

'Drilling at the Hud Coal Project continues to advance well with significant coal intersections. We look forward to testing the coal for coking properties and reporting the results of the drill programme in due course.'

Contacts:

Polo Resources Limited

Neil Herbert, Deputy Chairman
Tel: +27 11 269 4906

Canaccord Adams

Mike Jones
Tel: +44 (0) 207 050 6500

Financial Dynamics

Ben Brewerton

Edward Westropp
Tel: +44 (0) 20 7831 3113








Total Meters Drilled
1029.4

Note: The intersections quoted above are from geological on-site logging and confirmed by down-hole geophysical logging. Down-hole coal analyses have not yet been completed.




About the Company

Polo is an emerging energy company focused on acquiring and developing advanced stage coal and uranium properties in Asia and Australia. For complete details on Polo Resources Limited, management encourages investors and interested parties to view its public documents filed on AIM Exchange at www.poloresources.com.




CAUTIONARY STATEMENT

The AIM Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of Polo Resources Limited. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Polo Resources Limited assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.


This information is provided by RNS
The company news service from the London Stock Exchange

I like the statement of possible "coking coal". But i think the market reaction to
all the news, suggests they require a better idea of the type returns that can be expected from this part of the world?
cyril

Polo Resources Limited

('Polo Resources', 'Polo' or 'the Company')

Notification concerning interests in shares of the Company

The Company was informed on 2 September 2008 by Morgan Stanley that as at 28 August 2008 Morgan Stanley Securities Limited holds an interest of 92,414,000 ordinary
shares, representing 4.93% of Polo's issued share capital.

Sept 23 (Reuters) - Sept 23 (Reuters) - British coal miner Caledon Resources
Plc on Tuesday said Polo Resources Ltd upped its stake in the company to about
55 million shares, or 26.3 percent, from about 54 million shares.
Australian coal investment company Polo has been gradually raising its
interest in Caledon since March, when it bought 11 million shares, or a stake of
over 6 percent.
cyril

is this worth buying into ??? ive had my eye on this company for some time now?? can anyone inliten me???

Their far less risky stock about, if your interested in coal CHL or CBM?

cyril

llewellyn (post 77).

IMO yes.

In summary,resource update due any time now,"Ereen" project to start commercial production next month.(1 million tonnes of coal per year) with ready markets in China, Russia and Japan.(200 million tonnes in total).

"Erds" project,east of Mongolia reckoned to contain 750 million tonnes of coal.

"South Gobi" project, the "jewel in the crown."

29.8% stake in GCM. (Global Coal Management)

27% stake in CDN. (Caledon Resources)


All for a market cap. of 81 million. DYOR.

Polo as i mentioned is for me a risk, yes it has potential vast resources but where the problem rises is that we know not how much they will recieve for the
coal when produced? Mongolia is usually very demanding when it comes to royaties and taxes,so for that reason i urge caution?
CHL is exactly the opposite with a Goverment contract to supply 2 new power stations in 2010 and expects to start producing in just over 14 months? Its 20year contract is off the top my head, is for iust under 900,000tonnes/year initiallyand i price at a slight discount to the market price.
CBM assets in WTN alone are equivilent to its market capital, and WTN is up for sale and will probably double in value if taken up? It has the assets of CHL,50%
of the Welsh coal company Energybuild and further assets in a gold producer.
Those are my thoughts, however to each is own?
cyril

Multiple Coal Seams in Early Drilling at the Val Project, Mongolia

Second significant coal seam discovered on Polo's South Gobi license areas

Polo Resources, the natural resources investment and mining company, is pleased to announce results from the initial drilling programme on its Val exploration project in the South Gobi basin. A total of 6 holes for 470 metres have been completed so far, spread out along 1 kilometre of strike of the outcropping coal; the results of these holes are shown below. Mapping and trenching work has uncovered coal over 8 kilometres in this region and shows that the system consists of multi-layered coal seams with up to 19 metres apparent thickness. Hole VAL005 has intersected a total of 4 seams with apparent thickness of greater than 4 metres, being 9 metres, 7 metres, 4 metres and 19 metres in a hole of total depth of 96 metres. This is a significant discovery and the Company is planning step outs to evaluate the potential of this hole.

The Val Project is situated in the central part of the South Gobi basin between Tavan Tolgoi (reserves of over 6 Bt of coal), and South Gobi Energy Resources ('SGS') (Ovoot Tolgoi project with reserves - including indicated and infe

Multiple Coal Seams in Early Drilling at the Val Project, Mongolia

Second significant coal seam discovered on Polo's South Gobi license areas

Polo Resources, the natural resources investment and mining company, is pleased to announce results from the initial drilling programme on its Val exploration project in the South Gobi basin. A total of 6 holes for 470 metres have been completed so far, spread out along 1 kilometre of strike of the outcropping coal; the results of these holes are shown below. Mapping and trenching work has uncovered coal over 8 kilometres in this region and shows that the system consists of multi-layered coal seams with up to 19 metres apparent thickness. Hole VAL005 has intersected a total of 4 seams with apparent thickness of greater than 4 metres, being 9 metres, 7 metres, 4 metres and 19 metres in a hole of total depth of 96 metres. This is a significant discovery and the Company is planning step outs to evaluate the potential of this hole.

The Val Project is situated in the central part of the South Gobi basin between Tavan Tolgoi (reserves of over 6 Bt of coal), and South Gobi Energy Resources ('SGS') (Ovoot Tolgoi project with reserves - including indicated and inferred - of 404Mt coal).

The area is hosted by an Upper Permian Sedimentary Sequence that also contains the SGS mine and is located in similar setting adjacent to well banded sandstones of Triassic age. The area is 62 kilometres to the North East of the SGS-MAK mines and is the northern limb of the large anticlinal feature dominating this part of the South Gobi basin.

The project is 87 kilometres from the Ceke loading station on the Chinese border making this project well positioned for the sale of coal into China. Samples have been submitted for analysis to the Central Laboratory of Mongolia and the results will be announced in due course. Areas of Permian coal in the South Gobi coal basin typically have coking coal properties ranging from 30% to 80% content.

Neil Herbert, Deputy Chairman of Polo Resources said: 'Early results from both of our initial exploration projects in the South Gobi coal basin have been most encouraging. We look forward to continuing to progress both of these together with the remaining nine project areas in the region, while at the same time bringing the Ereen coal mine to production in the coming weeks.'
cyril

Been researching this, looks interesting but there seems to be many large sells in recent weeks?

A sign of the times ! But yes one to watch !