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The Central projects are a group of coal tenements centred in the region around Ulaan Bataar (UB), with the Ereen project in the north, and, progressing south from UB, Union, Erds and Khasaat. In addition Polo has other isolated coal projects in the Central Project group that were selected in the early stages of our work in Mongolia. In summary, the Central Project status is:

Union:
The Union coal project is located in Central Mongolia only 130kms south of Ulaanbaatar. The project is in an ideal location being only 14kms from a rail siding where coal is currently being loaded to supply Ulaanbaatar’s three power stations (~5Mt/year). Micromine Consulting evaluated the results of the drilling for Polo and defined a NI 43-101 compliant resource of 94.7 Mt Measured and Indicated and 38.4 Mt Inferred categories of coal.

Erds:
The Erds Project consists of four tenements centered on the Erdentsogt area. In October 2009 Micromine Consulting evaluated the results of the drilling for Polo and defined a NI 43-101 compliant resource estimated at 254 Mt in the Indicated category and at 553 Mt in the Inferred category.

Kashaat:
The tenement covers 132ha, and had a well delineated coal deposit of thermal coal. Polo has drilled twenty-eight drillholes on the tenement, and has engaged SRK to bring the resource to JORC standard. The tenements surrounding Khasaat have been joint-ventured with Xstrata, who have been drilling out a resource of unknown size over the past eighteen months.



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