The northwest part of Mongolia has some of the best coal in Mongolia but is difficult in terms of logistics. Polo has reviewed this part of Mongolia and believes this coal is situated within trucking distance (175km) to existing infrastructure in Russia and markets. The high quality of this coal with reported coking ability will facility the extra costs of transport and provide a much needed product to this area of Russia.

A total of 22 drill holes have been completed in this area and display a consistency to occurrence, quality and seam thickness.

The Chuluut license although small (1 km2) is situated between two existing mining operations that produce a consistent plus 6000 kcal / kg high grade thermal coal for local consumption. No coking tests have yet been undertaken in this area. Only three holes occur on this license with one hole hitting more than 105m of coal from surface.