POL.L Regulatory News (POL)

7 December 2012

Polo Resources Limited

("Polo" or the "Company")

RESULTS FOR THE TWELVE MONTHS ENDED 30 JUNE 2012

Polo Resources Limited (AIM: POL, TSX: POL) today announces its audited results for the 12 months ended 30 June 2012.

Financial and Operational Highlights

·; Sale of coking coal producer Caledon Resources Plc, which realised proceeds of US$163.2 million

·; Subsequent return of US$71.5 million to shareholders

·; Cash and cash equivalents of US$42 million at 30 June 2012

·; Company repositioned towards gold and oil and gas. Substantial investments made in:

o Nimini Holdings Limited ("Nimini") (US$16.5 million) and

o Signet Petroleum Limited ("Signet") (US$27 million)

·; Net Asset Value per share of 3.85 pence per share

Neil Herbert, Executive Co-Chairman and Managing Director of Polo said,

 "Over the last 12 months, management has repositioned Polo's commodity exposure towards gold and oil and gas. This exposure has made Polo's portfolio more resilient in these challenging economic times and will serve as a store of value for the Company.

 "The investments made during the year in the gold and oil and gas exploration sectors, through Nimini Holdings Limited and Signet Petroleum Limited respectively, have transformed Polo's portfolio."

For further information, please contact:

About the Company

Polo Resources is a natural resources investment company focused on investing in undervalued companies and projects with strong fundamentals and attractive growth prospects. For further details on Polo Resources please see our website: www.poloresources.com.

CAUTIONARY STATEMENT

The AIM Market of London Stock Exchange plc 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 potential values, the future plans and objectives of Polo Resources Limited. There can be no assurance that such statements will prove to be accurate, achievable or recognizable in the near term.

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.

Executive Co-Chairmen's Report

Over the last 12 months, management has repositioned Polo's commodity exposure towards gold and oil and gas. This exposure has made Polo's portfolio more resilient in these challenging economic times and will serve as a store of value for the Company.

Polo pushed ahead in the year under review with our stated refocus on gold and oil and gas, targeting highly prospective projects and in-demand commodity sectors.

The investments made during the year in the gold (Nimini Holdings Limited) and oil and gas exploration (Signet Petroleum Limited and Equus Petroleum Plc) sectors have transformed Polo's portfolio. Nimini and Signet are private companies with good potential to deliver substantial returns to shareholders in a difficult environment for natural resource investments. Subsequent to the year end, Polo has also acquired a significant interest in the oil and gas explorer Regalis Petroleum Limited ("Regalis"), which has exciting potential in Namibia and elsewhere across Africa.

Polo's primary objective has always been to invest in companies and in projects that have the potential to achieve substantial growth and shareholder returns, and to make timely investments in line with this goal. By utilising our strong cash position to acquire strategic interests in the gold and oil and gas sectors, and by managing our investments in the iron ore and coal sectors, we continue to fulfill our stated objectives with an eye to short-term value release and medium and longer term Net Asset Value ("NAV") appreciation.

During the year, Polo continued its strong track record of returning value to shareholders. Following the divestment of our interest in coking coal producer Caledon Resources Plc (which realised proceeds of US$163.2 million) we returned US$71.5 million to shareholders on 5 October 2011 through a two pence per share special dividend. Polo distributed in aggregate US$185.4 million to shareholders in the two years to June 2012, a rare feat for an AIM-listed company, made possible by the timely realisation of investments.

Moving into Gold and Oil and Gas

Our acquisition of an extensive land package comprising three exploration licences totaling some 180 square kilometres in Sierra Leone from TSX-listed AXMIN Inc. ("AXMIN"), which was completed in December 2011, gives Polo a substantial presence in the gold sector. Whilst continuing uncertainty resulting from the global financial crisis has negatively impacted the prices of some natural resource commodities, gold prices are at historic highs and are expected to remain strong for the foreseeable future.

The independent global resource estimate (by SGS Canada Inc., June 2012) for Nimini's Komahun Project ("Komahun") includes 521,000 gold ounces in the indicated category - a 374 per cent. increase on previously announced indicated resources - and 263,000 gold ounces in the inferred category. That estimate included all data to 20 February 2012 and will be followed by a further estimate to be published in first quarter 2013, which will include the results of the substantial drilling undertaken since that date.

Komahun has the potential to progress quickly from exploration to mine development stage, which represents a significant enhancement of value over the near-term.

Throughout the year, Polo made substantial investments in the private oil and gas exploration company Signet. Following investments made in July and August 2011 and May 2012, Polo currently holds approximately 21.7 per cent. of Signet's issued share capital. Signet has a number of oil and gas concessions in East and West Africa with good potential, and is actively exploring large-scale oil projects in Namibia, Sierra Leone, Tanzania, Burundi and Benin. Extensive seismic interpretation is underway and results are expected in 2013.

In our opinion, the interest in Signet provides a good investment opportunity with considerable upside potential. Signet's portfolio compares well to those held by similar sized exploration companies in the region and is highly prospective for commercial oil and gas discovery, which would create significant short and longer term shareholder value.

Our recent investment in the independent oil and gas company Regalis further enhances our exposure to the sector and provides excellent upside potential. Having previously raised U$30 million from a major financial institution, Regalis has acquired a 72.5 per cent. interest in Block 2813B offshore Namibia and has other high potential opportunities that are in an advanced stage.

Similarly, the investment made during the year in Equus Petroleum Plc ("Equus"), the recently formed Central Kazakhstan energy company, gives Polo an investment presence in the oil production sector. Equus is producing 5,000 barrels of oil per day ("bopd") from its extensive acreage. In the foreseeable future, that figure could rise to as much as 20,000 bopd as a result of further investments in existing and new wells.

Outlook

We expect to deliver growth to Polo's NAV over the medium-term. Management continues to assess its investment portfolio and takes a cautious approach to new investments in the current market environment. The focus is on delivering value to shareholders from our current portfolio, with a particular focus on our gold and oil and gas investments.

We would like to thank our fellow directors and all our shareholders for their support and look forward to updating shareholders of our progress at the appropriate time.

Neil L. Herbert Stephen R. Dattels

Executive Co-Chairman Executive Co-Chairman

Financial Review

In the year under review, Polo utilised its strong cash position to develop an active presence in the African gold and oil and gas sectors, and to release significant value to shareholders.The Company is well positioned for further growth.

The purpose of this review is to provide a further analysis of the Company's consolidated 2012 results and the main factors that affected this financial performance. The Financial Review should be read in conjunction with the financial statements and associated notes.

Following on from the previous financial year, which was characterised by the disposal of Polo's largest uranium investment, Extract Resources Limited, the Company re-focused its investment strategy in the year under review. The Company acquired strategic interests in the gold and oil and gas sectors, utilising its strong cash position to pursue attractive value-adding growth opportunities. The Company continued to realise and return financial gains for shareholders through the disposal of its investment in Caledon Resources Plc ("Caledon").

During the year, the Group made a profit on ordinary activities after taxation of US$7.2 million (2011: US$65.2 million). Substantial investments were made in the acquisition of Sierra Leone gold explorer Nimini Holdings Limited ("Nimini") (US$16.5 million) and Signet Petroleum Limited ("Signet") (US$27 million), the independent African oil and gas exploration company. Net cash flows received from investing activities totalled US$112.5 million, primarily as a result of proceeds received from the successful disposal of the Company's interest in Australian coal producer Caledon in August 2011 (realising a net gain on the investment of US$18.83 million). Polo released value to shareholders through a special dividend paid out on 5 October 2011 of 2 pence (gross) per issued share in the Company and in total US$71.5 million.

Basic earnings per share for the year ended 30 June 2012 was US$0.31 (2011: US$2.75).

TRANSACTIONS

Nimini Holdings Limited

Several strategic transactions were completed during the year under review. In August 2011, Polo entered into an agreement with TSX-listed AXMIN Inc. for a cash consideration of US$7.5 million, to acquire a 51 per cent. interest in Nimini, a company that owned AXMIN's Sierra Leone gold assets, with the transaction completing on 29 September 2011. On 14 December 2011, Polo acquired the outstanding 49 per cent. interest in Nimini for a cash consideration of US$9 million. Subsequently (March 2012), Polo appointed Plinian Capital Limited ("Plinian") as operator of the Company's Sierra Leone gold projects and Plinian's subsidiary Plinian Guernsey Limited acquired a 10 per cent holding in Nimini for a total consideration of US$2.5 million, which valued 100 per cent. of Nimini at US$25 million.

The pace of work has accelerated at the Nimini licences, resulting in a significant increase in gold resources reported in June 2012. The mineral resource estimate is scheduled to be updated in the first quarter of 2013 and a Pre-Feasibility Study is expected to be completed early in the second quarter 2013. The project demonstrates attractive gold grades and has excellent potential for future mine development.

Signet Petroleum Limited

In line with Polo's strategic decision to target strong oil and gas investments, the Company made five investments between July 2011 and May 2012 into Signet Petroleum Limited totalling US$27 million. Polo acquired 7,809,522 Signet shares, representing 21.7 per cent of Signet's issued shares and 17.9 per cent. of Signet's issued shares on a fully diluted basis. This share acquisition opens up significant opportunities to add value in a highly sought after African oil and gas sector.

IMPAIRMENT OF INVESTMENTS

During the year under review, Polo reassessed the carrying values and fair values of some of Group's investments. Notably, the Joint Venture in the Colombian gold explorer Andina Gold Corporation was terminated following continuous delays in the registration of licences, which resulted in a loss of US$2.2 million.

Polo made a full financial provision against the value of its investment in MinFer Holdings Limited ("MinFer"), following disappointing results from the exploration work at the Colomi Project in Brazil. However, recent drilling at MinFer's Rio dos Bois Project is considered more promising and further analysis is underway.

Polo continues to evaluate strategic options with respect to maximising the value potential of its shareholding in GCM Resources Plc.

FINANCIAL POSITION

At the date of this report, the Company's value comprised strategic investments of US$99.1 million (listed investments: US$8.3 million and unlisted investments: US$90.8 million) and cash, receivables and short term equity investments of US$43.2 million of which US$25.9 million is cash, resulting in a combined total of US$142.3 million and a Net Asset value per share of 3.85 GB pence per share.

The Company has retained its strong equity position and has sufficient funds to build upon the current portfolio of investments, with a particular focus on the development of the Nimini Gold Project and interests in the African oil and gas sector.

Investment Update

Polo re-focused its strategy during 2011, to concentrate on undervalued companies in the gold and oil and gas sectors. The Directors believe that Nimini and Signet have excellent potential to add value over the near and medium term.

Gold

Nimini Holdings Limited

·; Gold Projects, Sierra Leone

·; 90 per cent. equity interest

Given the encouraging results obtained from the ongoing exploration drill programme at the Komahun Project, and the grant of its Environmental Licence, Polo accelerated its application for a large-scale Mining Licence for the proposed mine. The Mining Licence was awarded in November 2012 for an initial 25-year period. Once the Pre-Feasibility Study is complete (expected second quarter 2013), Polo will consider fast tracking a Bankable Feasibility Study to allow an early decision for mine development, plant construction and first gold production.

Key Information

·; Two gold projects: the contiguous Nimini East and West licences (now combined into one Mining Licence) in the Kono District and the Matotoka licence in the Tonkolili District

·; Flagship Komahun Project has Canadian NI 43-101 compliant global indicated resource of 521,000 ounces gold and inferred resource of 263,000 ounces gold, based on results up to 20 February 2012

·; Increase of 374 per cent. in indicated resource since the previous resource estimate in September 2008

·; On-going, fully funded in-fill and depth extension drill programme commenced in May 2012. The drill programme totalling approximately 29,000 metres, is scheduled for completion by mid-December. The programme has been planned to extend the depth of the current resource base to at least 700 metres below surface and to extend the strike length of Komahun to the north-east

·; New mineral resource estimate scheduled for first quarter 2013

·; Results obtained to date indicate a larger deposit at Komahun than previously modelled

·; Mining Licence and Environmental Licence granted

·; Pre-Feasibility Study scheduled for completion early in second quarter 2013; Bankable Feasibility Study planned to follow

·; Several untested targets identified for follow-up. Trenching and pitting programmes are currently underway on a selection of these targets

·; Comprehensive review at Matotoka of all data (soil sampling and Versatile Time-Domain Electromagnetic survey) has identified targets for infill soils surveys, trenching and induced polarization geophysical surveys.

Recent Drilling Results

Nimini has recently developed a new nomenclature for the Komahun deposit to encompass the former "Main Zone" in addition to the strike extension bodies that have been, or are currently being, delineated by exploration activities. The deposit has been segmented into Blocks 1, 2 and 3. The new nomenclature is:

·; Block 1: The former Main Zone (comprising mineralised Zones 1, 2 and 3) which is some 440 m in strike extent;

·; Block 2: The eastwards extension of Zone 2 from Block 1 to the eastern limit of Zone 2 2) being some 360 m in strike extent; and

·; Block 3: The newly discovered strike extension, from the eastern limit of Block 2 to the eastern boundary of the Mining Licence, of a potential 430 m strike extent

Highlights announced on 5 December 2012 include:

·; Drill results received from Block 3 to date imply strike continuity for approximately a further 250 metres eastwards from Block 2, with assay results outstanding from further holes drilled for another 200 metres to the east towards the Mining Licence eastern boundary

·; 11.60 g/t over 5 m from 83 m in NWKD307 and 15.81 g/t over 5 m from 154.50 m in NWKD312 as part of the maiden drill programme in Block 3

·; 5.72 g/t over 11.77 m from 381.50 m in NWKD301, which lies to the east of the currently modelled extent of Zone 1, Block 1

·; 6.84 g/t over 13.5 m from 366 m in NWKD300 at the current depth-limit of the existing Indicated Mineral Resource wireframe for Zone 2, Block 1

·; 15.18 g/t over 12.85 m from 339.70 m in NWKD296A near the modelled Inferred Mineral Resource south-western extent of Zone 1, Block 1

·; 6.46 g/t over 3.61 m from 476.89 m in NWKD294 which has intersected mineralisation down-dip and to the east of the currently defined Zone 3, Block 1 Inferred Mineral Resource wireframe

·; 6.20 g/t over 4.08 m from 383.08 m in NWKD292 in Zone 2, Block 1

·; 5.44 g/t over 2.67 m from 311.00 m (Zone 1), 8.49 g/t over 3.56 m from 318.08 m (Zone 2) and 5.56 g/t over 3.31 m from 346.26 m (Zone 3) in NWKD290 (infill hole)

·; 25.23 g/t over 6.24 m from 341.80 m in NWKD289 (Zone 2, Block 1), an infill hole designed to increase the extent of the Indicated Mineral Resource wireframe

·; 6.46 g/t over 6.85 m from 347.00 m in NWKD288 (Zone 1, Block 1)

·; 14.34 g/t over 3.91 m from 520.59 m in NWKD304 which extends the depth of Block 1 mineralisation by some 55 m below surface

Background

Polo announced on 1 August 2011 that it had entered into an agreement with TSX-listed AXMIN Inc. to acquire a 51 per cent. interest, for US$7.5 million, in a new company (Nimini Holdings Limited) that would own AXMIN's Sierra Leone gold assets. Polo completed the acquisition of Nimini in December 2011, acquiring the outstanding 49 per cent. interest for a cash consideration of US$9 million

Plinian Capital Limited was appointed in March 2012 to manage all of Nimini's exploration, development, administrative and production activities, Plinian's subsidiary, Plinian Guernsey Limited, taking a 10 per cent. equity stake in the Nimini for US$2.5 million.

Polo was pleased to announce a significant increase in the gold resource estimate at the Komahun Project in June 2012. SGS Canada Inc.'s independent estimate was based on results from 68 new diamond drill holes, totaling 11,528 metres, drilled since the previous SRK Consulting (UK) Limited estimate of September 2008. Indicated resources increased by 374 per cent. to 521,000 ounces gold (3.528 million tons grading 4.59 g/t). Inferred resources were 263,000 ounces gold (2.248 million tons grading 3.64 g/t).

Drilling is on-going as Nimini targets at least a one million ounce total gold resource from the current programme. The most recent results (announced post balance sheet, on 5 December 2012) are extremely encouraging, and include grades as high as 25.23g/t over 6.24 metres from 341.8 metres, 15.18 g/t over 12.85 metres from 339.7 metres and 14.34 g/t over 3.91 metres from 520.6 metres.

Polo is pleased with the substantial progress that is being made under the management of Plinian Capital at Komahun and across the Nimini licences. With further drilling underway at Komahun and the environmental and mining licences having been granted, this highly prospective investment is well positioned for further increases in gold resources and for near-term development into Sierra Leone's first underground gold mining operation.

Qualified Person and Technical Report

The technical information contained in this Annual Report relating to Nimini's mining projects has been reviewed and approved by Dr Brendan Clarke, the Geological Operations Manager of The MSA Group. Dr Brendan Clarke is a Member of the Geological Society of South Africa and a Professional Natural Scientist (Pr.Sci.Nat) registered with the South African Council for Natural Scientific Professions. Dr Clarke has sufficient experience relevant to the style of mineralisation under consideration and to the activities which are being reported, to qualify as a Qualified Person for the purposes of this announcement. For complete disclosure of the Nimini resource estimate, refer to the Technical Report prepared in compliance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects and filed on SEDAR at www.sedar.com on 6 August 2012.

Oil & Gas

Signet Petroleum Limited

·; Oil and Gas Projects, Africa

·; 21.7 per cent. equity interest

The investment in Signet Petroleum is a critical element in Polo's strategy to increase its exposure to the oil and gas sector. Signet is making significant progress across its oil and gas projects in Africa, with initial interpretation of the company's Mnazi Bay (Tanzania) 3D seismic data reinforcing estimates that the block contains a number of prospective targets.

Tanzania

·; Interpretation of 3D seismic data suggests that the offshore Mnazi Bay North Block, Tanzania, contains a number of prospective targets up-dip from nearby discoveries. Interpretation and modelling is continuing

·; Well positioned as an early development opportunity into the domestic energy market (unsatisfied domestic demand for natural gas is estimated at over 500 mmscf/d)

·; New Mtwara to Dar es Salaam Gas Pipeline project inaugurated by the Government of the United Republic of Tanzania on 21 July 2012. The 532-km pipeline will link the Mnazi Bay gas field to Tanzania's largest city. Construction is underway and is expected to take 12-24 months to complete

·; Natural gas will be transported to large-scale electricity producers, other industrial users and major population centres in Tanzania

·; Plans for new Mnazi Bay 300MW gas fired power plant announced by Government of Tanzania on 13 October 2011

Additional projects

·; 75 per cent. working interest in Block 2914B (12,299 square kilometres) in the highly prospective Orange Basin, Namibia

·; Processing of the 2D seismic data collected in conjunction with Spectrum ASA has been completed and initial interpretations concluded. The company is now conducting Post Stack Depth Migration processing and interpretation

·; Signet acquired historical technical data on its Burundi licence, Block C, southern offshore Rusizi Basin. Evaluation is advancing

·; Joint venture with Surestream Petroleum Limited has purchased a 50 per cent. interest in the seismic vessel, the 'Tanganyika Explorer', which will undertake 2D multi-client seismic services on Lake Tanganyika. Seismic sea trials are expected to commence in Q1 2013 and data acquisition will commence on Lake Tanganyika from April 2013.

·; Surestream JV gives Signet a technical advantage across Lake Tanganyika

Signet holds a portfolio of earlier-stage exploration projects in a number of other territories; including a 10 per cent. stake in licence block SL 7A-10 in Sierra Leone and a 90 per cent. working interest in Block 3 (2,863 square kilometres), offshore Benin.

Regalis Petroleum Limited

·; Oil and Gas Projects, Africa

·; 8.32 per cent. equity interest

Polo's strategic interest in the private and independent oil and gas company Regalis Petroleum Limited ("Regalis") offers good upside potential as Regalis works to acquire and develop key oil concessions in Namibia and other countries in sub Saharan Africa.

·; Regalis has already acquired a 70 per cent. operating interest in Block 2813B offshore Namibia where 2D seismic data has recently been acquired and is currently being interpreted

·; Additional opportunities in an advanced stage and acquisition opportunities in Cameroon and Congo

·; Regalis is well capitalised to build a strong exploration footprint across Africa and to drive asset upside through exploration, including 2D and 3D seismic acquisition.

Equus Petroleum Plc

·; Energy and petroleum, Kazakhstan

·; 1.95 per cent. equity interest

The investment in Equus Petroleum Plc ("Equus") gives Polo a presence in the producing oil and gas sector. Equus is already producing oil at its extensive licence concessions in Central Kazakhstan and operations are ramping up. This suggests good potential for value accretion over the short and medium term.

Polo invested US$2.6 million in Equus, which has a 1,500 square kilometre licence in the South Turguay Basin in Central Kazakhstan, a prolific oil production region with excellent proximity to established oil and gas infrastructure.

Coal

GCM Resources Plc

·; Coal Projects, Bangladesh

·; 29.8 per cent. equity interest

GCM Resources ("GCM") has identified a world-class coal resource of 572 million tonnes (JORC compliant) in Northwest Bangladesh, called the Phulbari Coal Project ("the Project" or "Phulbari"). GCM is awaiting approval from the Government of Bangladesh to develop the Project.

·; The combination of high quality coal, a large resource, thick seams and low operating costs make Phulbari a world-class deposit

·; The Government of Bangladesh estimates that power generation from coal fired power plants will increase by 19,200 mega-watts (mw) over the next 18 years

·; Coal from the Phulbari Coal Project could support up to 4,000mw of power generation and would be considerably cheaper than importing coal

·; GCM has intensified its efforts to obtain approval for developing the Project from the Government of Bangladesh.

Iron Ore

Ironstone Resources Limited

·; Iron Ore and Precious Metal Projects, Canada

·; 15.7 per cent. equity interest

By developing the Clear Hills Project and driving development across its asset base, Ironstone Resources Limited ("Ironstone") is generating good potential to add value over the medium and longer term. The conclusion of process development work for the iron at Clear Hills is now anticipated for mid-2013, with a Preliminary Economic Assessment to follow.

·; Ironstone's portfolio of strategic mineral deposits in Alberta and Ontario, Canada, includes the Clear Hills Iron Ore/Vanadium Project in Alberta

·; Additional permits acquired in the Clear Hills area, bringing the total licence area to 190,904 hectares

·; NI 43-101 compliant resource (SRK Consultants (Canada) Inc., July 2012) has been increased to 557.7 Mt Indicated Fe and 94.7 Mt Inferred Fe

·; A drill programme (31 holes, 1,403 metres) was conducted at the South Whitemud area in February 2012, which successfully described the southernmost end of the Clear Hills iron deposit. SRK's Technical Report notes that the deposit is open to the east, west and has been encountered at South Whitemud, 11 km south of the current resource area

·; Assessment Report filed with Alberta Energy for the mineral permits held by Ironstone in the Clear Hills. Permits have been extended to 2020 and beyond

Management and Leadership

Good governance ensures that the highest standards are maintained across all aspects of the Company's operations. The commitment to responsible governance begins at Board level and flows throughout the Polo Resources operation.

Executive Directors

Neil L. Herbert (aged 46)

Executive Co-Chairman and Managing Director

Mr. Herbert has managed resource exploration and mining companies since 1998 when he joined Antofagasta Plc having previously worked in finance with Price Waterhouse. He was appointed Executive Director of Polo Resources in 2008, Managing Director in 2009 and Executive Co-Chairman in 2010. He is also Chairman of uranium explorer UrAmerica Limited, in which Cameco is a significant shareholder, and he is a Director of Nimini Holdings Limited and African oil explorer Signet Petroleum Limited. Mr. Herbert has previously managed a number of resource companies taking these through project acquisitions and disposals together with stock market listings and fund raisings and was formerly Finance Director of UraMin Inc. from formation in 2005, taking the company through listing on both AIM and TSX to raise over US$400 million and managed its sale for US$2.5 billion in 2007. He was also formerly Finance Director of Galahad Gold Plc, International Molybdenum Plc, Kalahari Diamonds Plc and Patagonia Gold Plc and was also Chief Financial Officer of Brancote Holdings Plc. He is a fellow of the Association of Chartered Certified Accountants.

Stephen R. Dattels (aged 65)

Executive Co-Chairman

Mr. Dattels is a seasoned senior mining executive and is Executive Co-chairman of two companies listed on the AIM market of The London Stock Exchange, both of which are in the mining sector: Polo Resources Limited and West African Minerals Corporation, where he is also Chief Executive. In late 1982 he joined Barrick Gold Corporation and was one of the key executives during its formative years, where he was involved in the company's growth from a capital base of US$10 million to a market capitalisation of over U$2 billion when he left in early 1987. Since leaving Barrick, Mr. Dattels has been a mining financier of numerous mining ventures in several continents in diverse commodities including gold, uranium, copper, iron ore and coal. In 2005 he founded UraMin Inc., which acquired and developed uranium assets in Africa. The Company was sold in August 2007 to Areva, the French Government-owned, fully integrated nuclear company for cash consideration of approximately US$2.5 billion. He is also an active investor in oil and gas exploration in Africa. Mr. Dattels is currently a Non-Executive Director of AIM listed GCM Resources Plc and Non-Executive Co-Chairman of Hong Kong listed Regent Pacific Group. Mr. Dattels has a Bachelor of Arts degree from McGill University, a law degree (cum laude) from the University of Western Ontario and has completed the Program for Management Development at Harvard University.

Ian Burns (aged 53)

Finance Director

Mr. Burns is a fellow of both the Institute of Chartered Accountants in England and Wales and the Chartered Institute for Securities and Investment. He is the founder and Senior Executive Director of Via Executive Limited, a specialist management consulting company and the Managing Director of Regent Mercantile Holdings Limited, a privately owned investment company. For over twenty years Mr. Burns has specialised in corporate governance, risk management, accounting and administration for companies in a number of industry sectors and is currently a Non-Executive Director of Phaunos Timber Fund Limited, a US$500 million company listed on the London Stock Exchange, as well as several fund management companies engaged in the property, emerging markets and alternative energy sectors. He is licensed as a personal fiduciary by the Guernsey Financial Services Commission. Previously Mr. Burns was an Executive Director at Anson Fund Management Limited and, prior to that, Group Managing Director of Investec Trust. He is the former Chairman of the Guernsey Association of Trustees and a current member of the Society of Trust and Estate Planners Guernsey committee.

Guy Elliott (age 54)

Senior Non-Executive Director

Mr. Elliott is a co-founder of F3 Capital Management, LLC, an independent alternative asset management firm specialising in early stage financings in the natural resources field. Previously Mr. Elliott was president and co-founder of Croesus Capital Management, a specialist emerging markets hedge fund from 1993 to 2001, President of Rothschild Emerging Markets and manager of the Rothschild Emerging Markets Natural Resources Fund. Mr. Elliott is Vice Chairman of AIM listed Top Level Domain Holdings. Past Directorships include Aurelian Oil & Gas an AIM listed E&P company and Direct Petroleum Exploration Inc., a private Denver based E&P company.

Bryan Smith (age 73)

Non-Executive Director

Mr. Smith has more than 30 years of experience in the securities industry and is a recognised leader in the Canadian financial industry. Mr. Smith began his career in 1967 with Nesbitt Thomson. In 1973 he joined Draper Dobie Limited, holding subsequently senior roles, including Vice President and Director. Mr. Smith has also held the role of Senior Vice President of Gardner Watson Limited, now Dean Witter, and Senior Vice President and Director of Walwyn Stodgell Limited. Mr. Smith was a cofounder and former Director of Burgundy Asset Management. He was pivotal in the firm's growth to its position as top Canadian equity performer in 2000 and ranking in the number two position for the past five years. Burgundy has significant assets under management for clients that range from pension funds, charitable foundations, public and private corporations as well as wealthy private clients. Mr. Smith has been a Director of a number of public and private companies, including Northbridge Financial Corporation and Bioscrypt Inc.

Jim Mellon (aged 55)

Non-Executive Director

Mr. Mellon has been a fund and asset manager for nearly thirty years. He is an avid participant in a number of markets, in particular the stock markets of emerging nations. Mr. Mellon started his career with GT Management Plc in 1978. In July 1984, he moved to the Thornton Group where he was Managing Director of the Asian operation. From 1988 to 1990, he was an Executive Director of Tyndall Holdings Plc, responsible for business expansion and corporate development. Mr. Mellon is the founder, principal shareholder and co-Chairman of the Regent Pacific Group, quoted on the Hong Kong Stock Exchange. He is also founder, principal shareholder and a Non-Executive Director of Charlemagne Capital and Non-Executive Co-Chairman of West African Minerals Corporation, both listed on the AIM market.

Ian Stalker (age 61)

Non-Executive Director

Mr. Stalker is a chemical engineer, with an outstanding history in developing and managing a number of mining projects in Europe, Africa and Australia over the past 35 years. He has worked his way up from operational roles in base and precious metals companies to senior project development and director positions with some of the largest mining companies in the world and has successfully managed eight mining projects throughout the world through feasibility study, development and construction phases. Mr. Stalker is Chief Executive Officer and Director of Brazilian Gold Corporation. He was CEO of Berkeley Resources Limited and was formerly Chief Executive Officer of URU Metals Limited (formerly Niger Uranium Limited) from 2008 until April 2010. Prior to that, he was Chief Executive Officer of UraMin Inc. from late 2005 until it was acquired for US$2.5 billion in July 2007. He has worked in senior executive roles at Gold Fields Limited, Zambia Consolidated Copper Mines Limited, Ashanti Goldfields Company Limited and Caledonia Mining Corporation. He has also been a senior metallurgical consultant for Lycopodium, the Australian-based engineering company.

Forward-looking Statements

Certain statements in this report are ''Forward Looking statements''. These statements are not based on historical facts, but rather on the management's expectations regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, planned exploration and development drilling activity and the results of such drilling activity, business prospects and opportunities. Such Forward Looking statements reflect management's current beliefs and assumptions and are based on information currently available to management.

Forward-looking statements involve significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic market and business conditions, competition, environmental and other regulatory changes, the results of exploration and development drilling and related activities, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although the forward-looking statements contained in this Document are based upon what management believes to be reasonable assumptions the Company cannot assure investors that actual results will be consistent with these forward-looking statements.

Directors' Report

The Directors are pleased to present this year's Annual Report together with the consolidated financial statements for the year ended 30 June 2012.

Principal Activities

The principal activities of the Group is that of a natural resources investment company focused on investing in undervalued companies and projects with strong fundamentals and attractive growth prospects. Polo aims to build a diversified portfolio of mineral and hydrocarbon assets which the Board of Directors consider as offering substantial growth potential, pursuing both short and long-term value enhancing investments.

Business Review and Future Developments

A review of the current and future development of the Group's business is given in the Highlights, Executive Co-Chairmen's Statement, Finance Review and Investment update on pages 1 to 11.

Results and Dividends

Profit on ordinary activities of the Group after taxation amounted to US$7.2million (2011: US$65.2million). The Directors do not recommend payment of a dividend in respect of the financial year under review; however a special dividend of 2 pence per share was paid on 5 October 2011.

Key Performance Indicators

Given the nature of the business the Directors are of the opinion that analysis using KPIs is not appropriate for an understanding of the development, performance or position of our business at this time.

Post Balance Sheet Events

At the date these financial statements were approved, being 6 December 2012, the Directors were not aware of any significant post balance sheet events other than those set out in the notes to the financial statements.

Directors' Report (continued)

Directors

The names of the Directors who served and any changes during the year are set out below:

Executive Directors

Stephen Dattels

Neil Herbert

Non-Executive Directors

Directors' Remuneration

The Company remunerates the Directors at a level commensurate with the size of the Company and the experience of its Directors. The Remuneration Committee has reviewed the Directors' remuneration and believes it upholds the objectives of the Company with regard to this issue. Details of the Directors' emoluments and payments made for professional services rendered are set out in Note 8 to the financial statements.

Directors' Interests

The total beneficial interests of the serving Directors in the shares and options of the Company during the year to 30 June 2012 were as follows:

* The option details have been fully disclosed in Note 21 to the financial statements.

Corporate Governance

A statement on Corporate Governance is set out on pages 20 to 22.

Environmental Responsibility

The Company is aware of the potential impact that activities conducted by it and some of its subsidiary companies may have on the environment. The Company ensures that it, and its subsidiaries at a minimum, comply with the local regulatory requirements and the revised Equator Principles with regard to the environment.

Employment Policies

The Group is committed to promoting policies which ensure that high calibre employees are attracted, retained and motivated to ensure the ongoing success for the business. Employees and those who seek to work within the Group are treated equally regardless of sex, marital status, creed, colour, race or ethnic origin.

Directors' Report (continued)

Health and Safety

The Group aims to achieve and maintain a high standard of workplace safety. In order to achieve this objective the Group will provide training and support to employees and set demanding standards for workplace safety.

Payment to Suppliers

The Group's policy is to agree terms and conditions with suppliers in advance; payment is then made in accordance with the agreement provided the supplier has met the terms and conditions. Suppliers are typically paid within 30 days of issue of invoice.

Political Contributions and Charitable Donations

During the year the Group did not make any political contributions. The Group made charitable donations of US$6,550 during the year.

Annual General Meeting ("AGM")

This report and financial statements will be presented to shareholders for their approval at the AGM. The Notice of the AGM will be distributed to shareholders together with the Annual Report.

Statement of Disclosure of Information to Auditors

As at the date of this report the serving Directors confirm that:

·; So far as each Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

·; they have taken all the steps that they ought to have taken as Directors' in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information

Auditors

A resolution to re-appoint Chapman Davis LLP and to authorise the Directors to fix their remuneration will be proposed at the next Annual General Meeting.

Going Concern

The Directors are of the opinion that ongoing evaluation of the Company's various interests indicate that preparation of the Group's accounts on a going concern basis is appropriate.

Directors' Report (continued)

Statement of Directors' Responsibilities

The Directors prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the Group for that year. In preparing those financial statements, the Directors are required to:

·; select suitable accounting policies and then apply them consistently;

·; make judgments and estimates that are reasonable and prudent;

·; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

·; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The Directors are responsible for keeping proper accounting records, for safeguarding the assets of the Group and for taking reasonable steps for the prevention and detection of fraud and other irregularities. They are also responsible for ensuring that the Annual Report includes information required by the Alternative Investment Market.

Electronic Communication

The maintenance and integrity of the Company's website is the responsibility of the Directors: the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

The Company's website is maintained in accordance with AIM Rule 26.

Legislation in the British Virgin Islands governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

By order of Board:

Ian Burns

Finance Director

6 December 2012

Corporate Governance Statement

The Board is committed to maintaining high standards of corporate governance. The Listing Rules of the Financial Services Authority incorporate the UK Corporate Governance Code (formerly the Combined Code), which sets out the principles of Good Governance, and the Code of Best Practice for listed companies. Whilst the Company is not required to comply with the UK Corporate Governance Code ("UK Code"), the Company's corporate governance procedures take due regard of the principles of Good Governance set out in the UK Code in relation to the size and the stage of development of the Company.

Board of Directors

The Board of Directors currently comprises three Executive Directors two of whom are Co-Chairmen and four Non-Executive Directors. The Directors are of the opinion that the Board comprises a suitable balance and that the recommendations of the UK Code have been implemented to an appropriate level. The Board, through the Co- Executive Chairmen in particular, maintains regular contact with its advisers and public relations consultants in order to ensure that the Board develops an understanding of the views of major shareholders about the Company.

Board Meetings

The Board meets regularly throughout the year. For the year ending 30 June 2012 the Board met 13 times in relation to normal operational matters. The Board is responsible for formulating, reviewing and approving the Company's strategy, financial activities and operating performance. Day to day management is devolved to the Executive Directors who are charged with consulting the Board on all significant financial and operational matters.

All Directors have access to the advice of the Company's solicitors and other professional advisers as necessary and information is supplied to the Directors on a timely basis to enable them to discharge their duties effectively. All Directors have access to independent professional advice, at the Company's expense, as and when required.

Board Committees

The Board has established the following committees, each of which has its own terms of reference:

Audit Committee

The Audit Committee considers the Group's financial reporting (including accounting policies) and internal financial controls. The Audit Committee comprises one Executive Director, and two Non-Executive Directors, Guy Elliott (Chairman) Neil Herbert and James Mellon, and is responsible for ensuring that the financial performance of the Group is properly monitored and reported on.

Remuneration Committee

The Remuneration Committee is responsible for making recommendations to the Board of Directors' and senior executives' remuneration. It comprises one Executive Director and three Non-Executive Directors, Guy Elliott (Chairman), Stephen Dattels, James Mellon and Bryan Smith. Non-Executive Directors' remuneration and conditions are considered and agreed by the Board. Financial packages for Executive Directors are established by reference to those prevailing in the employment market for executives of equivalent status both in terms of level of responsibility of the position and their achievements and of recognised job qualifications and skills. The Committee will also have regard to the terms which may be required to attract an equivalent experienced executive to join the Board from another company.

Investment Committee

The Investment Committee has been created as a sub-committee of the Board of Directors to oversee the significant investments Polo has maintained in strategic and short term investments. The committee has been set up to monitor the performance of these investments and reports to the Board of Directors accordingly, making recommendations on both potential investments and divestments. The committee is chaired by Guy Elliott (Senior Non-Executive Director) and has two further Directors, Neil Herbert (Co-Executive Chairman and Managing Director) and Bryan Smith (Non-Executive Director).

Internal Controls

The Directors acknowledge their responsibility for the Group's systems of internal controls and for reviewing their effectiveness. These internal controls are designed to safeguard the assets of the Company and to ensure the reliability of financial information for both internal use and external publication. The Directors are aware that no system can provide absolute assurance against material misstatement or loss. However, in the interest of the further development of the Company, continuing reviews of internal controls will be undertaken to ensure that they are adequate and effective.

Corporate Governance Statement (continued)

Risk Management

The Board considers risk assessment to be important in achieving its strategic objectives. There is a process of evaluation of performance targets through regular reviews by senior management to budgets and forecasts. Project milestones and timelines are regularly reviewed.

Risks and Uncertainties

The principal risks facing the Company are set out below. Risk assessment and evaluation is an essential part of the Group's planning and an important aspect of the Group's internal control system.

General and Economic Risks

• contractions in the world's major economies or increases in the rate of inflation resulting from international conditions;

• movements in the equity and share markets in the United Kingdom and throughout the world;

• weakness in global equity and share markets in particular, in the United Kingdom, and adverse changes in market sentiment towards the natural resource industry;

• currency exchange rate fluctuations and, in particular, the relative prices of US Dollar, Australian Dollar, Canadian Dollar, and the UK Pound;

• exposure to interest rate fluctuations; and

• adverse changes in factors affecting the success of exploration and development operations, such as increases in expenses, changes in government policy and further regulation of the industry; unforeseen major failure, breakdowns or repairs required to key items of plant and equipment resulting in significant delays, notwithstanding regular programmes of repair, maintenance and upkeep; variations in grades and unforeseen adverse geological factors or prolonged weather conditions.

Funding Risk

• The Group or the companies in which it has invested may not be able to raise, either by debt or further equity, sufficient funds to enable completion of planned exploration, investment and/or development projects.

Commodity Risk

• Commodities are subject to high levels of volatility in price and demand. The price of commodities depends on a wide range of factors, most of which are outside the control of the Company. Mining, processing and transportation costs also depend on many factors, including commodity prices, capital and operating costs in relation to any operational site.

Exploration and Development Risks (relating to investments)

• Exploration and development activity is subject to numerous risks, including failure to achieve estimated mineral resource, recovery and production rates and capital and operating costs.

• Success in identifying economically recoverable reserves can never be guaranteed. The Company also cannot guarantee that the companies in which it has invested will be able to obtain the necessary permits and approvals required for development of their projects.

• Some of the countries in which the Company operates have native title laws which could affect exploration and development activities. The companies in which the Company has an interest may be required to undertake clean-up programmes on any contamination from their operations or to participate in site rehabilitation programmes which may vary from country to country. The Group's policy is to follow all applicable laws and regulations and the Company is not currently aware of any material issues in this regard.

• Timely approval of mining permits and operating plans through the respective regulatory agencies cannot be guaranteed.

• Availability of skilled workers is an ongoing challenge.

• Geology is always a potential risk in mining activities.

Market Risk

• The ability of the Group (and the companies it invests in) to continue to secure sufficient and profitable sales contracts to support its operations is a key business risk.

Corporate Governance Statement (continued)

Insurance

The Group maintains insurance in respect of its Directors and Officers against liabilities in relation to the Company.

Treasury Policy

The Group finances its operations through equity and holds its cash as a liquid resource to fund the obligations of the Group and take advantage of opportunities as they arise. Decisions regarding the management of these assets are approved by the Board. Refer Note 23.

Securities Trading

The Board has adopted a Share Dealing Code that applies to Directors, senior management and any employee who is in possession of 'inside information'. All such persons are prohibited from trading in the Company's securities if they are in possession of 'inside information'. Subject to this condition and trading prohibitions applying to certain periods, trading can occur provided the relevant individual has received the appropriate prescribed clearance.

Relations with Shareholders

The Board is committed to providing effective communication with the shareholders of the Company. Significant developments are disseminated through stock exchange announcements and regular updates of the Company website. The Board views the AGM as a forum for communication between the Company and its shareholders and encourages their participation in its agenda.

Independent Auditors' Report to the Shareholders of Polo Resources Limited

We have audited the Group and parent company financial statements of Polo Resources Limited for the year ended 30 June 2012, which comprise the Group and Parent Statements of Comprehensive Income, the Group and Parent Balance Sheets, Group and Parent Cash Flow Statement, Group and Parent Statement of Changes in Equity, and the related notes 1 to 27. These financial statements have been prepared under the accounting policies set out therein.

This report is made solely to the company's members, as a body. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective Responsibilities of Directors and Auditors

As explained more fully in the Directors' Responsibilities Statement set out in the Directors' Report, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the Audit

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Group's and the parent Company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the financial statements.

Opinion on Financial Statements

In our opinion:

·; the financial statements give a true and fair view of the state of the Group's and of the Parent Company's affairs as at 30 June 2012 and of the Group's and the Parent Company's profit or loss for the year then ended;

·; the financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;

·; the financial statements have been prepared in accordance with Article 4 of the IAS Regulation. and

·; the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following where we are required to report to you if, in our opinion:

·; adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

·; the Parent Company financial statements are not in agreement with the accounting records and returns; or

·; certain disclosures of Directors' remuneration specified by law are not made; or

·; we have not received all the information and explanations we require for our audit.

Chapman Davis LLP

Registered Auditors

London, United Kingdom

6 December 2012

Group Statement of Comprehensive Incomefor the year ended 30 June 2012

Company Statement of Comprehensive Incomefor the year ended 30 June 2012

Group Balance Sheetas at 30 June 2012

Company Balance Sheetas at 30 June 2012

Group Cash Flow Statementfor the year ended 30 June 2012

Company Cash Flow Statementfor the year ended 30 June 2012

Group Statement of Changes in Equityfor the year ended 30 June 2012

Company Statement of Changes in Equityfor the year ended 30 June 2012

Notes to Financial Statements

for the year ended 30 June 2012, continued

Notes to Financial Statements

for the year ended 30 June 2012, continued

Notes to Financial Statements

for the year ended 30 June 2012, continued

Notes to Financial Statements

for the year ended 30 June 2012, continued

Notes to Financial Statements

for the year ended 30 June 2012, continued

Notes to Financial Statements

for the year ended 30 June 2012, continued

Notes to Financial Statements

for the year ended 30 June 2012, continued

Notes to Financial Statements

for the year ended 30 June 2012, continued