POL.L Regulatory News (POL)

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

24 July 2019

Polo Resources Limited

("Polo" or the "Company")

HIBISCUS PETROLEUM - INVESTMENT UPDATE

HIBISCUS PETROLEUM ACHIEVES FIRST OIL IN THE NORTH SABAH PSC

Polo Resources Limited (AIM: POL), the multi-sector investment company with interests in oil, gold, coal, copper, phosphate, lithium, iron and vanadium, notes that its 8.75% investee company Hibiscus Petroleum Berhad ("Hibiscus") has announced, today, that its wholly‐owned subsidiary, SEA Hibiscus Sdn Bhd ("SEA Hibiscus") had, on 16 July 2019, safely and successfully drilled and completed the SJ‐105A well, the first of three infill wells being drilled as part of the St Joseph infill drilling project in Malaysia, under the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract ("North Sabah PSC"). The SJ‐105A wellbore was drilled as a horizontal well consisting of approximately 2,400 feet of horizontal section which encountered approximately 1,000 feet of oil in the targeted reservoirs of the St Joseph oil field. The SJ‐105A well was subsequently brought online and achieved a stabilised production flowrate of slightly above 1,000 barrels of oil per day, with 0% watercut, exceeding expectations.

As previously disclosed by Hibiscus on 27 May 2019, SEA Hibiscus had received the approval from Petroliam Nasional Berhad ("PETRONAS") for the St Joseph Infill Drilling project Field Development Plan on 21 December 2018. This project entails the drilling of three infill wells intended to increase the total oil production rate and reserves of the St Joseph field.

The St Joseph infill drilling project is a production enhancement project which, together with the South Furious 30 ("SF30") infill drilling project and SF30 early water injection project, is part of a 7‐well campaign being executed under the North Sabah PSC in 2019. Two more oil production wells are currently being drilled at St Joseph oil field, which will be followed by three new oil production wells and one water injection well in the SF30 oil field.

To recap, SEA Hibiscus assumed operatorship of the North Sabah PSC on 31 March 2018, as a 50% joint venture working interest partner with PETRONAS Carigali Sdn Bhd. The North Sabah PSC consists of St Joseph, South Furious, SF30 and Barton, 4 fields located offshore Sabah in Malaysia, which collectively produce to the Labuan Crude Oil Terminal.

The full details of this announcement can be found at http://www.hibiscuspetroleum.com/.

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About the Company

Polo Resources Limited is a multi-sector investment company focused on investing in undervalued companies and projects with strong fundamentals and attractive growth prospects. For complete details on Polo, please refer to: www.poloresources.com.