agm and analysts view

Hello everybody,

I called John Young today after the AGM:

Resolutions 2,3 and 6 were not passed,meaning Ingram will not become a director,nor will he receive any options.

So clearly somebody was really angry about Polo.

We can expect the results for Springbok (the second dome) before Christmas.

Next here is a new research report on Polo Resources:

http://www.minesite.com/fileadmin/content/pdfs/Brokers_Notes_August_09/Brokers_Notes_Sept_09/Brokers_Notes_Oct_09/Brokers_Notes_Nov_09/Polo%20Resources%20-%2024.11.pdf

In this report it is stated that Polo sold some 12.390.000 WME shares over the market for the following reasons:

(Quote from the report)

".....Polo liquidates investments to fund stake building

The share price of Extract rose sharply over the summer, hitting a high of A$11.17 per share. This was substantially above our valuation of A$9.37 per share fully funded despite being at an early stage and the feasibility study not yet completed. We believe that the board of Extract took advantage of this and announced a fundraising of A$93m in August. This took everybody by surprise with most investors not expecting a fundraising until later in the year or early 2010. This was certainly the case with Polo which expected funds from a takeover of Caledon Resources (AIM: CDN) to have been in place when a fundraising was required.
In order to participate in the equity raising and subsequently build its stake in Extract, Polo was forced to sell some of its other uranium investments. As these investments were in smaller companies, liquidity was an issue and Polo was forced to sell its most liquid investments. As a result, Polo has now sold its entire holding in Berkeley Resources, although it has retained its options and significantly, reduced its holdings in A-Cap Resources, Impact Minerals, West Australian Metals and Uranex...."

After reading this i phoned the author,because i wanted to clarify certain points.

According to Mr.Heyhoe,this sales had nothing to do with the quality of WME,but were solely done as a "financial emergency" from Polo.
He doesnt expect Polo to sell any more shares in the future (at least over the market) as the Ext fundraising is now something of the past and Polo has about 10 Mio Pounds in Cash.

I asked him about his view on the News release from today concerning the upgrading process.
He stated that this are very good results indeed.

It is his opinion,that a sale of WME to Areva would be a logical step for both companies,as Areva needs more uranium at Trekkoppje,especially with higher grades than they have and WME needs a buyer without the necessity to build a processing plant of its own.

Regards

Wantedman