Source: Khan Resources Inc.                              Date: 27 July, 2010

Khan Resources said last week that the Mongolian Capital City Administrative Court has postponed to August 2 the hearing of a case brought by its 100%-owned subsidiary, Khan Resources LLC (Khan Mongolia) which challenges the legal basis of a notice by the Mongolian Nuclear Energy Agency (the NEA) to invalidate Khan Mongolia's exploration license. The request for postponement was made by the NEA to allow them to change their legal representative and is the second time the NEA has asked for a postponement of the hearings. On July 19, the Court ruled in favor of Khan's 58% owned joint venture subsidiary, Central Asian Uranium Company, LLC (CAUC), that a similar decision by the NEA to invalidate CAUC's mining license was invalid and illegal. The NEA has the right to appeal the Court's decision on CAUC's claim within two weeks of the date of the decision.

Both CAUC and Khan Mongolia received notices from the NEA purporting to invalidate their licenses relating to the Dornod Uranium Project effective as of October 8, 2009, allegedly based on unspecified violations of Mongolian law. Subsequently, CAUC and Khan Mongolia filed and has since been pursuing separate formal claims in the Court challenging the legal basis for the NEA's notices asserting, among other things, that the NEA had no legal authority to make a decision to invalidate the licenses and that the NEA's purported decision to do so violated the provisions of Mongolian law and was, therefore, invalid.

Mr. Grant Edey, President and CEO of Khan, has said, "We are disappointed in the NEA's request to again postpone the court case. We were hopeful that a favorable decision for Khan Mongolia, coupled with Monday's favorable decision for CAUC, would allow us to move  forward on a co-operative basis with the Government of Mongolia and its agencies to renew our licenses and continue the development of the Dornod Uranium Project."