Source: Zuunii Medee                      Date: 12 August, 2010

Mr. O.Enkhbayar, Director of Khan Resources Inc. in Mongolia, has said that the company expects the Nuclear Energy Agency to re-register its licenses soon, now that the City Administrative Court has ruled in two separate cases that the agency’s cancellation of these licenses was illegal.  He said the progress of the dispute was being watched by the entire international investor community.

Khan Resources owns 58% shares in CAUC LLC, with the Mongolian Government and the Russian State-owned company ARMZ equally sharing the remaining 42%. However, Mr.  Enkhbayar said, neither “has invested a single MNT” in the uranium project in Mardai in Dornod province, where extraction has not begun because of the low price of uranium. Khan Resources had been holding the license since 1996, with approval of the National Security Council and the Government, and has scrupulously observed all laws and regulations. The government of Mongolia has claimed the grant of license was its share of the investment, and ARMZ has said its share was in the infrastructure in place since the time when the Soviet Russian Government worked the deposits. However, most of the facilities and equipment have been irreparably damaged in the intervening years of inactivity and are presently worth nothing or very little.