Source: Khan Resources                Date: 24 September, 2010

Khan Resources Inc. says that the deadline for Mongolia’s Nuclear Energy Agency (NEA) to file an appeal against the Ulaanbaatar Administrative Court’s ruling in favor of Khan's subsidiary, Khan Resources LLC (Khan Mongolia), has expired, without the NEA taking any action. The court ruled in early August that the decision to invalidate Khan Mongolia's exploration license covering part of the Dornod uranium property was illegal and invalid.

By contrast, the NEA did appeal in another case where the court's decision in July had been in favor of Khan's 58% owned joint venture subsidiary Central Asian Uranium Company LLC (CAUC). This ruling also declared that the NEA's decision to invalidate CAUC's mining license covering the remaining part of the Dornod uranium property was illegal and invalid. This appeal is expected to be heard in late September.

Mr. Grant Edey, President and CEO of Khan Resources, said "the decision by the NEA not to appeal the Khan Mongolia court ruling was unexpected, but we are encouraged that they have chosen not to challenge the decision. We hope that the NEA will now also choose not to pursue the CAUC appeal and that we can resolve our dispute on the Dornod mining and exploration licenses cooperatively".