Khan Mongolia Court Case Postponed
As previously announced in April 2010, 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,
TORONTO, ONTARIO, Jul 22, 2010 (MARKETWIRE via COMTEX) -- Khan Resources Inc. /quotes/comstock/11t!e:kri (CA:KRI 0.34, -0.02, -4.29%) ("Khan") announced today that the Mongolian Capital City Administrative Court has postponed 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 9282X. The new date for the hearing has been set for August 2, 2010. The request for postponement was made by the NEA to allow them to change their legal representative and constitutes the second time the NEA has asked for a postponement of the hearings. On July 19, 2010, the Court did rule in favour 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 itself 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. (See Khan Press Release of July 19, 2010).
As previously announced in April 2010, 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, each of 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 commented, "We are disappointed in the NEA"s request to again postpone the court case. We were hopeful that a favourable decision for Khan Mongolia, coupled with Monday"s favourable 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".
Khan continues to believe that it and its Mongolian subsidiaries have always operated in compliance with applicable Mongolian laws. An appeal of the Court decision on CAUC by the NEA will be vigorously challenged by Khan through all legally available means.
Khan Resources Inc. /quotes/comstock/11t!e:kri (CA:KRI 0.34, -0.02, -4.29%) is a Canadian company engaged in the acquisition, exploration and development of uranium properties. Its current activities are focused on the Dornod area in north-eastern Mongolia, the site of a former open-pit uranium mine. Khan holds interests in the Main Dornod Property and in the Additional Dornod Property. Khan"s website is www.khanresources.com.
Forward-Looking Statements and Information
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