KHAN FILES FORMAL CLAIM IN MONGOLIAN ADMINISTRATIVE COURT

Ulaanbaatar, /MONTSAME/ Khan Resources Inc. ("Khan") announced April 21 that its 58%-owned Mongolian joint venture subsidiary, Central Asian Uranium Company, LLC ("CAUC") has filed a formal claim in the Capital City Administrative Court in Mongolia challenging the legal basis for the notice received from the Mongolian Nuclear Energy Agency (the "NEA") purporting to invalidate CAUC's mining license 237A.
The claim asserts, among other things, that the NEA has no legal authority to make a decision to invalidate the mining license and that the NEA's purported decision to do so violates the provisions of Mongolian law. CAUC is seeking a declaration of the Court that the NEA's purported action to invalidate the mining license is itself invalid. Khan's 100%-owned Mongolian subsidiary, Khan Resources LLC ("Khan Mongolia") is in the process of preparing and intends to file a similar claim on substantially the same basis in due course in respect of the NEA's purported invalidation of Khan Mongolia's exploration license 9282X.
Khan is also continuing its ongoing efforts to engage the Mongolian Government in discussions concerning its treatment by the NEA in general and the unlawful license invalidation notices in particular. Khan recently wrote directly to the Prime Minister of Mongolia, Mr. Sukhbaatar Batbold, formally requesting that he exercise his authority to review and overturn the NEA's purported decision to invalidate the licenses and put an end to the other inappropriate actions being taken by the NEA against Khan and its subsidiaries over the past several months. A copy of this letter is included with this press release, which investors are urged to read carefully and in its entirety, as it contains important information and background which will assist shareholders to understand the basis for the claims and the nature of the challenges we face in Mongolia.
Khan intends to continue to challenge the NEA's actions through all legally available means. In addition to filing the claims, Khan and its legal counsel intend to vigorously defend its and its subsidiaries' rights and interests, and to pursue all available rights and remedies in the Canadian and Mongolian courts and, if necessary, in international arbitration.
S.Batbayar