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Khan
Resources Inc. (TSX:KRI - News; "Khan" or "the Company")
announced today that it has filed its financial statements and management's
discussion and analysis for the three month period ended December 31, 2010 on
SEDAR and has posted these documents to its website www.khanresources.com.
Financial
highlights for the quarter include a significant increase in liquidity. As at
December 31, 2010, the Company's investment in common shares and warrants of Macusani Yellowcake Inc. had appreciated to US$8.2
million while cash balances stood at US$9.4 million. The investment in Macusani Yellowcake has continued to appreciate
subsequent to quarter end and currently exceeds US$14.0 million. Net income
for the three month period was US$34,000 or $0.0 per share (basic).
Significant
developments during the first quarter included the confirmation by the
Mongolian courts that the notices received from the Mongolian Nuclear Energy
Agency ("NEA") invalidating the Dornod
mining and exploration licenses held by Khan were themselves illegal and
invalid. Despite these rulings, the NEA has continued to refuse to reregister
the licenses to Khan. These actions, amongst others, have resulted in Khan
initiating in January 2011 a $200 million international arbitration suit
against the Government of Mongolia for its expropriatary
and unlawful treatment of Khan. The Company has appointed its arbitrator and
the Government of Mongolia has until February 18, 2011 to appoint theirs. A
third arbitrator will then be appointed to chair the tribunal.
Khan
Resources Inc. is a Canadian company engaged in the acquisition, exploration
and development of uranium properties. Its current activities are focused on
the Dornod uranium property in north-eastern
Mongolia.
Forward-Looking
Statements and Information
This
press release may contain forward-looking statements and forward-looking
information, which are subject to certain risks, uncertainties and
assumptions. Forward-looking statements and information are characterized by
words such as "will", "plan", "expect",
"project", "intend", "believe",
"anticipate", "forecast", "schedule",
"estimate" and similar expressions, or statements that certain
events or conditions "may" or "will" occur.
Forward-looking statements and information are not historical facts and are
based upon a number of estimates and assumptions and are inherently subject
to significant business, social, economic, political, regulatory, competitive
and other risks and uncertainties, contingencies and other factors, including
the impact of international, Mongolian and Canadian laws, trade agreements
and regulatory requirements on Khan's business, properties, licenses,
operations and capital structure, Khan's ability to re-instate or re-register
the Dornod uranium project licenses, regulatory
uncertainty and obtaining governmental and regulatory approvals, legislative,
political, social, regulatory and economic developments or changes in
jurisdictions in which Khan carries on business, the nature and outcome of
pending and future litigation, arbitration and other legal proceedings, the
speculative nature of exploration and development, risks involved in the
exploration, development and mining business, changes in market conditions,
changes or disruptions in the securities markets and market fluctuations in
prices for Khan securities, the existence of third parties interested in
purchasing some or all of the common shares or Khan's assets, the method of
funding and availability of any potential alternative strategic transactions
involving Khan or its assets, including those transactions that may produce
strategic value to shareholders, the need to obtain, maintain and/or
re-register licenses and permits and comply with national and international
laws, regulations, treaties or other similar requirements, and uncertainty in
the estimation of mineral reserves and resources. In addition, a number of
other factors could cause actual results to differ materially from the
results discussed in such statements and information, and there is no
assurance that actual results will be consistent with them. For further
details, reference is made to the risk factors discussed or referred to in
Khan's annual and interim management's discussion and analyses and Annual
Information Form on file with the Canadian securities regulatory authorities
and available on SEDAR at www.sedar.com. Such
forward-looking statements and information are made or given as at the date
of this news release, and Khan assumes no obligation to update or revise
them, either publicly or otherwise, to reflect new events, information or
circumstances, except as may be required under applicable securities law.
Contact:
Khan Resources Inc.
Investor Relations Contacts:
Grant Edey
President & CEO
Office: 416.360.3405
gedey@rogers.com
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