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On
August 20, 2010, Khan Resources Inc. (TSX:KRI - News;
"Khan") announced that it had filed a statement of claim against Atomredmetzoloto JSC ("ARMZ") and its affiliate
JSC Priargunsky Industry Mining and Chemical Union,
with the Ontario Superior Court of Justice. The claim was brought by Khan and
certain of its subsidiaries and sought damages from ARMZ and its affiliate in
the total amount of CDN$300 million. (See Khan press release August 20,
2010).
ARMZ
is a Russian state-owned enterprise. Accordingly, Canadian and international
procedure calls for service of the claim against ARMZ to be effected through
the Russian Ministry of Justice. To further this end, the statement of claim
was translated into Russian and presented to the Ministry of Justice on
October 28, 2010 for service to ARMZ.
The
Russian Ministry of Justice has notified Khan that it refuses to effect
service on ARMZ, citing Article 13 of the Hague Convention. Article 13
provides that "the State addressed may refuse to comply therewith only
if it deems that compliance would infringe its sovereignty or security".
Mr.
Grant Edey, President and CEO of Khan, commented
"We are disappointed that such extraordinary measures have been resorted
to in order to shield ARMZ from commercial litigation. We are not deterred by
this temporary road block and we are considering alternate methods of
rendering service to ARMZ".
Khan
intends to continue to vigorously defend its rights and interests, including
pursuing all available rights and remedies in Canada, Mongolia and elsewhere.
Khan
Resources Inc. (TSX:KRI - News) 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
Paul Caldwell
Khan Resources Inc.
Chief Financial Officer and Corporate Secretary
Office: 416.360.3405
pcaldwell@khanresources.com
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