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Khan Resources Inc. (TSX:KRI - News;
"Khan") announced today that it has formally commenced an
international arbitration action against the Government of Mongolia for its expropriatory and unlawful treatment of Khan in relation
to the Dornod uranium deposit located in
northeastern Mongolia. The Nuclear Energy Agency of Mongolia announced in
November 2010 that it would not reinstate the licenses that the Company holds
on the Dornod uranium property, but which the
Government illegally cancelled so that it could pursue the project without
Khan.
The arbitration, which is brought by
Khan and several of its subsidiaries, will take place under the Arbitration
Rules of the United Nations Commission on International Trade Law, and
asserts claims under the Energy Charter Treaty, the Foreign Investment Law of
Mongolia, and the Founding Agreement between Khan and the Mongolian
Government. The claim has been today served on various officials of the
Government of Mongolia.
The claim seeks over US$200 million in
compensation for losses and damages.
An arbitration Tribunal of three will be
appointed in the near future. Each side will appoint an arbitrator followed
by the selection of president of the Tribunal by the two appointed
arbitrators. Mr. L. Yves Fortier, Canada's former Ambassador to the United
Nations, has agreed to be Khan's appointment to the Tribunal. Mr. Fortier is
a senior and highly respected member of the international arbitration
community with over 30 investor-state arbitrations to his credit. The
Government of Mongolia has 30 days to appoint their arbitrator.
Crowell & Moring, a
highly-experienced Washington, D.C. based law firm, will represent Khan in
this matter.
Mr. Grant Edey,
President and CEO of Khan, commented "We are disappointed that the
Government of Mongolia has left us no alternative other than international
arbitration. The Nuclear Energy Agency of Mongolia continues to falsely
denounce us in Mongolia while simultaneously entering into an agreement with
ARMZ of Russia for the development of the Dornod
deposit, thereby excluding Khan of its rightful interests. We have a very
strong case of expropriation without compensation which is illegal under the
various laws governing this matter. We intend to vigorously press the process
to its conclusion and ensure that Khan's rights under International Law and
Mongolian Law are fully vindicated".
The Notice of Arbitration served against
the Government of Mongolia is available on the Company's website
www.khanresources.com.
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
area in northeastern Mongolia. Khan holds interests in the Main Dornod Property and in the Additional Dornod
Property.
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:
Grant Edey
Investor Relations Contacts: Khan Resources Inc.
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
www.khanresources.com |
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