Khan Resources Inc. is pleased to
announce that the Tribunal hearing the Company”s $200 million international
arbitration action against the Government of Mongolia has ruled entirely in
Khan”s favour on matters of jurisdiction and has dismissed all of Mongolia”s
objections to the continuance of the suit. The action will now progress to the
phase in which the panel will rule as to the merits of the arbitral claims and
the amount of damages suffered by Khan arising from the Mongolian Government”s
expropriatory and unlawful treatment of Khan in relation to the Dornod uranium
deposit located in northeastern Mongolia. Khan initiated the international
arbitration suit in January, 2011.

Mr. Grant Edey, President and Chief
Executive Officer of Khan, commented, “We are pleased that the Tribunal
has validated Khan”s initiatives to achieve recourse to damages suffered by our
shareholders. Our treasury is well-funded and we will continue to vigorously
pursue this action to its logical end to receive value for our investments in
Mongolia.”

Khan will immediately commence
preparatory activities for the upcoming merits/damages phase of the
proceedings.

Marketwire