Canada’s Khan Resources has won a second positive ruling
in Mongolia, this time reinstating the uranium exploration license held by
subsidiary Khan Mongolia, the firm has said. The Mongolian Capital City
Administrative Court declared that the decision by the Mongolian Nuclear Energy
Agency (NEA) to invalidate Khan Mongolia”s exploration license 9282X was
invalid and illegal.

The decision follows a ruling on July 19, in which the
Mongolian court also ruled that a decision to invalidate the mining license of
Central Asian Uranium Company (CAUC), in which Khan owns 58%, was actually
invalid and illegal.

The NEA has the right to appeal the court”s decisions on
CAUC by August 9 and on Khan Mongolia by August 23. “Khan continues to believe
that it and its Mongolian subsidiaries have always operated in compliance with
applicable Mongolian laws,” the company said in a statement. “As such, any
appeal of the court decisions by the NEA will be vigorously challenged by Khan
through all legally available means.”

Although the two licenses are no longer considered invalid,
they will need to be approved for re-registration under the new Nuclear Energy
Law in Mongolia. Assuming the NEA does not appeal, Khan will now continue the
process of re-registering the licenses under the legislation, CEO Grant Edey
said.