Khan Resources has said the
Mongolian Nuclear Energy Agency has decided to appeal an Ulaanbaatar court”s
decision that the agency had acted illegally in canceling the mining licenses
held by one of the company”s units in the country. “We are very
disappointed that NEA has chosen to appeal a very clear and definitive ruling
of the court. We trust the court will deal with the matter quickly and uphold
the ruling in favor of CAUC”, Khan CEO Grant Edey said in a statement.

Last month, a Mongolian
administrative court invalidated a decision by NEA that cancelled the mining
licenses held by Central Asian Uranium Co , a Khan unit, boosting the Canadian
company”s prospects of developing a high-potential uranium project in the
country. In April, NEA had canceled the mining and exploration licenses of two
of Khan”s units, citing certain violations that prompted the Canadian company
to challenge the decision in Mongolian courts.