There has been no follow-up to reports that Khan
Resources  has filed a statement of claim
with the Ontario Superior Court of Justice, seeking damages of USD283.7 million
from Russia”s State-owned uranium miner Atomredmetzoloto (ARMZ) and its
subsidiary JSC Priargunsky Industry Mining and Chemical Union.

The claim, brought by Khan and certain of its
subsidiaries, seeks damages “resulting from their breach of fiduciary duties as
one of Khan”s joint venture partners and a shareholder of CAUC, general damages
resulting from their unlawful interference with the plaintiffs” economic
relations, general damages resulting from their deliberately causing damage to
Khan”s and its subsidiaries” rights, business reputation and property and aggravated, exemplary and punitive
damages”.

The statement of
claim alleges, among other things, that the harmful conduct of ARMZ and its
affiliates, namely in seeking to establish a joint venture with the Government
of Mongolia over the Dornod uranium region without regard to Khan”s rights and
interests, impugning the legitimacy of Khan”s interests in Mongolia,
interfering with its economic relations with MonAtom LLC, and interfering with
the competing and superior take-over bid by CNNC Overseas Uranium Holding Ltd.,
all with the goal of eliminating Khan”s interests in Mongolia, has caused Khan, its subsidiaries and
its shareholders substantial damage.  

Khan “had no choice but to pursue a formal claim in order
to try to protect Khan”s rights and interests and seek compensation for the
significant damage we believe Khan has suffered,” CEO Grant Edey said in a
statement. “ARMZ has made no secret of its desire to acquire control of
the Dornod uranium property in Mongolia,” he said.