Khan Resources Inc, which is caught in a legal tangle
with Mongolian authorities over its uranium mining licenses in the country, has
received another court ruling in its favor, sending its shares up 23 percent.
On Wednesday, the Ulaanbaatar appellate court upheld a decision given in July
by the Capital City Administrative Court in a dispute over Khan”s license to
explore uranium at Dornod — Mongolia”s biggest uranium deposit.

“We think we qualify in every respect of the
Mongolian nuclear energy law. We have complied with all Mongolian laws. So
there is no valid reason as to why they cannot reissue the license,” Chief
Executive Grant Edey said. Khan, through its units, owns the licenses to
explore uranium at Dornod.

In April, the company challenged — through two different
cases — a decision by the Nuclear Energy Agency (NEA), the country”s
regulator, to invalidate the licenses. Khan has already received a favorable
verdict in one of the cases.

The NEA can appeal the latest appellate court ruling
within 30 days, Khan said in a statement. “They may continue this appeal
process and … I think they can appeal at least two, may be three more
times,” CEO Edey said.