Khan Resources CEO Martin Quick has said the company views the NEA decision to invalidate the Dornod licenses “as without any legitimate or legal foundation” and thinks the NEA”s intention is to invalidate all licenses held by other foreign companies operating in the region, “with a view to transferring all of the mineral rights and interests in the entire Dornod uranium region to a Dornod Uranium joint venture that is purportedly being established between the Russian and Mongolian Governments, with complete disregard to Khan”s rights and interests”.

The company has issued a statement pointing out several inconsistencies and anomalies in the NEA action. “Despite the fact that the Nuclear Energy Law stipulates that exploration licenses must be re-issued within three months and mining licenses within six to 12 months, the license re-registrations of Khan are still pending. Khan has made repeated requests for an official update as to the status of these applications and its licenses. However, until now, Khan has not yet received any official response from the NEA.”

The statement says the company had meetings with government officials as recently as March 29, about alleged non-compliance on some issues related to the licenses, which would suggest that the licenses were still valid at the time. “It is entirely unclear and completely nonsensical as to why the State Specialized Inspection Agency would continue to inspect the Dornod licenses and engage in communications and discussions with Khan and its subsidiaries concerning the Dornod licenses with a view to coming to a formal decision at some point in the future, if in fact that licenses were invalidated in October 2009, as the NEA now alleges,” Quick said.