Uranium agreements reached in Moscow

Russia and Mongolia have reached an agreement on the
conditions on which a joint uranium mining company, Dordon Uran, will be
established. The agreement was signed in Moscow on Tuesday following
negotiations between visiting Mongolian Prime Minister S. Batbold and his
Russian counterpart Vladimir Putin.

An agreement on setting up Dordon Uran was signed last
year by Sergei Kirienko, head of the Russian state corporation Rosatom, and S.
Enkhbat, head of the Nuclear Energy Agency of Mongolia. The product output of
the Russian-Mongolian uranium mining joint venture is planned at 2,000 tons per
year. The JV of Russia and Mongolia will export all exploited uranium but not
to Russia.

In another development,
according to RIA Novosti, Russia and Mongolia have agreed to own 21 percent each of the Dornod and
Gurvanbulag uranium deposits in Dornod aimag, with 58% left to Khan Resources
of Canada which held the license before the law limiting foreign investment
amount had been passed.