JSC Atomredmetzoloto

March 02, 2010 16:17 ET

JSC Atomredmetzoloto Responds to Misleading and Inaccurate Statements Made by Khan

Strongly Objects to Unfounded Allegations Made by Martin Quick

TORONTO, ONTARIO--(Marketwire - March 2, 2010) - JSC Atomredmetzoloto ("ARMZ") announced today its response to the news release issued by Khan Resources Inc. ("Khan") on March 1, 2010 (the "Khan Release"). The decision by ARMZ to allow its offer (the "Offer") to acquire all of the outstanding common shares of Khan to expire was based solely on the announced conclusion of a working group established by the Security and Foreign Policy Standing Committee of the State Great Khural, the Mongolian Parliament, that a number of uranium exploration and exploitation licenses in Dornod province, including the exploration license pertaining to the Dornod Uranium Property ("Dornod Property") should be invalidated based on infringements of Mongolian law, including the Mineral Law and the Law on Mineral Energy. In light of these developments, ARMZ has serious concerns with the validity of the Dornod Property exploration license and, as a result, believes that there is no longer a sound business rationale for it to pursue the acquisition of Khan.

In addition, ARMZ strongly objects to the unfounded allegations by Martin Quick, CEO of Khan, in the Khan Release. These groundless allegations impugn the reputation of ARMZ. ARMZ will be demanding an immediate retraction of these allegations from Khan and retains its right to pursue any further legal action it deems necessary to protect its corporate reputation.

"Khan has made serious and potentially damaging allegations against ARMZ", said Vadim Zhivov, Director General of ARMZ. "Our conduct throughout the Offer has been in accordance with international business standards and in strict compliance with Canadian securities and foreign investment legislation. ARMZ will take appropriate action to protect our international reputation and our ability to pursue our strategic goal of building a diversified and highly efficient global uranium mining corporation".

About ARMZ

ARMZ is the world's fifth largest uranium producer with operating mines in Russia and Kazakhstan. During 2008, operations in which ARMZ is involved produced 3,687 tonnes of uranium (9.6 million pounds of U3O8). ARMZ is part of Rosatom - the Russian State Corporation controlling the Russian Federation's nuclear activities - and is appointed and authorized to supply natural uranium to the Russian nuclear industry. ARMZ is part of the civilian arm of the Russian nuclear sector and does not operate in the military sector. Together with its affiliates and subsidiaries, ARMZ employs over 14,000 people. Through its subsidiary PIMCU ("Priargunsky"), ARMZ partially owns the Mongolian joint venture Central Asian Uranium Company ("CAUC"), established between Khan (current interest 58%), Priargunsky (21%) and the Mongolian government (21%).

Contact Information

  • Media Inquiries: JSC Atomredmetzoloto
    Dmitry O. Shulga, Director
    External Affairs & Investor Relations
    +7-495-508-8808, Ext. 310