Khan Resources Inc.

Khan Resources Inc.

November 26, 2007 16:30 ET

Khan Provides Update on Mongolia

TORONTO, ONTARIO--(Marketwire - Nov. 26, 2007) - Khan Resources Inc. (TSX:KRI) today provided an update on recent developments in Mongolia related to its Dornod Uranium Project located in north eastern Mongolia.

Khan owns approximately 69% of the Dornod Uranium Project through a combination of its 58% interest in Central Asian Uranium Company ("CAUC") which holds a mining license for the Main Dornod Property (the "Dornod Mining License") and its 100% ownership of exploration license 9282X in respect of the Additional Dornod Property (the "Dornod Exploration License").

As a result of recent events concerning Khan's Dornod Exploration License (see Khan press releases dated August 17, August 23 and September 11, 2007), Khan is providing this update to its shareholders to keep them apprised of complex political developments in Mongolia. At the recent convention of the Mongolian People's Revolutionary Party (the "MPRP"), Mr. Sanjgaagiin Bayar was elected Chairman of the MPRP, which gave him the right to be nominated for the post of Prime Minister of Mongolia. Mr. Bayar exercised that right, and has now been overwhelmingly elected by Parliament as the next Prime Minister of Mongolia. His new cabinet will be announced shortly. This momentous election together with the upcoming general election in June 2008, will almost certainly mean political change in Mongolia.

As one of the largest uranium deposits in Mongolia, the Dornod Uranium Project has attracted political attention. Under the 2006 Minerals Law, Parliament may designate deposits as strategic and in respect of deposits that have been designated as strategic, the State may acquire up to a 50% interest in the deposit if the deposit has been defined by exploration activities funded by the State budget. Khan disclosed in its February 21, 2007 short form prospectus that on February 6, 2007, Dornod was designated as a deposit of "strategic importance". The deposits at the Dornod Uranium Property have also been included on the list of properties published by the Government of Mongolia that have been funded from the State budget. Khan is investigating whether the designation of the Dornod Uranium Property complies with the requirements of the new Law and is also investigating whether the deposit was in fact defined by exploration activities funded by the State budget. Mongolia already owns a portion of the Dornod Uranium Project through its 21% ownership interest in CAUC. It is not certain whether or on what terms Mongolia would seek to acquire additional equity in the property, or the amount of such additional equity.

While there can be no assurance that Khan will not be affected by political developments, Khan is confident that both the Dornod Mining License, and the Dornod Exploration License have been validly issued and are in good legal standing. The Dornod Mining License was recently re-issued under the new 2006 Minerals Law and remains in good standing. Similarly, the Chairman of the Mineral Resources and Petroleum Authority ("MRPAM") recently issued a statement that certain notices issued by MRPAM did not invalidate the Dornod Exploration License (see Khan press release dated September 11, 2007). Khan continues to take all necessary steps to convert its Dornod Exploration License into a Mining License in accordance with the new Minerals Law. Khan is also ensuring that CAUC complies in all respects with the terms of the Dornod Mining License.

Khan has also learned that a Uranium Working Group ("UWG") has been constituted to assess the uranium industry in Mongolia, although no formal announcements have been made by the Mongolian government about the UWG. While it is reasonable to expect the government to propose and enact special legislation to regulate the uranium mining and processing industry in Mongolia, the mandate of the UWG has not been made public by Mongolian officials. Khan intends to provide input and submissions to the UWG on potential uranium policy and regulations and expects that other uranium exploration and development companies operating in Mongolia will do the same.

With the recently announced award of the Definitive Feasibility Study (see press release dated November 21, 2007) and the proposed dewatering of the underground workings next summer, the management of Khan is looking forward to achieving some major milestones in the Dornod project's development in 2008.

This press release may contain forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such forward-looking statements are made as at the date of this news release, and the company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.

Khan Resources (TSX:KRI) is a Canadian acquisition, exploration and uranium development company. Its current activities are focused on the Dornod area in north eastern Mongolia, the site of a former Russian open-pit uranium mine. Khan holds interests in the Main Dornod Property, licensed for mining, and in the Additional Dornod Property, licensed for exploration. The Company's website is

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