Atomredmetzoloto JSC

Atomredmetzoloto JSC

February 01, 2010 12:19 ET

Atomredmetzoloto JSC Extends All-Cash Offer for Khan Resources

TORONTO, ONTARIO--(Marketwire - Feb. 1, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES

Atomredmetzoloto JSC ("ARMZ") today announced that it has extended its offer (the "Offer") to acquire all of the issued and outstanding common shares of Khan Resources Inc. ("Khan") (TSX:KRI) for all-cash consideration of C$0.65 per common share of Khan (each, a "Khan Share") to 5:00 p.m. (Toronto time) on March 1, 2010, unless extended or withdrawn. Previously the Offer was set to expire at 5:00 p.m. (Toronto time) on February 1, 2010.

On January 18, 2010, ARMZ received notice that the Investment Review Division of Industry Canada had not completed its consideration of ARMZ's application in connection with its proposed acquisition of Khan within the initial 45 day period stipulated under the Investment Canada Act ("ICA") and that it expected to complete its review within 30 days, or such further period as may be mutually agreed. At the current time, ARMZ has not received notification of approval under the ICA, and is extending the Offer as set forth above.

In addition, ARMZ requires additional time to review the implications of the non-binding memorandum of understanding ("MOU") entered into between Khan and MonAtom LLC, the Mongolian state-owned uranium development company, as announced by Khan on January 25, 2010, on the Offer and on ARMZ's current joint venture interest in the Central Asia Uranium Company ("CAUC"), which owns the Main Dornod Uranium Property. "We need to further understand the impact of the MOU on Khan and our participation in CAUC before we can make any decisions with respect to our current Offer" said Ilya Yampolskiy, Deputy Director General of ARMZ.

All other terms of the Offer described in the offer to purchase and related take-over bid circular dated November 30, 2009, remain unchanged.

ARMZ anticipates that the Notice of Extension will be mailed to beneficial holders of Khan Shares, and furnished to intermediaries for subsequent transmittal to beneficial holders of Khan Shares, on or about February 1, 2010.

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 ("Priargunski"), ARMZ partially owns the Mongolian joint venture Central Asian Uranium Company ("CAUC"), established between Khan (58%), Priargunski (21%) and the Mongolian government (21%). CAUC is the corporate entity that owns the Dornod Uranium Property in Mongolia, which contains most of the uranium reserves of Khan.

Contact Information

  • Shareholder Inquiries:
    Laurel Hill Advisory Group (Information Agent)
    1-888-534-1152 (North American toll-free number)
    416-637-4661 (Banks and Brokers and collect calls outside
    North America)
    assistance@laurelhillag.com
    or
    CIBC Mellon Trust Company (Depositary)
    1-800-387-0825
    or
    Media Inquiries:
    Atomredmetzoloto JSC
    Dmitry O. Shulga
    Director, External Affairs & Investor Relations
    +7-495-508-8808, Ext. 310