Khan Resources Inc.

Khan Resources Inc.

June 15, 2015 08:00 ET

Khan Files for Confirmation of Its Award in the United States

TORONTO, ONTARIO--(Marketwired - June 15, 2015) - Khan Resources Inc. ("Khan" or the "Company") (CSE:KRI) reports that on June 12, 2015 it filed a petition for confirmation of its international arbitration award in the US District Court in the District of Columbia. The award was rendered in favour of Khan by a senior and well-respected international arbitration tribunal on March 2, 2015 after over four years of consideration. The award is compensation to Khan for the Government of Mongolia's illegal actions in relation to the cancellation and expropriation of Khan's uranium licenses in 2009. The award consisted of a Base Amount of US$80 million plus interest at LIBOR +2% (compounded annually) from July 1, 2009 to the time of payment plus costs of US$9.1 million. As at the time of filing, the award aggregates to US$104,289,162.95.

The petition for confirmation is brought under the United Nations Convention for the Recognition and Enforcement of Foreign Arbitral Awards and under the United States Federal Arbitration Act. When confirmed, the award will be executable in the US as a court judgement.

Mr. Grant Edey, President and CEO of Khan, commented, "The award is due and payable now. We continue to seek an amicable basis for the payment of the award. We believe it is very unfortunate that Mongolia is unwilling to pay the award at this time. Yet the Mongolian Government has recently announced that they will be seeking up to US$1 Billion in the form of governmental bonds from foreign lenders. In addition, the Prime Minister of Mongolia will visit Washington and New York from June 23 to June 27 to promote opportunities for investment in his country. This raises the question of whether investors should be investing in a country that does not respect international arbitration, the prime and potentially only dispute resolution process available to them."

Forward-Looking Statements and Information

This press release may contain forward-looking statements and forward-looking information, which are subject to certain risks, uncertainties and assumptions. Forward-looking statements and information are characterized by words such as "will", "plan", "expect", "project", "intend", "believe", "anticipate", "forecast", "schedule", "estimate" and similar expressions, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements and information are not historical facts and are based upon a number of estimates and assumptions and are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors, including the impact of international, Mongolian and Canadian laws, trade agreements, treaties and regulatory requirements on Khan's business, operations and capital structure, regulatory uncertainty and obtaining governmental and regulatory approvals, legislative, political, social, regulatory and economic developments or changes in jurisdictions in which Khan carries on business, the nature and outcome of the international arbitration proceedings (the "International Arbitration") against the Government of Mongolia or the collection of all or part of the award rendered by the tribunal for the International Arbitration proceedings against the Government of Mongolia or any future litigation, arbitration and other legal or regulatory proceedings, changes in market conditions, changes or disruptions in the securities markets and market fluctuations in prices for Khan securities, the existence of third parties interested in purchasing some or all of the common shares or Khan's assets, the method of funding and availability of any potential alternative strategic transactions involving Khan or its assets, including those transactions that may produce strategic value to shareholders, fluctuations in currency exchange rates and interest rates, including fluctuations in the value of the United States dollar and the Canadian dollar relative to the Mongolian tögrög, changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, Bermuda, the Netherlands, Mongolia or the British Virgin Islands and any other jurisdiction in which the Company carries on business, political instability, insurrection, war or terrorism, hostilities and the occurrence of natural disasters; requirements for additional capital; environmental risks, the need to comply with national and international laws, regulations, treaties or other similar requirements.
In addition, a number of other factors could cause actual results to differ materially from the results discussed in such statements and information, and there is no assurance that actual results will be consistent with them. Many of these risks, uncertainties and contingencies can affect the Company's actual results, performance, events or achievements and could cause actual performance, actions, events or results to differ materially from those expressed or implied in any forward-looking information. All of the forward-looking information in this press release is qualified by these cautionary statements. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements containing forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. For further details, reference is made to the risk factors discussed or referred to in Khan's annual and interim management's discussion and analyses and Annual Information Form on file with the Canadian securities regulatory authorities and available on SEDAR at Such forward-looking statements and information are made or given as at the date of this news release, and Khan 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.

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