Khan Resources Inc.

Khan Resources Inc.

April 05, 2007 08:31 ET

Khan Resources Announces Intersection of 39.1 Metres Containing 0.507% U3O8 at the Dornod Uranium Project in Mongolia

TORONTO, ONTARIO--(CCNMatthews - April 5, 2007) - Khan Resources Inc. (TSX:KRI) is pleased to announce the assay result of the metallurgical test hole - 39.1 metres containing 0.507% U3O8 at the Dornod Uranium Project in Mongolia.

The ongoing metallurgical test program is a continuation of earlier work and will build on the recent acquisition of this metallurgical test material. Again, the results are very encouraging, improving on the recoveries attained in earlier test work.

During the previous drill program, Khan Resources completed drill hole DOR-06-033 to provide metallurgical test material of the No 7 deposit. The whole (unsplit) interval of 39.1 metres was shipped to Activation Laboratories Ltd. in Ulaan Bataar and then forwarded to SGS Lakefield Research Limited, in Ontario, Canada. The entire sample was crushed to 1/2 inch or less and blended, from which a 50 kg sub-sample was taken and crushed to less then 2 mm. The assay was carried out on this material.

The core used for the metallurgical testing has confirmed previous assay results, the geological grade model, and a comparison using cut and uncut values. The geological grade model predicted a result of 0.463 % U3O8 over 40 metres in the area of the metallurgical test hole (model uses cut assay values), and was located between previously drilled and assayed holes DOR-05-005 and DOR-05-006.

Drill Hole % U3O8 Core Length
Cut(i)(uncut) (Metres)
DOR-05-005 0.481 (0.708) 36.0
DOR-05-006 0.387 (0.550) 36.0
Metallurgical 0.507 (0.507) 39.1
(i)high assays cut to 0.637 % U3O8, based on 98th percentile of
the assay population

"The high assay result from this metallurgical hole only serves to boost the outstanding drilling results we have achieved for the No. 7 deposit in the past year", commented Martin Quick, President and CEO. Currently the total Indicated Resource for the property is 55.4 million lbs U3O8 (16,480,000 tonnes at 0.152% U3O8), with 45.5 million lbs U3O8 (12,960,000 tonnes at 0.159% U3O8) attributed to the No. 7 deposit and 9.9 million lbs U3O8 (3,520,000 tonnes at 0.127% U3O8) to the No. 2 deposit. A re-estimation of the overall resource is underway and will be announced in conjunction with the ongoing Pre-Feasibility Study, which should be completed by the middle of the year.

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.

For additional information regarding the Dornod Uranium Project, please refer to the revised Annual Information Form dated December 12, 2006 and filed on SEDAR on January 15, 2007.

Qualified Persons:

John Kita B.A.Sc., P.Eng., Chief Geologist, Khan Resources Inc., and Hrayr Agnerian M.Sc.(Applied), P.Geo., Consulting Geologist at Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA), are the qualified persons on the project and supervised the preparation of the technical information in this release.

About KHAN:

Khan is a Canadian exploration and 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.

Contact Information