Khan Resources Inc.

Khan Resources Inc.

November 13, 2006 18:50 ET

Khan Resources Commences Claim for Damages Against Wallace Mays and WM Mining

TORONTO, ONTARIO--(CCNMatthews - Nov. 13, 2006) -


Khan Resources Inc. (TSX:KRI) and its subsidiaries ("Khan" or the "Company") have commenced an action in the Superior Court of Justice of Ontario against Wallace M. Mays ("Mays"), and WM Mining Company LLC ("WM Mining"), for damages suffered by Khan as a result of Mays purporting to transfer the interests of Khan in certain mining properties in Mongolia to WM Mining, his personal holding company. On October 12, 2006, the Superior Court of Justice of Ontario granted an Order setting aside those transfers.

In the action against Mays and WM Mining, Khan seeks damages of $10 million for breach of fiduciary duty, injurious falsehood and unlawful interference with economic interests, as well as aggravated, exemplary and punitive damages in the amount of $5 million.

Martin Quick, Khan's President and CEO, commented that "Mays' actions in purporting to own Khan's assets delayed the Company from going public and frustrated the Company's efforts to take advantage of more advantageous market conditions. Although the title issue has been fully resolved, the Company needs to be compensated for the damages it suffered as a result of Mays' irresponsible and frivolous acts".

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 the actual results will be consistent with them. Such forward-looking statements are made as of 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 laws.

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.

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