Khan Resources has sold its Big Bend placer gold property in Mongolia to Berleg Mining Co Ltd, for US$2.5 million.

Khan Resources president and CEO Martin Quick said: "Some time ago the board of directors of Khan determined that placer gold mining did not fit with the company's primary goal of becoming a uranium producer, and the cash sale of Big Bend to a placer gold operator, fits with our strategic objectives."

Khan Resources 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.

Khan Resources through a subsidiary, owns 58% of the Dornod property.

The Uranium story on the Dornod property started in 1988. Two separate deposits were developed and shipped ore until 1995, making the value of the property a known quantity. No new exploration is necessary on the property. The underground mining operation will use proven technology and production will be on a low cost base.

The Dornod property covers 261 hectares in Mongolia which sits between two of the world's largest uranium markets; Russia and China. Although the rail lines that once existed were dismantled when the Russian government left the area, the beds for the tracks are still there and not considered difficult to build.

Khan Resources plans to develop and produce uranium mine at Dornod that will include an on-site a modern "state-of-the-art" milling and processing facility. These facilities are projected to produce approximately 4-5 million pounds of "U308", yellowcake, annually, over a mine life of 10 years.

www.khanresources.com.

Email: mquick@khanresources.com