MSB Global Capital Corp. (MSBM)

[NoWay]

Mongolian Uranium Explorers Hit On Licensing Uncertainty

August 17, 2007 13:38 ET (17:38 GMT)

Khan Resources Inc. (KRI.T) said Friday that its uranium exploration license in Mongolia had been declared invalid by the country's Mineral Resources Authority.

"We received a letter a short number of hours ago in our Ulan Bator office...it indicated that the Minerals Authority" had declared its special exploration license for the property adjacent its established Dornod site in northeastern Mongolia is invalid, Khan spokesman Jon Ruby said Friday.

He added that the Minerals Authority had also advised the Minister of Mines that 33 uranium exploration licenses affecting 18 companies should be declared invalid as well.

It's unclear at this time if this recommendation will be upheld.

In Toronto Friday, Khan is off C$1.44, or 52%, to C$1.35 on 2.9 million shares.

The news comes on the heels of Khan's announcement Aug. 16 that it had completed a pre-feasibility study for its Dornod Uranium Project. The NI 43-101 study reported an indicated resource of 64.3 million pounds of uranium and an inferred resource of 2.4 million pounds.

Ruby said only 16 million pounds of the 64-million-pound indicated resource was on land governed by the exploration license in question. The remaining 48 million pounds is on land regulated by a mining license, he said.

Ruby said the mining license had been negotiated directly with the government while the exploration license was purchased from another company.

So far, none of the other 17 companies reportedly affected has issued a release on the latest development. It's unknown at this time which companies are affected.

A spokesman for Vancouver-based BlueRock Resources Ltd. (BRD.V) said Friday that the company hadn't been notified by any Mongolian authority about its exploration license, but was checking into the matter with his in-country counterparts.

Western Prospector Group Ltd.'s (WNP.V) stock was halted Friday morning after falling almost 61 Canadian cents to C2.79 on 134,500 shares. A press release on the issue is forthcoming, a spokesman said.

He said he wouldn't make any comments about its Mongolian exploration licenses until the release is issued.

Company Web Site: http://www.khanresources.com