Khan Files Second Quarter 2015 Financial Results

TORONTO, ONTARIO--(Marketwired - May 22, 2015) - Khan Resources Inc. (CSE:KRI) ("Khan" or "the Company") announced today that it has filed its financial statements and management's discussion and analysis for the six months ended March 31, 2015 on SEDAR and has posted these documents to its website www.khanresources.com.

Significant Events and Current Status

Chairman Jim Doak - The Company is greatly saddened by the loss of James B.C. Doak, Chairman of the Board of Directors. Jim died suddenly of natural causes, on April 23, 2015, while on business in Ulaanbaatar, Mongolia. He had travelled to Mongolia with Grant Edey, President and CEO to negotiate the collection of the award made by the international arbitration tribunal (see below). Jim made an immense contribution to the Company since he became Chairman in 2006. Jim's leadership and support for a remedy to the clear violation of Khan's rights by the Government of Mongolia was boundless. The Company will continue to realize on his vision.

International arbitration award - On March 2, 2015 the international arbitration tribunal rendered an award to Khan as compensation for the Government of Mongolia's actions in relation to the cancellation of Khan's uranium licenses in 2009. As of the date of the approval of this MD&A, May 21, 2015, the award aggregates to approximately $104 million (US) with interest currently accruing at a rate of 2.55 % or $6,500 per day. In Canadian dollars at May 20, the value of the total award was $127 million.

Cash - The Company has announced that that it intends to raise approximately $2 million in a non-brokered private placement by issuing approximately 5 million common shares of the Company at a price of $0.40 per common share. The offering is expected to close in May 2015. The proceeds of the offering will be used to advance proceedings to enforce the collection of the arbitration award. Cash balances are also being supplemented by the exercise of outstanding options and by the sale of investments.

Investments - At March 31, 2015, the Company held 8.4 million common shares of Macusani Yellowcake Inc. ("Macusani") with a fair value of $464,328. During the latest quarter the Company sold 6 million Macusani shares for proceeds of $208,500. The Company's remaining holdings represent 3.2% of the 262.9 million Macusani outstanding common shares.