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

Abstract

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 [Martin Quick, 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.