Khan Resources Inc. (TSX:KRI) ("Khan" or "the Company") announced today that it
has filed its financial statements and management's discussion and analysis for
the three and six month periods ended March 31, 2011 on SEDAR and has posted
these documents to its website www.khanresources.com. 


From a financial perspective, the Company's net loss for the three month period
and six month period ended March 31, 2011 was $0.02 and $0.02 per share
respectively compared to losses of $0.02 and $0.04 for the same periods in the
prior year. During the second quarter, the Company also subscribed for 3 million
units of Macusani Yellowcake Inc. ("YEL") each unit consisting of one common
share and one half share purchase warrant exercisable at $0.85 per share for two
years. The Company's investment in YEL at March 31, 2011 was $8.1 million based
on period end market values and $4.3 million based on cost.


Significant developments during the second quarter included the filing on
January 10, 2011 of an international arbitration action against the Government
of Mongolia for its unlawful and expropriatory treatment of Khan in respect of
the Dornod deposit. The Tribunal will consist of three well-known and highly
respected international arbitrators: Mr. L. Yves Fortier of Canada (appointed by
Khan); Mr. Bernard Hanotiau of Belgium (appointed by Mongolia); and Mr. David
A.R. Williams of New Zealand (appointed as the presiding arbitrator by Messrs.
Fortier and Hanotiau). The Tribunal is expected to convene an in-person hearing
to discuss the procedure by which the arbitration will proceed in the very near
future.


In addition, subsequent to the end of the second quarter, Khan and ARMZ entered
into settlement discussions in an attempt to resolve Khan's $300 million lawsuit
against ARMZ. The discussions were not successful and Khan will reintroduce a
motion in the Ontario Superior Court of Justice to dispense with or order
substitute service in respect of the suit.


Khan Resources Inc. is a Canadian company engaged in the acquisition,
exploration and development of uranium properties. Its current activities are
focused on the Dornod uranium property in north-eastern Mongolia. 


Forward-Looking Statements and Information 

This press release may contain forward-looking statements and forward-looking
information, which are subject to certain risks, uncertainties and assumptions.
Forward-looking statements and information are characterized by words such as
"will", "plan", "expect", "project", "intend", "believe", "anticipate",
"forecast", "schedule", "estimate" and similar expressions, or statements that
certain events or conditions "may" or "will" occur. Forward-looking statements
and information are not historical facts and are based upon a number of
estimates and assumptions and are inherently subject to significant business,
social, economic, political, regulatory, competitive and other risks and
uncertainties, contingencies and other factors, including the impact of
international, Mongolian and Canadian laws, trade agreements and regulatory
requirements on Khan's business, properties, licenses, operations and capital
structure, Khan's ability to re-instate or re-register the Dornod uranium
project licenses, regulatory uncertainty and obtaining governmental and
regulatory approvals, legislative, political, social, regulatory and economic
developments or changes in jurisdictions in which Khan carries on business, the
nature and outcome of pending and future litigation, arbitration and other legal
proceedings, the speculative nature of exploration and development, risks
involved in the exploration, development and mining business, changes in market
conditions, changes or disruptions in the securities markets and market
fluctuations in prices for Khan securities, the existence of third parties
interested in purchasing some or all of the common shares or Khan's assets, the
method of funding and availability of any potential alternative strategic
transactions involving Khan or its assets, including those transactions that may
produce strategic value to shareholders, the need to obtain, maintain and/or
re-register licenses and permits and comply with national and international
laws, regulations, treaties or other similar requirements, and uncertainty in
the estimation of mineral reserves and resources. In addition, a number of other
factors could cause actual results to differ materially from the results
discussed in such statements and information, and there is no assurance that
actual results will be consistent with them. For further details, reference is
made to the risk factors discussed or referred to in Khan's annual and interim
management's discussion and analyses and Annual Information Form on file with
the Canadian securities regulatory authorities and available on SEDAR at
www.sedar.com. Such forward-looking statements and information are made or given
as at the date of this news release, and Khan 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 law.