Khan Resources Inc., and its predecessor companies, were involved in the development of the Dornod uranium property in Mongolia since 1995. In July 2009, the Government of Mongolia promulgated its Nuclear Energy law, which among other items, provided the State with 51% of the Dornod property without compensation to prior owners.

Further, in 2010, the Government of Mongolia refused to reissue to Khan the required licenses for the Dornod property which effectively resulted in 100% expropriation of the asset without any compensation. As a result of these actions, Khan launched an international arbitration action against Mongolia for the illegal expropriation of its asset in January, 2011. In March 2015, the international arbitration tribunal rendered an award in favour of Khan of US$80 million plus costs of US$9 million plus interest at LIBOR plus 2% from July 2009 to the date the award is paid. In May 2016, the Company accepted US$70 million from the Government of Mongolia in settlement of all outstanding matters pursuant to the arbitration. In November 2016, the shareholders approved a special resolution for the voluntary liquidation and dissolution of Khan.

On May 5, 2017 at the Company’s Annual and Special Meeting of Shareholder (“AGM”), the shareholders of the Company elected a new board of directors (“board”).

On May 8, 2017 the board announced that it had determined that it would not proceed with the liquidation plan that was approved by the Company’s shareholders on November 10, 2016. The liquidation plan approved by the shareholders provided that the board was authorized not to proceed with the liquidation of the Company if it determines in its discretion that doing so is no longer in the best interests of the Company or its shareholders. The Company’s board has determined that it is in the best interest of the Company and its shareholders to consider other possible strategic alternatives for the Company with a view to maximizing its value for the benefit of its shareholders.