Khan Resources Inc. (TSX:KRI) is pleased to provide an update on the political
situation in Mongolia as it relates to the mining industry. On October 1, 2008,
President Nambaryn Enkhbayar in his opening speech to the Mongolian Parliament
said "It is the reality that Mongolians cannot invest in deposit independently,
introduce advanced technology and provide qualified experts. Therefore, there is
no other way than attracting major investors, their financial resources,
technology and experts. Investors would want to calculate their investment
returns and control expenditures of their investment. They would aspire to
recover their investment and make profit. This is natural." President Enkhbayar
continued, "Therefore, there is no other way than for all parties concerned to
accept market principles of allowing the investors to own more than 51% of the
deposit". An excerpt of the translated speech can be found at
www.khanresources.com.


The Mongolian government has recently established a new Ministry of Mines and
Energy. Mining was previously a division of the Ministry of Industry and Trade.


Khan Resources has demonstrated its confidence in Mongolia by launching a US$5
million project to build a power line and a sedimentation pond for the Dornod
Uranium Project as announced on September 18, 2008.


"These recent developments in Mongolia are encouraging and we look forward to
progressing in our discussions with the Mongolian government. Khan Resources has
a strong financial position and a world-class uranium deposit. Therefore,
regardless of market conditions, we feel that the Company is significantly
undervalued" stated Martin Quick, President and CEO of Khan Resources.


Forward-Looking Statements

This press release may contain forward-looking statements, which are subject to
certain risks, uncertainties and assumptions. A number of factors could cause
actual results to differ materially from the results discussed in such
statements, and there is no assurance that actual results will be consistent
with them. Such forward-looking statements are made as at the date of this news
release, and Khan Resources 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.


Khan Resources (TSX:KRI) is a Canadian company engaged in the acquisition,
exploration and development of uranium properties. Its current activities are
focused on the Dornod area in north eastern Mongolia, the site of a former
Russian open-pit uranium mine. Khan holds interests in the Main Dornod Property,
licensed for mining, and in the Additional Dornod Property, licensed for
exploration. The Company's website is www.khanresources.com.