Stans Energy will be hosting its Annual General and Special Meeting on Thursday July 18, 2013 at 1pm. The meeting will be held at:

The Toronto Board of Trade
77 Adelaide Street West
First Canadian Place,
Suite 350, Toronto, ON, M5X 1C1

About Stans Energy
Stans Energy Corp. is a resource development company focused on advancing Heavy Rare Earth (HRE) properties in areas of Central Asia and Russia. In December 2009, Stans acquired a 20-year mining license for the past-producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant (KRP) the same plant that previously refined REEs from Kutessay II ores. The KRP was the only hard rock plant toproduce all rare earth elements outside of China, producing 120 different metals, alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the Former Soviet Union.

We seek safe harbour.

Contact Details
Robert Mackay
President & CEO
robert@stansenergy.com
647-426-1865

David Vinokurov
VP Corporate Development
david@stansenergy.com
647-426-1865

FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the completion of the Offering, the continued advancement of the company’s general business development, research development and the company’s development of mineral exploration projects. When used in this press release , the words “will”, “shall”, “anticipate”, “believe”, “estimate”, “expect”, “intent”, “may”, “project”, “plan”, “should” and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.

In light of this development the Company is undertaking an exhaustive review of all capital expenditures associated with development at Kutessay II.  A further review of all non-core operating staff and expenses is currently underway to determine the most prudent methods to protect shareholder capital.

“To appeal this injunction would only delay the main trial process.  It is regrettable that a small group of self-interested politicians can hijack the legal system to conduct a malicious prosecution against a law-abiding firm.  The court case, and this subsequent court order, are without merit and threaten the livelihoods of our Kyrgyz employees and their families.  We are confident we can demonstrate our full compliance with all legislation as set out in Kyrgyz law.  All engineering work being conducted by our contractors for feasibility study purposes is ongoing and updates will be provided as these studies are completed,” states Robert Mackay, President and CEO.

David Newton, VP of Mine Operations has resigned his position at the Company.  The various elements of the ongoing feasibility study will now be overseen by Stans Energy’s contractor, The Russian Scientific Research Institute of Chemical Technology (VNIIHT), in co-ordination with the Company’s in-house engineering and geology teams.

About VNIIHT OJSC
The Russian Scientific Research Institute of Chemical Technology (VNIIHT) was founded in April 1951. VNIIHT’s objective was to focus on the exploration and development of technologies and raw materials for use in the Soviet nuclear energy sector. VNIIHT technologies continue to be implemented in the main stages of the nuclear fuel cycle. This includes the processing of Uranium and Rare Metal Ores through to the generation of nuclear-pure materials. VNIIHT has sixty years of chemical technology experience, combined with their capabilities of executing the complete cycle of rare earths research, development, and production.

About Stans Energy
Stans Energy Corp. is a resource development company focused on advancing Heavy Rare Earth (HRE) properties in areas of Central Asia and Russia. In December 2009, Stans acquired a 20-year mining license for the past-producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant (KRP) the same plant that previously refined REEs from Kutessay II ores. The KRP was the only hard rock plant toproduce all rare earth elements outside of China, producing 120 different metals, alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the Former Soviet Union.

We seek safe harbour.

Contact Details
Robert Mackay
President & CEO
robert@stansenergy.com
647-426-1865

David Vinokurov
VP Corporate Development
david@stansenergy.com
647-426-1865

FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the completion of the Offering, the continued advancement of the company’s general business development, research development and the company’s development of mineral exploration projects. When used in this press release , the words “will”, “shall”, “anticipate”, “believe”, “estimate”, “expect”, “intent”, “may”, “project”, “plan”, “should” and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.

The State Prosecutor’s Office has put forward an application to lift the three-year statute of limitations to allow them to present to the court their claim of request to nullify the minutes of the December 21, 2009 meeting between the SGA and Open Stock Company (OSC) ‘Kutessai Mining’ which granted OSC ‘Kutessai Mining’ mining licenses for the Kutessay II and Kalesay deposits. OSC ‘Kutessai Mining’ was a 100% state-owned special purpose entity, created to hold mining licenses for the Kutessay II and Kalesay deposits. It was put for an open and previously advertised government auction on December 29, 2009. Stans Energy’s local subsidiary, Stans Energy KG, acquired OSC ‘Kutessai Mining’ on December 29, 2009 through  this auction, where the sum of $855,000 USD was paid to the Government, which at the time was double the value that the Kyrgyz authorities had attributed to the property. Stans Energy KG then re-registered OSC ‘Kutessai Mining LTD’ as it’s fully owned subsidiary ‘Kutessai Mining LTD’.

‘Kutessai Mining LTD’ is named as a third party to the proceedings.  Stans and its legal representation are of the position that the claim filed by the State Prosecutor’s Office is baseless, with no legal merit, and that the company’s 100% owned mining licenses for both properties were obtained lawfully, through transparent government auction, on December 29, 2009.

“We have every piece of paperwork filed since we began our business ventures in Kyrgyzstan and there is no doubt in my mind that our legal team will thwart this attempt on our licenses, just as they have successfully done in the past. Our lawyers have always been meticulous in ensuring that all of Stans Energy’s business dealings within Kyrgyzstan have adhered to the laws of the country, and this commitment will never change as we work towards bringing the Kutessay II Heavy Rare Earth mine back into production” stated Robert Mackay, President and CEO of the company.

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

About Stans Energy
Stans Energy Corp. is a resource development company focused on advancing Heavy Rare Earth (HRE) properties in areas of Central Asia and Russia. In December 2009, Stans acquired a 20-year mining license for the past-producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant (KRP) the same plant that previously refined REEs from Kutessay II ores. The KRP was the only hard rock plant toproduce all rare earth elements outside of China, producing 120 different metals, alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the Former Soviet Union.

We seek safe harbour.

Contact Details
Robert Mackay
President & CEO
robert@stansenergy.com
647-426-1865

David Vinokurov
VP Corporate Development
david@stansenergy.com
647-426-1865

FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the completion of the Offering, the continued advancement of the company’s general business development, research development and the company’s development of mineral exploration projects. When used in this press release , the words “will”, “shall”, “anticipate”, “believe”, “estimate”, “expect”, “intent”, “may”, “project”, “plan”, “should” and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.

About Stans Energy
Stans Energy Corp. is a resource development company focused on advancing Heavy Rare Earth (HRE) properties in areas of Central Asia and Russia. In December 2009, Stans acquired a 20-year mining license for the past-producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant (KRP) the same plant that previously refined REEs from Kutessay II ores. The KRP was the only hard rock plant toproduce all rare earth elements outside of China, producing 120 different metals, alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the Former Soviet Union.

We seek safe harbour.

Contact Details
Robert Mackay
President & CEO
robert@stansenergy.com
647-426-1865

David Vinokurov
VP Corporate Development
david@stansenergy.com
647-426-1865

FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the completion of the Offering, the continued advancement of the company’s general business development, research development and the company’s development of mineral exploration projects. When used in this press release , the words “will”, “shall”, “anticipate”, “believe”, “estimate”, “expect”, “intent”, “may”, “project”, “plan”, “should” and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.

2012

Last year, Stans faced a shortened field season due to administrative delays within the Kyrgyz State Geological Agency.  Engineering and geological programs could not commence until the unanimous approval of Licence Agreement #3 was granted on June 15, 2012.  Subsequently, a 30-day work stoppage was issued on August 30, 2012, which further shortened the 2012 Field Program.  Nevertheless, the Company was able to continue its development of key components required for the project.  Stans, together with its contractors succeeded in advancing the following initiatives:

Contracting:

• Engaged Ecoservice LLC to upgrade the paved road to the Kutessay II open pit, to design a 14.5-thousand m³ tailings impoundment, and to design a 1 million tonne per year mill.
• Engaged Asiarudproject CJSC for the engineering of a new mine complex design, and assessing combined open-pit and underground mine options to determine feasibility.

Design and Testing:

• Hired The Geomechanics and Subsurface Resources Development Institute under the National Academy of Sciences of Kyrgyzstan to define the mechanical properties of rocks from Kutessay II deep deposit levels and assess the open pit bench stability.
• Designed the power supply for the mine and processing facilities. (this task is for 2013)
• Analyzed 2,860.8 meters of drill core from 11 core holes at the Kutessay II deposit. The purpose of the drilling was to explore and delineate the extension of rare earth mineralization in the vicinity of the Central Deposit to depth, and to further delineate the new mineralized zones discovered at its flanks in 2011.
• Renovated and upgraded mine site facilities for the administrative building, machining and electric shop, and the instrumentation and automation site.

Metallurgical Process Confirmation:

• The Information Research Centre LLC (IRC LLC), in association with the Russian Research Institute of Chemical Technology (VNIIHT OJSC) successfully developed and tested a process flow sheet for milling of Kutessay II ore, including two-stage gravity preparation with concentrate finishing employing flotation.  The recommended flow sheet achieved 65% TREE recovery and a minimum 5% TREE content of concentrate.
• VNIIHT OJSC successfully tested a new, environmentally friendly technology for extracting thorium and radium from Kutessay II RE concentrates, yielding a RE greater recovery – 95% at the impurity removal stage and 93% at the nitrate creation stage.  The use of new flotation agents, along with more modern equipment, yielded a 25-35% increase in efficiency over historical techniques.
• VNIIHT OJSC conducted successful testing on this concentrate product to selectively extract specific rare earth oxides.

2013

Based on the positive outcome of the 2012 program the Company is planning engineering and field programs in 2013 to resume fast-tracking production at Kutessay II. Several of these projects have commenced and the objectives for the coming year include:

Pilot Scale:

• Testing of new milling techniques by IRC LLC, in coordination with VNIIHT OJSC. Research on Kutessay II milling, using innovative solvents for flotation is ongoing in an effort further to increase Heavy Rare Earth recoveries and decrease milling costs.
• Testing of new cracking and selective REO separation technology by VNIIHT OJSC.  Summary report can only be publicized upon licensing  by State Export Control Service Agency (license expected by the middle of April) .

Design and Engineering:

• Geological engineering and surveying of the new Milling and Processing (Cracking) site.
• Design of the new combined mining project (open pit/underground).
• Design of a new 1 million tonne per year mill and new Plant #1 (cracking facility).
• Design of a new 14,500 m³ tailings impoundment.

Construction:

• Local projects consisting of: open pit mining operations preparation including local creek water diversion system, pit walls reinforcement, mechanical and electric shops, instrumentation and automation shop, fueling stations, mining camp.
• Overall road repairs to, and within the existing open-pit.

Project Development:

• Resampling and survey of historic mine site stockpiles.
• Renovating adits to provide access to underground workings for resampling to further define quantities of individual rare earth elements, in order to convert the existing JORC mineral resource estimate to NI 43-101 standard compliance.
• 1000 m drilling program to obtain samples for rock mechanics studies.
• Commencing an Environmental Impact Assessment for inclusion in a feasibility study.

Boris Aryev, COO of Stans Energy explained, “Stans Energy Corp is eager to resume its pace of infrastructure and engineering development of the project to regain the momentum lost in 2012.  The company is commencing Pilot Plant Testing on proven, and improved upon milling, and cracking methods, while adding an innovative, selective REO separation process.  Our strategic advantage in development, and proving REO technologies will allow the company to maintain a stronger treasury balance, while focusing expenditures on project and infrastructure development, instead of constant metallurgical testing on unproven REO extraction methods.  Despite current uncertainty in capital markets, we remain steadfast on proving that the Kutessay II HREE mine is an excellent option for end-users to obtain a secure, non-Chinese HREE source.  Implementation of our recent technological advancements in rare earth cracking and separation technologies at The Kashka Rare Earth Plant will demonstrate the Company’s progress towards being a leader in the Heavy Rare Earth sector, both to potential partners and to the market.”

About Stans Energy

Stans Energy Corp. is a resource development company focused on advancing Heavy Rare Earth (HRE) properties in areas of Central Asia and Russia. In December 2009, Stans acquired a 20-year mining license for the past-producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant (KRP) the same plant that previously refined REEs from Kutessay II ores. The KRP was the only hard rock plant to produce all rare earth elements outside of China, producing 120 different metals, alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the Former Soviet Union.

About VNIIHT OJSC

The Russian Research Institute of Chemical Technology (VNIIHT) was founded in April 1951. VNIIHT’s objective was to focus on the exploration and development of technologies and raw materials for use in the Soviet nuclear energy sector. VNIIHT technologies continue to be implemented in the main stages of the nuclear fuel cycle. This includes the processing of Uranium and Rare Metal Ores through to the generation of nuclear-pure materials. VNIIHT’s sixty years of chemical technology experience, combined with their capabilities of executing the complete cycle of rare earths research, development, and production, will give Stans Energy Corp. a significant advantage relative to its competitors outside of China.

About IRC LLC

The Information Research Centre LLC is an internationally accredited laboratory under United Kingdom Accreditation Standards, Great Britain (Laboratory #4431), and the Kyrgyz Center of Accreditation (Accreditation Certificate #KG417/KCS.IL.007).  The laboratory is accredited for compliance with the international standard ISO/IEC 17025:2005.  The accreditation includes the determination of the concentration of elements using Atomic Absorption, Inductively Coupled Plasma Mass Spectrometry and X-ray fluorescence techniques.

About EcoService LLC

EcoService LLC has been retained as General Contractor of the project with the specific task of designing the milling and tailing facilities. The key engineers and leaders of the company have over 30 years of experience in the design-build of mining projects, from the Soviet period to the present. Two of their most recent projects were the design-build of the Ishtamberdy gold mine, and the Tudybulak gold mine, both in Kyrgyzstan. EcoService LLC is is the leading, fully licensed firm to carry out all work related to the design and construction of mining facilities in Kyrgyzstan.

Under Kyrgyz law, companies working on mining projects that have to be approved by the various State Agencies, must themselves be approved and licenced by the Kyrgyz Government

About Asiarudproject

Asiarudproject Mining Planning-Production Company CJSC (Asiarudproject) has been retained for the mine design and planning. Asiarudproject has completed more than 90 designs and feasibility studies of mining enterprises. Twenty of which were implemented, including work on the Kumtor open pit for Centerra Gold Inc., together with preparation of a feasibility study for the underground mine portion. Asiarudproject is the leading licenced operator to conduct such work in Kyrgyzstan.

We seek safe harbour.

Contact Details

Robert Mackay
President & CEO
robert@stansenergy.com
647-426-1865

David Vinokurov
VP Corporate Development
david@stansenergy.com
647-426-1865

FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the completion of the Offering, the continued advancement of the company’s general business development, research development and the company’s development of mineral exploration projects. When used in this press release , the words “will”, “shall”,  “anticipate”, “believe”, “estimate”, “expect”, “intent”, “may”, “project”, “plan”, “should” and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.

On August 10, 2012, the Company commenced its 2012 drilling program.  The goal of the drilling was to evaluate the vertical extension of the rare earth mineralization (to the +2213 m level, Adit No.27) revealed in 2011 drilling to the west and northwest of what was referred to during Soviet times as the Central Ore Body, as well as along survey profiles No. VIII, X, XI, XII, XIV, XV, and to search for the continuation along the Kutessay II deposit flanks – to profile No. III in the north, and No. XX in the south.

By October 24, 2012, eleven diamond drill holes (Nos.Y022D011, Y022D012, Y022D013, Y022D014, Y022D015, Y022D016, Y022D017, Y022D018, Y022D019, Y022D020, and Y022D021) were drilled along deposit survey profile Nos. III, VI, VIII, X, XI, XIV, XV, XVIII, and XX. The drill holes lengths are 240.6 m, 295 m, 285 m, 310 m, 250 m, 230.2 m, 450 m, 27 m, 263.0 m, 300 m, and 210 m respectively, totaling 2,860.8 m. Spacing between the survey profiles ranges from 55 m to 75 m, and between the drill holes, from 45 m to 65 m.

Summary tables for the holes are listed below:

A detailed summary of all data points and hole schematics is available at:

http://www.stansenergy.com/2012-kutessay-ii/

Hole D018 was stopped at a depth of 27m. It was replaced with Hole D019 which was then drilled to 263m.

Hole D014 did not intersect any mineralization above the cutoff grade.

The Total Rare Earth Oxide cut-off grade for Mineral Resource delineation is 0.1%

Dr Gennady Savchenko QP is the qualified person on the Kutessay II project under National Instrument 43-101 and is responsible for this news release.  Material for analysis was obtained from drill core which was split using a diamond saw. Core description, sawing and sampling was performed at the drill site. In total, 290 linear-chip and 11,653 core samples (excluding blank samples and quality standards) were collected from the drill holes and analyzed by the laboratory. The analytical results were received in late November 2012 and were then compiled in the report on drilling.

The Information Research Centre LLC (IRC) (Kara-Balta, the Kyrgyz Republic), prepared and analyzed the samples. The laboratory is accredited by the United Kingdom Accreditation Service for ISO/IEC 17025:2005 international standard and by the National System Accreditation Center of the Kyrgyz Republic.

Atomic-emission analysis (ICP) was used to determine the concentration of oxides of 15 rare earth elements (Ce, Dy, Er, Eu, Gd, Ho, La, Lu, Nd, Pr, Sm, Tb, Tm, Y, Yb), as well as Be oxide, Со and Sc. The total number of elements defined is 18.

Robert Mackay, CEO and President of Stans Energy Corp reports, “These drilling results along with those from our 2011 drilling campaign will be incorporated into our feasibility study that has begun with the signing of the geotechnical survey contract that will determine the new mill and tailings pond location for the planned 1500 tons per year of rare earth oxide production.”

Effective January 1, 2013, Mr. David Vinokurov, Vice President of Corporate Development will be resuming responsibilities for the day to day Investor Relations program

About Stans Energy

Stans Energy Corp. is a resource development company focused on developing Heavy Rare Earth (HRE) properties in the area of the Former Soviet Union. In December 2009, Stans acquired a 20-year mining license for the past producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant (KRP), the same plant that previously recovered and refined REEs from the Kutessay II deposit. The KRP was the only hard rock plant to produce all rare earth elements outside of China, including 120 different metals, alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the former Soviet Union.

We seek safe harbour.

Contact Details
Robert Mackay
President & CEO
robert@stansenergy.com
647-426-1865

Jonathan Buick
Investor Relations, The Buick Group
jbuick@buickgroup.com
416-915-0915

FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the completion of the Offering, the continued advancement of the company’s general business development, research development and the company’s development of mineral exploration projects. When used in this press release , the words “will”, “shall”,  “anticipate”, “believe”, “estimate”, “expect”, “intent”, “may”, “project”, “plan”, “should” and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.

]]> http://www.stansenergy.com/press-releases/stans-energy-delineates-new-mineralized-zones-at-kutessay-ii/feed/ 0 http://www.stansenergy.com/press-releases/stans-energy-receives-favourable-judgments-in-all-kyrgyz-cases/ http://www.stansenergy.com/press-releases/stans-energy-receives-favourable-judgments-in-all-kyrgyz-cases/#comments Thu, 15 Nov 2012 19:17:53 +0000 Stans Energy http://www.stansenergy.com/?p=1960 Robert Mackay, President and CEO of Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans” or the “Company”), is pleased to report that the Company’s lawsuit against a committee in the Jogorku Kenesh (the “Committee”), of which Rep. N. Badykeeva is a member, has been resolved by the Inter-district Court of Bishkek in favor of the Company.

The Inter-district Court has ruled that the Committee’s actions were illegal, and are counter to the Constitution of the Kyrgyz Republic. As a result, the following orders and decisions of the Committee were voided:

- Committee order to the State Geological Agency (SGA) to annul Licence Agreement #3
- Committee order to the State Geological Agency to put to tender Kutessay II
- Committee decision to recommend to the State Geological Agency that Licence Agreement #3 be annulled

Reasons for the decision were outlined in a judgment provided to the Company. The Court ruled that the Committee had committed a number of procedural and substantive errors and violations, including;

- failure to notify the State Geological Agency within a predetermined time period that a investigation was taking place;
- failure to follow proper inspection procedures;
- failure to keep proper records of inspections or minutes of Committee proceedings. In this case, the Committee kept no minutes and thus no minutes could be provided to the court;
- not allowing participation from representatives of Kutisay Mining LLC in relevant Committee meetings;
- acting beyond the scope of its authority by attempting to unlawfully interfere in the executive authority and activity of the Kyrgyz Government and the State Geological Agency.

A 30-day work stoppage, previously announced on September 11, 2012, which was enacted by the previous administration of the State Geological Agency, was also contested in front of the Inter-district Court of Bishkek. Stans Energy Corp is pleased to report that the Inter-district has ruled in favor of the Company; that the work stoppage was in fact illegal, and that the Company assumed all measures for the appropriate fulfillment of obligations as set out in Licence Agreement #3. The Court ruled that the non-fulfillment of specific sections of Licence Agreement #3, which was used as the basis for a work suspension, was not the fault of the Company, but due to the fault of the previous administrations of the State Geological Agency and the lack of action by the State Property Fund.

“Vindication in the Kyrgyz court system is extremely reassuring for both the Company and for the long-term prospects for foreign investment in Kyrgyzstan. A functioning rule of law that can protect investor property rights and counter processes that are not transparent or impartial is absolutely critical to ensure a stable business environment. Stans has always maintained the position that it operates openly and in good faith with all stakeholders, be it government, shareholders, or potential partners. These recent court decisions prove that our meticulous adherence to the highest standards of business practice and reporting is a strategy that will maximize the value for shareholders and local stakeholders in the long term,” states Robert Mackay, President and CEO. “As with any legal system, appeals are par for the course. With the standard 30-day period for appeals having expired today, it is encouraging to see that the new administration of the State Geological Agency is charting a different course than that of the previous administration, by choosing not to appeal the decision of the Inter-District Court. Rep. Badykeeva and the Committee, as is afforded to them under the law of the Kyrgyz Republic, are choosing to appeal the decision against the Committee and continue their personal crusade against the Company. Thanks to our legal advisors – Partner Law Firm, we are confident that further vindication in the courts for Stans Energy will dispel future distractions of this kind.”

Stans Energy has begun a tender process for additional contractors to commence works on various required aspects of a Bankable Feasibility Study. Once all contracts have been finalized, the Company will issue a full status report.

Mr. Mackay goes on to mention “Now that we have overcome these legal hurdles, it is extremely refreshing for the entire team to focus back on fast-tracking Kutessay II into production. As of today there are 128 employees of the Company who are eager and excited to contribute to the long-term viability of the Company and the project. I congratulate them on their work to date and we all look forward to working with our new contractors to further our corporate development goals.”

We seek safe harbour.

Contact Details
Robert Mackay
President & CEO
robert@stansenergy.com
647-426-1865

Jonathan Buick
Investor Relations, The Buick Group
jbuick@buickgroup.com
416-915-0915

Stans’ new cracking method for Kutessay II concentrate is likely to replace the historical process previously used at the Company’s Kashka Rare Earth Processing Plants 1, and part of Plant 2 (see www.stansenergy.com/rare-earth-processing for historical details).  Results from this process will be incorporated into Stans Energy’s ongoing feasibility study work.   Further details of the cracking process will be disclosed once patent attorneys have advised Stans and VNIIHT which stages in the process contain proprietary information and technology.

Robert Mackay, President and CEO of Stans Energy Corp., explained, “The cracking stage is the most crucial step in any rare earth production process, and therefore, the value of VNIIHT’s achievements cannot be understated.  Stans is the only HRE Company with a hard rock deposit located outside of China that has a demonstrated ability to effectively, and cleanly remove impurities from its concentrate, attain a high level of recovery, while also producing a very pure, soluble REO nitrate for individual REO separation and RE metal fabrication.  Although this process has not yet been implemented in any Kutessay II baseline environmental study or feasibility study, VNIIHT’s engineers are confident that this new, contained method of extracting thorium, radium and fluorine from Kutessay II HRE concentrate will provide both environmental benefits and increased profitability over the historical process.  Additionally, I would like to add that VNIIHT’s engineers have designed a new process for creating an improved Kutessay II RE concentrate that will be tested in the coming months.  Their stated goal is to obtain a minimum RE recovery of 80% from the mine to RE concentrate stage, using new flotation reagents.”

Summary of VNIIHT’s Cracking Study

A team of 37 of VNIIHT’s engineers, each specializing in various chemical engineering fields, were contracted to test innovative cracking methods, using a 100 kg sample of historical Kutessay II RE concentrate.  The sample was composed of 80 minerals, of which 25 hosted REs; the majority contained within the minerals Xenotime, Yttrosynchysite, and Monazite.  New flotation agents and other chemical reagents were used together with a system of autoclaves, precipitation tanks, and centrifuges, resulting in a method that exceeded historic extraction by 25-35%.  The main cost associated with cracking is the energy required to create high temperatures and pressure, however, Kyrgyzstan’s industrial electricity cost of 4.4 cents/kWh provides Stans with a competitive advantage, making this new cracking process a viable option.

The Company also announces the extension of the contract for the Buick Group for the IR function, as per the press release dated August 7th, 2012.

About VNIIHT

The Russian Research Institute of Chemical Technology (VNIIHT) was founded in April 1951. VNIIHT’s objective was to focus on the exploration and development of technologies and raw materials for use in the Soviet nuclear energy sector. VNIIHT technologies were, and continue to be implemented during the main stages of the nuclear fuel cycle. This includes the processing of Uranium and Rare Metal Ores through to the generation of nuclear-pure materials. VNIIHT’s sixty years of chemical technology experience combined with their capabilities of executing the complete cycle of rare earths research, development, and production will give Stans Energy a significant advantage relative to its competitors outside of China.

We seek safe harbour.

Contact Details
Robert Mackay
President & CEO
robert@stansenergy.com
647-426-1865

Jonathan Buick
Investor Relations, The Buick Group
jbuick@buickgroup.com
416-915-0915

Originally, a 10-hole, diamond drill program was planned for the 2012 exploration season, however, preliminary results from the first 9 holes, completed before the Company’s license was suspended in September, intersected new mineralization contained within the pit outline. Holes #10 and #11 are currently underway and both are scheduled to test a depth of 250 m. Completed assays of all 11 holes are expected to be released in November.

The Company would also like to report that management has been invited to participate at a Rare Earth Geology, Chemistry, Production, and Application Conference, hosted by its technical partners VNIIHT- The Scientific-Research Institute of Chemical Technology, from October 29 to 31 in Moscow. Robert Mackay, President and CEO of Stans Energy, will be providing an address to attendees on the topic of, “Issues Facing REE Companies in Various Jurisdictions.” In addition to senior members of VNIIHT, speakers and attendees at the conference will include representatives from the following organizations:

• Russian State Atomic Energy Corporation (Rosatom)
• The Russian Academy of Sciences
• The Ministry of Natural Resources of the Russian Federation
• The Ministry of Trade of the Russian Federation
• Skolkovo Innovation Centre, Russia
• Rhodia, Member of Solvay Group, France
• Treibacher Industrie AG, Austria
• Traimtech Group, Canada
• SC “RUSNANO”
• The Russian Technologies State Corporation
• The Atomic Energy Company (Kazatomprom), Kazakhstan
• The Center of Earth Sciences, Metallurgy, and Ore Benefication (CESMOB), Kazakhstan
• Institute of High Technologies (IHT), Kazakhstan
• FengChia University, Taiwan
• Republic of Uzbekistan Academy of Science Institute of Geology and Geophysics
• Plus additional independent Rare Earth Experts in various fields around the world

For further information about this conference, please visit www.vniiht.ru/rmz-2012.

Robert Mackay, President and CEO of Stans Energy stated, “It is an honour for me to participate at VNIIHT’s conference with such esteemed rare earth experts and business leaders. I cannot stress enough how our company’s working relationship with VNIIHT has dramatically assisted our understanding of what it takes to build a rare earth mine and processing plant. This conference provides our Company with the opportunity to enhance our relationships with potential business partners, technology experts, and end users. In regards to Stans Energy’s Exploration Campaign, I am encouraged that our geologists have resumed the drilling program at Kutessay II; testing new mineralized zones not yet included in our JORC resource estimates. These additional drilling results will provide essential information for our mine plan and our ongoing feasibility studies.”

About VNIIHT
The Russian Research Institute of Chemical Technology (VNIIHT) was founded in April 1951. VNIIHT’s objective was to focus on the exploration and development of technologies and raw materials for use in the Soviet nuclear energy sector. VNIIHT technologies were, and continue to be implemented during the main stages of the nuclear fuel cycle. This includes the processing of Uranium and Rare Metal Ores through to the generation of nuclear-pure materials. VNIIHT’s sixty years of chemical technology experience combined with their capabilities of executing the complete cycle of rare earths research, development, and production will give Stans Energy a significant advantage relative to its competitors outside of China.

We seek safe harbour.

Contact Details
Robert Mackay
President & CEO
robert@stansenergy.com
647-426-1865

Jonathan Buick
Investor Relations, The Buick Group
jbuick@buickgroup.com
416-915-0915

*Rare Earth prices taken from www.asianmetal.com on October 4th, 2012

Dysprosium metal was created using a select quantity of the 99.95% dysprosium oxide produced in July (See July 12th press release for details). Gadolinium and terbium metals were produced from intermediate products remaining from historical production.

An extensive refurbishment and upgrade program has been ongoing at KRP. Select infrastructure improvements at the Kutessay II mine site have also been completed. The following is a summary of works finished to date:

• Repair and reconstruction of arc furnaces for rare earth metal production
• Work in storehouse for liquid reagents as per requirements for storage of toxic substances
• Permit approval from the Department of Drug Control and Usage for chemical reagents procurement and use in production process
• Installation of equipment at the ferrite chloride dissolution site
• Installation of equipment for filtration of oxalates of medium REE concentrates
• Installation of equipment at carbonate dissolution site
• Cleaning of 2,200 m sewage system
• Metallothermy site glazing
• Telecommunication, IT build out, and lighting installations
• Lifting beam crane repairs
• Maintenance and repair of window ventilation systems
• Repair of roofing of administrative and household building at the Kutessay II mine site

Boris Aryev, Chief Operating Officer of Stans Energy said, “Our operational testing for Heavy Rare Earth Elements at KRP is proceeding on schedule. Our company has demonstrated the capability to produce not only oxides, but also metals, which command a significant premium to oxide prices. This achievement represents a substantial milestone in our corporate development. Stans has confirmed its capability to produce a wide variety of finished products, which are crucial to secure off take agreements and ultimately, project financing. I would personally like to congratulate KRP’s Director General, Mr. Victor Kashtanov, and his entire team on their achievements thus far.

About Stans Energy
Stans Energy Corp. is a resource development company focused on progressing Heavy Rare Earth (HRE) properties in areas of the Former Soviet Union. In December 2009, Stans acquired a 20-year mining license for the past-producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant (KRP) the same plant that previously refined REEs historically from Kutessay II. The KRP was the only hard rock plant to produce all rare earth elements outside of China, producing 120 different metals, alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the former Soviet Union.

We seek safe harbour.

Contact Details
Robert Mackay
President & CEO
robert@stansenergy.com
647-426-1865

Jonathan Buick
Investor Relations, The Buick Group
jbuick@buickgroup.com
416-915-0915