Stans Energy Disputes Jogorku Kenesh Committee Decision

Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans” or the “Company”) has initiated legal action in Kyrgyzstan against the decision of the committee in the Jogorku Kenesh, represented by Rep. Badykeeva that has demanded that the Company’s Licence Agreement #3 be annulled in contradiction to the earlier lawful approval by the State Geological Agency.

Stans has initiated this legal action in response to the lack of due process exhibited by this special committee under the guidance of Rep. Badykeeva, and to address fundamental errors of fact and of law made by that special committee. Further to the purported Licence annulment, this committee has recommended that the Mining Licence held by Stans for the Aktyuz ore field is put up for tender. It is Stans’ legal opinion that this action contradicts all current legal provisions set out by the Kyrgyz constitution, including those intended to protect foreign investors from false expropriation.

The Company and its Kyrgyz advisors believe this committee failed to follow Kyrgyz laws, in that it (a) failed to follow legislated inspection and investigation procedures and due process in respect of the activity of the State Geological Agency, (b) failed to consider the interests of the Company or afford the Company due process, (c) acted beyond its legislated authority and interfered in activities of the government of Kyrgyzstan and the State Geological Agency over which it had no right or capacity, and (d) now seeks to direct the State Geological Agency to implement a form of expropriation, which is contrary to the Kyrgyz law.

While this legal action is ongoing, Stans will continue to operate and develop Kutessay II under the authority of the original decision by the State Geological Agency, which remains valid. In August, Stans Energy will be commencing work programs to recondition the open pit mine and roads with the assistance of locally hired employees from the village of Aktyuz. The scope of work was set out in the extension of Licence Agreement #3 and the Company has every intention of continuing to honour and meet its obligations as set out by the State Geological Agency.

In collaboration with the current residents of the village of Aktyuz, a three member committee will be appointed by the residents to represent local interests in a public-private partnership that Stans is negotiating, again as set out in the conditions to its current Licence Agreement #3.

“We hope to resolve this issue quickly and decisively both for shareholders and for all the local stakeholders involved. To ensure continued foreign investment it is important that the rule of law is respected and transparently enacted in all cases regardless of jurisdiction. We feel that by respecting current Kyrgyz laws, as set out in the constitution, and appealing to the local courts, Stans Energy Corp.’s claims will be validated, and moving forward we can minimize future disruptions of this kind,” stated Robert Mackay, President and CEO.

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

David Vinokurov
Manager, Investor Relations

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.

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