Stans Energy Submits Documentation for Licensing Agreement for Kutessay II and Kalesay

Stans Energy Corp (TSX-V: HRE, OTCQX: HREEF)(‘Stans’ or ‘The Company’) is pleased to announce the submission of documentation for the licensing requirements to the Kyrgyz Government for the Kutessay II Heavy Rare Earth Deposit and the Kalesay Beryllium deposit.

Boris Aryev, Chief Operating Officer of Stans, states “Mining licenses in Kyrgyzstan are comprised of two parts: License Certificate for the term of the license, which in Stans’ case is for the period 2009 through to 2029; and a Licensing Agreement which typically are negotiated for periods of 2 to 5 years with the Kyrgyz Ministry of Natural Resources. This Licensing Agreement spells out what scope of work will be undertaken to move the project towards production.”

Kutessay II

By the end of December, Stans submitted a complete report on the work done on all aspects of Kutessay II to the Kyrgyz Government. Along with this submission a request to extend the LA for a period of one year was tabled as well. The work done to date will allow Stans to proceed with the plans for Phase I development to restart mining operations at the historical Soviet levels of production. Several reasons exist that necessitate the extension of the LA:

1. Stans Energy plans to build a 1 million tonnes per year mining complex, which would enable the company to achieve its’ Phase II production targets of 1500 tonnes per year Rare Earth Oxides. The planned increase in output relative to historical production rates requires construction of a new mill and tailings pond with increased capacities. Upon the original signing of LA in 2009, this expanded rate of production had not been determined and as subsequent engineering work expanded, so did the time required for proper investigation and due diligence.

2. Historically Soviet Engineers had designed Tailings Pond #5 and chosen a site for a new mill as part of their plans to expand upon the historic production levels of 1991. Upon closer inspection, Stans’ engineers found that these sites do not meet modern technological and environment requirements and thus new sites had to be chosen. Stans has identified potential sites, however engineering surveys cannot be completed until the spring of 2012.

3. The close working relationship shared between Stans and the Kyrgyz Ministry of Natural Resources was affected by the shut down and slow down periods of governmental operations, due to elections and transfers of ministerial obligations.


By the end of December, Stans submitted a complete report on work done to date on all aspects of the Kalesay deposit to the Kyrgyz Government. Along with this submission a request to extend the Licensing Agreement for two years was tabled as well. Due to inconsistencies encountered with samples taken for resource calculation in the fall of 2010 resulted from Stans’ inability to access un-weathered sampling material. Stans was required to apply to the Kyrgyz Government for access into deeper sections of the exploration adits. In the fall of 2011, Stans reopened Adit #20 to take more representative samples from the ore body. Resampling work was completed in late December and a report will be completed by the end of March 2012. This report will govern the economic extraction of the beryllium deposit

Mr. Aryev, continues on to state, “The scope of work required for the Licensing Agreement extension constitutes a large majority of topics that will be included in our Preliminary Feasibility Study, which is currently being finalized and translated for public disclosure and will highlight the economics of resuming production at Kutessay II and commencing production at Kalesay. Kalesay is currently planned to be mined out as part of the open pit operation of Kutessay II thus becoming an offshoot of Kutessay II production. This development is a prime reason for requesting a two-year extension on the Licensing Agreement for this property. Stans’ management looks forward to working closely with the Kyrgyz authorities to develop and realize the full economic potential of the Aktyuz Ore Field deposits.”

About Stans Energy
Stans Energy 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 Plant (KRP) the same plant that historically refined REEs from the Kutessay-II open pit mine. 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.

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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, and 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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