State Geological Agency Confirms Stans’ Compliance With Licencing Agreement

Stans Energy Corp. (TSX-V: HRE, OTCQX: HREEF), (“Stans” or the “Company”) is pleased to report that the Kyrgyz State Geological Agency decided not to annul the Company’s licence agreement as recommended by a parliamentary committee as previously reported.

Stans Energy was granted the extension to Licence Agreement #3 on a lawful basis and the original decision by the State Geological Agency is legally binding. The lawsuit against a committee in the Kyrgyz parliament (Jogorku Kenesh) will still be pursued in the courts to ensure that rule of law is enforced and Stans’ shareholders’ rights are protected.

“It is extremely reassuring that Stans has been provided with statements of support from the State Geological Agency (SGA) maintaining the Company’s legal standing. We will continue negotiating the parameters of a public-private partnership, with the SGA, as set out in the previously granted framework on June 15, 2012. Although the lawsuit against the committee in the Jogorku Kenesh is ongoing, we are eager to continue to working closely with the officials and experts at the SGA. The aim of court action is to have the committee cease and desist from making further false claims against the company and its operations, and we are optimistic that given our day in court, Stans will be able to fully assert our legal position,” states Robert Mackay, President and CEO.

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 Kyrgyz law.

The Company is also pleased to announce the addition of Mr. Temerbek Kenenbaev to its Board of Advisors. Mr. Kenenbaev graduated from the Kyrgyz State National University in 1973 and has led a successful career as one of the top jurisprudential experts in Kyrgyzstan. His vast experience in roles as Chairman of the Court for the International Arbitration Court in Kyrgyzstan, Deputy Chief of the Law Department of the President’s Administration of the Kyrgyz Republic, and Chief of the Law Department of the Jogorku Kenesh of the Kyrgyz Republic, will be a tremendous asset to the Company. Mr. Kenenbaev is currently a Senior Partner at Partners Law Firm, Stans’ current legal counsel in Kyrgyzstan.

In consideration of his role on the Board of Advisors, Mr. Kenenbaev has been granted 350,000 incentive stock options, as approved by the Board of Directors on August 2, 2012, at an exercise price of $0.61 as of the market close on July 27, 2012, expiring on August 2, 2017. This grant is subject to TSX Approval.

Robert Mackay, President and CEO of Stans Energy, is pleased to announce the promotion of Mr. David Vinokurov to Vice President of Corporate Development. “David has become an integral part of the Stans Energy leadership team and will now focus on building our corporate awareness in The Kyrgyz Republic and begin developing the framework for the public private partnership with the people of Kyrgyzstan”.

Subject to TSX Venture Exchange approval, The Buick Group has been retained to provide Investor Relations services in replacing Mr. Vinokurov. The Buick Group, which previously functioned as the Investor Relations agency for Stans, is a Toronto based capital markets advisory firm that assists private and publicly traded companies in strengthening brand recognition in global financial markets. The Buick Group provides business management services in the areas of strategic planning, shareholder relations and capital formations strategies. Under the terms of the agreement, Stans Energy will pay The Buick Group a monthly retainer fee of $5,000 for investor relations services commencing immediately. The initial term of the contract is three months and may be extended on a month to month basis thereafter.

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

Jonathan Buick
Investor Relations, The Buick Group

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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