TORONTO, ONTARIO--(Marketwired - Aug. 31, 2016) - Khan Resources Inc. ("Khan" or the
"Company") (CSE:KRI) announces that the majority of US$ funds received from the Government of Mongolia in
settlement of an international arbitration award have now been converted to Cdn$ at the average rate of 1.3050. The Company
restates that the rate used to convert US$ cash balances to Cdn$ for the financial statements as at June 30, 2016 was 1.2942.
This announcement is made pursuant to requests by a number of shareholders (primarily hedge funds) to provide notice of any
conversion.
Forward-Looking Statements and Information
This press release may contain forward-looking statements and forward-looking information, including the timing, completion
and anticipated benefits of the sale of Khan Bermuda, which are subject to certain risks, uncertainties and
assumptions. Forward-looking statements and information are characterized by words such as "will", "plan", "expect",
"project", "intend", "believe", "anticipate", "forecast", "schedule", "estimate" and similar expressions, or statements that
certain events or conditions "may" or "will" occur. Forward-looking statements and information are not historical facts and are
based upon a number of estimates and assumptions and are inherently subject to significant business, social, economic, political,
regulatory, competitive and other risks and uncertainties, contingencies and other factors, including the impact of
international, Bermuda, Netherlands, BVI, Mongolian and Canadian laws, trade agreements, treaties and regulatory requirements on
Khan's business, operations and capital structure, regulatory uncertainty and obtaining governmental and regulatory approvals,
legislative, political, social, regulatory and economic developments or changes in jurisdictions in which Khan carries on
business, changes in market conditions, changes or disruptions in the securities markets and market fluctuations in prices for
Khan securities, the existence of third parties interested in purchasing some or all of the common shares or Khan's assets, the
method of funding and availability of any potential alternative strategic transactions involving Khan or its assets, including
those transactions that may produce strategic value to shareholders, fluctuations in currency exchange rates and interest rates,
including fluctuations in the value of the United States dollar and the Canadian dollar, changes in national and local government
legislation, taxation, controls, regulations and political or economic developments in Canada, Bermuda, the Netherlands, Mongolia
or the British Virgin Islands and any other jurisdiction in which the Company carries on business, political instability,
insurrection, war or terrorism, hostilities and the occurrence of natural disasters; requirements for additional capital;
environmental risks, the need to comply with national and international laws, regulations, treaties or other similar
requirements. In addition, a number of other factors could cause actual results to differ materially from the results discussed
in such statements and information, and there is no assurance that actual results will be consistent with them. Many of these
risks, uncertainties and contingencies can affect the Company's actual results,
performance, events or achievements and could cause actual performance, actions, events or results to differ materially from
those expressed or implied in any forward-looking information. All of the forward-looking information in this press release
is qualified by these cautionary statements. There can be no assurance that forward-looking information will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such statements containing
forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. For
further details, reference is made to the risk factors discussed or referred to in Khan's annual and interim management's
discussion and analyses and Annual Information Form on file with the Canadian securities regulatory authorities and available on
SEDAR at www.sedar.com. Such forward-looking statements and information are
made or given as at the date of this news release, and Khan 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.