Mr. Robert Mackay reports

STANS ENERGY TO COMMENCE OPERATIONAL TESTING AT KASHKA RARE EARTH PROCESSING PLANT

Stans Energy Corp.'s plant No. 3 of the company's Kashka rare-earth-element plant (KRP) will be ready for operational testing by mid-July, 2012, and by Aug. 30, 2012, the KRP is expected to be ready to produce its first product -- heavy rare-earth oxides of dysprosium, gadolinium, and erbium to 99.99-per-cent purity.

The three heavy rare earths are to be recovered from loaded ion exchange resins located in the circuit since plant operations were suspended in the early 1990s. Since the acquisition of KRP in spring 2011, Stans Energy has undertaken an extensive refurbishment program at plant No. 3. Although plant No. 3 had not operated for nearly 20 years, much of the production equipment has remained in place and is ready to be restarted.

"We are extremely pleased with the progress made to date at plant No. 3. Through the course of our renovation and in consultation with our technical advisers at VNIIHT [the Russian Research Institute of Chemical Technology], we discovered the potential for recovering nearly two tonnes of mixed rare-earths oxides from concentrate that remains in the holding tanks. The concentrate consists of dysprosium, gadolinium, samarium, yttrium, holmium, ytterbium, erbium, thulium and lutetium. This production test run will demonstrate the operational viability of the KRP plant. This validation of our proven metallurgical processes and production assets will solidify our position as one of the front-runners to rare-earth-oxide production outside of China. In this period of transition from project development through infrastructure buildout, and ultimately production readiness, Stans Energy will continue the evaluation of other potential sources of concentrates. Above all, I would like to take this opportunity to congratulate our engineering and technical teams on this milestone achievement, and for their contribution to company progress."

The Russian Research Institute of Chemical Technology (VNIIHT) is currently designing new technology that will be incorporated into a new plant No. 1. This plant was historically used to both crack the concentrate from the milling stage and remove radioactivity before it was sent to plant No. 2 for solvent extraction. Based on consultations with VNIIHT, Stans expects the process circuit design to be finalized in third quarter 2012. This design will be incorporated into the company's bankable feasibility study (BFS), which will begin in Q3 2012.

Plant No. 2 was previously used for solvent extraction of rare earths. Stans is investigating whether to rehabilitate plant No. 2 or to construct a 1,500-tonne-per-year new plant using plastic solvent extraction equipment. Until that decision is made, pilot-scale extraction testing will be continued in plant No. 3.

We seek Safe Harbor.