Mr. Robert Mackay reports

STANS ENERGY ANNOUNCES PRODUCTION OF DYSPROSIUM OXIDE FROM KASHKA PLANT

Stans Energy Corp. has successfully separated dysprosium oxide from its stockpile of resins at the Kashka rare-earth plant.

To date the company has separated dysprosium from the resins remaining from past production runs, yielding 50 kilograms of dysprosium oxides ahead of target as outlined in the company's press release dated June 12, 2012. The technical teams at KRP have been able to separate:

• 15 kilograms of dysprosium oxide grading 99.95-per-cent purity;
• 15 kilograms of dysprosium oxide grading 99.9-per-cent purity;
• 20 kilograms of dysprosium oxide grading 99.5-per-cent purity.

"The successful first phase of our operational testing of the ion exchange columns is extremely encouraging. Over the course of the next several months our engineering teams will continue to upgrade the purities of finished oxides that the KRP will be producing. Our ion exchange equipment will be able to provide the high-purity oxides that are crucial for specialized end-users, specifically 4N+ purities. Once VNIIHT completes the design of the new cracking facility (plant No. 1), Stans Energy will have the capability to employ cutting-edge rare earth technologies starting with beneficiation through to high-purity oxide production," states Robert Mackay, president and chief executive officer.

Plant design, refurbishment and operational testing are continuing, and once the test run is completed by the fourth quarter of 2012 on the entire batch of 48 tonnes of resins, a full chemical analysis of produced oxides and pure metals will be released.

We seek Safe Harbor.