Mr. Rodney Irwin reports

STANS ENERGY APPEALS INTER-DISTRICT COURT JUDGMENT

Stans Energy Corp. has filed an appeal to the Bishkek City Court in response to the ruling from the Inter-District Court of Bishkek in favour of the Kyrgyz General Prosecutor's Office (GPO) claim against Stans's wholly owned Kutessay II project.

This administrative case was filed on March 26, 2013, against the State Agency on Geology and Mineral Resources (SGA) under the government of the Kyrgyz Republic to annul the Dec. 21, 2009, minutes of negotiations (registration No. 1736-H-09) between the SGA and public company OJSC Kutisay Mining (100 per cent owned by the government of Kyrgyz Republic). Kutisay Mining LLC is involved in the case as a third party.

On March 19, 2014, the Bishkek Inter-District Court granted the claim of the GPO and cancelled minutes No. 1736-H-09 of the direct negotiations between the SGA and OJSC Kutisay Mining dated Dec. 21, 2009. This ruling thus invalidates the process in which the mining licence for Kutessay II was acquired.

The primary rationale behind the judgment of the Bishkek Inter-District Court was that the SGA was not objecting to the facts of the case as put forth by the GPO, which had been submitted to the court on May 29, 2013. Stans believes the SGA's conduct of the SGA's own defence was improper, and, as a consequence, the GPO was able to prevail in the interdistrict court.

Based on this and other mitigating factors, the company has filed an appeal to the Bishkek City Court seeking to:

1. Annul the Bishkek Inter-District Court judgment dated March 19, 2014;
2. Dismiss the claim of the General Prosecutor's Office of the Kyrgyz Republic for cancellation of minutes No. 1736-H-09 of direct negotiations between the State Agency for Geology and Mineral Resources under the government of the Kyrgyz Republic and OJSC Kutisay Mining dated Dec. 21, 2009.

Stans international arbitration suit is continuing with the next hearing scheduled for April 29, 2014. A final decision will be handed down shortly thereafter regarding the $117,853,000 (U.S.) claim brought by the company against the government of the Kyrgyz Republic.