Mineral Properties

Licenses to the exploration rights in the Kyrgyz Republic as of September 30, 2012:

_ Kyzyluraan

_ Aktyuz

Mining licenses in the Kyrgyz Republic as of September 30, 2012:

_ Kutessay II

_ Kalesay

(a) Kutessay II and Kalesay mining licence

On December 29, 2009, the Company acquired a mining license for the formerly producing REE mine,

Kutessay II, in Kyrgyzstan. The Company acquired 100% of the Kutessay II and Kalesay beryllium

deposits by acquiring 100% of Kutisay Mining Corp. (“Kutisay”) on the Central Asian Stock

Exchange for USD$863,550 (CAD $898,524). The only assets owned by Kutisay were licenses. There

were no known other assets or liabilities. Thus, the purchase price of USD $863,550 (CAD $898,524)

was allocated to mineral properties as USD$828,447 (CAD$861,999) to Kutessay II and mineral

property and USD$35,103 (CAD$36,525) to Kalesay. The Company also paid $26,359 in legal fees,

the amount of which was proportionally allocated between the two licenses.

During 2010, the Kyrgyz Republic Ministry of Natural Resources (MNR), reviewed and reissued

mining licences for the Kutessay II and Kalesay deposits, previously purchased by Stans Energy Corp.

via auction from the public company, Kutisay Mining. The details of these licences are as follows:

Stans Energy owns a 20-year mining licence for both Kutessay II and Kalesay with the expiry date

December 21, 2029. Within these licences, the Kyrgyz Republic MNR is to review each project's

progress at defined interim stages regulated by the each respective licensing agreement. In September

2010, the MNR issued the licensing agreement No. 2, the title of the review period for Kutessay II and

Kalesay, to December 2011 - a period chosen by the council to allow Stans the necessary time to

complete a feasibility study for Kutessay II, and develop a better understanding of the region's mining


As of June 2012, Stans Energy signed a new Licence Agreement #3 within the Company’s existing

mining licence, which is valid through 2029. Through the course of negotiations with the previous

administration for the State Agency for Geology and Subsoil use, a 30 day work stoppage was put in

place for perceived non-compliance with terms set out in Licence Agreement #3. The Company in the

Inter-district Court of Bishkek then contested this work stoppage. On October 16, 2012, the Interdistrict

Court ruled in favor of the Company; that the work stoppage was in fact illegal, and that the

Company assumed all measures for the appropriate fulfillment of obligations as set out in Licence