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"We recommend the shares of Khan Resources Inc. as a SPECULATIVE BUY with a 12-month target price of $7.30 per share, which is based upon applying a 1.3× multiple to our NPV(15%) valuation of our 4,000 tpd scenario for the Company’s Dornod project.As the project advances through pre-feasibility and into bankable feasibility, and the Company acquires an investment agreement from the Mongolian government, we expect its risk profile and economics to improve and for our valuation to be adjusted accordingly."(5/10/07)

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