Stans Closes Acquisition of KCMP Heavy Rare Earth Processing Complex

Stans Energy Corp. (TSX-V: RUU, OTCQX: HREEF) ('Stans? or 'the Company?)
has completed its $5,500,000 USD transaction for 100% ownership of the
Kyrgyz Chemical Metallurgical Plant (KCMP) Rare Earth Processing Complex
and Private Rail Terminal, pursuant to the agreement signed on January 13^th,
2011, and further approved by the KCMP shareholders on February 18^th,
2011. TSX-V approval for this acquisition was obtained on April 29,
2011. The Complex has been legally renamed, 'Kashka REE Plant Ltd.
(KRP)?.

Stans has hired Mr. Leonid A. Bulyonkov as a Director General of KRP.
Mr. Bulyonkov started his engineering career at KCMP. During his career,
Mr. Bulyonkov worked closely with the Russian Institutes VNIIHT, VIMS,
GIREDMET, and IHHT. He has coordinated large scale rare metal processing
operations, while supervising up to 1000 people. From 2008 to 2010, Mr.
Bulyonkov worked at the Karabalta Ore Mining Complex OJSC in Kyrgyzstan,
acting as Chief Engineer ? Deputy Director General. Amongst his peers,
Mr. Bulyonkov is recognized as a rare metals and radioactive processing
specialist.

Robert Mackay, President and CEO of Stans Energy stated, 'The completion
of this transaction is a crucial step towards achieving our goal of
becoming a near term producer of Heavy Rare Earth Elements (HREEs). We
are very fortunate to add Mr. L. Bulyonkov to our team as our Head of
Operations at KRP and we are confident that he will be able to use his
extensive experience to efficiently reestablish a rare earth production
line at the Facility. Mr. L Bulyonkov has already initiated plans for
design and capacity upgrades to KRP.?

KRP Details and Historical Production Flow Sheet

For almost three decades the KCMP Rare Earth Processing Complex produced
80% of the former Soviet Union′s RE products. The facilities and the
rail terminal were used to produce and transport materials, equipment,
chemicals and final product to and from markets when the Kutessay II RE
mine was last in production. The Kutessay II mine is now 100% owned by
Stans Energy. When the KCMP Rare Earth Processing Plant was last in
operation the processing facilities comprised of four individual plants
that were part of a much larger industrial complex.

Plant 1

Plant 1 has been decommissioned and will not be used in Stans′ new
design. This is because much of the past technology used in Plant 1
would not be used today, as newer Sorption technology has proved to be
more efficient and less damaging to the environment when removing
radioactive materials.

Historically, RE feed from the Kutessay II mine was brought to Plant 1
to be refined into a new, higher grade concentrate. At this stage, the
radioactivity was removed through roasting. Modern technologies have
made this step redundant.

Plant 2

Plant 2 separated the mixed rare earth solution from Plant 1 and
produced light rare earth (LRE) concentrate (La, Ce, Pr, Nd), middle
rare earth (MRE) concentrate (Sm, Eu, Gd), heavy rare earth (HRE)
concentrate (Tb, Dy, Ho, Er, Tm, Yb, Lu) and Yttrium Oxide (Y₂O₃).
The equipment in Plant 2 is intact, but has been removed from the
building and stored at a location 4 km away for security purposes. Stans
intends to refurbish and reassemble Plant 2.

Plant 3

Plant 3 separated the MRE and HRE concentrates into final oxides,
metals, alloys, nitrate solutions, and final oxides and metals of the
LREEs Lanthanum (La) and Cerium (Ce). This Plant was where the various
complexing, elutriation, and regeneration solutions were prepared. The
process was carried out on a batch system where the conditions in the
ion exchange columns (linear flow, solution, complexing, elutriating
solution concentration solution, etc.) were specific for each REE. The
Rare Earths were then precipitated as the oxalate (carbonate), filtered
and washed and then dried and calcined to rare earth oxide (REO). The RE
metal section involved the production of metals from the REOs through
various electrical, induction and arc furnaces.

The Soviets never used Plant 3 to its full capacity as uses for HREEs
were limited between 1965 and 1990. In the late 80s, the Soviets
initiated plans for the Plant′s expansion to process 3 to 4 times the
amount at which it had previously operated. The industrial building
expansion was completed when the Plant ended operations in 1991. Some
new equipment was delivered to and stored on site but this equipment has
not yet been installed.

The Plant continued to process small amounts of remaining HRE
concentrate into final metals up until 2009. The last of its HREE
concentrate and final products were sold in 2010. Plant 3 is in good
working condition.

Plant 4

Plant 4 separated light rare earth concentrate from Plant 2 into
individual rare earth oxides. Like Plant 2, much of the equipment from
Plant 4 was removed and stored at a secure location. A feasibility study
will determine whether Stans Energy will produce and sell light rare
earth concentrate derived from Plant 2, or reassemble Plant 4 to produce
final oxides.

Rail Terminal

The newly purchased rail terminal connects to the Central Asian Rail
Network, which connects to Russia and all countries in Asia including
China, Korea, and by ferry to Japan. The purchase of the Rail Terminal
includes a gantry crane, two warehouses, two offices, and a weigh
station. The land purchased with the rail terminal amounts to 143,500 m².
The rail terminal is roughly 15 km from the KMCP Processing Plants by
paved road, and is roughly 35 km away from the Kutessay II mine by paved
road.

Equipment Inventory and Industrial Space

In an independent assessment of the equipment, it was determined that
97% of the equipment purchased which had been previously used for
processing rare earths were in either good, or satisfactory operating
condition, and only 3% required repair. Stans has published a full list
of the inventory included in the purchase and can be found at www.stansenergy.com/rare-earth-processing/.
The total industrial space in Plants 2 and 3 totals 21,812 m².

Capacity Old & New

Previously, the entire REE processing facility operated at approximately
500 mt/annum of final rare earth product. During its time in operation,
its capacity varied depending on which products were needed and at what
purities. 120 different final rare earth products were produced,
including oxides, metals and alloys of all lanthanides with purities up
to 99.99%. In the late 80s, the Soviets initiated plans to expand the
operating capacity to 1500 mt, but never finished the expansion. A
feasibility study will determine the optimal scale at which to bring
Kutessay II back into production.

Stans Energy has engaged the Russian Institutes that initially designed
and built KCMP to help redesign and refurbish the Facilities to create a
new and more efficient source of rare earth supply. New technologies and
solvents that were unavailable during the Soviet era will be tested in
an effort to further improve the Plant′s efficiency.

Robert Mackay,

President and CEO, Stans Energy Corp.

Ph.
647 426 1865

Email: robert@stansenergy.com

or

Jonathan
Buick,

Investor Relations, The Buick Group

Ph. 416 915 0915

Email:
jbuick@buickgroup.com

www.stansenergy.com