VANCOUVER, BRITISH COLUMBIA--(Nov. 11, 2010) -
Prophecy Resource Corp. ("Prophecy" or the "Company")
(TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) announces that on November 9th, the Company received the
final permit to commence mining operations at its Ulaan
Ovoo coal mining project in Mongolia. Prophecy
is one of very few international mining companies to achieve such a
significant milestone. The mine is production ready, with an official
mine opening ceremony scheduled for November 20, 2010.
John Lee, CEO of Prophecy states:
"On behalf of Prophecy shareholders, I
would like to thank the Government of Mongolia for the expeditious manner
in which this permit was issued. The opening of Ulaan
Ovoo is a testament to the industrious and
skilled workforce in Mongolia. Prophecy directly and indirectly (through
Leighton Asia) employs over 65 competent Mongolian nationals and 4
expats. The Company also wishes to reaffirm its commitment to deliver
coal to local Edernet and Darkhan
powerplants in Mongolia."
The Ulaan Ovoo open pit mine is 10km from the Russian border
and within 120km from Nauski TransSiberian railway station, enabling
transportation of coal to Russia and by extension to Russia's eastern
seaports. Thermal coal prices are trading at 2 year highs at Russian
seaports due to strong demand from Asian economies.
Leighton Engineering is contracted to mine Ulaan Ovoo coal and
trucking operations have commenced in transporting coal by established
road for 120km from the mine site to Sukhbaatar
rail station. The coal then travels either south to local Mongolian
thermal powerplants or north to Russia by rail.
Prophecy has received several Russian written expressions of interest and
is working to finalize coal sales (off take) contracts with Russian
entities.
The Company is hosting a grand opening ceremony
at the Ulaan Ovoo
mine on Saturday November 20th. Key guests will include political and
community leaders, key supporters, analysts, shareholders and Prophecy
staff. Those with interest to attend this special event should RSVP invite@prophecyresource.com.
Details on Ulaan Ovoo
Prophecy has a 100% interest in the 208.8
million tonne (174.5 Mt Measured, 34.3 Mt
Indicated) and (35.9 Mt Inferred) Ulaan Ovoo Mine that features Bituminous (5,204 kcal/kg),
low ash (12.46%), low sulphur (0.40%) thermal
coal suitable for export markets. The deposit features a single massive
coal seam 45-80 m thick with an average strip ratio of 2:1. (See press
release dated April 29, 2009 and pre-feasibility study of Minarco Mineconsult dated
May 8, 2009, both as filed on SEDAR) The Mongolian Government has granted
the project a fully transferable 30 year mining license that can be
extended by an additional 40 years. The project has met Mongolian
environmental approvals as per the Mongolian Ministry of Nature and the
Environment which approved a Detailed Environmental Impact Assessment
(DEIA) and Environmental Protection Plan (EPP) specifically for Ulaan Ovoo. The technical
information in this news release has been reviewed and approved by Danniel Oosterman P. Geo, a
Prophecy geologist and also a Qualified Person as defined by NI 43-101.
About Prophecy Resource
Prophecy Resource Corporation is an internationally
diversified company engaged in developing energy, nickel and platinum
group metals projects. The company controls over 1.4 billion tons of
open-pittable thermal coal in Mongolia (839 Mt
Measured, 579 Mt Indicated). Prophecy's Ulaan Ovoo coal deposit in Mongolia is in production. In
Canada Prophecy owns Wellgreen PGM Project in
Yukon, Lynn Lake Nickel Sulphide Project in
Manitoba, and a 10% equity stake in Victory Nickel. Mineral resources
that are not mineral reserves do not have demonstrated economic
viability.
ON BEHALF OF THE BOARD OF DIRECTORS of Prophecy
Resource Corp.
John Lee, Chairman
Forward Looking Statements: This news release
includes certain statements that may be deemed "forward-looking
statements". All statements in this release, other than statements
of historical facts, including, without limitation, statements regarding
future plans and objectives of the companies are forward-looking
statements that involve various risks and uncertainties. Although
Northern and Prophecy believe the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking
statements. Forward-looking statements are based on a number of material
factors and assumptions. Factors that could cause actual results to
differ materially from those in forward-looking statements include
general economic, market or business conditions, and other risks detailed
herein and from time to time in the filings made by the companies with
securities regulators. Mineral exploration and development of mines is an
inherently risky business. Accordingly the actual events may differ
materially from those projected in the forward-looking statements. For
more information on Northern and Prophecy and the risks and challenges of
their businesses, investors should review their annual filings that are
available at www.sedar.com.
This press release does not constitute an offer
to sell or a solicitation to buy any of the securities in the United
States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended ("the
U.S. Securities Act") or any state securities law and may not be
offered or sold in the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.