Prophecy Resource Corp.

Prophecy Resource Corp.

March 11, 2011 18:21 ET

Prophecy Makes Strategic Investment in Compliance Energy Corporation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 11, 2011) - Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) reports that it has acquired 5,000,000 common shares of Compliance Energy Corporation ("Compliance"), representing approximately 8% of Compliance outstanding shares by means of a non-brokered private placement. Compliance's majority interest is the Raven Coking Coal Project located on Vancouver Island, Canada in addition to other coal projects totaling 75,000 associated exploration and development acres. The investment represents Prophecy's first foray into the metallurgical coal market to complement its substantial 100% owned open-pittable thermal coal resources in Mongolia (839 Mt Measured, 579 Mt Indicated). The Raven Underground Coal Project contains high volatile A Bituminous coal suitable for targeting the metallurgical coal market as a blend product or the thermal coal market. The project is owned 60% by Compliance Energy and 40% by a subsidiary owned by Itochu Corporation of Japan and LG International Corp. of Korea. Prophecy paid CDN $1,750,000 (or $0.35 per share) for its interest in Compliance Energy. The total coal tonnage at the Raven Underground Project (as reported by Pincock, Allen and Holt in its NI 43–101 resource estimated in April 2010) is 71,998,201 tonnes of measured and indicated and 59,430,517 tonnes of inferred.

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 mine is fully commissioned. In Canada Prophecy owns Wellgreen PGM Project in Yukon, Lynn Lake Nickel Sulphide Project in Manitoba, and a 10% equity stake in Victory Nickel. On February 17, Prophecy Agreed to sell its PGM Nickel assets to Pacific Coast Nickel Corp. for 450 million Pacific Coast Nickel shares. Mineral resources that are not mineral reserves do not have demonstrated economic viability.


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 Prophecy believes 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, regulatory, 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 Prophecy and the risks and challenges of its business, investors should review filings that are available at

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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