Prophecy Resource Corp.
TSX VENTURE : PCY
FRANKFURT : 1P2
OTCQX : PRPCF

Prophecy Resource Corp.

November 11, 2010 08:31 ET

Prophecy Receives Permit to Mine at Ulaan Ovoo in Mongolia, Opening Ceremony November, 20

VANCOUVER, BRITISH COLUMBIA--(Marketwire - 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.

To view the figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/pcy_11_11_2010_figure.pdf

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.

"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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