Prophecy Coal Професи

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

Vancouver, British Columbia, November 11, 2010: Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX-V: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 [email protected]. Update: Click here to view mine opening ceremony photos.

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.

ON BEHALF OF THE BOARD OF DIRECTORS Prophecy Resource Corp.
"JOHN LEE"
John Lee
Chairman
For more information about Prophecy, please contact Scott Parsons at +1.604.642.2625 ext. 106, Paul McKenzie at +1.604.642.2625 ext. 107 or John Lee at +1.800.851.1528. Email: [email protected]

Mineral resources that are not mineral reserves do not have demonstrated economic viability. 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. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in discovery of a mineral resource.  

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.  

 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 potential mineralization, the estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company 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 failure to obtain necessary approvals in respect of the Transaction, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with operating in foreign jurisdictions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. 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 their businesses, investors should review their annual filings that are available at www.sedar.com.

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

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.