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CHANDGANA HIGHLIGHTS

Only 9 km apart, both projects are part of same coal deposit
1,211 million tonnes of Measured & Indicated coal resource (NI 43-101)
Consists of a shallow, 37.7-45.4 metre thick coal seam with good outcrop access on the license area
Coal is well suited to 600MW mine mouth power plant, with extension to eventual 4,200MW
Strip ratio over entire resource is 1.9:1
Low ash (12.49%), very low sulfur (0.68%) and with a Calorific value of 4,354 kcal/kg thermal coal
Proximity to infrastructure, next to planned two 220 kV lines connecting to the main Mongolian grid
Chandgana is within 160km from rail, 45 km North of the proposed railway, 16 km from paved highway, and 150 km from 2x220kv power line

NEXT STEPS

On Fenruary 8, 2011, Prophecy obtains full mining license for its 141-million-tonne Chandgana Tal coal deposit.
On November 15 ,2010, Prophecy receives the approval of the Detailed Environmental Impact Assessment (DEIA) pertaining to the construction of a pit-mouth 600MW coal fired power plant by the 1.2-billion-tonne Chandgana Coal Project.
On August 16 ,2010, Prophecy reports the successful drilling of its Chandgana Khavtgai property, reporting an increase in the total Measured and Indicated resource of 1,211 million tonnes.
On June 21 ,2010, Prophecy reports the successful completion of its spring exploration program on its 100% owned Chandgana-Khavtgai license in Khentii aimag (province), Mongolia. The work program consisted of 12 drill holes for a total of 2,205 metres including 903 metres of core drilling, and five lines of seismic geophysical survey for a total of 7.4 line km. Updated NI 43-101 resource report is expected by August.