Prophecy Resource Corp - FAKTENTHREAD -

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Watch John Lee Presents in a Packed Workshop in Cambridge Calgary 2010 Part 1

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Über Prophecy Resource Corp.
Prophecy Resource Corp. ist ein kanadisches Unternehmen mit einem diversifizierten Portfolio
an Rohstoffliegenschaften. Das Unternehmen führt derzeit eine Fusionierung durch, mit der es
in den Besitz von 43-101-konformen gemessenen und angezeigten Ressourcen im Umfang von
243 Millionen Pfund Nickel, 1 Milliarde Tonnen Kohle und 124 Millionen Pfund Kupfer sowie
abgeleiteten Ressourcen im Umfang von 500 Millionen Tonnen Kohle und 593 Millionen Pfund
Kupfer gelangen würde. Das Unternehmen besitzt außerdem Grundstücke mit umfangreichen
potenziellen Vanadium- und Titanvorkommen. Das Unternehmen bietet eine diversifizierte
Financial Leverage auf steigende Rohstoffpreise.
...


http://www.prophecyresource.com/pdf/PCY_Ger.pdf



Ulaan Ovoo Coal Project

Overview | Resource

Ulaan Ovoo Coal Project Overview

Highlights

* 208.8 million tonnes of Measured & Indicated coal resource (NI 43-101)
* Bituminous (5,204 kcal/kg), low ash (12.46%), low sulphur (0.40%) thermal coal suitable for export
* 20+ year mine life supported at over 6 million tonnes per year
* Single massive coal seam 45-80 m thick with an average strip ratio of 2.1:1
* First 8 years requires no washing
* Transferable 30-year mining license with a 40-year extension option
* Environmental approval and mining licenses granted by the Mongolian government
* NI 43-101 compliant Technical Report and Scoping Study prepared by Behre Dolbear (U.S.A.)
* Detailed NI 43-101 Pre-feasibility Study by Minarco-MineConsult (Australia)
* A Mongolian Technical and Economic Study by AMC Consulting is being submitted to the Mongolian government
* Over 33,000 hectares of exploration licenses in surrounding sedimentary basins with potential for additional resources

Next Steps

* To sign off-take agreemetns with internationally recognized partners
* To commission Ulaan Ovoo and start production by end of 2010



Kohleprojekte Ulaan Ovoo, Chandgana Tal und Chandgana Khavtai (RH)
Das Kohleprojekt Ulaan Ovoo befindet sich in 10 km Entfernung von der Grenze zu Russland (nördliche Mongolei) und liegt 120 km
östlich der transmongolischen Eisenbahnstrecke, die das Projekt mit den riesigen Kohlemärkten Russland und Asien verbindet. Das
Projekt beherbergt 174,5 Millionen Tonnen gemessene, 34,3 Millionen Tonnen angezeigte und 35,9 Millionen Tonnen abgeleitete
Ressourcen an Kraftwerkskohle. Diese hochwertige Kohle hat einen relativ niedrigen Asche- und Schwefelgehalt und einen Heizwert von
5,204 KCAL/KG LB und wird in der Region stark nachgefragt. Die Kohleressourcen weisen eine durchschnittliche Flözdicke von 53,9
Meter auf.

China & Japan FY2010/11 Coal Term Price Up 47%


April 27, 2010 - Chinese miners and Japanese utilities have agreed to a 47 percent rise in the coal term price for fiscal year 2010/11 starting in April, a trading source familiar with the situation said on Tuesday.

The price for thermal coal with calorific value of 5,800 kcal/kg (NAR) will be $115.5 a tonne, free on board (FOB), up from last year's $78.50 a tonne, the source said.

The volume on the deal is yet to be confirmed but is expected to stay at a level similar to last year.

"It will be a little over 1.2 million tonnes, and expected to be settled on Friday," said the source.

In 2009, China's coal exports to Japan shrank more than half from a year earlier to 6.4 million tonnes, as demand in Japan dwindled during the global financial crisis and robust coal consumption in China made domestic prices more attractive to miners.

The term price would include China's 10-percent export tax on coal, Tex Report said.

Source: Reuters

http://www.eastfieldresources.com/s/NewsReleases.asp?ReportI…

May 03, 2010
Eastfield Resources Announces the Return of the Zymo Copper-Gold Project

--------------------------------------------------------------------------------

Vancouver, BC, May 3, 2010 - Eastfield Resources Ltd. "Eastfield" (TSX-V: ETF) has been notified that NGEx Resources Inc. (formerly Canadian Gold Hunter) has terminated its option to earn an interest in the 10,790 hectare Zymo copper-gold property 45 km by road west of Smithers, BC. Eastfield is currently planning the next program on this exciting project and expects to conduct a significant exploration program on the property this season. Eastfield has an option to earn a 100% interest, subject to an NSR, in the Zymo property from a private company.

Eastfield optioned the property in 2007 and completed a reconnaissance exploration program that same year that resulted in the discovery of a new copper-gold porphyry occurrence now named the Hobbes Zone. In 2008 an extensive exploration program of geochemical sampling, geophysical surveying, geological mapping and core drilling significantly expanded the property's potential. An IP chargeability anomaly associated with extensive rock alteration was outlined, extending for over 6.0 km (open ended) with widths of 2.0 to 3.0 km. Within this large area are four exploration targets now known as the FM (where Freeport McMoRan drilled six holes in 1999), Hobbes, RD and URC.

The Hobbes Zone is the most advanced to date and has been tested with nine drill holes. All holes intersected significant mineralization and have outlined an open ended mineralized zone that extends more than 600 m. The most westerly hole, ZY-09-16, intersected the longest interval of mineralization to date and indicates the potential for extensions to the west and south. Hole ZY-09-14 was a vertical hole drilled at the site of ZY-08-9 (72.0 m of 0.72% copper; 0.54 g/t gold) and ZY-09-10 (57.0 m of 0.43% copper; 0.32 g/t gold) and confirmed that mineralization continues to greater depths at this location where a mineralized interval of 273 m was intersected. Drill hole ZY-08-12, located 1.0 km southwest of the Hobbes Zone, intersected 99.00 m of 0.11% Cu and may indicate a significant potential for extending the zone in this direction (for more detail a table summarizing all of Eastfield's drilling results is attached and additional information including maps may be viewed on the website at www.eastfieldresources.com).

The URC target is 1.5 km west of the Hobbes Zone and is characterized by a 1.5 km long coincident copper-gold in soil anomaly. This target is beyond the end of the geophysical grid in an area with no outcrops; however, a sample of mineralized float was found in this area that returned 0.33% copper and 0.22 g/t gold. This untested target further expands the discovery potential for the property.

Eastfield is pleased to have the Zymo property returned with significant advancements and new targets and is very excited about the exploration potential of the project. Eastfield is currently developing plans for a program this season.

G.L. Garratt, P.Geo., who is a qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release

Glen Garratt, P.Geo, Director.

Eastfield Resources Ltd.

Contact:
Paul Way, Business Development Manager
(604) 681-7913 or Toll Free: 888-656-6611


About Eastfield Resources:
Eastfield is a Canadian mineral exploration company focused on the discovery of gold and copper deposits; it currently has seven projects in British Columbia and one in Nevada. Current projects include an option to earn a 100% interest in the Zymo copper-gold project; a 100% interest in the Indata gold project; a 40% interest in the Okeover copper-molybdenum joint venture with 60% partner Prophecy Resource Corp. (TSX-V: PCY) and a 100% interest in the Tonopah gold project in Nevada. Projects optioned out include Crowsnest and Howell, optioned to MAX Resource Corp. (TSX-V: MXR); Kilometre 26, optioned to Oroandes Resource Corp. (TSX-V: OAR); and Iron Lake, optioned to Cobre Exploration Corp. (TSX-V: CKB-H). Eastfield trades on the TSX Venture exchange under the symbol "ETF". For more information, please visit the company's website at www.eastfieldresources.com.

China's Coal Price Rises as Drought Cuts Stockpiles



May. 6, 2010 (Bloomberg) - Coal prices at Qinhuangdao, China's largest port for the fuel, gained the most in more than four months as demand increased amid a drought in the southwest.

Prices for coal with an energy value of 5,500 kilocalories per kilogram rose 2.8 percent to between 720 yuan ($105) and 730 yuan a metric ton as of yesterday compared with a week earlier, according to data from the China Coal Transport and Distribution Association. That's the biggest increase since Dec. 28.

China, the world's second-biggest electricity producer, is counting on its coal-fired power plants to offset a reduction in hydropower because of a dry spell in the southwest that's lasted six months. Coal inventories at Qinhuangdao have fallen 43 percent in the past two months to 4.62 million tons, according to data from Shanghai Steelhome Information.

"Hydropower capacity utilization is down because of the drought," Andrew Driscoll, an analyst at CLSA Asia-Pacific Markets, said by telephone from Hong Kong. "There has been some rainfall and some relief but generally water levels are lower than what they'd normally be."

China ended its "grade two" emergency drought response measures after rain fell in some of the hardest-hit southwestern regions, Xinhua News Agency said yesterday, citing the Office of State Flood Control and Drought Relief Headquarters. Drought conditions in most parts of Yunnan province remained "severe," it said.

Source: Bloomberg



Prophecy Resource Corp.

For further information:
John Lee - Chairman and CEO
Telephone 1.800.851.1528
Email: john@prophecyresource.com
www.prophecyresource.com

"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."

www.ProphecyResource.com TSX-V: PCY

China's Transition From Net Coal Exporter To Big Importer

May. 7, 2010 (Financial Times) - A shift in demand: coal miners in Shanzi province clock off. Though China's annual output is the biggest of any nation, its fragmented industry fails to meet the country's rapidly rising needs In early 1994, the International Energy Agency released a statistic that attracted little attention but years later would transform oil markets and the global economy. China, the west's energy watchdog said at the time, had just become "a net importer of oil on an annual basis for the first time since the 1960s".

The consequences became obvious as China's voracious energy needs propelled the country towards its current ranking as the world's second-largest oil importer, behind only the US – in the process pushing crude prices to a record high of nearly $150 a barrel in 2008. Beijing, which in 1993 imported a mere 30,000 barrels a day, about as much as Ireland does now, is these days buying 5m barrels a day – or the combined production of Kuwait and Venezuela.

Commodities analysts and executives say the shift in 1993 was an example of a "China moment" – what happens when the world's most populous country moves from being an exporter to a net importer of a particular resource (or vice versa in the case of finished goods).

The impact on prices is often not immediately clear. But over time, as the country's import needs grow larger and larger, prices generally rocket. It happened with oil and other commodities including soyabeans, as demand in China proved too much for its own geological or agricultural endowments.

Now it is the turn of coal. Last year, China became a net importer of coal on an annual basis for the first time since reliable records have existed. Including both thermal coal, used to fire power plants, and coking coal, used for steelmaking, Beijing bought 104m tonnes of the commodity, compared with net exports of as much as 80m tonnes in 2003.

The shift is helping to revive the coal industry. After decades of being marginalised in the developed world, coal is being buoyed by the requirements of China and India on top of already huge imports elsewhere in Asia, including Japan, South Korea and Taiwan. The speed of the upturn in demand has surprised many and the industry is not best placed to cope. Bottlenecks in exporting countries will hamper its ability to deliver. But while those may be resolved over time, the fundamental change wrought by China and others will be with us for longer.





THE MINER'S SCALE

How coal is calibrated

As global coal imports surge, quality becomes increasingly important. Mining executives divide the market among four main varieties based on carbon and moisture content: lignite, sub-bituminous, bituminous and anthracite.

The quality of each coal deposit is determined by temperature and pressure and length of time in formation. Initially, peat is converted into lignite. Over many more millions of years, temperature and pressure produce further changes in the lignite, transforming it into sub-bituminous coals; then into bituminous; and, finally, anthracite. The mining industry has being awaiting this new "China moment" to profit from a rise in prices. In interviews, mining executives, consultants, analysts and traders say China will need to buy significant amounts of coking coal from overseas from now on and probably also thermal coal.

Marius Kloppers, chief executive at BHP Billiton, the world's largest miner, says he recalls how the company almost a decade ago sent executives to Chinese coal mines to gauge when demand there was likely to overwhelm indigenous supplies. "We have been waiting for this moment to happen," he says. "While we are not sure that 2010 will be an exact repeat of 2009, we do expect the trend towards imports in this product to continue."

The effects, on the industry but also on moves to curb carbon emissions, will be widespread.

Traded volumes on the seaborne coal market are set to reach 1bn tonnes a year about the middle of this decade, a remarkable growth from less than 50m tonnes in the early 1970s. This bodes well for miners such as Xstrata, the world's largest coal exporter, PT Bumi Resources of Indonesia, Anglo American and Rio Tinto. The battle to secure mines to supply China has already begun, with Hong Kong-based trader Noble Group fighting Peabody Energy, the US-based miner, for control of Macarthur Coal, the Australian miner. Global trading houses are also likely to benefit. Glencore, both the world's largest commodities trader and the largest coal trader, is particularly well positioned to cash in on China's needs.

Low rank LigniteAccounts for 17 per cent of global coal supplies. Used mainly to fire power plants. Crumbly in texture and ranging from dark black to shades of brown, it has the highest moisture content of the coal varieties. Carbon content

ranges from 25 to 35 per cent. Deposits tend to be relatively young. Sub-bituminous Accounts for 30 per cent of global supplies, mostly used in electricity generation and cement industries. Typically contains 35-45 per cent carbon. Generally dull, dark brown to black in colour, and soft and crumbly.

The impact on prices has already been significant, even if muted by the global economic crisis. Thermal coal in Australia, an industry benchmark, surged this year to above $100 a tonne, and miners have concluded contracts for the year 2010-11 to supply Japanese utilities at $98 a tonne, up 40 per cent from last year. In coking coal, miners and steelmakers have closed contracts for April-June at $200 a tonne, the second-highest level yet for quarterly arrangements.

Amid these promising prospects, however, a lack of investment has left the world's largest coal ports suffering from rail and ship bottlenecks. Richards Bay in South Africa and the Australian coal terminals at Dalrymple Bay, Hay Point, Gladstone and Newcastle endure constraints that force vessels to wait weeks before they are able to load their cargo. Even if the miners expand their production, the export facilities will hamper them in selling more overseas.

Yingxi Yu of Barclays Capital says the Australian coal export terminals have faced one mishap after another in recent months, "highlighting the fragility of a system stretched thin by strong demand against years of underinvestment".

For China's own part, premier Wen Jiabao said this year it would continue to import coal as needed. "Easing demand and supply strains on coal is crucial to making adjustments to the operation of the economy," he was quoted by local media as saying. Beijing appears inclined to rely more on imports in order to conserve domestic coal reserves, which are still the world's third largest after those of the US and Russia.

Hard Bituminous Accounts for 52 per cent of global supplies, split into steam coal used for power generation and cement-making; and coking coal used in steelmaking. Formed under high heat and pressure, it contains 45-86 per cent of carbon. Black to dark brown; usually includes bright bands.

Anthracite Accounts for less than one per cent of global supplies. Used, because of its low smoke properties, primarily for residential and commercial heating. The highest quality coal, with 86-97 per cent carbon content. Brittle, lustrous and black. Sources: World Coal Institute, US Department of Energy, Maryland Energy Administration

Last year's 104m tonnes of imports pale in comparison to the amount of coal China mines locally, which at about 3.3bn tonnes is the biggest annual output of any nation. Beijing's shift to net imports reflects in part a clampdown on illegal and unsafe mining, which has forced the closure of hundreds of small mines. A government-backed drive to consolidate the industry in Shanxi province, home of China's most easily accessible re serves, has also restricted production.

The consolidation drive is moving to Henan, another big producing province. Shandong and Inner Mongolia are expected to follow, in an attempt to improve efficiency. The US Department of Energy says the three biggest Chinese coal companies produce less than 15 per cent of the domestic total, adding: "China has tens of thousands of small local coal mines where inefficient management, insufficient investment, outdated equipment and poor safety records prevent the full utilisation of coal resources."

By consolidating, Beijing also wants to improve safety and environmental performance and, over time, raise output. But China is unlikely to return to self-sufficiency, many in the global industry believe. As a result, says Jogchum Brinksma at Citigroup, Beijing is "reaching further and further afield" to secure coal. "First they bought from Australia and Indonesia, and lately China is importing coal from as far as Colombia."

Yet China is not the only force driving increased demand. India's huge and rising coal needs are just as critical. In effect, "Chindia" is redescribing the industry. "Coal is the fuel of the future for Asia," says Eoghan Cunningham, chief executive of GlobalCoal, a trading platform owned by miners, traders and utilities.

Emmanuel Fages, a coal analyst at Société Générale, forecasts that India will overtake South Korea as the world's second-largest buyer before the end of the decade. The increase in demand comes as New Delhi continues to expand its coal-fired power generation capacity. According to the World Bank, 40 per cent of homes in India are still without electricity. The country's authorities see coal as a "poverty alleviation" tool to spread electricity across the country.

The growth of South Korea and Taiwan is also likely to support the market as those centres switch from crude oil. At the same time Vietnam, a medium-sized expor ter, has signalled that it might become an importer in three to five years as rapid urbanisation and industrialisation increase coal needs. Tran Xuan Hoa, general director of Vinacomin, the Vietnamese state-owned coal company, says the country might need to import 100m tonnes annually by 2020.

What of the west? The current weakness in Europe, Japan and the US is thought likely to prove a temporary consequence of recession; utilities, cement companies and steelmakers are set to buy large amounts this year, although in the longer term developed countries are moving away from coal in a bid to curb global carbon emissions. The rise in coal consumption in developing countries, particularly China and India, poses questions about this endeavour, in particular because the new coal-fired power stations will be consuming the commodity for the next 30 to 40 years.

The onus to meet the extra demand will fall on Indonesia, the world's second-largest coal exporter, which has port problems less acute than those of Australia and South Africa. Jakarta's coal industry has its own problems, particularly falling quality. But in the short term, analysts forecast strong supply growth. The ramp-up is likely to continue until at least 2015, but at the same time the country's domestic needs will increase too, reducing the exportable surplus.

Still, all the factors, from supply bottlenecks to other countries' incr eased demand, are dwarfed by the rapidly growing importance of China and to a lesser extent India. As the IEA's latest annual World Energy Outlook puts it: "China is expected to remain a dominant influence on the world coal market as it swings from being a net coal exporter into a net importer."

Not only has the agency this time recognised the significance of the "China moment"; it also adds that China and India, which in 1980 consumed just one-fifth of the world's coal output and now take about half, will be devouring two-thirds of it by 2030.

Copyright The Financial Times Limited 2010. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

Source: Financial Times

http://prophecyresource.com/news_2010_may07_ind.php

rophecy Appoints Mark Lotz as CFO, Cliff Starke as Marketing VP, and Dr. John Morganti as Advisor, Grants options.

VANCOUVER, B.C. - May 10, 2010, : Prophecy Resource Corp. (TSX.V: PCY; OTC: PCYRF; Frankfurt: 1P2) is pleased to report the following appointments, effective immediately:

Mark Lotz, Chief Financial Officer ("CFO")

Mr. Mark Lotz is a Chartered Accountant with the Institute of Chartered Accountants of B.C. He is an experienced business leader in the Canadian financial sector, most recently he acted as both President and CEO of Gateway Securities Inc.

Mr. Lotz has sixteen years experience in senior finance and administration positions in addition to public accounting experience beginning with Coopers & Lybrand (now Pricewaterhouse Coopers). He served as Chief Financial Officer with Golden Capital Securities and as an examiner for the Vancouver Stock Exchange. His experiences with publicly traded corporations include positions with Tan Range Exploration Ltd. (now Tanzanian Royalty Exploration Corporation), Platinum Group Metals Ltd., and Derek Oil and Gas Ltd.

Cliff Starke, Vice President of Marketing:

Mr. Cliff Starke has an extensive background in sales and marketing that includes positions with both Blackmont Capital Inc. (now Macquarie Private Wealth) and Dundee Wealth Inc. of Toronto. Since 2007 Mr. Starke has brokered significant financings for a number of both public and private mining and energy companies some of which he Mr. Starke retains personal investments in.

Dr. John M. Morganti Ph.D. P.Geo, Advisor.

John Morganti is President of Morganti Advisers Inc., a company that specializes in advising mining and exploration companies on strategy, evaluation, investor relations and exploration issues that are critical to rational corporate growth. Dr. Morganti currently advises a number of exploration, development and mining companies.

Over the past 35 years Dr. Morganti has held senior positions Teck, Placer Dome and Silver King Mines, as well as David Lowell Consultants and other consulting firms. Dr. Morganti worked in both exploration management and corporate development with Teck in addition to previously being Vice President, Gold and Vice President, Evaluations with Teck. At Placer he was Exploration Manager, Canada and subsequently Vice-President International Exploration. Additionally he worked in Placer's Engineering Department on evaluations, feasibilities and construction. Dr. Morganti has been a Director of several mining companies operating in numerous jurisdictions including Canada, Australia, Peru, Spain, Russia and U.S.

Dr. Morganti is a member of the Mining Technical and Advisory and Monitoring Committee which advises the Canadian Securities Commissions on National Instrument 43-101, the policy that governs to the release of mining and exploration technical information by Canadian public companies. He has also been a past Director of the Geology Division of the CIM, Chairman of the Mineral Deposits Division of the GAC, and a Director of the PDAC. Dr. Morganti obtained his Ph.D. in Economic Geology from the University of British Columbia and is a Registered Professional Geologist in British Columbia, Canada

The company wishes to thank Paul McKenzie and Stuart Rogers who diligently served as prior CFO's before the merger on April 12, 2010. Both Mr. McKenzie and Mr. Rogers will remain directors of the Company.

Incentive Stock Options Granted

The Company has agreed, subject to regulatory approval, to grant incentive stock options to directors and consultants on 2,500,000 common shares at an exercise price of $0.67 per share for a period of five years. For more information about Prophecy, please contact Paul McKenzie at +1.604.642.2625 ext. 107 or John Lee at +1.800.851.1528

ON BEHALF OF THE BOARD OF DIRECTORS
Prophecy Resource Corp.
"JOHN LEE"
John Lee
Chairman

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.

Prophecy Contracts Leighton For Q3 Coal Production At Ulaan Ovoo, Mongolia

VANCOUVER, B.C. - May 11, 2010, : Prophecy Resource Corp. (TSX.V: PCY; OTC: PCYRF; Frankfurt: 1P2) announced today that it has entered into a Mine Services Agreement with Leighton Asia Limited for the infrastructure establishment, equipment leasing, and mining operation at the Ulaan Ovoo coal deposit in northern Mongolia.

Ulaan Ovoo site establishment will commence in July 2010 to ensure that the commissioning of the 250,000 tonnes starter pit will take place as planned as of August 2010 with 57,500 tonnes in the first month ramping up to 100,000 tonnes per month by December 2010. The initial equipment suite will comprise one Caterpillar 385 excavator (85 tonne bucket capacity) and three Caterpillar 773D (50 tonne) dump trucks.

Prophecy expects to incur total cash payments to Leighton of $3.8 million for this contract in 2010. Prophecy currently has over $7.5million in cash.

Leighton Asia Limited is a wholly owned subsidiary of the world’s largest contract miner, and Australia’s largest project development and contracting group, the Leighton Group. It is the operating entity for the Asia region covering Hong Kong, Macau, Indochina, Indonesia, Philippines, Guam, China and Mongolia.

Leighton Asia have been operating across Asia for 35 years in all facets of mining including mine development, operation and management, resource optimisation, mine planning, cost estimating, machine maintenance ,mine infrastructure, crushing, processing and materials handling. Its strength lies in the ability to develop competitive, innovative, practical solutions for its clients.

2011 Target Mine Plan

In the second half of 2010, Leighton will undertake further mine planning to extract 2.0 million tonnes of coal for calendar year 2011. The optimal mining equipment suite will be configured based on the 2010 starter pit experience and a detailed mine plan by Wardrop Engineering’s Preliminary Economic Assessment (PEA). Wardrop’s PEA is expected in June 2010. Amortisation of the capital outlay will be spread over a 6 year time window and included in the delivered cost per ton. It is expected that the increased production volume will cause a decrease in the total cash cost per tonne by approximately 20%.

Close of 2% Ulaan Ovoo NSR

Prophecy is also pleased to have extinguished the 2% Net Smelter Return (NSR) held by Dunview Services Limited, a private British Virgin Islands company. Prophecy paid Dunview US$130,000 in cash and 2,000,000 Prophecy shares, subject to a 4 months hold.

Ulaan Ovoo Mining License

The Mongolian government has granted the project a 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). As the last step to commence mining, Prophecy filed for its Ulaan Ovoo operating permit in April including necessary license, mine plan, and environmental approvals. Prophecy is advised by its Mongolia counsel and the Minerals Resources and Petroleum Authority that current minerals licenses and operating permits are not affected by the President’s recent order to freeze exploration license grants. The company expects to obtain the permit by summer.

John Lee Chairman of Prophecy Resource Corp stated today that: "Leighton Asia is the world’s premier contract miner and we look forward to a long and fruitful partnership. We are moving at a rapid pace to commence coal production from Ulaan Ovoo this year in a responsible manner. We are also in excellent standing with the local and the national governments of Mongolia. The company is pleased to contribute to the local economy by supplying our coal to domestic coal-fired power plants and schools and hospitals in need. "

The material 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. For more information about Prophecy, please contact Scott Parsons at +1.604.642.2625 ext. 106 or John Lee at +1.800.851.1528


ON BEHALF OF THE BOARD OF DIRECTORS
Prophecy Resource Corp.
"JOHN LEE"
John Lee
Chairman

About Ulaan Ovoo
Prophecy has 100% interest in the 208.8 million tonne Ulaan Ovoo project that features Bituminous (5,204 kcal/kg), low ash (12.46%), low sulphur (0.40%) thermal coal suitable for export markets. The deposit features single massive coal seam 45-80 m thick with an average strip ratio of 2:1 and requires no washing for the first 50 million tonnes of production. The project is located within 10 km of the Russian border, northern Mongolia and is 120km (75 miles) east of the Central Mongolian Railroad linking the project to the vast coal markets of Russia and Asia.


Truck Route
Click to enlarge


About Prophecy
Prophecy controls over NI-43-101 compliant Measured and Indicated mineral resources of 232 million pounds of nickel, 1 billion tonnes of coal and 116 million pounds of copper as well as inferred resources of 82 million pounds of nickel, 500 million tonnes of coal, and 593 million pounds of copper. The Company's Ulaan Ovoo Coal Project, Mongolia is expected to be in production this year. Prophecy will hold properties with significant exposure to vanadium and titanium. All Prophecy's coal assets are located in Mongolia with its remaining assets located in Canada. The Company is currently reviewing additional opportunities for growth.




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.

Homepage von Leighton Asia
http://www.leightonasia.com/v4/