Source: Prophecy Resource Corp.                 Date: 27 April, 2011

After 8 months of due diligence, research and study, Prophecy Resource Corp. has submitted to the Ministry of Natural Resources and Energy its formal request to build the Chandgana power plant in Khentii province, central Mongolia. Upon receiving the Ministry's endorsement, Prophecy would proceed to work with the Mongolian Energy Regulatory Authority for grant of a permit and expects to receive it within 6 months.

Prophecy engaged Mongolian experts in August 2010 to start work on a Feasibility Study for the mine mouth power plant with a capacity of 600 MW. The necessary technical and financial analysis was completed with assistance from Evonik Industries of Germany. The Environmental Impact Assessment was approved by the Mongolian Ministry of Nature and the Environment in November 2010.

Mr. John Lee, Chairman of Prophecy, states that the company team has “a solid track record of constructing, operating and financing large energy projects”, and asserts that the proposed plant “represents modern industrialization and energy independence for Mongolia, and new potential energy supply to China."