Source: Proactive Investors                     Date: 31 August, 2011

Prophecy Coal signed several coal sales agreements with Russian and Mongolian buyers, totaling 92,000 tons. The coal will comes from its Ulaan Ovoo coal deposit, estimated to hold 209 million tons of low-ash, low-sulpher coal

Prophecy will send 22,000 tons of coal across the Russian border to be consumed in local Buryat power stations and boilers. Other coal buyers include two local Mongolian companies and two Mongolian government power plants. Their purchases total to a minimum of 70,000 tons of coal this year.

"Ulaan Ovoo's clean coal with its low ash (8%) and sulpher (0.5%) is highly desired," said CEO John Lee.

"We are making steady and solid progress to establish Ulaan Ovoo as a recognized coal supplier in local and international markets."

Prophecy Coal Corporation is an internationally diversified thermal coal production company that in November 2010 saw its first coal project, Ulaan Ovoo commissioned for production. Ulaan Ovoo coal deposit is located 430 kilometers from Ulaanbaatar and approximated 17 kilometers from the Russian border. The company controls over 1.4 billion tons of "open-pittable" thermal coal in Mongolia.