Source: Prophecy Coal                          Date: 21 September, 2011

The Mongolian Ministry of Natural Resources and energy officially endorsed Prophecy Coal Corp.'s Chandgana Power Plant Project. The request came from Prophecy's subsidiary East Energy Development LLC. Currently the company is waiting for the final response from the Mongolian Energy Regulation Authority before it can proceed any further.The official request submitted by East Energy was deemed in compliance with the Energy Law and will progress further down the approval process. Procedures included an environmental impact assessment from the Mongolian Ministry of Nature and Environment and support from the Mongolian Scientific and Technical Council.
The company expects a final answer in the fourth quarter of 2011. The plant will be built next to the firm's Chandgana Tal Coal Project.The plant will be a result of a number of collaborative efforts and research.  Results from power plant feasibility study by Evonik Industries and the Chandgana Tal Mine Study by Leighton Asia are expected by the end of this year. Prophecy has also discussed the project with many candidates for engineering, procurement, and construction. The company intends to fund the project through its own project financing.Prophecy Coal is a Canadian firm developing energy projects in Mongolia. It has over 1.4 billion tons of thermal coal resources from two projects in Mongolia, Ulaan Ovoo and Chandgana.