Source: http://www.prophecyresource.com    Date: May 13, 2010

Prophecy Resource Corp. 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.  Work begins in July to ensure that the commissioning of the 250,000-ton starter pit will take place as planned in August, with 57,500 tons in the first month ramping up to 100,000 tons per month by December.

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.