Source: Prophecy Resource                      Date: 20 October, 2010

Following an on-site inspection at the Ulaan Ovoo mine site of Prophecy Resource Corp., an official government commission appointed by the Mongolian Ministry of Mineral Resources and Energy has told the company that it will be granted the mining license soon and to prepare to begin production operations. The eight-member commission was satisfied with how the company had complied with all legal requirements so far.

Prophecy now waits for the mining license, which will make it the second Canadian company after SouthGobi Resources to receive a permit to mine in Mongolia. Leighton and Prophecy have deployed over 50 staff at the Ulaan Ovoo mine, with a full line of mining equipment. Initial production will be at the rate of 120,000 tons a month. Over 2 million tons of waste has already been removed to expose the project's massive coal seam at surface.

Prophecy hopes to become contract coal shipper to local power plants and beyond. As part of a trial run prior to the official commissioning of the mine, and at the Ministry's request, the company has already provided 10,000 tons of coal to power stations in Darkhan and Erdenet.

Prophecy has 100% interest in the 208.8-million-ton Ulaan Ovoo project. The mining license will be a fully transferable one, valid for 30 year that can be extended by an additional 40 years.