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

Grant of
the mining license will make Prophecy 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.