Red Hill Energy and Prophecy Resource Corp. have announced the award of a contract to commence a ten-drill hole, 2,200-metre resource expansion drilling program in early May, 2010 at its Chandgana Khavtgai Coal Project located in the Nyalga Coal Basin in central-eastern Mongolia. This is the largest exploration program performed to date by Red Hill with the full support of its proposed merger partner Prophecy

Red Hill”s 100%-owned Nyalga Coal Basin projects (Khavtgai and Tal) host a combined total of 819.7 million tons with 409 million tons inferred thermal coal. The basin is it one of the largest thermal coal basins in Mongolia.