VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov 14, 2012) - Prophecy Coal Corp. ("Prophecy" or the "Company") (PCY.TO)(PRPCF)(1P2.F) is pleased to announce that it has entered into a Memorandum of Understanding (the "MOU") with one of the world''s largest power generation groups with installed capacity of over 100 gigawatts and annual power generation of over 450,000 gigawatt hours (the "Strategic Partner") to jointly develop the Company''s Chandgana Power Plant project (the "Project") in Mongolia. The Strategic Partner has completed preliminary due diligence on the Project, including a site visit, and held several months of discussions with Prophecy prior to signing the MOU.
The MOU sets out the proposed terms of the cooperation and timeline of implementation of a transaction between the Strategic Partner and Prophecy. The Company cautions that the MOU is not binding and should not be relied upon as a guarantee that a transaction will be completed.
The execution of this MOU is a positive step for Prophecy and its shareholders towards recovering value for the substantial effort and capital that the Company has spent over the past two years to develop the Project. The Company is in active discussions with other power generation companies to complete a consortium to drive the Project towards completion.
About Prophecy Coal
Prophecy Coal Corp. is a Canadian listed company engaged in developing energy projects in Mongolia. The Company''s wholly-owned subsidiary Prophecy Power Generation LLC is advancing plans for a proposed 600 MW mine-mouth power plant, which has been permitted by the Mongolian government, adjacent to its Chandgana coal deposit. Chandgana Coal LLC, another Prophecy wholly-owned Mongolian subsidiary, is expected to supply 3.5 million tonnes of coal per year to Prophecy Power for 25 years. Chandgana Coal LLC controls over 1.2 billion tonnes of thermal coal in the measured and indicated categories, including two mining licenses containing 141 million tonnes of measured resource with a strip ratio of 0.7:1. Substantially all of the Company''s resources are not mineral reserves, hence they do not have demonstrated economic viability. The Company cautions the Chandgana project is in Mongolia and requires substantial capital to develop.
Further information on the Company can be found at www.prophecycoal.com.
The technical contents of this news release have been reviewed and approved by Christopher M. Kravits, P.Geo. who is a Qualified Person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Kravits has 34 years of US and international relevant coal geology experience. He has been active in Mongolia since 2007.
ON BEHALF OF THE BOARD OF PROPHECY COAL CORP.
JOHN LEE, CEO/Chairman
*Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Forward Looking Statements: This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including, without limitation, statements of potential mineralization, the estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Prophecy believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals in respect of the transaction, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with operating in foreign jurisdictions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on Prophecy and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.