VANCOUVER, BRITISH COLUMBIA--(Marketwire - Mar 5, 2013) - Prophecy Coal Corp. ("Prophecy" or the "Company") (PCY.TO)(PRPCF)(1P2.F) is pleased to announce that Prophecy Power Generation LLC, a wholly owned private Mongolian subsidiary of Prophecy Coal Corp., has been granted 532.4 hectares of land to be used for Prophecy''s proposed Chandgana Power Plant Construction (the "Land Use Rights"). The Land Use Rights were granted pursuant to the Law on Administrative Unit of Mongolia its Management Art 29.2; land law Art 21.4.3 and Art 44.6 and Art 44.8 and an Decree issued by the Citizen''s Delegate Representative Members (CDRM) of Murun Soum (sub-province), dated February 22nd of 2013 - no.17 and Governor''s Ordinance dated the same day with number A/12.
Lead by Prophecy''s country manager, Mr. Oscar Mendoza, the Company undertook major efforts over months to secure the Land Use Rights, including extensive consultation with local citizens and representatives regarding the impacts and benefits of the power plant. Prophecy would like to sincerely thank all the residents of Murun Soum and the surrounding area for their support of the Chandgana Project, and look forward to working closely with all stakeholders to timely advance Prophecy''s Chandgana Power Plant project.
The proposed Chandgana Power Plant is the largest foreign investment ever made in Khentii Aimag (province, the same place where Genghis Khan grew up), and is expected to generate over 500 direct permanent jobs for local residents plus a further 1,500 indirect jobs once the power plant commences operation, slated for 2016. Prophecy has committed to the construction of over 250 modern housing units with heat, recreational facilities, and education centers and to providing grants to make Murun Soum and the surrounding area one of the most economically attractive and desirable living areas in Mongolia.
With the Land Use Rights in place, Prophecy has issued a contract to Erchim Concern LLC to bring 4MW of temporary power to the Chandgana Power Plant site from a local 35kV power line. Separately, Prophecy has issued tenders for the construction of 250 housing units along with a water supply to the Chandgana Power Plant site.
About Prophecy Coal
Prophecy Coal Corp. is a Canadian TSX 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 coal mine-mouth power plant, which has been permitted by the Mongolian government, adjacent to its Chandgana coal deposit. Chandgana Coal LLC, a Prophecy Coal Corp. wholly-owned private Mongolian subsidiary, is expected to supply 3.5 million tonnes of coal per year to Prophecy Power Generation LLC 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 124 million tonnes of measured resource with a strip ratio of 0.7 to 1. A mineral reserve, which is the economically mineable part of a measured or indicated mineral resource demonstrated by at least a prefeasibility study, has not been estimated for the project. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Further detailed information on the Company can be found at www.prophecycoal.com.
The technical contents of this news release have been reviewed and approved by Mr. 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 USA 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, Executive Chairman
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 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, 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, 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.