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Mongolian Government Endorses Chandgana Power Plant Project

ANCOUVER, BRITISH COLUMBIA, September 15, 2011 - Prophecy Coal Corp. (“Prophecy”) (TSX-V: PCY)(OTC-QX: PRPCF)(Frankfurt: 1P2) (the “Company”) announces  today that its Chandgana Power Plant Project (“Project”) has been officially endorsed by the Mongolian Ministry of Natural Resources and Energy.  The Mongolian Energy Regulatory Authority (“ERA”), in charge of power plant license issuance, has received the endorsement and is expected to issue a final response to Prophecy’s license application in Q4, 2011.

The request for licensing of “Construction of Energy Buildings and Installations”, submitted by East Energy Development LLC, a wholly-owned Mongolian subsidiary of Prophecy, in April, 2011, was determined to be in full conformity with Clause 2 of Article 12, Energy Law. The company has undergone a rigorous power plant permitting process, which included Environmental Impact Assessment approval by The Mongolian Ministry of Nature and Environment, and support from the Mongolian Scientific and Technical Council. The power plant will be built right next to Prophecy’s permitted Chandgana Tal Coal Project.

Results from the Power Plant Feasibility Study by Evonik Industries and the Chandgana Tal Mine Study by Leighton Asia are expected in Q4 2011.  In parallel, Prophecy has been in discussion with a number of potential Engineering, Procurement and Construction (EPC) contractors with the goal of finalizing EPC selection expeditiously after the power plant license is obtained.

Prophecy’s cash position and equity holdings total over US $90million as of September 1, and the company expects to fully fund the Chandgana project studies through to project financing.

Prophecy appreciates the support from the Mongolian Ministry and the community at large. The company looks forward to making the Chandgana Power Plant a reality and helping satisfy Mongolia and the region’s energy needs.

About Evonik

As the fifth largest producer of power in Germany, Evonik Steag operates nine coal-fired power plants. Outside Germany Evonik is contributing to the public power supply in the Philippines, Colombia and Turkey with three coal-fired power plants. The range of services of Evonik Steag covers the entire value chain of energy production from fuel to residue. Its core competencies include the planning, financing, construction and operation of highly efficient power plants for fossil fuels. For more information, visit

About Prophecy Coal

Prophecy Coal Corp. is a Canadian listed company engaged in developing energy projects in Mongolia. The company has over 1.4 billion tonnes of surface minable thermal coal resources on two coal properties in Mongolia. Prophecy Coal’s Ulaan Ovoo coal mine is in production and Chandgana mine mouth power plant is currently being permitted. Prophecy Coal is the controlling shareholder of Prophecy Platinum Corp (TSX-V: NKL). Mineral resources that are not mineral reserves do not have demonstrated economic viability.


John Lee, CEO/Chairman

For more information about Prophecy, please contact
Joseph Li
General Manager
[email protected]



Mineral resources that are not mineral reserves do not have demonstrated economic viability. Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.

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, 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

“Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.”

This press release does not constitute an offer to sell or a solicitation to buy any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (“the U.S. Securities Act”) or any state securities law and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.