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CHANDGANA HIGHLIGHTS

  • Only 9 km apart, both projects are part of same coal deposit
  • 1,211 million tonnes of Measured & Indicated coal resource (NI 43-101)
  • Consists of a shallow, 37.7-45.4 metre thick coal seam with good outcrop access on the license area
  • Coal is well suited to 600MW mine mouth power plant, with extension to eventual 4,200MW
  • Strip ratio over entire resource is 1.9:1
  • Low ash (12.49%), very low sulfur (0.68%) and with a Calorific value of 4,354 kcal/kg thermal coal
  • Proximity to infrastructure, next to planned two 220 kV lines connecting to the main Mongolian grid
  • Chandgana is within 160km from rail, 45 km North of the proposed railway, 16 km from paved highway, and 150 km from 2x220kv power line

NEXT STEPS

  • Applying for a mining permit
  • Commissioning of a 600MW power plant with extension to eventual 4,200MW

RECENT MILESTONES

  • On Fenruary 8, 2011, Prophecy obtains full mining license for its 141-million-tonne Chandgana Tal coal deposit.
  • On November 15 ,2010, Prophecy receives the approval of the Detailed Environmental Impact Assessment (DEIA) pertaining to the construction of a pit-mouth 600MW coal fired power plant by the 1.2-billion-tonne Chandgana Coal Project.
  • On August 16 ,2010, Prophecy reports the successful drilling of its Chandgana Khavtgai property, reporting an increase in the total Measured and Indicated resource of 1,211 million tonnes.
  • On June 21 ,2010, Prophecy reports the successful completion of its spring exploration program on its 100% owned Chandgana-Khavtgai license in Khentii aimag (province), Mongolia. The work program consisted of 12 drill holes for a total of 2,205 metres including 903 metres of core drilling, and five lines of seismic geophysical survey for a total of 7.4 line km. Updated NI 43-101 resource report is expected by August.

TECHNICAL REPORTS