ULAAN OVOO HIGHLIGHTS

  • 208.8 million tonnes of Measured & Indicated coal resource (NI 43-101)
  • 20.7 million tonnes of Proven coal reserve.
  • Bituminous (5,204 kcal/kg), low ash (12.46%), low sulphur (0.40%) thermal coal suitable for export
  • 20+ year mine life supported at over 6 million tonnes per year
  • Single massive coal seam 45-80 m thick with an average strip ratio of 1.8:1
  • First 8 years requires no washing
  • Transferable 30-year mining license with a 40-year extension option
  • Environmental approval and mining licenses granted by the Mongolian government
  • A Mongolian Technical and Economic Study by AMC Consulting is being submitted to the Mongolian government
  • Over 33,000 hectares of exploration licenses in surrounding sedimentary basins with potential for additional resources
  • Secured railway loading capacity for 1.5 million tonnes of coal annually through Mongolia's Sukhbaatar Railroad station
  • Contracted Leighton Asia Ltd. to produce 520,000 tons of coal in 2011

NEXT STEPS

  • To sign off-take agreements with internationally recognized partners
  • Securing of port allocation in Eastern Russian seaports

RECENT MILESTONES

  • On Mar 25 ,2011, Commenced the trucking and stockpiling of export quality coal from Ulaan Ovoo to the Sukhbaatar railway siding that is 120km from the mine by road.
  • In Jan 2001, Prophecy purchased its entire auxiliary equipment and mining fleet on site. Eliminating the high costs associated with equipment leasing and rental.
  • On Dec 16 ,2010, Prophecy has received an updated prefeasibility study on the Ulaan Ovoo deposit by Wardrop Engineering Inc., a Tetra Tech Company.
  • On Nov 11 ,2010, Prophecy has received the mine permit from the Mongolian Ministry of Mineral Resources and Energy for the company's Ulaan Ovoo 208mt thermal coal mine.
  • On Oct 14 ,2010, Prophecy has received production go-ahead from the Mongolian Ministry of Mineral Resources and Energy for the company's Ulaan Ovoo 208mt thermal coal mine.
  • On May 25 ,2010, Prophecy has signed an agreement securing the loading of and the capacity to transport 1.5 million tonnes of coal annually through Mongolia's Sukhbaatar Railroad Station (Trans-Mongolian Railway) with the option to increase capacity based on availability.
  • On May 11, 2010, Prophecy contracted Leighton Asia Ltd., ("Leighton") a wholly owned subsidiary of the Leighton Group, Australia, the world's largest contract miner to produce 250,000 tonnes of coal at Ulaan Ovoo in 2010, with further plans to mine 2 million tonnes of coal in 2011. Having established the mine plan and secured rail transport, Prophecy is finalizing a truck leasing agreement to provide hauling of coal from mine site to Sukhbaatar, thus rounding up the entire transportation logistics to Chinese and Russian markets.
  • On May 11, 2010, Prophecy contracted Leighton Asia Ltd., ("Leighton") a wholly owned subsidiary of the Leighton Group, Australia, the world's largest contract miner to commission the Ulaan Ovoo Coal Mine. Having established the mine plan and secured rail transport, Prophecy is finalized a truck leasing agreement to provide hauling of coal from mine site to Sukhbaatar, thus rounding up the entire transportation logistics to Russian markets.
  • November 11, 2010 saw the company reach a major milestone by receiving its mine permit from the Mongolian Ministry of Mineral Resource and Energy giving the company the green light to begin production. The company started its operation with the stockpiling of small amounts of ROM coal in 2010 and saleable coal production is slated to begin in 2011.

TECHNICAL REPORTS