Prophecy Makes Landmark Shipment of Coal to Buryatia Province of Russia from Mongolia
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/29/11 -- Prophecy Coal Corp. ('Prophecy') (TSX VENTURE: PCY)(OTCQX: PRPCF)(FRANKFURT: 1P2) (the 'Company') announces today it has exported a shipment of 650 tonnes of thermal coal, which is the equivalent of ten wagons from the Company's Ulaan Ovoo mine in Mongolia. The coal was loaded on to rail at Sukhbartaar rail station and crossed the border into the Republic of Buryatia in Russia via Naushki. The coal was sold to Energy LLC, a company registered in the Buryatia Republic of Russian Federation, which was then consumed in local Buryat power stations and boilers.
Mr. J. Batuyev, Minister of Buryat Government and Official Representative of Buryat Government to Mongolia comments, 'This is a historic event, as this is the first ever shipment of Mongolian coal to Buryatia, Russia, and we believe that Ulaan Ovoo coal will become a significant source to feed the energy sector of this region'.
This export to the Republic of Buryatia was a valuable trade for Prophecy as it helps the Company determine local sales logistics, wagon loading times, export requirements and customs procedures to ensure smooth operations for future coal export of larger quantities.
To further facilitate trade between Mongolia's Selenge province and Russia's Buryatia province, Prophecy is collaborating with a number of government and private entities towards opening of the Zeltura border post, which is 15 km from the Ulaan Ovoo mine. The opening of Zeltura would enable Prophecy to sell Ulaan Ovoo coal at mine gate to Russian industrial consumers and translate into significant transportation savings for Prophecy.
Prophecy is preparing and ordering wagons for the next shipment in July 2011, destined for the port of Sovetskaya Gavani, of which the company has secured annual capacity of 300,000 tonnes.
Prophecy's Ulaan Ovoo coal mine commenced production in 2011 and has produced over 200,000 tonnes of coal of domestic and export quality. The export quality coal registers (as-received basis) NCV 5,200 kcal/kg with 5% ash and 0.5% sulphur.
Please visit www.prophecycoal.com for detailed rail map.
This news release has been reviewed and approved by Christopher M. Kravits, P.Geo who is a Qualified Person as defined in NI 43-101. Mr. Kravits has 34 years of US and international relevant coal geology experience. He has been active in Mongolia since 2007.
About Prophecy Coal
Prophecy Coal Corp. (formerly Prophecy Resource Corp) is a Mongolian coal company engaged in developing energy projects. The company controls over 1.4 billion tonnes of surface minable thermal coal resources on two coal properties in Mongolia. Prophecy's Ulaan Ovoo thermal coal mine has been commissioned and its Chandgana mine mouth power plant is currently being permitted. Prophecy also owns equity stakes in Prophecy Platinum Corp., Victory Nickel Inc. and Compliance Energy Corp. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Further information can be found at www.prophecycoal.com
ON BEHALF OF THE BOARD OF DIRECTORS of Prophecy Coal Corp.
John Lee, 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 regarding future shipments of coal, expected transportation savings, future sales, 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 unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future coal 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. 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 its business, investors should review filings that are available at www.sedar.com.
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.
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Contacts:
Prophecy Coal Corp.
David Jan
Chief Financial Officer
1-800- 358-5865
djan@prophecycoal.com
www.prophecycoal.com