Prophecy Resource to export 520,000 tons of coal from Ulaan Ovoo in 2011

Prophecy Resource Corp (CVE:PCY)(OTCQX:PRPCF) said Wednesday that it anticipates exporting approximately 520,000 tons of coal in 2011 from its Ulaan Ovoo mine in Mongolia, which was fully commissioned last November.

To date, 333,760 tons of in-situ "export-quality" coal has been exposed at the site and is ready to mined. The company has already begun the trucking of export coal from Ulaan Ovoo to the Sukhbaatar railway, located 120 kilometres from the mine by road.

Prophecy said it expects 5,000 tons of export coal will be on stock ready for rail loading by April 1, which will then be delivered to the Russian domestic market, as well as to the Russian Eastern Sea Coal terminals for shipment to overseas customers.

Since commissioning the mine last year, Prophecy has transported and sold 27,597 tons of 3,500 kcal/kg coal to local power plants and companies in Mongolia, and anticipates exporting approximately 520,000 tons in 2011.

By the end of the year, the company plans to ramp up production to a rate of 1 million tons per year, and reach positive operating cash flow by the second quarter.

Prophecy controls over 1.4 billion tons of surface minable thermal coal in Mongolia, and has nickel and other mineral properties in Canada.

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