Mongolian Government Endorses Chandgana Power Plant Project

VANCOUVER, BRITISH COLUMBIA, Sep 15, 2011 (MARKETWIRE via COMTEX) -- Prophecy Coal Corp. ("Prophecy") CA:PCY +3.03% (otcqx: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 www.evonik-steag.com .

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 CA:NKL +3.29% . Mineral resources that are not mineral reserves do not have demonstrated economic viability. Further information on Prophecy Coal can be found at www.prophecycoal.com .

ON BEHALF OF THE BOARD OF DIRECTORS of Prophecy Coal Corp.

John Lee, CEO/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 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 general economic, regulatory, market or business conditions, and 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 .

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." Contacts: Prophecy Coal Corp. Joseph Li General Manager 1-800-362-7366 jli@prophecycoal.com www.prophecycoal.com

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