Prophecy Resources Corp is developing the 600 MW Chandgana power plant in Mongolia to help meet the country's growing energy demand. The Chandgana project has over 1.2 billion tonnes of thermal coal resources and all necessary construction permits. The mine-mouth power plant is fully permitted and would be the first of its kind in Mongolia. It is strategically located near energy infrastructure and markets in China and Russia. Successful development of the 600 MW Phase I plant would help address Mongolia's current power shortages and reliance on imports.

1. Representation of 600 MW Chandgana power plant

2. The information contained in this presentation (“Presentation”) has been prepared by Prophecy Resources Corp. (“Company”) and is being communicated for general background informational purposes only. The
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any time after this Presentation. This Presentation contains or incorporates by reference “forward-looking information” which means disclosure regarding possible events, conditions, acquisitions, or results of operations
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presented either as a forecast or a projection, and also includes, but is not limited to, statements with respect to the future financial and operating performance of the Company any of its subsidiaries and other
considerations as set out in more detail in the documents filed by the Company with the Toronto Stock Exchange. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”,
“proposes”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions,
events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company and/or its current and proposed subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking
statements. Forward-looking statements contained herein are made as of the date of this Presentation and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new
information, future events or results or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. In addition, investors are cautioned that this
presentation may contain information about mineral properties adjacent to or near the Company’s properties and in which the Company has no right or interest. Mineral deposits on such adjacent or near properties are not
indicative of the mineral deposits, if any, which may be found on the Company’s properties. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Neither the TSX nor its Regulation
Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release. Certain statements contained in this Presentation, including statements which may
contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters which are not historical facts, are forward-looking information within the
meaning of securities laws. Such forward-looking statements, which reflect management’s expectations regarding Prophecy’s future growth, results of operations, performance, business prospects and opportunities are
based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements of the Company to be materially different from any
future results, performance, or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this Presentation include, without limitation, statements regarding the development
and production of the Company’s Chandgana Power Plant and other information concerning possible or assumed future results of operations of Prophecy. Material risks and uncertainties which could cause actual results
to differ materially from such forward-looking statements include, but are not limited to, exploration, development and production risks, risks related to the Company not having a history of mineral production, risks related
to the development of the Chandgana Power Plant, risks related to the uncertainty of mineral resource and mineral reserve estimates, the cyclical nature of the mining industry, risks related to the availability of capital and
financing on acceptable terms, commodity price fluctuations, currency exchange rate and interest rate risks, 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, and unanticipated environmental impacts on operations and costs to
remedy same. Assumptions underlying our expectations regarding forward-looking statements or information contained in this Presentation include, among others, that all required third party contractual, regulatory and
governmental approvals will be obtained for the development, construction and production of the Company’s properties, there being no significant disruptions affecting operations, whether due to labour disruptions,
currency exchange rates being approximately consistent with current levels, certain price assumptions for coal, prices for and availability of diesel, parts and equipment and other key supplies remaining consistent with
current levels, production forecasts meeting expectations, the accuracy of the Company’s current mineral resource and reserve estimates, labour and materials costs increasing on a basis consistent with the Company’s
current expectations and that any additional required financing will be available on reasonable terms. Although Prophecy has attempted to identify important risks and factors that could cause actual actions, events or
results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not anticipated, estimated or intended. Accordingly, readers should
not place any undue reliance on forward-looking statements as such information may not be appropriate for other purposes. We disclaim any intention or obligation to update or revise any forward looking statements,
whether as a result of new information, future events or otherwise, except as required by law. Last updated January 03/09/ 2012
Disclaimer
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3. • Leading energy play, focus on developing energy solutions for Mongolia
• 1.4* billion tonnes of coal in two distinct properties in Mongolia
• Ulaan Ovoo ($30million+ invested): Largest independent coal supplier to
Mongolia
• Chandgana ($10million+ invested): 600MW Mine Mouth Power plant fully
permitted, 1st
of its kind in Mongolia
• Strategic locations to supply power to neighboring China and Russia
• As of Feb 19th
, 2012, 90% of Prophecy Coal’s market cap is attributed to its
equity share position in Prophecy Platinum Corp (TSX.V: NKL)
**As of 14/01/12
*Ulaan Ovoo: 174 million tonnes of measured and 34 million tonnes of indicated coal. Ulaan Ovoo’s resource numbers are from the Behre Dolbear & Company (USA), Inc report referenced in the Dec 2010, 43-101 Prefeasibility Study by Wardrop Engineering. Chandgana consists of two
properties-Chandgana Tal and Chandgana Khavtgai. Chandgana Tal consists of 141 mt of measured resource. Chandgana Khavtgai consists of 509 mt measured and 539 mt indicated resource. Chandgana Khavtgai’s resource estimates are based on the September 2010 NI 43-101 Chandgana
Khavtgai Technical Report by Kravits Geological Services, LLC. The report is authored by Christopher M. Kravits CPG, LPG of Kravits Geological Services, LLC., who is an independent Qualified Person under NI 43-101. And the Chandgana Tal resource estimate is also based on the September
2007 NI 43-101 Chandgana Tal Technical Report by Behre Dolbear & Company (USA), Inc..The report is authored by Mr. Gardar G. Dahl, Jr., CPG of Behre Dolbear & Company (USA), Inc., who is an independent Qualified Person under NI 43-101.
3

4. Shares 202 Million (basic); 237 million (diluted)
Market
Capitalization
~100 million CDN*
Ownership 50% Retail, 30% Institutional, 20% Management & Directors
Investment
Portfolio
$92 million in Prophecy Platinum (TSX.V-NKL) 22.5m
shares, Victory Nickel 36.6m shares, Compliance Energy
5m shares
Locations
Canadian Office: Vancouver, BC Canada
Mongolian Office: Ulaanbaatar, Mongolia
*As of 03/09/12 4

5. John Lee, CFA – Chairman / CEO
• Founder of Prophecy Coal Corp. and Prophecy Platinum Corp.
Paul Venter – VP Energy Operations & Director
• 30 years of experience with BHP and Eskom in the mining, power
generating, and transport industry
Ronnie Van Eeden – VP Mining Operations & Country Manager - Mongolia
• 34 years of experience in coal mining and related industries including
holding senior Eskom management positions
Jivko Savov - Director
• Deputy CEO of En+, company owned by Oleg Derispeska
• Former Chairman of Rusal, Chairman of EuroSibEnerg
Chuluunbaatar Baz - Director
• President of Monnis, with 1,000+ employees, top 10 company in Mongolia
Michael Deats - Director
• Former Managing Director of BP Coal South Africa, Ex-Director of Eskom
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6. 6

7. Mongolia is currently
importing power from
Russia at a rate of
$0.08 per kw/h
PROXIMITY TO CHINA:
- CHINA: 350 KM
- BEIJING: 1,000 KM
Central Energy system (CES)
Eastern Energy system (EES)
New transmission lines
7
Ulaan Ovoo
Chandgana

8. • GDP growth 2011: 17.3%
• Compounded GDP growth since 2000: 123%
• Power supply capacity in 2000: ~750MW
• Power supply capacity in 2011: ~750MW
• Largest coal supplier to China in 2011 (30MT), eclipsed Australia
• Tavan Tolgoi coking coal triple production by 2015 to 13MT/yr
• Oyu Tolgoi Cu-Au scheduled production in 2013, could boost GDP by 30%
FAST GROWTH = RISING ENERGY DEMAND
*GDP source and power supply figures from the World Bank
Coal data source: http://www.bloomberg.com/news/2012-01-05/mongolia-s-renewables-belittle-world-s-nuclear-supply.html
8

9. 9
Blue Sky Tower, UBOyu Tolgoi, MongoliaCentral Tower, UB
Tavan Tolgoi, MongoliaShangriLa Hotel, UB

10. • “Second most air polluted city in the world”
- World Health Organization (WHO)
• Population quadrupled since 2000
(1.7 million)
• GDP per capita in 2011 USD$3,173
• Antiquated and poorly maintained power
infrastructure
• Power and Coal shortage
(3 day stock pile currently)
10
Source: The World Bank (Dec 2009). Mongolia: Air Pollution in Ulaanbaatar –
Initial Assessment of Current Situation and Effects of Abatement Measures.
World Health Organization-Global Health Observatory Data Repository-‘Annual
mean concentration of PM10 in cities’
Ulaanbaatar
Ulaanbaatar

11. Source: Energy International Corporation, Eurasia
Capital’s Mongolia Outlook Report
0
200
400
600
800
1000
1200
1400
1600
2010 2011 2012 2013 2014 2015
Russia
EES
CES
Demand
Supply
MW
744 MW
Deficit
Russia
EES
CES
Power Supply / Demand and GDP Growth Forecast
CES – Central Energy System
EES – Eastern Energy System
11
$16
$14
$12
$10
$8
$6
$4
$2
GDP,US$bn

12. 12
Representation of 600 MW Chandgana power plant

13. Mongolia is currently
importing power from
Russia at a rate of
$0.08 per kw/h
PROXIMITY TO CHINA:
- CHINA: 350 KM
- BEIJING: 1,000 KM
Central Energy system (CES)
Eastern Energy system (EES)
New transmission lines
13
Ulaan Ovoo
Chandgana

14. 100% Owned
Resource: 1.2 Billion Tonnes* (M&I) Thermal Coal
All Construction Permits Granted
0.5:1 Strip Ratio* Surface Mining License Granted
Mine-Mouth Power Plant Licensed
Feasibility Study Complete
150km From Grid
*Chandgana consists of two properties-Chandgana Tal and Chandgana Khavtgai. Chandgana Tal consists of 141 mt of measured resource. Chandgana Khavtgai consists of 509 mt measured and 539 mt indicated resource. Chandgana Khavtgai’s resource estimates are based
on the September 2010 NI 43-101 Chandgana Khavtgai Technical Report by Kravits Geological Services, LLC. The report is authored by Christopher M. Kravits CPG, LPG of Kravits Geological Services, LLC., who is an independent Qualified Person under NI 43-101. And the
Chandgana Tal resource estimate is also based on the September 2007 NI 43-101 Chandgana Tal Technical Report by Behre Dolbear & Company (USA), Inc..The report is authored by Mr. Gardar G. Dahl, Jr., CPG of Behre Dolbear & Company (USA), Inc., who is an
independent Qualified Person under NI 43-101.. Chandgana Tal has a strip ratio of 0.5:1 and Chandgana Khavtgai has a strip ratio of 2.2:1.
Power plant conceptual rendering
Chandgana deposit & power plant site
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15. Coal
20m Clay
40m Coal
Chandgana Khavtgai
Chandgana Tal
• Mining License Obtained for 140MT
Chandgana Tal
• 0.68% sulphur / 12.5% ash
• < 2 km from paved roads
• < 150 km from power grid
• 100km2 Prospective Claims
15

16. Chandgana
Coal
Power
Transmission
Power Plant
Proposed Installed capacity:
Phase I: 600 MW
(connect to CES, EES of Mongolia)
Phase II: 3600 MW
(connect to China)
- Helping to meet Mongolia’s Power Needs -
350km to China
150km to grid
2 km
Central Energy system (CES)
Eastern Energy system (EES) 16

17. TPP & Lines
Capex
$744 Million
Plant Capacity 4 x 150MW
Coal Output 2.7 Mt p.a.
Electricity Tariff $0.06 /kwh
Coal Pricing $15.5 /t
Opex + Debt
Payment
$0.023 + $0.025 /kwh
17
NPV / IRR $364.7 Million / 21.9%
Debt / Equity 70 / 30
Interest rate /
Discount Rate
10% / 12%
Project life /
Loan Term
30 year / 10 year
IRR Sensitivity /
Tariff
+ 6% IRR /
+ 0.01 /kwh
* FS January 2012 by Steag Germany - Power Plant only, not NI 43-101

18. 18
* FS January 2012 by Steag Germany - Power Plant only, not NI 43-101

19. Initial 600MW capacity
will be dedicated toward
domestic consumption.
Proposed output increase
to 3600MW would enable
Mongolia to export power
directly into China via
existing Ultra High
Voltage Lines.
19Source: SSE, sxcoal, McQuarie Research
Beijing

20. Total Electricity Consumption
Source: China Electricity Council
Billion
kWh
20

21. Source: International Energy Agency (IEA Statistics © OECD/IEA, http://www.iea.org/stats/index.asp), Energy Statistics
and Balances of Non-OECD Countries and Energy Statistics of OECD Countries.
Electricpowerconsumption
(kWhpercapita)
21

22. Company: Estimated time line
• TSX listing (Q4 2011)
• Power plant license (Q4 2011)
• Feasibility study (Q4 2011)
• Conclude PPA* (Q2 2012)
• Award EPC** Contract (Q2 2012)
• Project financing (Q4 2012)
• Start construction (Q2 2013)
• Power on (Q4 2015)
*PPA – Power Purchase Agreement
**EPC – Engineering, Procurement & Construction
Scale model of Chandgana power plant
22

23. Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
Conclude PPA*
Award EPC**
Contract
Commence
Construction
Power On
Power Plant
Feasibility Study
Released
Conclude Project Financing
All construction licenses received
Power Plant
License Granted
*PPA – Power Purchase Agreement
**EPC – Engineering, Procurement & Construction
23

24. 24

25. 100% Owned – Status: Commissioned
Resource: 209 million tonnes* (M&I)
thermal coal – 20+ year mine life**
1.8: 1 Strip Ratio - Surface Mining
Production:
2011: 200,000 tonnes
2012: 300,000-500,000 tonnes (est.)
Markets: Mongolia, Russia
$30million invested (mine + equipment)
May 2011
July 2010
*Coal resources of 174 million tonnes measured and 34 million tonnes indicated from the NI 43-101 Behre Dolbear report prepared in 2007.
**Information based on Dec. 2010, 43-101 Prefeasibility Study by Wardrop Engineering.
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26. Abundant High Quality Thermal Coal
• (ar) Min. 5,000 kcal/kg GCV*
• Max. 1% sulfur / 11.3% ash**
Low Cost Mining
• Single seam – 50m thickness
• 1.8:1 strip ratio
Equipment Received in April 2011
• Two sets CAT mining fleets: 500kt/annum
• 18 SCANIA coal haul trucks
* ar – as received / GCV – gross calorific value
**Information based on Dec. 2010, 43-101 Prefeasibility Study by Wardrop Engineering. 26

27. Location Advantage:
Ulaan to Russia: 15km
Chandgana to China: 350km
Chandgana to Beijing: 1,000km
Central Energy system (CES)
Eastern Energy system (EES)
New transmission lines
27
Ulaan Ovoo
Chandgana

28. • Leading energy play, focus on developing energy solutions for Mongolia
• 1.4* billion tonnes of coal in two distinct properties in Mongolia
• Ulaan Ovoo ($30million+ invested): Largest independent coal supplier to
Mongolia
• Chandgana ($10million+ invested): 600MW Mine Mouth Power plant fully
permitted, 1st
of its kind in Mongolia
• Strategic locations to supply power to neighboring China and Russia
• As of Feb 19th
, 2012, 90% of Prophecy Coal’s market cap is attributed to its
equity share position in Prophecy Platinum Corp (TSX.V: NKL)
**As of 14/01/12
*Ulaan Ovoo: 174 million tonnes of measured and 34 million tonnes of indicated coal. Ulaan Ovoo’s resource numbers are from the Behre Dolbear & Company (USA), Inc report referenced in the Dec 2010, 43-101 Prefeasibility Study by Wardrop Engineering. Chandgana consists of two
properties-Chandgana Tal and Chandgana Khavtgai. Chandgana Tal consists of 141 mt of measured resource. Chandgana Khavtgai consists of 509 mt measured and 539 mt indicated resource. Chandgana Khavtgai’s resource estimates are based on the September 2010 NI 43-101 Chandgana
Khavtgai Technical Report by Kravits Geological Services, LLC. The report is authored by Christopher M. Kravits CPG, LPG of Kravits Geological Services, LLC., who is an independent Qualified Person under NI 43-101. And the Chandgana Tal resource estimate is also based on the September
2007 NI 43-101 Chandgana Tal Technical Report by Behre Dolbear & Company (USA), Inc..The report is authored by Mr. Gardar G. Dahl, Jr., CPG of Behre Dolbear & Company (USA), Inc., who is an independent Qualified Person under NI 43-101.
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29. CANADIAN OFFICE
342 Water Street – 2nd Floor
Vancouver, BC
Canada V6B 1B6
Phone: 604-569-3661
Fax: 604-569-3617
Toll Free: 1-800-459-5583
info@prophecycoal.com
MONGOLIAN OFFICE
8/F Monnis Tower, Chinggis
Ave.
1st Khoroo, Sukhbaatar District
Ulaanbaatar, Mongolia
Tel: +976.11.331669
Fax: +976.11.312721
info@prophecycoal.com
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