PRESENTATION

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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not undertake or agree to any obligation to provide the attendee with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation that may
become apparent either during, or at 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 that is based on assumptions about future conditions and courses of action and includes future oriented financial information with respect to prospective results of operations, financial
position or cash flows that is 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 May 14, 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
• Chandgana ($10million+ invested): 600MW mine mouth power plant
license received, uses environmentally-friendly technology and is first
independent power plant in Mongolia
• Ulaan Ovoo ($30million+ invested): The largest independent thermal coal
supplier in Mongolia
• As of May 10th, 2012, 83% of Prophecy Coal’s market cap is attributed to
its equity share position in Prophecy Platinum Corp (TSX.V: NKL)
*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 was an independent Qualified Person under NI 43-101 at the time of report preparation. 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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4. Shares 225 Million (basic); 262 million (diluted)
Market
Capitalization
~62 million CDN*
Ownership 50% Retail, 30% Institutional, 20% Management & Directors
Investment
Portfolio
$51 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 05/01/12 4

5. John Lee, CFA – Chairman / CEO
• Founder of Prophecy Coal Corp. and Prophecy Platinum Corp.
Greg Hall – Director
• Co-founder of Prophecy Coal Corp. and Prophecy Platinum Corp.
• Former Director of Silvercorp
Jivko Savov - Director
• Over 15 years of energy and natural resources experience focused on emerging markets.
• Head of Global M&A at Gazprom in London.
• Former Deputy Chief Executive Officer of En+ Group.
Chuluunbaatar Baz - Director
• President and Chairman of Monnis Group
• Monnis has over 1,000+ employees; top 15 enterprises 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: 1,167 KM
Central Energy system (CES)
Eastern Energy system (EES)
New transmission lines 7
Ulaan Ovoo
Chandgana
*Source: Eurasia Capital

8. • GDP growth 2011: 17.3%
• Compounded GDP growth since 2000: 123%
• Power supply capacity from 2000 ~ 2016: ~750MW
(until TPP5 starts)
• Largest coal supplier to China in 2011 (30MT), now exceeds Australia
• Tavan Tolgoi coking coal to triple production to 13MT/yr by 2015
• 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
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9. 9
Blue Sky Tower, UBOyu Tolgoi, MongoliaCentral Tower, UB
Tavan Tolgoi, MongoliaShangriLa Hotel, UB

10. 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
10
$16
$14
$12
$10
$8
$6
$4
$2
GDP,US$bn

11. • Second most polluted air of any 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 inefficient power infrastructure
lacking pollution controls
11
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

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: 1,167 KM
Central Energy system (CES)
Eastern Energy system (EES)
New transmission lines 13
Ulaan Ovoo
Chandgana
*Source: Eurasia Capital

14. 100% Owned
Resource: 1.2 Billion Tonnes* (M&I) Thermal Coal
Power plant license granted by the Mongolian
Government
0.5:1 Strip Ratio*
Mining license obtained for 140MT Chandgana Tal
Close proximity to infrastructure
150km From Central Energy System
*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 was an independent Qualified Person at the time of report
preparation 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 & proposed 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 road
• 150 km from Central Energy System
• 100km2 Prospective Claims
15

16. 16

17. Coal from
Chandgana
(or contiguous license)
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 gridMine
mouth
Central Energy system (CES)
Eastern Energy system (EES) 17

18.  Proposed output increase
of 600MW to 4200MW
would enable Mongolia to
export power directly into
China via existing Ultra
High Voltage Lines.
18Source: SSE, sxcoal, McQuarie Research
Beijing

19. Total Electricity Consumption
Source: China Electricity Council
0
1000
2000
3000
4000
5000
6000
2007 2008 2009 2010 2011 2012E
Billion
kWh
19

20. Source: The Central Intelligence Agency (CIA) The World Fact Book
Electricpowerconsumption
(kWhpercapita)
20
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2006 2007 2008 2009 2010
Mongolia
China
India
Japan
USA

21. Estimated time line:
• TSX listing (Q4 2011)
• Power plant license (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
21
Scale model of Chandgana power plant

22. 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
Conclude Project Financing
Power plant construction license received
Power Plant
License Granted
*PPA – Power Purchase Agreement
**EPC – Engineering, Procurement & Construction
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23. 23

24. 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: 370,000 tonnes mined (133,000
tonnes sold)
2012: 300,000 tonnes (est.)
Markets: Mongolia, Russia
$30million invested (mine + equipment)
2011
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. Strip ratio applies to the initial starting pit area only.
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25. 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 and 4 UD coal haul trucks
ar – as received / GCV** – gross calorific value
**Information based on Dec. 2010, 43-101 Prefeasibility Study by Wardrop Engineering. 25

26. Mongolia is currently
importing power from
Russia at a rate of
$0.08 per kw/h
PROXIMITY TO CHINA:
- CHINA: 350 KM
- BEIJING: 1,167 KM
Central Energy system (CES)
Eastern Energy system (EES)
New transmission lines 26
Ulaan Ovoo
Chandgana
*Source: Eurasia Capital

27. • Leading energy play, focus on developing energy solutions for Mongolia
• 1.4* billion tonnes of coal in two distinct properties in Mongolia
• Chandgana ($10million+ invested): 600MW mine mouth power plant
license received, uses environmentally-friendly technology and is first
independent power plant in Mongolia
• Ulaan Ovoo ($30million+ invested): The largest independent thermal coal
supplier in Mongolia
• As of May 10th, 2012, 83% of Prophecy Coal’s market cap is attributed to
its equity share position in Prophecy Platinum Corp (TSX.V: NKL)
*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 was an independent Qualified Person under NI 43-101 at the time of report preparation. 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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28. 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 14240
Tel: +976.11.331669
Fax: +976.11.312721
info@prophecycoal.com
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