This document provides an overview of Prophecy Resources Corp. and its plans to fulfill Asia's growing energy needs through developing the Chandgana Power Plant in Mongolia. It outlines key risks and uncertainties such as obtaining necessary permits and approvals, uncertainties around resource and reserve estimates, and risks associated with operating in foreign jurisdictions. The summary cautions that forward-looking statements are based on assumptions and actual results could differ due to disruptions or other factors.

1. Fulfilling Asia’s Energy Needs
Investor Presentation
October 2011
1

2. Disclaimer
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 Presentation has not been independently verified and the information contained within is subject to updating, completion, revision, verification and further amendment. Neither the
Company, nor its shareholders, directors, officers, agents, employees, or advisors give, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the
accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its
advisers (all such information being referred to as “Information”) and liability therefore is expressly disclaimed. Information contained in this Presentation is the property of the Company. It is made
available strictly for the purposes referred to above. Neither the communication of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to
proceed with any transaction. This Presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the
Company, nor shall it, or the fact of its communication, form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment whatsoever with respect
to such securities. The communication of this Presentation in or to persons in certain jurisdictions may be restricted by law and persons who may rceive communication of this Presentation should inform
themselves about, and observe, any such restrictions in advance of communication to them of this Presentation. In particular, this Presentation has not been approved by an authorised person pursuant to
Section 21 of the Financial Services and Markets Act 2000 (“FSMA”) and accordingly it is being delivered in the United Kingdom only to persons to whom this Presentation may be delivered without
contravening the financial promotion prohibition in Section 21 of the FSMA. Those persons are described in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“Order”) and
include persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 (investment professionals) of the Order. In addition,
other than a limited number of persons reasonably believed to be qualified institutional buyers (as defined in Rule 144A under the US Securities Act of 1933, as amended) or accredited investors (as
defined in the National Instrument 45/106), neither this Presentation nor any copy of its may be transmitted into the United States of America or Canada or distributed directly or indirectly, in the United
States of America or Canada, or to any resident thereof except in compliance with the applicable securities laws. Any failure to comply with these restrictions may constitute a violation of applicable US or
Canadian securities laws. By accepting communication of this Presentation, the recipient represents and warrants that it is a person to whom this Presentation may be communicated without a violation of
the laws of any relevant jurisdiction. This Presentation is not to be communicated to any other person or used for any other purpose and any other person who receives communication of this Presentation
should not rely or act upon it. In furnishing this Presentation, the Company does 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 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. 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 permitting, development and production of the Company’s Chandgana Power Plant, including approval of the license to build Chandgana Power Plant from the
Mongolian government and completion of a feasibility study by late 2011 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.
2

3. Why Mongolia
Mongolia Stock Exchange Index returns:
• 125% returns in 2010
• 35% returns (ytd) in 2011
3

4. China needs energy
4

5. Brazil and Australia are investing
tens of $billions to export to China
5

6. World class companies already in
Mongolia
6

7. Mongolia: the new frontier
• Pro‐business democratic government
• Resource rich nation
• Mongolian coal export up 43% ytd (yr over yr)
• Increasing global market attention and activity
• SouthGobi HK IPO 2010 – Raised $500 million equity
• MMC HK IPO 2010 – Raised $650 million equity
• TavanTolgoi IPO HK/LSE 2011/2012 ‐ $5+ billion valuation
7

8. Prophecy Coal
Symbol TSX PCY
Shares 198 million (basic); 240 million (diluted)
Ave shares traded (LTM) 700,000 per day
Market cap ~ C$100 million
Ownership 50% retail
30% institutions
20% insiders
Cash ~ C$4 Million (as at end of August 2011)
Debt Nil
Investment portfolio ~ C$75 million
Locations Headquarter: Vancouver, BC, Canada
Core mining assets: Mongolia
8

9. Why Invest in Prophecy Coal
• Proxy to growth in Mongolia and China
• Strong demand for thermal coal and electricity
• Long life,low cost producer with 1.4 bt* supply
• Commenced coal production, permitting power plant
• Strong growth profile
*Ulaan Ovoo: 174 million tonnes of measured and 34 million tonnes of indicated coal. Ulaan Ovoo’s resource numbers are from 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. 9
Gardar G. Dahl, Jr., CPG of Behre Dolbear & Company (USA), Inc., who is an independent Qualified Person under NI 43‐101.

10. Leadership: Management Team
John Lee, CFA – Chairman / CEO
• Entrepreneur (BSEE, BAEcon: Rice U.) Started PCY in Oct 2010
• PCY market cap $1 million to $200 million in 14 months
Irina Plavutska, CGA ‐ Interim CFO
• 20 years+ senior financial experience
Paul Venter – Director / VP Operations (Ulaan Baator)
• 30+ years mining/power experience with BHP/Eskom/En+
• Focus on Russian and Mongolian coal since 2006 with En+
Ronnie Van Eeden ‐ VP Mining Operations(Ulaan Baator)
• 30+ years mining experience with Eskom / Sasol
• Management of the mining and supply of 90 to 100mt/year
10

11. Leadership: Directors
Chuluunbaatar Baz
• President and Chairman of Monnis Group
• Monnis has over 1,000 employees, top 10 company in Mongolia
Jivko Savov
• Deputy CEO of En+, company owned by Oleg Derispeska
• Ex‐Chairman of Rusal, Chairman of EurosibEnergo
Michael Deats
• Ex‐Managing Director of BP Coal South Africa, Ex‐Director of Eskom
Greg Hall
• Director of various public resource companies
• Formerly at Haywood Securities, Canaccord Capital and Leede Financial
Paul Mackenzie
• Director of various public resource companies
11

12. Where we are
12 12

13. Ulaan Ovoo Mine
100% owned
Reserve*: 20 Mt (Proven)
Resource*: 209 Mt (M&I)
High quality thermal coal
Low strip surface mining
Potential sales to: May 2011
•Offshore markets (China, South
Korea, Japan)
•Domestic (Mongolia, Russia)
*Ulaan Ovoo: 174 million tonnes of measured, 34 million tonnes of
indicated, and 20.7 million tonnes of proven coal. Ulaan Ovoo’s resource
numbers are from the Dec. 2010, 43‐101 Prefeasibility Study by Wardrop
Engineering.
July 2010 13

14. Ulaan Ovoo: Competitive Coal
High quality and abundant coal
• Min AR 5,000 kcal/kg, Max 1% sulphur, 10% ash*
• 20+ year mine life*
Low cost mining
• Single seam, 50 meters thickness, Strip ratio 2: 1
*Information basd on Dec. 2010, 43‐101 Prefeasibility Study by Wardrop Engineering. 14

15. Ulaan Ovoo: to date
Equipment
• Two complete fleets, capacity 600kt/annum
• 18 coal haul trucks
Production
• 1.5 million bank‐cubic‐
metres of waste removed
• 230,000 tonnes of coal
stockpiled
Port allocation secured
15

16. Forecasted Thermal Coal Prices
Continued market strength
US$ / tonne
High
Average
Low
Based on analyst reports for Newcastle from National Bank Australia, Danske Bank,
Commerzbank, Standard Chartered, Societe General, Barclays, Deutsche, CIBC, Morgan 16
Stanley, RBC

17. Ulaan Ovoo: next steps
Agreements outstanding
• Russian rail
• Off‐take agreements:
Offshore and domestic
Increase run‐rate
• Lower costs
• Still in pre‐commercial
production status
Open border
• Lower transport costs
17

18. Chandgana
100% owned
Resource*: 1.2 Bt (M&I)
Thermal coal
Low strip surface mining
Mine‐mouth Power Plant
• US$0.06 kw/h = US$100/t coal
100 sq km prospective claims
*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.
18

19. Chandgana
April 2011
19

20. Chandgana: Coal
Abundant low cost coal
• Low strip (0.5:1)
• Next to rail and paved
roads
Coal
• Low ash and low sulfur
20m Clay
Mining license obtained
for 140 Mt
40m Coal
20

21. Chandgana: Value chain
150 km to Powerline
400 km to China
9 km
Chandgana Proposed Installed capacity: Power Transmission
Coal Mine Phase I: 600 MW
(connect to CES, EES of Mongolia)
Phase II: 3600 MW
(connect to China)
Meeting Mongolia’s Power Needs
21

22. Mongolia Power
Supply / Demand Forecast
MW 1600
Demand
1400
1200
Deficit of
744 MW
1000
800
600 Supply
400 Russia
EES
200
CES
0
2010 2011 2012 2013 2014 2015
Source: Energy International
22

23. Chandgana: Location advantage
Mongolia is currently
importing power from
Russia Russia at a rate of
Ulaan Ovoo
$0.08 per kWh
Mongolia
Chandgana
Central Energy system (CES)
Eastern Energy system (EES)
New transmission lines
Proximity to China:
100 km
China ‐ China: 400 km
‐ Beijing: 1,000 km
23

24. Chandgana: Project timeline
Feasibility Submitted Complete
Conclude PPA Construction
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2012 2013 2014 2015
• Power Plant Conclude Project Financing
License Granted
• Bankable Already obtained:
feasibility study ‐Environmental assessment approval
‐Mining license
24

25. A pure‐play coal company
Spin‐out of nickel and PGM assets to Prophecy Platinum
Corp. (TSX‐V: NKL)
• Completed June 2011
• NKL is owned 45% by PCY and 45% by PCY shareholders
Prophecy Resources renamed to Prophecy Coal Corp.
• Focus solely on coal
25

26. Investment Portfolio
Prophecy Platinum (NKL: tsx‐v)
Canadian exploration Company that has focused primarily on developing and seeking sulphide nickel and platinum palladium group
properties. Current Canadian properties include Burwash, Wellgreen, Lynn Lake and five prospects in Uruguay and an advanced Las
Aguilas Nickel PGM deposit in Argentina. Visit prophecyplat.com for more details. Prophecy Coal owns 22.5 million shares.
Victory Nickel (NI: tsx)
Canadian company with sulphide nickel deposits containing significant 43‐101‐compliant nickel resources: Minago, Mel and Lac
Rocher. Visit victorynickel.ca for more details. Prophecy Coal owns 36.6 million shares.
Compliance Energy (CEC: tsx‐v)
Canadian resource company that has coal interests in British Columbia, Canada. CEC owns 60% of the Raven Underground Coal
project is 43‐101 compliant semi–soft coking coal M&I resource of 72M tonnes. Visit complianceenergy.com for more details.
Prophecy Coal owns 5 million shares.
Total current market value ~ $75 million
26

27. The Road Ahead
Ulaan Ovoo: continued growth
• Lower costs
• Off‐take agreements
Chandgana: continue down the process
• Power Plant license (Q4 2011)
• Bankable feasibility study (Q4 2011)
• Conclude PPA (early 2012)
• Construction early (early 2013)
TSX Main Board listing (Q4 2011)
27

28. Why Invest in Prophecy Coal
• Proxy to growth in Mongolia and China
• Strong demand for thermal coal and electricity
• Long life,low cost producer with 1.4 bt* supply
• Commenced coal production, permitting power plant
• Strong growth profile
*Ulaan Ovoo: 174 million tonnes of measured and 34 million tonnes of indicated coal. Ulaan Ovoo’s resource numbers are from 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. 28
Gardar G. Dahl, Jr., CPG of Behre Dolbear & Company (USA), Inc., who is an independent Qualified Person under NI 43‐101.

29. 2nd Floor, 342 Water Street
Vancouver, BC , Canada
TSX: PCY
1.604.569.3661
info@prophecycoal.com
www.prophecycoal.com
See our latest corporate video
at www.prophecycoal.com
29