Mr. John Lee, Chairman and CEO, Prophecy Resources

1. 1
Permitting in Mongolia
Mongolia
September 2011

2. The information contained in this presentation (“Presentation”) has been prepared by Prophecy Resources Corp. (“Company”) and is being communicated for general
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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.
2
Disclaimer

3. 1. History of Prophecy in Mongolia: 12 months
2. Accomplishment
Ulaan Ovoo
Invested Heavily, Equipment from Mongolia firms
90%+ Mongolia hires
30,000 tonnes to Darhan and Edernet
Upgrade road and bridge: look to commit further
Chandgana
EIA, Mining License Granted,
Final Power Plant License Waiting
International Bankers and Contractors in Progress
Our History and Records

4. Leadership: Management Team
4
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

5. Leadership: Directors
5
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, Leede Financial

6. Our secrets to permitting
6
Local Partnership
Shareholder, Supply Chain, Marketing
Commitment to Mongolia
Time to cultivate trust
What’s in there for Mongolia
Adhere to the mining code
Rule of law prevails in a democratic country

7. Chandgana Power Plant Project
Mongolia
September , 2011

8. Mongolia
Energy consumption CLOSELY CORRELATES to GDP
Mongolia Economy growing VERY FAST (10%+)
No new power plant last 20 years
Mongolia today relies on VERY COSTLY power import
From Russia at 9c kwh (More than Canadian)
Diesel Fiasco
Current Power Plant Emission Standards VERY LOW

9. Mongolia Power
Supply / Demand Forecast
Source: Energy International
9
0
200
400
600
800
1000
1200
1400
1600
2010 2011 2012 2013 2014 2015
Russia
EES
CES
Demand
Supply
MW
Deficit of
744 MW

10. Thermal power plants provide base load
Power Sources of Mongolia

11. UB Winter Blues
(pic mongolia winter time)
Particles

12. Emission Standards
PM emissions from CHP2 and CHP3 are 20+ g/kWh
SO2 and NOx emissions from CHP2 and CHP3 are
6.6 g/kwh and 7.7 g/kWh.

13. Chandgana: 1 bil ton clean coal
(Sulphur < 1%)

14. 20MW
40MW
Proposed Installed capacity:
Phase I: 4x150 MW
(connect to CES, EES of Mongolia)
Phase II: 6x600 MW
(connect to North East China)
Chandgana
Coal Mine
600 MW Thermal
Power Plant on site
Power Transmission
to CES, EES,
SouthGobi, & China
14Source: Prophecy
Russia
Mongolia
China
Mongolia is currently
importing power from
Russia at a rate of
$0.08 per kWh
Chandgana – Power Plant Concept

15. Proposed tentative location:
Location Chandgana Power Plant

16. Modern Plant with best environment & efficiency standards
less water, less coal, less pollution
(PM 1g vs 20g kwh, SO2/NOx 2g vs 6g kwh)
Build Plant with Best Safety standards with Mongolian Content
more skilled employment
Be most reasonable on Tariffs and Encourage/Welcome Auction
transparency, speed
Prophecy’s Commitment

17. Reduce Black Outs
Reduce Pollution
Energy Independence – No more Russian imports
Export Electricity – Sell Electricity, not the other way round
Save Money
Benefit

18. Let’s Work Together
Government:
Quick comments, reasonable in negotiation
Community:
Support Our Project, Give us feedback
Voice your Support
Prophecy:
Listen, Work with all levels
Bring capital and best expertise
Create win-win for Prophecy and Mongolia

19. Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2012 2013 2014 2015
Feasibility Submitted
• Power Plant
License Granted
• Bankable
feasibility study
Conclude PPA
Conclude Project Financing
Construction
Complete
Chandgana: Project timeline
19
Already obtained:
- Environmental assessment approval
- Mining license
- Ministry Endorsement

20. Mongolia Power
Supply / Demand Forecast
Source: Energy International
20
0
200
400
600
800
1000
1200
1400
1600
2010 2011 2012 2013 2014 2015
Russia
EES
CES
Demand
Supply
MW
Deficit of
744 MW

21. 21
Monoglia Office: Monnis Tower 8th Floor
info@prophecycoal.com
jlee@prophecycoal.com
www.prophecycoal.com
2nd Floor, 342 Water Street
Vancouver, BC , Canada
1.604.569.3661
PCY (tsx-v)
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