Representation of 600 MW Chandgana power plant

Chandgana Coal

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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 Coal Resources (Tonnes)

Chandgana Tal Khavtgai Uul Chandgana (Total)

Measured 0.14 billion 0.51 billion 0.65 billion

Indicated - 0.54 billion 0.54 billion

Total M&I 0.14 billion 1.05 billion 1.19 billion

Chandgana Power Project Summary

• First Independent Power Plant (IPP) in Mongolia• Mine mouth plant next to Chandgana property• 150 MW x 4 in Central Mongolia, 300 km east of Ulan Bator• Coal mining and power plant construction licenses obtained

• Mongolia: Fast growing country in need of energy• Licenses owned by Canadian company with good reputation• Seeking Joint Venture Partner (not sale of project)

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Mongolia Power Supply/Demand

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Source: Energy International

Strategic Location

•Central Mongolia (300km east of Ulan Bator): ready access to key markets

•Adjacent to coal deposit

•Close to Mongolia 220kV grid: 60km to Eastern and 120km to Central

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Prophecy Power Transaction Structure

Sponsor• Buy 40% equity interest in Prophecy

Power for a one-time payment• Obtains rights to project EPC and O&M• Contributes pro-rata share of ongoing

development expenses and project capex• Lead arranger of power plant financing

Prophecy• Contributes licenses and local knowledge• Finalize PPA, EPC, fuel supply contracts• Participates in financing

Private Equity Sponsor • Participates in financing

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40%20%40%

Power Plant JV

Sponsor PE Investor Prophecy Coal

Prophecy Power Project Capex

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Estimated Equity Commitment by year ($million)2013 2014 2015 2016 Total

Sponsor $41 $43 $39 $25 $148

Prophecy Coal + PE $60 $64 $59 $37 $220

Equity Total $101 $107 $98 $62 $368

Debt Total $217 $252 $263 $157 $889

Financing Total $318 $359 $361 $219 $1,257*

Based on total 600MW EPC cost of $1.1 billion, equity/debt funding of 30/70 (*Includes IDC)

We anticipate cost to be 65% of above for 300MW only.

Strategic Benefits to Sponsor

• Rare opportunity to enter Mongolian power sector• Expected to immediately achieve significant scale in Mongolian market

(Phase 1: 600 MW will add 70% to existing installed capacity of 800 MW)• Target Tariff with 6 year equity payback, 25% post-tax IRR (assuming 30/70

equity/debt financing)• Platform for future growth and development (Phase 2: power export to

China)

In the Mongolian Power Sector:• IPP encouraged to bridge power demand gap• Prophecy is the most experienced Canadian company • Chandgana is the most advanced thermal power project• Prophecy provides permitting and government relations

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Chandgana Power Project Status

Project status• Over US$50 million invested• Coal Mining, Power Plant Construction

Licenses received• PPA submitted to Mongolian Gov’t in

August 2012Next steps• Finalize EPC* by 2012• JV Partner by early 2013• Sign PPA by early 2013• Pour Concrete by Apr il 2013• Financing by end of 2013• COD** (150MW x 2) by early 2016

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License / Approval Date Status

Power Plant Detailed Environmental Impact Assessment

November 2010 Received

Chandgana Mining License January 2011 Received

Power Transmission Line August 2011 Submitted

600 MW Power Plant Construction License November 2011 Received

Power Purchase Agreement August 2012 Submitted

Tariff Application August 2012 Submitted

*EPC: Engineering, Procurement, Construction; **COD: commercial operation date

Chandgana Coal mine

Sponsoracquires 20% equity interest – one time payment

Chandgana LLC will develop Coal Mine (total ~$50million)

Chandgana will provide coal supply to plant for 25 years

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80%

20%

Chandgana Coal Mine

Prophecy Coal Sponsor

ManagementJohn Lee, CFA – Chairman / CEO

Founder of Prophecy Coal Corp. and Prophecy Platinum Corp.

Jivko Savov - DirectorFormer Deputy CEO of En+, company owned by Oleg DerispeskaFormer Chairman of Rusal, Chairman of EuroSibEnergo

Michael Deats - DirectorFormer Managing Director of BP Coal South Africa, Ex-Director of Eskom

VP Sharma – Technical Advisor 40 years experience in the power industry. Joined CLP Group in 1978. Roles include Director-Head of India, Managing Director of GPEC and CEO of CLP Power India

Ms. Lynia Lau - Legal Advisor Hong Kong based partner in law firm Clyde & Co. and the Asian Head of Energy. Advised Shanghai Power Group LTD, Yudean Group Limited, China Three Gorges Group, and Datang Power International in their oversea investment in power plant projects.

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Prophecy Platinum (TSXv:NKL OTCQX:PNIKF)

• Prophecy Coal spun out Prophecy Platinum in 2011 and retains a 33% equity stake worth ~$27M

• Prophecy Platinum:– Owns 100% of the Wellgreen PGM-Ni-Cu deposit in the Yukon, which

GMP recently indicated was #5 on its list of undeveloped PGM deposits outside South Africa

– Recently acquired the Shakespeare PGM-Cu-Ni deposit near Sudbury, which is fully permitted and ready to be mined

– Recently put in place a senior management team led by CEO Greg Johnson, co-founder of NovaGold

Vale - Sudbury (multiple mines)

Stillwater - Still-water Mine

Prophecy Platinum - Wellgreen

Xstrata - Nickel Rim South

Stillwater - East Boulder Mine

NA Palladium - Lac des Iles

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500 koz Pt (left scale) koz Pd (right scale, or Pt Eq on left scale)

Wellgreen PGM Production Projected to be the 3rd Largest Individual Mine in North America

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Platinum & Palladium Production per Year

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Platinum – High Risk of Supply Disruptions

Platinum Supply and Demand:• Platinum supply is just 1/10th that of gold

and 1/100th that of silver• South Africa, Russia and Zimbabwe

account for 93% of global platinum supply

• Strong auto catalyst, jewelry and investment demand forecast

Implications:• Platinum and PGM projects in stable

jurisdictions like the Yukon will be highly sought after

Others2%Russia13%

South Africa75%

North America5%

Zimbabwe5%

Platinum Supply by Region 2011 - Total 6.5Moz

Source: Johnson Matthey – Platinum 2012

Geopolitical Stability

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Questions?