Representation of 600MW Chandgana Power Plant

Large, scalable power plant• 600 MW power plant license granted (Nov. 2011)• Proposed Phase 1: 600MW • Proposed Phase 2: 3,600MW (export to China)

Abundant low cost coal• Low strip ratio of 0.5:1*• M&I resource 1.2 billion tonnes+

• Low ash and low sulfur• Mining license obtained for 140Mt Chandgana Tal• 150 km from transmission line

Timeline• Finalize PPA, EPC contractor, and project

financing (2012) • Construction starts (Estimated Q2 2013)• Start up phase (Estimated Q2 2015)

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 matterswhich 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 theCompany 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, statementsregarding the development and production of the Company’s Chandgana Power Plant and other information concerning possible or assumed future results of operations of Prophecy. Although Prophecy has attempted to identifyimportant 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 notanticipated, 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 toupdate or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law. **Chandgana consists of two properties - Chandgana Tal and Chandgana Khavtgai.Chandgana Tal has a strip ratio of 0.5:1 and Chandgana Khavtgai has a strip ratio of 2.2:1.

350km to China150km to grid

2 km

Chandgana Power Plant Project

Representation of 600MW Chandgana Power Plant

Prophecy Coal’s Ulaan Ovoo Mine – April 2011

Ulaan Ovoo Thermal Coal Mine Directors and Advisors

John Lee - Chairman & CEO• BSEE, BA Econ: Rice University• Founder of Prophecy Coal / Prophecy Platinum (TSX.V: NKL)

Greg Hall - Director• Co-founder of Prophecy Coal / Prophecy Platinum (TSX.V: NKL)• Former Director at Silvercorp

Jivko Savov - Director• Deputy CEO of En+ and • Deputy Chairman of EurosibEnergo

Michael Deats - Director• Ex-Managing Director of BP Coal South Africa

Chuluunbaatar Baz - Director• Chairman of Monnis Group Mongolia

Harald Batista - Advisor• Prominent member of Batista family of Brazil• EBX Group; Vale Inco

+Ulaan Ovoo: 174 million tonnes of measured and 34 million tonnes of indicated. Ulaan Ovoo’s resource numbers are fromthe Dec 2010, 43-101 Prefeasibility Study by Wardrop Engineering. Chandgana: 650 million tonnes of measured and 538million tonnes of indicated coal. Chandgana’s resource numbers are from the September 2007, 43-101 Technical Report byBehre Dolbear & Company (USA), Inc. for Chandgana Tal and from the September 2010, 43-101 Technical Report byKravits Geological Services, LLC for Chandgana Khavtgai.

High Quality Abundant Thermal Coal+

• (ar) Min 5,000 kcal/kg, Max 1% Sulphur, 11.3% Ash• 20 year+ mine life• Resource: 208 Mt (M&I)

Low Cost Mining• Single seam, 50 meters thickness, strip ratio 1.8: 1

Production• 2011: 200,000 tonnes mined and sold• 2012: Estimated 300,000 – 500,000 tonnes• Market to: Mongolia, China, Russia

Ulaan Ovoo Seam Cross Section

Corporate Structure & InformationShares:

Issued and Outstanding Fully Diluted

Market Capitalization Investment Holdings** **As of 03/02/2012

201,109,422 237,537,242 $90M CAD$87M CAD