Representation of 600 MW Chandgana power plant

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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

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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

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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

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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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• 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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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

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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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

• 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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Blue Sky Tower, UB Oyu Tolgoi, Mongolia Central Tower, UB

Tavan Tolgoi, Mongolia ShangriLa Hotel, UB

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

GD

P, U

S$b

n

• 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 Representation of 600 MW Chandgana power plant

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

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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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

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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 grid Mine

mouth

Central Energy system (CES)

Eastern Energy system (EES) 17

Proposed output increase of 600MW to 4200MW would enable Mongolia to export power directly into China via existing Ultra High Voltage Lines.

18 Source: SSE, sxcoal, McQuarie Research

Beijing

Total Electricity Consumption

Source: China Electricity Council

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010 2011 2012E

Billion

kWh

19

Source: The Central Intelligence Agency (CIA) The World Fact Book

Ele

ctr

ic p

ow

er

co

nsu

mp

tio

n

(kW

h p

er

cap

ita

)

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

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

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Scale model of Chandgana power plant

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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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. 24

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

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

• 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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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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