Prophecy Appoints Country Adviser, Project Manager and Business Development Manager and Provides Update on Tugalgatai Transaction

Bailiikhuu Dambachultem – Country Adviser

Mr. Bailiikhuu has over 29 years of privatization and deregulation policy experience in Mongolia. He is currently advising the State Property Committee of Mongolia on a range of issues including the development of a policy on the restructuring and privatization of state-owned enterprises (“SOE”) in Mongolia, corporate governance, post-privatization restructuring of SOEs and the development of a regulation policy relating to Mongolia’s infrastructure sector. Mr. Bailiikhuu received his Master and Bachelor degrees in Economics.

Mr. Bailiikhuu advises Prophecy on government relations and permitting matters related to the Chandgana Power Plant project.

Damdinjav Davaajav – Project Manager

Mr. Damdinjav has over 20 years of electrical engineering, power distribution and generation experience in Mongolia. Before joining Prophecy, Mr. Damdinjav was the deputy director of the energy department at Newcom Group, one of Mongolia’s leading business groups, where he was responsible for technical supervision, technical proposal development and project management of the Salkhit wind farm 50MW project and the Ulaanbaatar Combined Heat Plant-5 (CHP-5) 450 MW project. Prior to that, Mr. Davaajav worked as a consultant for World Bank and Asian Development Bank’s energy projects in Mongolia, and at the Energy Authority and Central Energy System, a government agency of Mongolia, and he was responsible for transmission and distribution network management and load dispatch at Central Electric Power System. Mr. Davaajav received his Master and Bachelor degrees in Electrical Engineering.

Mr. Damdinjav works with Mr. Sharma, technical adviser to Prophecy’s Board, on managing technical aspects of the Chandgana Power Plant project and transmission lines.

Bekzod Kasimov – Business Development Manager

Prior to joining Prophecy, Bekzod Kasimov worked at Eurasia Capital, an Ulaanbaatar-based investment bank, and he was responsible for providing advice on raising capital to international and local companies in Mongolia. He has served on the board of directors of several Mongolia-focused companies. He holds a Master of Science in Finance from the Stockholm School of Economics.

Mr. Kasimov is in charge of liaising with strategic investors, financial modeling and broad aspects of the due diligence process.

Update on Tugalgatai Transaction

Further to the Company’s news release dated November 2, 2012 concerning the postponement of the purchase of Tugalgatai coal exploration licenses from Tethys Mining LLC (“Tethys”), the Company would like to clarify it is currently in discussions with Tethys to amend the original agreement, which is no longer in effect as the initial long stop date has passed.

About Prophecy Coal

Prophecy Coal Corp. is a Canadian listed company engaged in developing energy projects in Mongolia. The Company’s wholly-owned subsidiary Prophecy Power Generation LLC is advancing plans for a proposed 600 MW mine-mouth power plant, which has been permitted by the Mongolian government, adjacent to its Chandgana coal deposit. The Company cautions the Chandgana project is in Mongolia and requires substantial capital to develop.

ON BEHALF OF THE BOARD OF PROPHECY COAL CORP.

JOHN LEE, CEO/Chairman

(i) Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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