Pursuant to special resolutions passed by the shareholders of Northern Platinum Ltd. on Sept. 3, 2010, and a final order of the British Columbia Supreme Court, Northern Platinum and Prophecy Resource Corp. will complete a plan of arrangement under Part 9, Division 5, of the Business Corporation Act (British Columbia). The plan of arrangement will complete on Sept. 23, 2010, and will result in:

• Prophecy issuing 0.5 common share and 0.1 warrant for each common share of Northern Platinum (Each whole warrant will entitle the holder to acquire one common share of Prophecy at 80 cents for 18 months.);
• Holders of convertible securities of Northern Platinum receiving convertible securities of Prophecy such that each former Northern Platinum security will be exchanged for a Prophecy security, exercisable for that number of Prophecy shares that is equal to the number of Northern Platinum shares that would otherwise have been issuable thereunder multiplied by 0.50 with the exercise price of such Prophecy convertible security being adjusted to equal the exercise.

Finder's fees in relation to this transaction to be paid by Prophecy consist of:

• To Michael Opara, $50,000 in cash;
• To Richard Murphy, 100,000 common shares and 50,000 options to acquire shares at 80 cents per share vesting over two years;
• To Wayne Whymark, 100,000 common shares and 50,000 options to acquire shares at 80 cents per share vesting over two years.

Further information on this transaction can be found in the Northern Platinum information circular dated July 30, 2010, and both companies' news releases dated June 15, 2010, July 16, 2010, Aug. 12, 2010, Sept. 3, 2010, Sept. 7, 2010, and Sept. 16, 2010.