Mr. John Lee reports

PROPHECY PLATINUM STARTS WELLGREEN UNDERGROUND DRILLING, 20,000 METERS PLANNED IN 2012

Prophecy Platinum Corp. will commence drilling on its Wellgreen platinum-group-element-nickel-copper project starting the third week of January, 2012. Approximately 9,000 metres of underground drilling have been planned, targeting the infill areas of the existing Wellgreen inferred resource, and potential expansion of the resource southward to fill the pit area currently being designed in the company's preliminary economic assessment (PEA) due for completion in the first quarter of 2012.

Underground rehabilitation and development started in November and will be continuing throughout 2012. Drill permits have been obtained and crews have been mobilized to prepare drill stations, where drilling is to be conducted from the historic workings on the Wellgreen property which are accessible by an adit into the 4250 level. The company expects underground drilling to continue year round covering the one-kilometre strike Wellgreen East zone.

Separately, the company has also signed a contract for a minimum 10,000 metres of surface drilling starting in the spring of 2012. Between two to four surface drills will be dedicated toward the surface program which will run concurrently with the underground program upon its commencement. The surface drilling will cover the proposed pit area, the West zone and the northernmost portions of the Wellgreen intrusion with high-grade channel samples in excess of 241 grams per tonne platinum plus palladium plus gold over 0.5 metre. Surface drills will also be devoted toward continued exploration outside of the two km resource strike boundaries, in order to test open areas at depth and to the east as delineated by magnetic anomalies and known lithological contacts.

In close collaboration with Wardrop Engineering, a Tetra Tech company, Prophecy designed this underground and surface drilling program primarily to potentially upgrade the Wellgreen's 289 million tonnes(i) of inferred resource to National Instrument 43-101-compliant measured and indicated categories. The drill holes were planned to provide optimal variography with off-section holes and on-section holes to delineate the mineralization. Measured and indicated resource categories will allow Wellgreen to move forward to a prefeasibility level of study after the completion of the PEA in Q1. These data will also assist the company with future mine planning and detailed project economic analysis.

John Lee, chairman of Prophecy, states: "This will be the biggest drill campaign in Wellgreen's history. Our project is merely 15 km from the paved two-lane Alaska Highway with port access. The company will continue to make rapid strides toward derisking this very unique, high-profile PGM project in North America."

In addition to definition drilling, a separate Prophecy exploration team, assisted by Dr. Larry Hulbert, PGeo, is compiling extensive historic data and planning an exploration program covering the 17.5 km Quill Creek area aiming at discovering additional massive sulphide systems. Details will follow in Q1.

(i) July, 2011, technical report by Wardrop, a Tetra Tech company: 289 million tonnes of inferred resource with grades 0.38 per cent Ni, 0.35 per cent Cu, 1.18 g/t PGM plus Au and 14 million tonnes of indicated resource with grades 0.69 per cent Ni, 0.62 per cent Cu and 2.25 g/t PGM plus Au.

This news release has been reviewed and approved by Danniel Oosterman, PGeo, an independent consultant and a qualified person as defined in NI 43-101.

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