Mr. John Lee reports

PROPHECY APPOINTS KEY MANAGEMENT PERSONNEL

Prophecy Resource Corp. has made the following senior appointments.

Paul F. Venter -- vice-president, energy operations, Ulaan Baatar and London

Mr. Venter oversees Mongolia mining and power operations for the company. Mr. Venter has been a Prophecy director since August, 2010. He is an industry-recognized and seasoned professional with over 30 years of experience with BHP and Eskom in the mining, power generating and transport industry. In 2006, he extended his focus to expand the business of a major strategic player in the coal and power generating industry in Russia, China and Mongolia. Mr. Venter contributed significantly towards the commissioning of Prophecy's Ulaan Ovoo mine in November, 2010, and is now focusing on power generating opportunities in addition to Ulaan Ovoo operations. Mr. Venter holds an MDP in mining and various commercial qualifications. He was accepted as a member of the IRT (SA) in 1983.

Christiaan H.B. (Ronnie) Van Eeden -- vice-president, mining operations, Ulaan Baatar

Mr. Van Eeden is in charge of Mongolia mining operations and coal-to-liquids technology. Mr. Van Eeden has 34 years of experience in coal mining and related industries, including holding senior management positions pertaining to the engineering, mining and commercial functions of coal mines. His experience also includes the management of the mining and supply of 90 to 100 million tonnes of coal per annum, through various coal supply agreements, to Eskom, the South African power utility. He is a former director of a Canadian mining company that developed a feasibility study for the establishment of a 2,400-megawatt power plant with its associated coal mine in Botswana in Southern Africa. Also prior to joining Prophecy, he was contracted by a large South African coal to liquids company to undertake mining and commercial evaluations for the feasibility studies of three large coal operations in China including negotiating coal supply agreements, as well as the analysis and evaluation of the business plans of five large coal mines in South Africa. Mr. Van Eeden has a BSc in engineering as well as a BProc law degree. He also holds certificates of competence in mining and engineering, a legal requirement for managing coal mines in South Africa.

Enkbaatar Ochirbal -- vice-president, Mongolia country manager, Ulaan Baatar

Mr. Ochirbal liaises with government on statutory and regulatory framework for both mining and energy operations. Mr. Ochirbal is a Mongolian national, who, prior to joining Red Hill Energy Inc. (now Prophecy Resource Corp.) in 2005, was a senior manager with MineInfo LLC, one of Mongolia's leading minerals and consulting companies. Prior to entering the mining sector, he spent over 16 years in various managerial positions in Mongolia's financial and banking sectors. He is a former department head for the Mongolian Stock Exchange and Securities Commission, and former president of MS Invest LLC, the first investment fund in Mongolia, in addition to being the former chief executive officer of the Capitron bank. Mr. Ochirbal holds a commerce degree from the Mining & Economics Institute in Ukraine, an MBA from the Mongol Business University in Mongolia, in addition to studying at the University of Hull in the United Kingdom and Boston University. He is fluent in Mongolian, Russian, English and Czech languages.

Irina Plavutska, CGA -- interim chief financial officer, Vancouver and Ulaan Baatar

Ms. Plavutska is a professional accountant with over 20 years of diverse international experiences in financial reporting, auditing and accounting. She is a member of Certified General Accountants Association of British Columbia. Ms. Plavutska earned a master's degree in economics from the University of Business and Economics in Ukraine, and has held senior accounting positions, such as corporate controller, at numerous Canadian international and professional service companies for the past several years. She is fluent in Russian and English. Derek Liu has resigned as Prophecy chief executive officer to pursue other opportunities.

Joseph W. Li, CGA -- general manager and corporate secretary, Vancouver

Mr. Li is a certified general accountant in British Columbia and has an honours bachelor of commerce from Laurentian University. For the past 13 years, he was a senior auditor with the B.C. Ministry of Finance, a position which allowed him to gain valuable insights in how diverse businesses of all sizes are operated. Mr. Li strengthens Prophecy's corporate governance. Mr. Li has been granted 100,000 options at $1.07 per share with a two-year vesting schedule for a period of five years, subject to regulatory approval.

John Lee, CFA, chairman of Prophecy, comments: "Prophecy is now endowed not only with world-class assets but world-class management. I expect additional management announcements in the near term."

We seek Safe Harbor.