Mr. John Lee reports

PROPHECY BOARD APPOINTMENT

Prophecy Resource Corp. has nominated Paul Venter for appointment to its board of directors.

Mr. Venter's experiences in regional and international coal operations make him uniquely qualified to serve on Prophecy's board of directors. He is an industry-recognized and seasoned professional with over 30 years of experience 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 has been associated with Prophecy since it commenced its Mongolian operations and has contributed to its accelerated path to coal production and in initiating thermal-power-generating opportunities. Mr. Venter holds a MDP (Mining) and various commercial qualifications; he was accepted as a member of the IRT (SA) in 1983.

Additionally, Daniel Frederiksen has resigned as director of the company to pursue other interests. Prophecy thanks Mr. Frederiksen for his professional commitment and support and wishes him success in the future.