2. Prophecy’s Chandgana Coal Field April 2011
Chandgana Power Plant Project
Large, scalable power plant
• 600 MW power plant license granted (Nov. 2011)
• Proposed Phase 1: 600MW
• Proposed Phase 2: 3,600MW (export to China)
Abundant low cost coal
• Low strip ratio of 0.5:1*
• M&I resource 1.2 billion tonnes+
• Low ash and low sulphur
• Mining license obtained for 140Mt Chandgana Tal
• 150 km from transmission line
Timeline
• Finalize PPA, EPC contractor, and project
financing (2012) 150km to grid
2 km 350km to China
• Construction starts (Estimated Q2 2013)
• Start up phase (Estimated Q2 2015)
Certain statements contained in this Presentation, including statements which may contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters
which are not historical facts, are forward-looking information within the meaning of securities laws. Such forward-looking statements, which reflect management’s expectations regarding Prophecy’s future growth, results of operations,
performance, business prospects and opportunities are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements of the
Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this Presentation include, without limitation, statements
regarding the development and production of the Company’s Chandgana Power Plant and other information concerning possible or assumed future results of operations of Prophecy. Although Prophecy has attempted to identify
important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not
anticipated, estimated or intended. Accordingly, readers should not place any undue reliance on forward-looking statements as such information may not be appropriate for other purposes. We disclaim any intention or obligation to
update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law. **Chandgana consists of two properties - Chandgana Tal and Chandgana Khavtgai.
Chandgana Tal has a strip ratio of 0.5:1 and Chandgana Khavtgai has a strip ratio of 2.2:1.

3. CONSTRUCTION 2013 – 3 YEARS FINANCIAL MODEL
TPP & Lines Capex $744 Million NPV / IRR $364.7 Million / 21.9%
Plant Capacity 4 x 150MW Debt / Equity 70 / 30
Coal Output 2.7 Mt p.a. Interest rate /
10% / 12%
Discount rate
Electricity Tariff $0.06 /kwh
Project life /
30 year / 10 year
Coal Pricing $15.5 /t Loan Term
IRR Sensitivity /
Opex + Debt Payment $0.023 + $0.025 /kwh + 6% IRR / + 0.01 /kwh
Tariff
Representation of 600MW Chandgana Power Plant
* FS January 2011 by Steag Germany - Power Plant only, not NI 43-101

4. Representation of 600MW Chandgana Power Plant
Prophecy Coal’s Ulaan Ovoo Mine – April 2011
Ulaan Ovoo Thermal Coal Mine Directors and Advisors
John Lee - Chairman & CEO
High Quality Abundant Thermal Coal+ • BSEE, BA Econ: Rice University
• (ar) Min 5,000 kcal/kg, Max 1% sulphur, 11.3% ash • Founder of Prophecy Coal / Prophecy Platinum (TSX.V: NKL)
• 20 year+ mine life
Greg Hall - Director
• Resource: 208 Mt (M&I) • Co-founder of Prophecy Coal / Prophecy Platinum (TSX.V: NKL)
• Former Director at Silvercorp
Low Cost Mining
Jivko Savov - Director
• Single seam, 50 meters thickness, strip ratio 1.8: 1 • Deputy CEO of En+ and
• Deputy Chairman of EuroSibEnergo
Production Michael Deats - Director
• 2011: 200,000 tonnes mined and sold • Ex-Managing Director of BP Coal South Africa
• 2012: Estimated 300,000 – 500,000 tonnes
Chuluunbaatar Baz - Director
• Market to: Mongolia, China, Russia • Chairman of Monnis Group Mongolia
Harald Batista - Advisor
• Prominent member of Batista family of Brazil
• EBX Group; Vale Inco
Corporate Structure & Information
Ulaan Ovoo Seam Cross Section Shares:
Issued and Outstanding 201,109,422
Fully Diluted 237,537,242
+Ulaan Ovoo: 174 million tonnes of measured and 34 million tonnes of indicated. Ulaan Ovoo’s resource numbers are from Market Capitalization $90M CAD
the Dec 2010, 43-101 Prefeasibility Study by Wardrop Engineering. Chandgana: 650 million tonnes of measured and 538
million tonnes of indicated coal. Chandgana’s resource numbers are from the September 2007, 43-101 Technical Report by
Investment Holdings** $87M CAD
Behre Dolbear & Company (USA), Inc. for Chandgana Tal and from the September 2010, 43-101 Technical Report by **As of 03/02/2012
Kravits Geological Services, LLC for Chandgana Khavtgai.