Ulaan Ovoo - The flagship of coal deposits in northern Mongolia

Oct 2009Redhill Energy Inc2060-777 Hornby StreetVancouver BC V 6Z 1T7T: 604-642-2625F: 604-642-2629

Ulaan Ovoo

T: +1.604.569.3690 | F: +1.604.569.3617 | info@prophecyplat.com  |   www.prophecyplat.com

OTC‐QX: PNIKF | TSX‐V: NKL | Frankfurt: P94P

*  Wellgreen resource based on the July 2011 NI 43‐101 Technical Report by Wardrop Engineering. NiEq% cutoff at 0.40% . 14.3 mt of Indicated at 0.99 g/t Pt, 0.74 g/t Pd, 0.52 g/t Au, 0.69% Ni, and 0.69% Cu. 289.2 mt of Inferred at 0.53 g/t Pt, 0.42 g/t Pd, 0.23 g/t Au, 0.38% Ni, and 0.35% Cu.  NiEq% cuffoff at 0.20% for page 2. ** Wellgreen’s preliminary metallurgical tests result was based on the April 1989 non43‐101 complaint Preliminary Feasibility Study by Watts, Griffis, and McOuat Limited Consulting . The metallurgical tests can be located on page 24, 25, 26, and 27. The Preliminary Feasibility Study is a historical estimate and a qualified person for the Company has not done sufficient work to classify the historical estimate as a current mineral resource. As a result the WGM historical estimate is not being treated as a current mineral resource and is not to be relied upon.

Resource  Inferred  Indicated

PGM+Gold* 10.97 Million oz. 1.04 Million oz.

Nickel (Ni) 2.42 Billion lbs. 0.22 Billion lbs.

Copper (Cu) 2.23 Billion lbs. 0.20 Billion lbs.

Ore Tonnes (t) PGM+Au (g/t) Ni (%) Cu (%)

Indicated 14 Million 2.25 0.69 0.62

Inferred 289 Million 1.18 0.38 0.35

Recovery** Ni (%) Cu (%) Pt (g/t) Pd (g/t)

Head Feed 0.65 0.87 1.06 0.68

Recovery (Bulk) 85% 95% 80% 80%

Concentrate Grade (Bulk)

6.99 12.10 8.72 7.12

NieqCutoff %

Tonnes(Inferred) 

PGM+Au(g/t)

Ni % Cu % NiEq %

0.2 492,415,000 0.85 0.30 0.24 0.56

0.4 289,246,000 1.18 0.38 0.35 0.74

0.7 93,819,000 1.92 0.62 0.64 1.23

1.0 (~4g/t)

50,575,000 2.20 0.83 0.80 1.56(~6g/t)

January 2012

High Grade Zone

Resource Base

Orebody

Historic Metals Recoveries

702 Drill Holes

Front View

NiEq (%)0‐0.2%

0.2‐0.4%0.4‐1.0%1.0‐14.3%

Wellgreen PGM Nickel Project in Yukon Canada

Wellgreen Satellite View

OpenOpen

Open

Wellgreen Project

Ulaan Ovoo - The flagship of coal deposits in northern Mongolia

Oct 2009Redhill Energy Inc2060-777 Hornby StreetVancouver BC V 6Z 1T7T: 604-642-2625F: 604-642-2629

Ulaan Ovoo

OTC‐QX: PNIKF | TSX‐V: NKL | Frankfurt: P94P

T: +1.604.569.3690 | F: +1.604.569.3617 | info@prophecyplat.com  |   www.prophecyplat.com

Issued and Outstanding:               Fully Diluted:                                

22.5m shares owned by Prophecy Coal (TSX:PCY)As of January, 2012

55,203,247            63,396,497

Anomaly

Mag Anomaly

Yukon: Road and Port

Wellgreen Project

Haines Seaport

Rhodium & Other Exotics

Sample No.

Length (m)

Pt+Pd+Au(g/t)

Pt+Pd+Ru+Ir++Rd+Os+Au (g/t)

C509697 1.55 4.23 8.239

C509698 1.55 4.45 8.304

C509701 2.15 2.391 5.262

C509704 2 2.327 5.784

C509811 11.6 2.68 5.396

C509814 2.2 4.062 8.281

C509087 1.9 2.569 7.444

C509098 1.55 5.883 9.035

C509114 1.7 8.266 11.52

C509146 1.45 2.699 8.996

C509147 1.6 4.831 8.396

C509150 1.55 6.802 9.289

Corporate Structure 1997 Bulletin of the Geological Survey of Canada: “Rhodium is present in anomalous concentration compared to other Canadian Ni‐Cu ores. In fact the only other Ni‐Cu cores with comparable values are the near age equivalent Noril’sk ores in Russia.”

Wellgreen PGM Nickel Project

View from footwall

OpenOpen Open

NiEq (%)0‐0.2%

0.2‐0.4%0.4‐1.0%1.0‐14.3%

WEST ZONEEAST ZONE

Hole184

WellgreenWest

WellgreenWellgreen

East

January 2012