Prophecy Platinum Corp.
TSX VENTURE : NKL
OTCQX : PNIKF
FRANKFURT : P94P

Prophecy Platinum Corp.

December 08, 2011 08:30 ET

Prophecy Drills 384.9 Meters Grading 0.623 g/t PGM+Au, 0.3% Ni, 0.15% Cu (0.45% NiEq) from Surface at Yukon Wellgreen Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 8, 2011) - Prophecy Platinum Corp. ("Prophecy Platinum" or the "Company") (TSX VENTURE:NKL)(OTCQX:PNIKF)(FRANKFURT:P94P) announces the final set of drill results received from its 2011 drilling at the Company's 100% owned Wellgreen PGM-Ni-Cu Project. Borehole WS11-192 intercepted 384.9 meters of 0.45% NiEq starting from 9.45 meters depth. Included in this greater interval of continuous mineralization is a PGM-rich zone with a combined Pt+Pd+Au grade of 1.358 g/t over 19.23 meters (NiEq 0.74%). Detailed results for WS11-190 to WS11-192 are tabulated below:

Table 1. Assay Composite Results (in Meters)
Hole From (m) To (m) Length (m) Ni% Cu% PGM+Au g/t NiEq% From surface (m)
192 9.45 394.35 384.90 0.30 0.15 0.623 0.45 8.92
192 272.19 291.42 19.23 0.41 0.28 1.358 0.74 255.77
191 7.07 89.92 82.85 0.21 0.02 0.249 0.25 6.64
190 4.27 364.57 360.3 0.24 0.09 0.392 0.34 4.01
190 311.2 364.57 53.37 0.23 0.26 0.733 0.44 292.43
Table 2. PGM Composite Results (in Meters)
Hole From To Length (m) Pt g/t Pd g/t Au g/t PGM+Au From surface (m)
192 9.45 394.35 384.90 0.282 0.303 0.038 0.623 8.92
192 272.19 291.42 19.23 0.739 0.558 0.061 1.358 255.77
190 4.27 364.57 360.3 0.158 0.208 0.027 0.392 4.01
190 311.2 364.57 53.37 0.358 0.304 0.071 0.733 292.43

Notes:

  1. NiEq calculations are based on long range pricing index of $US 9.52/lb nickel, $US 2.96/lb copper, $US 15.78/lb cobalt, $US 1,085/troy oz gold, $US 1,776/troy oz platinum, and $US 689/troy oz palladium. The equation for NiEq value is as follows:
  2. NiEq = ((Ni grade x Ni price x 22.04622) + (Cu grade x Cu price x 22.04622) +(Co grade x Co price x 22.04622) + (Au grade x Au price x 0.02916) + (Pt grade x Pt price x 0.02916) + (Pd grade x Pd price x 0.02916)) / (Ni price x 22.04622)
  3. WS11-190, WS11-191 and WS11-192 were drilled at an inclination of -70 degrees; reported widths are intersected widths and not true widths.
  4. "Central-East" and "Central-West" zones refer to "East Zone" and "West Zone" respectively reported in the Company's July 2011 NI 43-101 compliant resource announcement for the Wellgreen Property.

WS11-190 to WS11-192 were step out drill holes roughly 100 meters from the southern boundary of the resource outline, aiming at expanding resource and bridging the gap between Wellgreen Central-East and Central-West. Holes 190 and 192 were drilled to the east of WS11-188 (120.9 meters grading 1.26 g/t PGM+Au, 0.36% Ni, 0.30% Cu within 457 meters grading 0.47% NiEq) at 100-meter spacing.

WS11-191 was drilled 200 meters west of WS11-188 and was abandoned at 89.9 meters due to bad ground conditions.

Mineralization in WS11-192 occurs as variably disseminated sulphides hosted in peridotite, typical of much of the mineralization that occurs at Wellgreen, having an observed trend of increasing grade with continued stratigraphic depth. The mineralization reported here occurs just past casing depth all the way to the footwall contact of the Wellgreen intrusion, demonstrating a continuous swath of mineralization from just below overburden depth down to over 370 meters depth-to-surface. Holes 190 and 192 extend the known resource southward by approximately 100 meters at the top of the hole.

These results mark the receipt of all assay results for the 2011 exploration drilling season on the Wellgreen property. WS11-188 and the surrounding holes demonstrated Wellgreen Central-East and Central-West to be one contiguous body, whereby good potential exists to significantly broaden the Central-West resource base, currently contributing only roughly one quarter of the current 43-101 compliant resource at Wellgreen. Overall the program met with good success in expanding the resource to the east and south. The long drill intercepts suggest the deposit remains very much open in those directions.

Update on PEA, Metallurgy, and 2012 drilling, the Company reports that the preliminary Economic Assessment ("PEA") Study by Wardrop is proceeding on schedule with an anticipated release date in February 2012. Metallurgical tests by SGS have been ongoing since October, with results to be incorporated in the PEA. Prophecy is funded with the recent $10 million equity placement and is gearing up for a 2012 exploration and extensive definition drilling (underground and surface) program, with details to follow by year end.

Visit www.prophecyplat.com for drill cross section and location maps.

This news release has been reviewed and approved by Danniel Oosterman, P.Geo., an independent consultant and a Qualified Person as defined in NI 43-101.

Quality Control and Quality Assurance

Prophecy Platinum executes a quality control program to ensure best practice in sampling and analysis. Samples are cut and split for assay with the remaining sample retained for reference. Blanks, Standard Reference Material (SRM), and duplicates were inserted into the sample stream every 20th sample. A duplicate sample is taken every 20th sample of core. The selected sample is sawn in half and then sawn in half again. The quartered core is then placed into two different sample bags with different sample numbers and sealed. The SRM material comes from Natural Resources Canada and Analytical Solutions Limited. These were inserted into the sample stream immediately after the second duplicate. The SRMs used are WMS-1, WPR-1 and WGB-1. Sample Blanks are obtained from two sources; granodiorite from a local quarry and garden marble from hardware stores in Whitehorse, Yukon. A Blank sample is inserted into the sample stream after the SRM. Assayed samples are transported in sealed and secured bags for preparation at ALS Chemex Prep Lab located in Whitehorse, Yukon. Pulverized (pulp) samples are shipped for analysis to ALS Chemex Assay Laboratory in Vancouver, B.C. ALS Chemex is an ISO/IEC 17025:2005 accredited laboratory and registered under ISO 9001:2000.

Quality assurance and quality control are monitored using scatterplots, Thompson-Howarth plots and statistical analysis to ensure duplicates, blanks and standard data are reliable and indicate robustness of overall results. ALS Chemex quality-assurance procedures are also included in this process.

About Prophecy Platinum

Prophecy Platinum Corp. is a Canadian-based nickel PGM exploration company with projects in Canada, Argentina and Uruguay. Prophecy Platinum's flagship Wellgreen PGM-Cu-Ni project is in Yukon Territory, Canada, and the Lynn Lake project is located in Manitoba, Canada. Further information can be found at www.prophecyplat.com.

ON BEHALF OF THE BOARD OF DIRECTORS of

Prophecy Platinum Corp.

John Lee, Chairman

Forward-Looking Statements: This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including, without limitation, statements potential mineralization, the estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. Although Prophecy believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals in respect of the Transaction, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with operating in foreign jurisdictions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on Prophecy and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

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