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

Prophecy Platinum Corp.

June 19, 2012 09:02 ET

Prophecy Platinum Drills 50.9 Metres of 0.6% NiEq (0.74g/t PGM+Au, 0.38% Ni, 0.23% Cu) Within 242 Metres of Mineralization at the Wellgreen Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 19, 2012) - Prophecy Platinum Corp. ("Prophecy" or the "Company") (TSX VENTURE:NKL)(OTCQX:PNIKF)(FRANKFURT:P94P) is pleased to announce further results of its 2012 underground drill program on the Company's 100% owned Wellgreen PGM-Ni-Cu Project, located in the Yukon Territory, Canada. WU12-523 intercepted significant widths of mineralization of 242.6 metres containing 0.47 g/t Pt+Pd+Au, 0.24% Ni and 0.13% Cu (0.39% NiEq), including 18.1 metres grading 1.05 g/t Pt+Pd+Au, 0.50% Ni and 0.27% Cu (0.78% NiEq), nested within 50.9 metres of 0.74 g/t Pt+Pd+Au, 0.38% Ni, and 0.23% Cu (0.60% NiEq).

Results are tabulated below:

BHID From To Length
(m)
Cu% Ni% PGM+Au
g/t
NiEq %
WU12-523 28.65 271.27 242.62 0.13 0.24 0.47 0.39
including 37.80 88.70 50.90 0.23 0.38 0.74 0.60
Including 55.32 73.46 18.14 0.27 0.50 1.05 0.78

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: 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)
  2. *CuEq = NiEq * $9.52 / $2.96, calculated as those intercepts display substantial copper grades compared to nickel and pgm
  3. Reported widths are intersected widths and not true widths.
  4. "Central-East" and "Central-West" zones refer to "East Zone" and "West Zone", respectively, as reported in the Company's July 2011 NI43-101 compliant resource announcement for the Wellgreen Property.

PGM+Au Composites are tabulated below:

BHID From To Length
(m)
Pt g/t Pd g/t Au g/t PGM+Au
g/t
WU12-523 28.65 271.27 242.62 0.22 0.21 0.04 0.47
including 37.80 88.70 50.90 0.31 0.40 0.04 0.74
and 55.32 73.46 18.14 0.42 0.59 0.04 1.05

WU12-523 was drilled from Station 1 (3411E) on the east portion of the Wellgreen resource.

The header information, indicating dips and azimuths, is tabulated below:

BHID Eastings Northings Elevation Azimuth Dip Length (m)
WU12-523 3411 15244 1298.9 200 -6.9 271.27

Notes:

  1. "Easting" and "Northing" coordinates are in local non-earth mine grid coordinates. Elevations reported are above mean sea level. All coordinates are reported in metres.
  2. Azimuths reported here are with respect to local mine grid.

All of the completed holes to date for the 2012 drilling program are mineralized. WU12-523 was stopped due to poor ground conditions, with mineralization occurring to the very end of the hole at 271.3 metres. There are additional holes to be reported on station 4 and the company has moved the drill rig to station 5 (3095E), further into the adit where higher Ni-Cu-PGE grades have been modeled.

John Lee, Chairman of Prophecy states: "These infill drill results of significant widths and grades continue to define and enhance Wellgreen's resource model. Production has been great and additional rigs have arrived on site. We have started to drill several exciting surface soil-anomalies to expand Wellgreen's strike."

Results of infill and exploration drillings will be published monthly throughout summer.

In other news, further to the Company's news release dated May 30, 2012, Prophecy and Ursa Major Minerals Incorporated have agreed to extend the time to complete the proposed business combination (as detailed in the Company's press releases dated March 2, 2012, March 9, 2012 and April 16, 2012) to July 15, 2012.

Visit www.prophecyplat.com to view the cross section of each underground station.

This news release has been reviewed and approved by Danniel Oosterman, P.Geo., 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 mineral exploration company focused on developing platinum group metals (PGM) and nickel sulphide projects. Defining and driving the company is its flagship Wellgreen PGM Nickel Copper property in Canada's Yukon Territory. Prophecy's further holdings include the Lynn Lake Nickel Copper project in Manitoba, the Las Aguilas Nickel PGM deposit in Argentina, as well as five prospective claims in Uruguay.

ON BEHALF OF THE BOARD OF DIRECTORS

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 of 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 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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