Prophecy Resource Corp.
TSX VENTURE : PCY
OTCQX : PRPCF
FRANKFURT : 1P2

Prophecy Resource Corp.

May 05, 2011 08:31 ET

Prophecy Resource Corp. Appoints New Chief Financial Officer

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2011) -Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) is pleased to announce the appointment of David Jan as the Company's Chief Financial Officer. Mr. Jan is a Chartered Accountant (CA) and joins Prophecy from Western Coal Corp., where he held the position of Head of Investor Relations prior to its merger with Walter Energy Inc. In that role he significantly contributed in increasing Western Coal's profile as it grew from a $50 million market capitalization junior coal mining company to a $3.3 billion global coal mining company. Over the past 20 years Mr. Jan has also held progressively senior financial positions in other natural resource companies.

"We are pleased to have David join the Prophecy management team," said John Lee, Prophecy's Chairman and Chief Executive Officer. "His coal background is an excellent fit for the company. David's expertise in capital markets in Europe and North America rounds out Prophecy's skilled management set well."

With Mr. Jan's appointment, Ms. Irina Plavutska, formerly the company's Interim Chief Financial Officer, has been appointed Corporate Controller of the company. In this new role, Ms. Plavutska will continue with her excellent work as a key member of the management team.

About Prophecy Resource

Prophecy Resource Corp. is an internationally diversified company engaged in developing energy, nickel and platinum group metals projects. The company controls over 1.4 billion tonnes of surface minable thermal coal resources in Mongolia. Prophecy's Ulaan Ovoo coal mine is fully operational and its Chandgana mine mouth power plant is currently being permitted. In Canada, Prophecy owns the Wellgreen PGM Project in Yukon and Lynn Lake Nickel Sulphide Project in Manitoba, both of which it has agreed to sell to Pacific Coast Nickel Corp. Prophecy also owns equity stakes in Victory Nickel Inc. and Compliance Energy Corp. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

ON BEHALF OF THE BOARD OF DIRECTORS of Prophecy Resource 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 regarding future plans and objectives of the companies are forward-looking statements that involve various risks and uncertainties. Although Northern and Prophecy believe 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 general economic, market or business conditions, and other risks detailed herein and from time to time in the filings made by the companies with securities regulators. 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, investors should review the company's annual filings that are available at www.sedar.com.

This press release does not constitute an offer to sell or a solicitation to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended ("the U.S. Securities Act") or any state securities law and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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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