Prophecy Coal Професи

Prophecy Appoints Michael J Deats as Director

VANCOUVER, BRITISH COLUMBIA- Dec. 8, 2010 - Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) is pleased to announce the appointment of Michael J Deats as an independent director of the Company.

Michael J Deats, a Wits University graduate mining engineer spent most of his productive working life at Iscor South Africa, ultimately being responsible for their vast mining operations. These included the world class Sishen Iron Ore export mine and Grootegeluk coal mine which he developed from inception to eventually feed a 3600MW coal fired power station. During his career at Iscor he also personally introduced fully mechanised longwall coal mining at Durban Navigation Colliery.

Mike's directorships ranged from being a director of BP Southern Africa, Managing Director of BP Coal Southern Africa as well as numerous coal related companies including The Richards Bay Coal Terminal Company/ The Transvaal Coal Owners Association. During this period he was responsible for establishing BP Coal's opencast flagship colliery Middelburg Mine and marketing its product all over the world (over 5.5 million tons per annum).

During his tenure at Eskom. Mike served with distinction becoming Executive of the Year in 1992, was promoted to Senior General Manager and his portfolio, encompassing acquisition of primary energy (well over 120 million tons per annum), was enlarged to include engineering and project services. During his last two years at Eskom, he was responsible for the direction of the entire Generation Division viz all coal-fired power stations/hydro-stations and the nuclear power station together with all their support services. The premature closure of Majuba colliery was a "highlight" of his career at Eskom, as the colliery was too optimistically designed in the light of the prevalence of dolerite dykes intersected by opening-up development.

Although retired from Eskom, Mike is still actively consulting in the nuclear field/mining engineering area and governmental regulatory work and is an elected trustee with BP Southern Africa Pension Fund and the Arcelor-Mittal Pension Fund.

The Company also wishes to announce the retirement of G. Arnold Armstrong, Co-Chairman and director of Prophecy. Mr. Armstrong founded Red Hill Energy Inc. in the late 70s and led the Company until its merger this year with Prophecy Resource Corp. Prophecy would like to thank Mr. Armstrong for his long standing service.

Prophecy Resource Corporation is an internationally diversified company engaged in developing energy, nickel and platinum group metals projects. The company controls over 1.4 billion tons of open-pittable thermal coal in Mongolia (839 Mt Measured, 579 Mt Indicated). Prophecy's Ulaan Ovoo coal mine is fully commissioned and in production. In Canada Prophecy owns Wellgreen PGM Project in Yukon, Lynn Lake Nickel Sulphide Project in Manitoba, and a 10% equity stake in Victory Nickel. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

ON BEHALF OF THE BOARD OF DIRECTORS Prophecy Resource Corp.
"JOHN LEE"
John Lee
Chairman
Telephone 1.800.851.1528
Email: [email protected]

Mineral resources that are not mineral reserves do not have demonstrated economic viability. 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.  

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.  

 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 Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release."

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.