Prophecy Resource Corp. has successfully
completed its spring exploration program on its 100% owned Chandgana-Khavtgai
license in Khentii province. The work program consisted of 12 drill holes for a
total of 2,205 meters including 903 meters of core drilling, and five lines of
seismic geophysical survey for a total of 7.4 line km. The focus of the program
is on increasing the confidence in the inferred mineral resources to elevate
them to the measured and Indicated category. The drilling confirms that nearly
all of the resource is contained in a single 18-60-meter thick coal seam found
10 to 250 meters below the surface and covering an area of approximately 1,800
hectares. Preliminary results also indicate the coal resources and coal quality
will be confirmed and the geological limits to the resource are more accurately
mapped.

In addition to Chandgana Khavtgai, Prophecy
also owns 100% of the Chandgana Tal coal project. A new NI 43-101 resource
report incorporating the recent drilling is expected to be completed in August.
Prophecy intends to commission a Power Plant/Mine complex study this year.