Source: Prophecy Resource Corp.                            date: 19 August, 2010

Prophecy Resource Corp. reports that the Measured and Indicated resources within its Chandgana Khavtgai coal project located in east central Mongolia exceed one billion tons of coal. The resource estimate is based on information from exploration programs completed in 2007 and this year. This year's program included 13 drill holes totaling 2,250 meters of infill drilling, 8 seismic geophysical lines totaling 11.3 km, and total magnetic field mapping of 5.1 sq km. A total of 274 core samples were obtained for analysis.

The Khavtgai and the Chandgana Tal coal projects, both 100% owned by Prophecy, are approximately 9 km apart. The combined resource estimates for the projects total 1.2 billion tons of Measured and Indicated mineral resources of thermal coal. The company intends to commission a mine feasibility study on Chandgana Tal and is conducting multiple site visits with power plant engineers from multinational companies.