PCY Prophecy Coal Corp

Prophecy Coal Corp. ("Prophecy") (TSX VENTURE: PCY)(OTCQX: PRPCF)(FRANKFURT: 1P2) (the "Company") is pleased to have entered into an arrangement with the Port of Sovgavan in the State of Khabarovsk, Russia whereby Prophecy will have initial access to port allocation of 25,000 tonnes per month starting in June, potentially expandable to 50,000 tonnes per month, representing 300,000 to 600,000 tonnes annually.

Prophecy will also be assigned a coal storage area at the port. This arrangement provides Prophecy's Ulaan Ovoo thermal coal mine with immediate access to the Asian seaborne export coal markets. The Sovgavan Port is strategically located at the Russian Far Eastern seaboard. The port is privately owned and can accommodate seagoing vessels up to 160 meters in length with the depth of loading site of 9.5 meters. The port has loading capacity of 6,000 tonnes per day and direct connections to Trans-Siberian railroads and uncongested Russian state highways.

Securing of the port opens Prophecy to a significant number of coal buyers, and the Company is currently placing top priority to conclude rail transport within Russia and coal off take contracts.

Prophecy's Ulaan Ovoo mine commenced production in 2011. Year to date the mine has produced a total of 200,000 tonnes of coal, currently being stockpiled. The average quality is 4,200 kcal/kg NAR with 5% ash and 0.5% sulphur. Those attributes compare favorably to the coal being purchased by local Russian and Mongolian power plants. Within the inventory, there are 50,000 tonnes of 5,200 kcal/kg NAR coal with 5% ash and 0.5% sulphur, which are stockpiled separately at the mine and at the Sukhbaatar rail siding, destined for Sovgavan port.

In total, over $25 million has been committed or invested in the equipment and commissioning of the mine. In May, Prophecy received its second full set of mining fleet. The Company expects to receive by June 30, 18 Skania coal transport trucks, which are expected to reduce transportation costs from hauling coal from the mine to the Sukhbataar rail station. The company going forward expects higher production ratio of 5,200 NAR coal in relation to total production as the mine gradually reaches steady state.

With respect to the diesel rationing currently being undertaken by the Mongolian government, Prophecy is monitoring its diesel supply closely and optimizing production rates to sustain mining and coal transportation activities for the remainder of 2011.

Prophecy's Ulaan Ovoo coal mine has a measured and indicated mineral resource of 208 million tonnes (Measured 174 mt, Indicated 34 mt) detailed in a NI-43-101 technical report by Minarco Mine Consulting dated May 8, 2009.

This news release has been reviewed and approved by Christopher M. Kravits, P.Geo who is a Qualified Person as defined in NI 43-101. Mr. Kravits has 34 years of US and international relevant coal geology experience. He has been active in Mongolia since 2007.

About Prophecy Coal

Prophecy Coal is a Mongolian thermal coal producer with over 1.4 billion tonnes of surface minable thermal coal resources. Prophecy's Ulaan Ovoo coal mine is operational. Prophecy's Chandgana 600MW mine mouth power plant project has received a mining license and Detailed Environmental Impact Assessment (DEIA) approval. The Company is in the process of obtaining a power plant license from the Mongolian Ministry of Natural Resources and Energy. Prophecy Coal also owns equity stakes in Prophecy Platinum Corp., 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 Coal 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 the allocation and storage at the port of Sovgavan, expected transportation cost reduction and production of 5,200 NAR coal in relation to total production, 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.

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."

Contacts: Prophecy Coal Corp. David Jan Chief Financial Officer 1-800-358-5865 djan@prophecycoal.com www.prophecycoal.com