Prophecy Coal Appoints Rob Bruggeman as VP Corporate Development

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/16/12 -- Prophecy Coal Corp. ("Prophecy" or the "Company") (TSX: PCY)(OTCQX: PRPCF)(FRANKFURT: 1P2) is pleased to announce the appointment of Mr. Rob Bruggeman as Vice President, Corporate Development. Rob Bruggeman has worked in the brokerage industry in Toronto for over a decade. He was a small cap equity research analyst at a brokerage firm from 2000 to 2005, a desk analyst and proprietary trader in the Institutional Equities Division of a large Canadian financial institution from 2005 to 2010, and most recently, he led the Institutional Equity Sales & Trading Group at a boutique brokerage firm with a strong focus on small cap mining companies. Prior to joining the brokerage industry in 2000, Mr. Bruggeman worked for a Canadian telecom company where he held a variety of roles, including Corporate Development. He holds a Bachelor of Engineering and Management degree from McMaster University, an MBA in Strategy & Finance from the Schulich School of Business and is a CFA charter holder.

John Lee, Chairman and CEO of Prophecy, states: "Rob has solid research, sales and trading experience in mining equities, and will anchor our presence in Toronto. Team building is a top priority at Prophecy and we will continue to bring on key marketing and technical management positions to advance Prophecy's strong suite of high quality assets worldwide."

Prophecy also announces that Mr. Patrick Langlois has resigned as Vice President, Corporate Development, effective immediately, to pursue other interests. The Company appreciates Patrick's dedication and service while he was with Prophecy.

About Prophecy Coal

Prophecy Coal Corp. is a Canadian listed company engaged in developing energy projects in Mongolia. The Company's wholly-owned subsidiary Prophecy Power is advancing plans for a proposed 600 MW mine-mouth power plant, which has been permitted by the Mongolian government, adjacent to its Chandgana coal deposit. Negotiations on financing, power purchase agreement and construction management are underway. Substantially all of the Company's resources are not mineral reserves and hence do not have demonstrated economic viability.

Further information on Prophecy Coal can be found at www.prophecycoal.com.

ON BEHALF OF THE BOARD OF PROPHECY COAL CORP.

JOHN LEE, CEO/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 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 general economic, regulatory, 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 and large infrastructure projects such as power plants require huge amounts of capital which may not be available to Prophecy on terms which will allow its shareholders to realize a reasonable return or on any terms at all. 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 its business, investors should review filings that are available at www.sedar.com.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

Contacts:

Prophecy Coal Corp.

Chris Ackerman

Manager, Investor Relations

1-800-459-5583
cackerman@prophecycoal.com
www.prophecycoal.com