VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2012) - Prophecy Coal Corp. ("Prophecy" or the "Company") (TSX:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) announces that the Company has arranged a non-brokered private placement of approximately 20,000,000 shares at a price of $0.45 per share to raise aggregate gross proceeds of $9,000,000.

Company insiders and existing shareholders have subscribed for a majority of this financing.

Finder's fees may be payable in connection with the financing in accordance with the policies of the TSX Exchange.

Closing of the placement is anticipated to occur on or before March 7, 2012.

Proceeds of the placement will be applied to the relevant technical work requirements to bring the Chandgana Thermal Coal Power Project, located in Mongolia, toward development, in addition to general working capital.

The Company also wishes to announce the credit facilities of $7 million announced on December 30, 2011 have been closed out. The $800,000 balance has been paid off and Prophecy remains debt free.

About Prophecy Coal

Prophecy Coal Corp. is a Canadian listed company engaged in developing energy projects in Mongolia. The company has over 1.4 billion tonnes* of near surface thermal coal resources on two coal properties in Mongolia. Prophecy Coal's Chandgana 600 MW mine mouth power plant has been permitted and its Ulaan Ovoo coal mine is now in production. Prophecy Coal is the controlling shareholder of Prophecy Platinum Corp. (TSX VENTURE:NKL). Mineral resources that are not mineral reserves do not have demonstrated economic viability. Further information on Prophecy Coal can be found at www.prophecycoal.com.

ON BEHALF OF THE BOARD OF DIRECTORS Prophecy Coal Corp.

John Lee, CEO/Chairman

* Includes 1.2 billion tonnes at the Chandgana coal project based on NI 43-101 technical reports completed in September, 2007 and September, 2010.