Prophecy Platinum clarifies and restates certain disclosure

At the request of the BCSC, the Company has obtained a revised technical report concerning the Wellgreen Property from Todd McCracken, P.Geo, of Wardrop Engineering Inc., a TetraTech company, with an effective date of July 21, 2011 (the “Wardrop Report”), which contains additional information concerning comparisons of the current mineral resource estimate for the Wellgreen property to prior historical estimates.

Per section 14.2 of the Wardrop Report, the author notes that the fundamental difference between the 2008 WGM estimate (the “WGM Report”) and the estimate in the Wardrop Report is that the WGM Report concentrated on the resource material in close proximity to the semi-massive to massive nickel sulphide pods that had been exploited by Hudson Yukon, compared to the estimate in the Wardrop Report which targets a large tonnage open pit geological model. Adopting the new geological model and the inclusion of cobalt, gold, platinum and palladium to the NiEq formula, which was not incorporated in the NiEq value in the WGM Report, the Wardrop report demonstrated a marked increase in the resource estimate.

Other than section 14.2, the content of the Wardrop Report, has not been materially amended and the resource estimate announced on July 14, 2011 by the Company is unchanged. The revised report is available on the Company’s SEDAR profile at www.sedar.com and on the Company’s website.

Disclosure Review:

The Company’s website, presentations and certain interviews contained the following information:

• tables and information containing total resource numbers which did not report each category of mineral resources and mineral reserves separately or which added inferred resources to other categories of resources in respect of the Wellgreen property.
• references historic, non-NI 43-101 compliant, resource estimate for the Wellgreen property completed by Watts Griffis McOuat (“WGM”) in 2008 and a prefeasibility study also completed by WGM in 1989.
• disclosures of ‘gross metal values’, ‘in-situ values’ or ‘metals equivalents’ in relation to the Wellgreen property as found in links to third party newsletters or video interviews.
• disclosures indicating or implying that the economic viability of the Wellgreen property has been proven and indicating estimated production levels.

The content of certain analyst report, third party statements and media articles regarding the Company is deemed as disclosure that the Company had adopted as its own by virtue of its making same available by reference on its website, triggering the application of securities rules and policies, including requirements of National Instrument 43-101 respecting standards of disclosure for mineral projects. The Company has since removed links to third party newsletters and reports, as well as third party interviews from its website and disassociates itself from disclosures by third parties, noting these are independent publications and such disclosures were not made on the Company’s behalf or at its request.

Documents and articles removed from the Company’s website and social media pages include:

• a link to a newsletter published by Chen Lin dated July 28, 2011 which compared gross metal values of the Wellgreen property to Galore Creek. References to gross metal values and their equivalents are not appropriate as these may be misleading to investors in the absence of a feasibility study on the project as they fail to take into consideration expected operating and capital costs, recoveries, smelter costs and other factors relating to the potential mining, extraction and recovery of metals.
• A link to an interview on BNN dated July 21, 2011 which referred to the Wellgreen deposit as being 303 million tonnes. Global resource statements are not 43-101 compliant and are retracted.
• A link to an interview by Jay Taylor dated August 30, 2011 referring to the in situ metal value of the Wellgreen deposit as over $50 billion. As noted above, gross metal values and their equivalents are inappropriate and misleading. The interview also referred to the Wellgreen property as being a ‘very viable deposit’. This statement is not supported by a compliant 43-101 technical report demonstrating mineral reserves or potential economic viability.

While the Company dedicated significant internal resources to verify the information contained above, the disclosure to the public through the Company’s website, presentations and certain interviews was not in compliance with National Instrument 43-101 (“NI 43-101”). The board of directors of the Company have since created a disclosure committee and adopted a corporate disclosure policy for the purposes of monitoring its ongoing public disclosure.

The Company wishes to further clarify information as follows:

• The global resource statements regarding the Wellgreen Property as found in the Company’s website and prior investor relations materials are grouped resources and non-NI 43-101 compliant. The Company retracts its disclosure of the global resource numbers for the Wellgreen property and clarifies that the NI 43-101 compliant resource on the Wellgreen property is as per the table below, as documented in the report by Todd McCracken, P.Geo, of Wardrop Engineering Inc., a TetraTech company, with an effective date of July 21, 2011 entitled Technical Report and Resource Estimate on the Wellgreen Platinum-Palladium-Nickel-Copper Project Yukon, Canada:

• The non-NI 43-101 compliant historic resource estimate at the Wellgreen property, reported at 55.1 million tons grading 0.36% nickel, 0.35% copper and 0.78 g/t total precious group metals (PGM’s), is documented by Watts, Griffis and McOuat Limited, in their April 21, 1989 report titled “Preliminary Feasibility Study of the Wellgreen Project for All-North Resources Ltd.” A further historical resource estimate was documented by Watts, Griffis and McOuat Limited, in their July 15, 2008 report titled “Technical Report and Mineral Resource Estimate for the Wellgreeen Ni-Cu deposit, Yukon Territory Canada, for Coronation Minerals Inc.”
• A qualified person has not completed sufficient work in order to classify historical resource estimates on the Wellgreen property as current mineral resources or reserves and the Company is not treating these historical estimates as prepared by WGM or otherwise as current mineral resources or reserves but as historical estimates for informational purposes only that should not be relied upon.
• A NI 43-101 technical report on the Wellgreen property having an effective date of July 21, 2011 and entitled “Technical Report and Resource Estimate on the Wellgreen Platinum-Palladium-Nickel-Copper Project Yukon, Canada” was authored by Todd McCracken, P.Geo, of Wardrop Engineering Inc., a TetraTech company, and is available on the Company’s SEDAR profile. The only current resource calculations that have been approved by or on behalf of the Company are as stated in this report.
• The Company retracts its implications of economic viability and notes that preliminary assessments are preliminary in nature and include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that any preliminary assessment will be realized or that inferred resources will be converted to measured and indicated resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The Company has not yet completed an economic evaluation of the Wellgreen property and any discussions relating thereto are premature.

In those instances where the Company has retracted, revised, clarified or updated previous disclosure, the Company advises readers not to rely on such statements as they may continue to be found in the public domain.

The Company has engaged Wardrop Engineering Inc. to complete a preliminary economic assessment for the Wellgreen property, which it expects to receive in Q1 of 2012.

Danniel Oosterman, P. Geo., a consultant of the Company, is the Qualified Person under National Instrument 43-101 who has approved the technical content of this news release.

About Prophecy Platinum

Prophecy Platinum Corp. is a Canadian based Nickel PGM exploration company with projects in Canada, Argentina and Uruguay. Prophecy Platinum’s flagship Wellgreen PGM-Cu-Ni project is in Yukon Territory, Canada and the Lynn Lake project is located in Manitoba, Canada. Further information can be found at www.prophecyplat.com.

ON BEHALF OF THE BOARD OF DIRECTORS of Prophecy Platinum Corp.

John Lee, Chairman

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.