Prophecy Closes Final Tranche of Private Placement

Vancouver, British Columbia, June 6, 2013: Prophecy Coal Corp. (“Prophecy” or the “Company”) (TSX: PCY, OTCQX: PRPCF, Frankfurt: 1P2) is pleased to confirm the closing of a second and final tranche of the private placement which was the subject of its February 7, April 16, and May 31, 2013 news releases (the “Placement”).

The second tranche of the Placement closed with the issuance of 8,142,857 units (each a “Unit”) of the Company for aggregate consideration of $1,140,000. Each Unit consists of one common share and 0.75 of a common share purchase warrant (a “Warrant”), at a purchase price of $0.14 per Unit. Each whole Warrant is exercisable for one common share of Prophecy at a price of $0.18, expiring two years from the date of issue. Each Unit sold in the second tranche closing also included an adjustment warrant entitling the holder to acquire additional common shares of the Company in certain circumstances. The terms of the Adjustment Warrants are disclosed in the Company’s May 31, 2013 news release.

A finder’s fee of 6 percent was paid in respect of the NewMargin Prophecy Coal Limited portion of the second tranche of the placement.

All securities issued in connection to the Placement are subject to a 4 months and one day hold period from the date of security issuance.

About Prophecy Coal

Prophecy Coal Corp. is a Canadian company listed on the Toronto Stock Exchange engaged in developing energy projects in Mongolia. Prophecy’s wholly-owned subsidiary Prophecy Power Generation LLC is advancing plans for a proposed 600 MW coal-fired mine-mouth power plant, which has been licensed by the Mongolian government, adjacent to its Chandgana coal deposit. Chandgana Coal LLC, another Prophecy wholly-owned Mongolian subsidiary, has contracted to supply 3.6 million tonnes of coal per year to Prophecy Power for 25 years. Chandgana Coal LLC controls a significant coal resource. This includes the two Chandgana tal mining licenses containing 124 million tonnes of measured resource with an average strip ratio of 0.7 to 1 and the Khavtgai uul license containing 509 million tonnes measured and 539 million tonnes indicated resource with a strip ratio of 2.2 to 1. Substantially all of Prophecy’s resources are not mineral reserves; hence, they do not have demonstrated economic viability. Further information on Prophecy Coal can be found at www.prophecycoal.com

PROPHECY COAL CORP
ON BEHALF OF THE BOARD

“JOHN LEE”

Executive Chairman

For more information about Prophecy, please contact

Bekzod Kasimov
Manager, Business Development
+976 – 99012672
+1-888-513-6286
bekzod@prophecycoal.com
www.prophecycoal.com

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