Prophecy Coal Corporate Update

Vancouver, British Columbia, January 20, 2014 – Prophecy Coal Corp. (“Prophecy” or the “Company”) (TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2) Pursuant to shareholder approval granted at the Company’s 2013 Annual General and Special Meeting held on July 30, 2013, and further to its new release on December 30, 2013, the Company announces that it has issued a second tranche of 1,013,750 bonus shares in the capital of the Company to certain directors, officers, employees and service providers of the Company.

About Prophecy Coal

Prophecy Coal Corp. is a Canadian company listed on the Toronto Stock Exchange engaged in developing energy projects in Mongolia. 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.