Prophecy Platinum Responds to Inquiries from BCSC Relating to July 2011 News Release

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VANCOUVER, British Columbia, December 20, 2012 – Prophecy Platinum Corp. (“Prophecy” or the “Company”) announces that it has received inquiries from the British Columbia Securities Commission (the “BCSC”) with respect to the events leading up to the Company’s news release of July 14, 2011 (the “News Release”), which disclosed the findings of an independent mineral resource estimate (the “Resource Estimate”) for its Wellgreen PGM-Ni-Cu property in the Yukon Territory. Specifically, the BCSC has made inquiries relating to: (i) the chronology of events which preceded the News Release; (ii) the Company’s insider trading policies and procedures in place during the relevant period; (iii) the individuals who had knowledge or awareness of the Resource Estimate prior to the issuance of the News Release; and (iv) communications relating to the Resource Estimate made or received by individuals who were directors, officers or employees of the Company between June 1, 2011 and July 15, 2011.

In keeping with Canadian principles of good corporate governance, the Company’s Board of Directors (the “Board”) has formed a special committee of independent directors, comprised of Wesley Hall (as Chair) and Mike Sylvestre, to assess and make recommendations to the Board regarding the BCSC’s inquiries. The Company is cooperating with the BCSC and a response has been provided to its specific requests for information. As of today’s date, no further request for information has been received by the Company.

The Company notes that its current management team, including its President and Chief Executive Officer, Greg Johnson, Chief Financial Officer, Jeffrey Mason, Senior Vice-President and Chief Operating Officer, John Sagman, Vice-President, Corporate Development, Robert Bruggeman and Corporate Secretary and Counsel, Samir Patel, were each appointed after August 2012, and, therefore, well after the relevant period for the purposes of the BCSC’s inquiries. Similarly, five out of seven of the directors of the Company – namely, Harald Batista, Wesley Hall, Greg Johnson, Myron Manternach and Mike Sylvestre – were first appointed to the Board in 2012, and, therefore, well after the relevant period for the purposes of the BCSC’s inquiries.

Over the last few months, the Company has taken, and will continue to take, measures to reinforce its procedures and strengthen internal controls and processes in order to achieve its goal of implementing industry best practices for corporate governance. The Company does not expect that the BCSC’s inquiries will interfere with its day-to-day exploration and development operations to advance its PGM-Ni-Cu properties in North America.

For further information:

Samir Patel
Corporate Secretary and Counsel
604-569-3690 ext. 119
[email protected]
www.prophecyplatinum.com

Forward Looking Statements: All statements in this news release, other than statements of historical fact, including, without limitation, statements relating to the Company’s day-to-day exploration and development operations, are forward-looking statements that involve various risks and uncertainties. Although the Company 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.

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