Prophecy Platinum Announces Successful Metallurgical Recovery Results of up to 88% Copper and 73% Nickel from Wellgreen Project

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Vancouver, British Columbia, May 10, 2012: Prophecy Platinum Corp. (“Prophecy” or the “Company”) (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) Prophecy Platinum is pleased to announce the results of its preliminary metallurgical tests for its Wellgreen Ni-Cu-PGE project, located in the southwest of Canada’s Yukon Territory.

This first phase of an extensive metallurgical program focuses on producing a bulk Ni-Cu-PGE-Au concentrate from disseminated sulphide, ultramafic mineralized rocks that comprise the majority of Wellgreen’s National Instrument 43-101 resource:

Table 1. Wellgreen Indicated and Inferred Resource Table*

* Wellgreen Technical Report by Wardrop Engineering Dated July 2011

To date, a total of 41 rougher and cleaner tests, and 4 locked cycle flotation tests have been conducted and completed at SGS Laboratories in Vancouver, British Columbia. Results (“LCT-3″) indicate that a bulk concentrate of 5.6% nickel, 6.0% copper, 3.5 g/t platinum, 6.3 g/t palladium and 0.5 g/t gold can be produced. These results represent recoveries of 68% nickel, 88% copper, 46% platinum, 73% palladium and 59% gold. LCT-3 results are in the following table:

A 150 kg composite blend of the prevalent host-mineralized rocks was crushed to a -10 mesh size and used as the sample for testing. A calculated head feed grade of 0.45% nickel, 0.35% copper, 0.42 g/t platinum, and 0.46 g/t palladium was tested. Conventional flotation conditions were used to produce a concentrate with emphasis on base metal recoveries from locked-cycle testing.

While this preliminary phase focused on metal recovery from Wellgreen’s mineralization of typical representative grade, an additional test (LCT-4) was conducted using material with a higher calculated head feed grade of 0.83% nickel, 0.55% copper, 0.57 g/t platinum, 0.57 g/t palladium, and 0.08 g/t Au. LCT-4 produced a concentrate containing 8.2% nickel, 6.5% copper, 2.9 g/t platinum, 5.6 g/t palladium and 0.6 g/t gold. These results represent recoveries of 73% nickel, 88% copper, 38% platinum, 73% palladium, and 62% gold. LCT-4 results are in the following table:

The 41 batch tests were designed to test different flowsheet and reagent combinations. Conditions for the reported test LCT-3 include Xanthate, CMC, guar gum and CuSO4. Test conditions for LCT-4 utilized the same reagents as LCT-3 except for the exclusion of CuSO4. LCT-3 and LCT-4 demonstrate that metals can be recovered from varied Wellgreen mineralization through substantially identical flowsheets and common reagents.

John Lee, Chairman of Prophecy states: “We are delighted with these preliminary results. The follow-up met studies, along with our infill drilling, expansion drilling, and preliminary economic studies in 2012 will continue to de-risk our 100% owned Wellgreen project and advance this highly unique asset towards feasibility”

PEA Update

While taking longer than expected due to assay turnarounds, these bulk concentrate and recovery results are highly prospective and represent a first phase of metallurgical testing for the Wellgreen project. The results of LCT-3 and LCT-4 will be incorporated into the Company’s upcoming Preliminary Economic Assessment (“PEA”), which is expected to be released in June, 2012.

2012 Met Program

The Company has outlined the following improvement steps and objectives for the remaining 2012 Met program:

• While the initial samples were collected from newly shaved rocks, future samples will be collected from fresh core and stored in air-sealed containers to avoid oxidation during prolonged lab testing.
• More reagent combinations and testing will be performed on high-grade disseminated and massive sulphides, whereas very limited tests have been performed so far, to potentially improve PGE and Ni recoveries.
• Samples and concentrate are being assayed for rhodium, osmium, iridium, and ruthenium with results pending. The resource has notable levels of these rare PGE’s and specific programs will be designed to recover the PGE’s.
• Subsequent tests will be conducted at SGS Lakefield’s facility in Ontario, close to where our Met consultant resides and where there is substantial SGS staff expertise on Ni-Cu-PGE metallurgy through their work with several other projects similar to Wellgreen.
• In the late stage of the program, the Company experimented with a flowsheet to produce separate Ni and Cu concentrates with highly encouraging signs. A separate nickel and copper concentrate provides additional downstream marketability for the Wellgreen project. Split stream tests are being performed and preliminary results are expected in Q2, 2012.

Tests were conducted at SGS Laboratories in Vancouver, British Columbia, and supervised by Jake Lang of SGS. Prophecy Platinum’s advisor Gary Johnson and independent consultant Michael Ounpuu were the lead metallurgists representing the Company, and providing expertise and oversight for the metallurgical testing.

Drill Program Update

The Company has been conducting a diamond drilling program on the property using its underground workings as a platform. To date, a total of 14 drill holes have been completed totalling 3,000 metres of a planned 9,000 metres of underground drilling throughout 2012. Samples are currently being assayed and the first results are expected in May 2012. A separate surface drilling program, with up to 4 surface drills, is expected to commence in late May 2012. The surface drilling program will focus on infill drilling to upgrade Wellgreen’s inferred resource, and exploration drilling to test several soil and VTEM anomalies seen at the eastern and western extensions which occur over several kilometres. The entire 2012 drilling program is expected to be approximately 20,000 metres and will be the biggest exploration campaign in the Wellgreen project’s history. This news release has been reviewed and approved by Danniel Oosterman, P.Geo. , an independent consultant and a Qualified Person as defined in NI 43-101.

About SGS Mineral Services

Founded over half-a-century ago to meet the metallurgical needs of Canada’s growing mining industry, SGS Minerals Services’ metallurgical group has since built upon its unique capabilities in grinding and flotation technologies to emerge as an industry leader in a full range of metallurgical services. With a diversity of technical expertise that is second to none, SGS Minerals Services has carved itself an identity in the rapidly changing world of mineral and mining technology.

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”
John Lee
Chairman

For further information:
David Brook
Manager, Investor Relations
1-800-358-5865
[email protected]

www.prophecyplat.com

Mineral resources that are not mineral reserves do not have demonstrated economic viability. 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.

Forward Looking Statements: This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, including, without limitation, statements potential mineralization, the estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. . Although Prophecy 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. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals in respect of the Transaction, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with operating in foreign jurisdictions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on Prophecy and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.

“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.”

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.