Prophecy Coal Extends Warrant Expiry Dates

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 21, 2012) - Prophecy Coal Corp. ("Prophecy" or the "Company") PCYPRPCF(FRANKFURT:1P2) announces that it will extend the expiry dates of certain outstanding warrants as detailed below. The subject warrants were originally issued during March, April and September, 2010 with original expiry dates of 18 months and 2 years. The new expiry dates will provide a one year extension. 223,650 of these warrants are held by insiders and will only be amended with the approval of the disinterested shareholders of Prophecy Coal which will be sought at the next shareholders meeting scheduled for summer, 2012. The amendment to the expiry dates of the warrants held by arm's length parties will become effective on April 5, 2012 and the warrants will continue to be exercisable at their original exercise prices.

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                      Number of
Exercise Price      Outstanding               Original            Amended
(CAD)                  Warrants            Expiry Date        Expiry Date
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$0.80                 2,752,097         March 23, 2012     March 23, 2013
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$0.77                   551,967         March 31, 2012     March 31, 2013
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$0.80                 2,964,730         March 31, 2012     March 31, 2013
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$0.80                   337,750         April 21, 2012     April 21, 2013
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Total                 6,606,544
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About Prophecy Coal

Prophecy Coal Corp. is a Canadian listed company engaged in developing energy projects in Mongolia. The company has approximately 1.4 billion tonnes(i) (measured and indicated) of near surface thermal coal resources on two coal properties in Mongolia. Prophecy Coal's Chandgana 600 MW mine mouth power plant, for which technical studies are underway, has been permitted. The Company's Ulaan Ovoo coal mine is now in production. Prophecy Coal is the controlling shareholder of Prophecy Platinum Corp. (TSX VENTURE:NKL). Mineral resources that are not mineral reserves do not have demonstrated economic viability. Further information on Prophecy Coal can be found at www.prophecycoal.com.

ON BEHALF OF THE BOARD OF DIRECTORS Prophecy Coal Corp.

John Lee, CEO/Chairman

(i) Consist of 200 million tonnes at the Ulaan Ovoo coal mine based on NI 43-101 technical report completed in 2007 and 1.2 billion tonnes at the Chandgana coal project based on NI 43-101 technical reports completed in September, 2007 and September, 2010.

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 regarding future plans and objectives of the companies 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 general economic, regulatory, market or business conditions, and other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Mineral exploration and development of mines is an inherently risky business and large infrastructure projects such as power plants require huge amounts of capital which may not be available to Prophecy on terms which will allow its shareholders to realize a reasonable return or on any terms at all. 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 its business, investors should review filings that are available at www.sedar.com.