Prophecy Coal Announces $3,596,000 Private Placement With Strategic Asian Partner

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 8, 2014) - Prophecy Coal Corp. ("Prophecy" or the "Company") (TSX:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) announces that it is undertaking a non-brokered private placement to raise gross proceeds of CAD$3,596,000 (the "Placement").

The Placement involves the issuance of 62 million common shares of the Company (the "Shares") at a price of $0.058 per Share to TBF Capital Management Group (HK) Limited ("TBF"), a corporation that is arms' length to the Company. The offering price is based on the 5-day volume weighted average trading price of the Shares calculated as of market close on December 5, 2014. Upon closing of the Placement, TBF will own approximately 19.75% of the Company's outstanding Shares, calculated on a non-diluted basis. TBF will be entitled to maintain its proportionate ownership percentage pursuant to certain rights granted by the Company under the terms of the subscription agreement between the parties (the "Subscription Agreement").

The parties have also entered into a voting agreement whereby for two years, among other things, TBF has agreed to not to sell the Shares and vote the Shares in favour of the slate of directors recommended by Prophecy's management.

Pursuant to the terms of the Subscription Agreement, TBF shall be entitled to nominate one member to Prophecy's Board of Directors for as long as TBF maintains at least a 10% share ownership in the Company, calculated on a non-diluted basis, and the Company has agreed to reimburse TBF's costs in relation to the transaction up to 5% of the total proceeds of the Placement.

The Placement is expected to close in January 2015. No finder's fees are being paid in connection with this Placement.

The proceeds of the Placement are expected to be used for Company's mineral project development and for general working capital purposes.

The Placement is subject to the approval of the Toronto Stock Exchange and other customary closing conditions.

About Prophecy

Prophecy Coal Corp. is a Canadian public company listed on the Toronto Stock Exchange that is 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

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.