Intercompany Loan Facility

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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 30, 2011) -
Prophecy Platinum Corp. ("Prophecy Platinum" or the "Company") (TSX VENTURE:NKL)(OTCQX:PNIKF)(FRANKFURT:P94P) is pleased to announce that Prophecy Platinum and Prophecy Coal have entered into an intercompany loan facility (the "Inter-Co Facility") whereby each company can request a loan from the other company of up to $2 million at an interest rate of 14.4% per annum, compounded annually. The Inter-Co Facility would allow either company to provide and request short term funding from the other, provided that such loans would be due 60 days after demand. Prophecy Coal has made an initial request to draw down $500,000 of the Inter-Co Facility.


The facility provides flexibility to both companies, and is reserved for short-bridging circumstance.


As Prophecy Coal is a control person of the Company, the Inter-Co Facility is a 'related party transaction'. Special committees of independent directors from both companies reviewed and approved the Inter-Co Facility. The size and nature of the Inter-Co Facility make it exempt from related party transaction rules including minority shareholder approvals.


Separately, Prophecy Coal has secured a loan term sheet for $5 million with a lower interest rate.


The Inter-Co Facility is subject to the approval of the TSX Exchange.


In other corporate news, John McGoran has retired from his directorship at Platinum but will remain an advisor to the company. The Company thanks Mr. McGoran for his continued support to the Company and for the Wellgreen project.



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.
ON BEHALF OF THE BOARD OF DIRECTORS of Prophecy Platinum Corp.


John Lee, Chairman


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 on sedar.


This news 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.




FOR FURTHER INFORMATION PLEASE CONTACT: Chris Ackerman
Prophecy Platinum Corp.
Manager, Investor Relations
1-800-459-5583
cackerman@prophecycoal.com
http://www.prophecyplat.com/">www.prophecyplat.com