Prophecy Platinum Intercepts Wide Ni-Cu-PGE Mineralization in First 7 Holes of Its 2012 Drill Program at the Wellgreen Project (Diagrams Included)

Vancouver, British Columbia, May 28, 2012: Prophecy Platinum Corp. ("Prophecy" or the “Company”) (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) is pleased to announce the initial results of its 2012 underground drill program on the Company’s 100% owned Wellgreen PGM-Ni-Cu Project, located in the Yukon Territory, Canada. Wide and continuous mineralizations were intercepted in all 7 drill hole results received, including higher grade intercepts of 21.3 metres of 0.90 g/t Pt+Pd+Au, 0.39% Ni, 0.25% Cu, (0.65% NiEq; WU12-524), 21.6 metres of 0.98 g/t Pt+Pd+Au, 0.35% Ni, 0.30% Cu (0.63% NiEq; WU12-527), and 15.2 metres of 1.12 g/t Pt+Pd+Au, 0.23% Ni, 0.68% Cu (0.67% NiEq; WU12-531).

Results are tabulated below:

Notes:

1. NiEq calculations are based on long range pricing index of US$ 9.52/lb nickel, US$ 2.96/lb copper, US$ 15.78/lb cobalt, US$ 1,085/troy oz gold, US$ 1,776/troy oz platinum, and US$ 689/troy oz palladium. The equation for NiEq value is as follows: NiEq = ((Ni grade x Ni price x 22.04622) + (Cu grade x Cu price x 22.04622) + (Co grade x Co price x 22.04622) + (Au grade x Au price x 0.02916) + (Pt grade x Pt price x 0.02916) + (Pd grade x Pd price x 0.02916)) / (Ni price x 22.04622)

2. Reported widths are intersected widths and not true widths.

3. “Central-East” and “Central-West” zones refer to “East Zone” and “West Zone”, respectively, as reported in the Company’s July 2011 NI43-101 compliant resource announcement for the Wellgreen Property.

All of the reported holes were mineralized at their end-of-hole lengths suggesting mineralization continues beyond and were interrupted due to poor ground conditions.
WU12-520, WU12-524, WU12-525, WU12-526 and WU12-527 were drilled in the Central East zone from Underground Station 1 (3411E), approximately 140 metres from the adit portal entry. WU12-531 and WU12-532 were drilled at Station 4 (3139E), located approximately 270 metres west and along the geological strike of Station 1, near the centre of the Central-East Zone of the Wellgreen Resource.

The holes were drilled on and off-section in order to provide a better understanding of the behaviour of the mineralization. The results highlight the consistency of the Wellgreen mineralization along strike, as well as off-section. The 2012 surface drilling program will complete these targets from surface.

The header information, indicating dips and azimuths, is tabulated below:

Notes:

1. “East” and “North” coordinates are in local non-earth mine grid coordinates. Elevations reported are above mean sea level. All coordinates are reported in metres.

2. Azimuths reported here are with respect to local mine grid.

The current underground drilling was initiated in February and represents the first phase of an extensive infill drilling program designed to upgrade a significant portion of Wellgreen’s NI 43-101 inferred resource into the measured and indicated category. The intercepts and grades reported here appear to be very consistent with the resource model. There are an additional 8 holes to be reported on station 4 (results expected in June). The company will soon move the drill rig to station 5 (3095E), further into the adit where higher Ni-Cu-PGE has been modeled.

John Lee, Chairman of Prophecy states: “2012 has been a very productive year thus far with 15 holes already completed. Wellgreen is gaining recognition as a premier Canadian Ni-Cu-PGE project for its location, size, and grades. We expect a very busy June with analyst site visits, continued infill and priority-target exploration drilling, and the delivery of first-ever Wellgreen PEA (preliminary economic assessment)”

A surface program, designed to supplement this underground phase, is anticipated to commence in early June, 2012.

Priority Targets Set for Surface Drill in June

A compilation of historic geophysical and geochemical data indicates that a strong correlation with Cu-soil anomalies and known exposures of massive sulphides exist. Near surface massive sulphides are also detected in historic VLF data. The Company has located priority drill targets to the east, based on historic aeromagnetic data which indicates that the host-intrusion to the Wellgreen resource extends eastwards for up to 9 kilometres.

Quality Control and Quality Assurance

Prophecy Platinum executes a quality control program to ensure best practice in sampling and analysis. Samples are cut and split for assay with the remaining sample retained for reference. Blanks, Standard Reference Material (SRM), and duplicates were inserted into the sample stream every 20th sample. A duplicate sample is taken every 20th sample of core. The selected sample is sawn in half and then sawn in half again. The quartered core is then placed into two different sample bags with different sample numbers and sealed. The SRM material comes from Natural Resources Canada and Analytical Solutions Limited. These were inserted into the sample stream immediately after the second duplicate. The SRMs used are WMS-1, WPR-1 and WGB-1. Sample Blanks are obtained from two sources; granodiorite from a local quarry and garden marble from hardware stores in Whitehorse, Yukon. A Blank sample is inserted into the sample stream after the SRM. Assayed samples are transported in sealed and secured bags for preparation at ALS Chemex Prep Lab located in Whitehorse, Yukon. Pulverized (pulp) samples are shipped for analysis to ALS Chemex Assay Laboratory in Vancouver, B.C. ALS Chemex is an ISO/IEC 17025:2005 accredited laboratory and registered under ISO 9001:2000.
Quality assurance and quality control are monitored using scatterplots, Thompson-Howarth plots and statistical analysis to ensure duplicates, blanks and standard data are reliable and indicate robustness of overall results. ALS Chemex quality-assurance procedures are also included in this process.

This news release has been reviewed and approved by Danniel Oosterman, P.Geo. , a Qualified Person as defined in NI 43-101.

Cross sections of Station 1 (3411E)
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Cross sections of Station 4 (3139E)
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Wellgreen Plan View With Drill Targets
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Wellgreen Dighem Survey Magnetic Map
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Wellgreen Drill Targets
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Wellgreen Section View With Drill Targets
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About Prophecy Platinum

Prophecy Platinum Corp. is a mineral exploration company focused on developing platinum group metals (PGM) and nickel sulphide projects. Defining and driving the company is its flagship Wellgreen PGM Nickel property in Canada’s Yukon Territory. Prophecy’s further holdings include the Lynn Lake Nickel Copper project in Manitoba, the Las Aguilas Nickel PGM deposit in Argentina, as well as five prospective claims in Uruguay. In June 2011, Prophecy Platinum was spun off from Prophecy Coal (TSX: PCY). Prophecy Coal currently owns 22.5 million shares (approx. 42%) of Prophecy Platinum.

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
dbrook@prophecyplat.com
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."

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