NTH Nord Precious Metals Mining Inc

Prophecy Resource Corp. ("Prophecy") (TSX
VENTURE:PCY)(OTCBB:PRPCF)(FRANKFURT:1P2) and Northern Platinum Ltd. ("Northern")
(TSX VENTURE:NTH) (the "Companies") are pleased to announce that they have
entered into a binding letter of agreement (the "Agreement") for a Business
Combination through a proposed all share transaction (the "Transaction").


Financial Terms of the Transaction

Pursuant to the Agreement, Prophecy will issue 0.5 common shares and 0.1
warrants for each common share of Northern Platinum held. Each whole warrant
will entitle the holder to acquire one additional common share of Prophecy at an
exercise price of $0.80 that will expire 18 months following the Transaction
closing date. All outstanding Northern options and warrants will be exchanged
for options and warrants of Prophecy as discussed below.


The offer represents approximately $0.31 per each common Share of Northern
Platinum based on Prophecy's closing share price of $0.62 as at June 14, 2010,
representing a premium of 24.5% to Northern's 90 day volume-weighted average
price as of June 14, 2010.


Prophecy is also pleased to announce that it has signed a definitive agreement
with Belleterre Quebec Mines Ltd, of Quebec, Canada ("Belleterre") to acquire
their 50% Back-in right ("Back-in") on Northern Platinum's Wellgreen project
(currently 100% Northern with a 50% Back-in right to Belleterre). Upon the
successful conclusion of the proposed Prophecy/Northern Business Combination,
Prophecy agrees to pay Belleterre $4.2 million equivalent in a combination of
cash and common shares of Prophecy. ($2.1 million and 3.56 million common shares
of Prophecy at a deemed price of $0.59 per share). Additionally Prophecy will
issue 712,000 Prophecy warrants to Belleterre. The warrants issuable to
Belleterre will have an 18 month term and an exercise price of $0.80. Northern
holds a right of first refusal on the Back-in.


Highlights of the Transaction



--  Create a mid-tier company with substantial Canadian nickel and Mongolian
    coal resources including anticipated near term Mongolian coal
    production. 
--  Enable Northern shareholders to also participate in the growth and
    development of Prophecy's Canadian nickel, copper, molybdenum and
    vanadium assets in addition to its substantial Mongolian coal assets. 
--  Accelerate the development of the Wellgreen Ni-Cu-PGM deposit in Yukon,
    Canada. 
--  0.50 of a Prophecy common share per Northern common share held, valuing
    Northern at approximately C$11 million on a fully diluted basis. 
--  0.10 of a Prophecy warrant per Northern common share held, providing
    Northern shareholders with additional upside. 
--  Provide Northern shareholders with improved trading liquidity. 
--  Will consolidate 100% of Wellgreen property into Prophecy ownership. 



Prophecy and Northern are pleased to report that certain of Northern Platinum's
shareholders, collectively holding 11 million common shares and 5 million
warrants representing approximately 43% of Northern's common shares on a fully
diluted basis, have entered into lock-up agreements with Prophecy to vote in
favor of the Transaction, to the extent permitted by law. Those shareholders
include John Lee and G. Arnold Armstrong, who are directors of Prophecy.


John Lee, Co-Chairman and CEO of Prophecy, said, "Prophecy's focus is open
pittable Mongolian coal and Canadian nickel pgm projects. Wellgreen fits nicely
into our nickel sulphide pipeline with our Lynn Lake Manitoba project leading
the way and our 10% stake in Victory Nickel providing extra leverage. We are
commissioning our Mongolian coal operations to production this year and the
eventual goal is to become a diversified mid-tier coal and nickel producer."


Further Detail Regarding the Transaction

It is contemplated that the Transaction will be a Business Combination of
Prophecy and Northern and will be completed by way of a Plan of Arrangement,
structured in such a way that will result in the financial terms of the
Transaction being met. The parties have agreed to complete the Transaction by
September 1, 2010.


As a result of the Transaction, all existing warrants, options and other rights
to acquire common shares of Northern will be exchanged for options and warrants
of Prophecy such that each former Northern option and warrant will be exchanged
for a Prophecy option or warrant, respectively, exercisable for that number of
Prophecy shares that is equal to the number of Northern Shares that would
otherwise have been issuable thereunder multiplied by 0.50 with the exercise
price of such Prophecy option or warrant being adjusted to equal the exercise
price of the applicable Northern option or warrant divided by 0.50.


Completion of the Transaction is conditional upon:



--  Northern shareholders having approved the Transaction; 
--  receipt of all necessary regulatory approvals, including the approval of
    the TSX Venture Exchange (the "Exchange"); 
--  receipt of approval of the British Columbia Supreme Court, if
    applicable; 
--  certain other customary conditions. 



Northern has retained M Partners to act as its financial advisor in connection
with the Transaction.


Prophecy's Key Assets

The Ulaan Ovoo Coal Project (Mongolia)

The 100% owned Ulaan Ovoo project is located within 10 km of the Russian border,
northern Mongolia and is 120km (75 miles) east of the Central Mongolian Railroad
which links the project to the vast coal markets of Russia and Asia.


On May 11, Prophecy entered into a mine services agreement with Leighton Asia
Ltd. for the equipment leasing and mining operation at the Ulaan Ovoo coal
deposit. Mine site establishment will commence in July, 2010 with an anticipated
250,000-tonne production in 4th quarter 2010 and 2 million tonnes annually by
2011. The pay-as-you-go contract mining and equipment leasing cost for 2010 is
$3.7 million.


The project contains 174.5 million tons Measured, 34.3 million tons Indicated
and 35.9 million tons of Inferred thermal coal resources. The coal is of
excellent low ash (less than 15%) and sulfur quality (less than 1%) at 5,204
KCAL/KG which is highly desired regionally. SGS Coal Quality by Seam
Specification is available to down load at Prophecy's website. The average seam
thickness of the resource is 53.9 metres with a stripping ratio of 2.0:1 on the
first 140 million tons. Mineral resources that are not mineral reserves do not
have demonstrated economic viability.


The Mongolian government has granted the Ulaan Ovoo project a 30 year mining
license that can be extended by an additional 40 years.


The Chandgana Tal and Chandgana Khavtai Coal Projects (Mongolia)

The Chandgana Tal and Chandgana Khavtai coal projects are both 100% owned by
Prophecy. The projects share the same Nyalga Basin coal seam and are both
contiguous to Vale's (formerly CVRD) largest Mongolian coal project. The
Chandgana projects contain a combined total of 819.7 million tons Measured and
Indicated and 440 million tons of Inferred thermal coal resources.
(Specifically: Chandgana Tal, 141.3 million tons Measured resources, and
Chandgana Khavtgai, 188.7 Measured resources, 489.7 Indicated resources and 440
Inferred resources) Both projects have extremely low stripping ratios, 0.53:1 in
the case of Chandgana Tal and 2.1:1 in the case of Chandgana Khavtgai with
respective average coal seam thicknesses of 40 and 45.4 metres. Both the
Chandgana's coal qualities are of desirable low ash, low sulfur content with
KCAL/KG LB averaging up to 4,358.


The Lynn Lake Nickel Project

In October 2009, Prophecy entered into an agreement to acquire a 100% interest
in The Lynn Lake Nickel Project from Victory Nickel Inc. (TSX: NI). The deposit
is in Manitoba, Canada, which is mining friendly and also adjacent to a power
line, rail line, and airport. Lynn Lake contains Measured and indicated mineral
resources of 22.9 million tons of grading, of 0.57% nickel and 0.30% copper
(Wardrop Technical Report Jan, 2010). Approximately 50% of the host rock remains
unexplored. An exciting Disco Zone discovery was made in 2008, which includes
intercepts of 47 meters of 0.7% nickel located 1.5km away from the outlined
resource. Prophecy recently completed extensive induced polarization
(geophysics) programs and has initiated bulk tonnage metallurgical testing at
Lynn Lake in preparation for a combination of infill and exploratory drill
programs and a forthcoming feasibility study at Lynn Lake.


The information concerning the current mineral properties controlled by
Prophecy, as described in this news release, has been reviewed and approved by
Danniel Oosterman, P.Geo., a Prophecy Geologist and a Qualified Person under
National Instrument 43-101.


Northern's Key Assets

The Wellgreen Project

The Wellgreen property covers an area of approximately 22 square miles in the
Yukon Territory, Canada. The property has easy road access, being 14 kilometres
southwest of the Alaska Highway and 317 kilometres northwest of Whitehorse.


ON BEHALF OF THE BOARD OF DIRECTORS of

Prophecy Resource Corp.

John Lee, Co-Chairman and CEO

Northern Platinum Limited

Mel de Quadros, President and CEO

Cautionary Statements: Completion of the transaction is subject to a number of
conditions, including regulatory approval, shareholder approvals, completion of
satisfactory due diligence, a definitive agreement and approval of the British
Columbia Supreme Court if applicable. There can be no assurance that the
transaction will be completed as proposed or at all. Investors are cautioned
that, except as disclosed in the Management Information Circular to be prepared
in connection with the transaction, any information released or received with
respect to the Business Combination may not be accurate or complete and should
not be relied upon. Trading in the securities of exploration and development
stage resource companies should be considered highly speculative.


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 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
companies are forward-looking statements that involve various risks and
uncertainties. Although Northern and Prophecy believe 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 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 Northern and Prophecy and the risks and
challenges of their businesses, investors should review their annual filings
that are available at www.sedar.com.

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