LYNN LAKE HIGHLIGHTS

  • A deposit in Manitoba, Canada, which is mining friendly and also adjacent to a power line, rail line, and airport
  • National Instrument 43-101 compliant Measured plus 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 2008 Disco Zone discovery, which includes drillhole intercepts of 47 meters of 0.7% nickel, located 1.5km away from the outlined resource
  • 2010 discovery of the 'Tango Zone' which includes drillhole intercepts of 17.3 meters of 0.6% nickel and 0.3% copper between historic mine level infrastructure
  • Over 95% Nickel recovery in preliminary results from Lynn Lake Bioleach Study by Mintek

NEXT STEPS

  • To commission an environmental baseline study and the preparation of an Environment Act License proposal to initiate the project licensing process
  • To conduct comprehensive bench-scale bio-leach testing for actual production scenarios
  • To perform downhole IP surveys and expand drilling in the Disco Zone and Tango Zone discoveries
  • To aggressively seek major partners in developing the Lynn Lake Nickel project utilizing Bioleach technology

RECENT MILESTONES

  • On February 18,2011, Prophecy has received preliminary results from its ongoing metallurgical study on the amenability of its Lynn Lake resource to the bioleach process. Key findings of the results to date show that nickel recoveries in excess of 95% can be achieved using only a moderate grind and leach temperature has Prophecy achieves over 95% Nickel recovery in preliminary results from Lynn Lake Bioleach Study by Mintek.
  • On December 6, 2010, Prophecy announced the discovery of the Tango Zone from the Fall 2010 drilling program. Holes PCY10-02, PCY10-03, and PCY10-05 were drilled on the same section to test what was earlier called the West IP anomaly, which now represents a new zone called 'Tango'. The Tango has a broader geophysical signature than the Disco Zone and the Tango has a greater vertical extent than the Disco zone, which was discovered in 2008. The three holes delineate a vertically extensive zone of mineralization that extends from 220 meters depth at the top of hole PCY-10-03 a depth of 400 meters at the bottom of hole PCY-10-05 for a minimum total vertical extent of approximately 180 meters. The mineralized zone has an average thickness of 13.8 meters true-thickness; the best intersection being PCY10-02, which encountered 17.3 meters of 0.6% nickel, and 0.3% copper.
  • On July 7 ,2010, Prophecy has received the first results of a property-wide surface induced polarization ("IP") survey conducted during the late-spring of 2010. To date, results have been modeled for the area coinciding with the Disco deposit that was discovered during 2008. Results indicate a strong chargeability anomaly centred 200 meters below the existing Disco deposit, for a total strike length of approximately 150 meters. This anomaly appears to increase in intensity with depth, beyond 610 meters from surface

TECHNICAL REPORTS