Red Hill Energy Inc.: Drilling Completed at Prophecy’s Chandgana-Khavtgai Coal Project, Updated NI 43-101 Resource Report Is Expected by August

VANCOUVER, BRITISH COLUMBIA–(Marketwire – 06/21/10) – Prophecy Resource Corp. (“Prophecy” or the “Company”) (TSX-V:PCY – News)(PINK SHEETS:PRPCF – News)(Frankfurt:1P2 – News) is pleased to report the successful completion of its spring exploration program on its 100% owned Chandgana-Khavtgai license in Khentii aimag (province), Mongolia. The work program consisted of 12 drill holes for a total of 2,205 metres including 903 metres of core drilling, and five lines of seismic geophysical survey for a total of 7.4 line km.

The focus of the current work program is aimed at increasing the confidence in the inferred Mineral Resources such that they can be elevated to the Measured and Indicated category. The drilling confirms that nearly all of the resource is contained in a single 18-60 metre thick coal seam found 10 to 250 meters below the surface and covering an area of approximately 1,800 hectares. Further, preliminary results indicate the coal resources and coal quality will be confirmed and the geological limits to the resource are more accurately mapped.

An existing Mineral Resource estimate for Chandgana Khavtgai is provided in the Technical Report prepared by Mr C. M. Kravits (2008) available at SEDAR.com. The Measured and Indicated Mineral Resources are 657 Mt. There is an additional 409 Mt of inferred Mineral Resources.

In addition to Chandgana Khavtgai, Prophecy also owns 100% of the 141 Mt Chandgana Tal coal project which is 9 km away within the Nyalaga basin. Prophecy is targeting a potential 1 billion tonnes of Measured and Indicated coal in the basin. A new NI 43-101 resource report incorporating the recent drilling is expected to be completed in August.

The Changana thermal coal deposits are located near the Mongolian power grid and could fuel a Mine Mouth Power Plant Complex which could provide power to Mongolia, Russia and China. Prophecy intends to commission a Power Plant/Mine complex study this year.

Additional Information on Prophecy’s Coal projects are available t the Company website www.prophecyresource.com