The most unique project on the tour was Prophecy Platinum (TSX-V: NKL, OTC-QX: PNIKF, $1.11 per

share, $55.30M market cap) Wellgreen nickel-copper-PGM project. The project is located a short distance

from Burwash Landing on the Alaska Highway, by road 320 kilometers from Whitehorse and 400 kilometers

from a deep water port at Haines.

While primarily a nickel and copper deposit, the

resource appears to contain a unique number of

other metals. Interestingly, management noted

during the tour that samples sent for analysis back

in 1997 (contained exotic PGE’s such as Rhodium,

Ruthenium, Osmium, and Iridium, in addition

to Platinum and Palladium) had lead the lab

to question if the sample had actually been taken

from a meteorite. While some of these metals

may not be payable, once again, considering that

nearly 90% of PGMs are sourced from Russia,

South Africa and Zimbabwe, a project located in

the politically stable jurisdiction of the Yukon

Territory may provide a welcome alternative.

August 8, 2012

The Wellgreen deposit has an Indicated resource of 14 million tonnes grading 0.69% nickel, 0.62% copper

and 2.25 g/t PGM+gold, and a significantly larger Inferred resource of 289 million tonnes grading 0.38%

nickel, 0.35% copper and 1.18 g/t PGM+gold. This implies Indicated resources of 220 million pounds of

nickel, 200 million pounds of copper and 1.0 million ounces of PGM+gold, and Inferred resources of 2.4

billion pounds of nickel, 2.2 billion pounds of copper and nearly 11 million ounces of PGM+gold. Both

indicated and inferred resource estimates are based on a 0.40 nickel equivalent cut-off.

Prophecy Platinum has budgeted $12.5 million

for exploration and development for 2012.

This would include 16,000 meters of surface

and underground drilling and 4,000 meters at

its other project. The budget includes about

$1.5 million for upgrading the current resource

estimate, metallurgy, and general and administrative

expenses. The focus of the drill program

at Wellgreen is to complete infill drilling

to upgrade the classification of the existing resource.

Clearly, the 2012 infill drill program at

Wellgreen has a significant opportunity to upgrade

the classification of the resource. The

company anticipates providing an updated resource

estimate in the first quarter of 2013.

Prophecy Platinum is anticipating that the Wellgreen resource may become a low-cost open pit mine with a

high-grade starter pit. Considering the steep terrain and favorable geometry of the zone of mineralization,

they are anticipating a low strip ratio.

Interestingly, the target resource contains a past

producing underground mine. Between 1972

and 1973, about 171,652 tonnes were mined

from Wellgreen grading 2.23% nickel, 1.39%

copper and 4.2 g/t PGM. Management believes

the high-grade portion of the Wellgreen deposit

may be part of a massive high-sulfide feeder

system. Based on cutoff levels, it would appear

that this high-grade zone in the vicinity of the

historic underground mine will be the source of

material to provide the most rapid early payback

of capital.

August 8, 2012

__________________________________________________________________________________________________________________

earch, LLC 12

August 8, 2012

_______________________________________________________________________________________________________________________________________________________________________________

.

Wellgreen Project Map

Source: Prophecy Platinum

Casino Project-Barge Landing

Yukon River

Source: Analyst

Prophecy Platinum’s Wellgreen Nickel-Copper-PGM Project

The most unique project on the tour was Prophecy Platinum (TSX-V: NKL, OTC-QX: PNIKF, $1.11 per

share, $55.30M market cap) Wellgreen nickel-copper-PGM project. The project is located a short distance

from Burwash Landing on the Alaska Highway, by road 320 kilometers from Whitehorse and 400 kilometers

from a deep water port at Haines.

While primarily a nickel and copper deposit, the

resource appears to contain a unique number of

other metals. Interestingly, management noted

during the tour that samples sent for analysis back

in 1997 (contained exotic PGE’s such as Rhodium,

Ruthenium, Osmium, and Iridium, in addition

to Platinum and Palladium) had lead the lab

to question if the sample had actually been taken

from a meteorite. While some of these metals

may not be payable, once again, considering that

nearly 90% of PGMs are sourced from Russia,

South Africa and Zimbabwe, a project located in

the politically stable jurisdiction of the Yukon

Territory may provide a welcome alternative.

Beacon Rock Research, LLC 13

August 8, 2012

_______________________________________________________________________________________________________________________________________________________________________________

This information is obtained for sources believed to be reliable, but its accuracy and completeness are not guaranteed. Copying, faxing, replicating, or quoting from this report without permission is in direct violation of

copyright laws. Beacon Rock Research employees and affiliates may have positions and effect transactions in the securities or options of the issuers reported herein. Please refer to the company index in the back of this

issue for additional disclosures.

The Wellgreen deposit has an Indicated resource of 14 million tonnes grading 0.69% nickel, 0.62% copper

and 2.25 g/t PGM+gold, and a significantly larger Inferred resource of 289 million tonnes grading 0.38%

nickel, 0.35% copper and 1.18 g/t PGM+gold. This implies Indicated resources of 220 million pounds of

nickel, 200 million pounds of copper and 1.0 million ounces of PGM+gold, and Inferred resources of 2.4

billion pounds of nickel, 2.2 billion pounds of copper and nearly 11 million ounces of PGM+gold. Both

indicated and inferred resource estimates are based on a 0.40 nickel equivalent cut-off.

Prophecy Platinum has budgeted $12.5 million

for exploration and development for 2012.

This would include 16,000 meters of surface

and underground drilling and 4,000 meters at

its other project. The budget includes about

$1.5 million for upgrading the current resource

estimate, metallurgy, and general and administrative

expenses. The focus of the drill program

at Wellgreen is to complete infill drilling

to upgrade the classification of the existing resource.

Clearly, the 2012 infill drill program at

Wellgreen has a significant opportunity to upgrade

the classification of the resource. The

company anticipates providing an updated resource

estimate in the first quarter of 2013.

Wellgreen Project-Mine Portal (left) and Camp (right)

Source: Analyst

Wellgreen Project Schematic

Source: Prophecy Platinum

Prophecy Platinum is anticipating that the Wellgreen resource may become a low-cost open pit mine with a

high-grade starter pit. Considering the steep terrain and favorable geometry of the zone of mineralization,

they are anticipating a low strip ratio.

Interestingly, the target resource contains a past

producing underground mine. Between 1972

and 1973, about 171,652 tonnes were mined

from Wellgreen grading 2.23% nickel, 1.39%

copper and 4.2 g/t PGM. Management believes

the high-grade portion of the Wellgreen deposit

may be part of a massive high-sulfide feeder

system. Based on cutoff levels, it would appear

that this high-grade zone in the vicinity of the

historic underground mine will be the source of

material to provide the most rapid early payback

of capital.

Beacon Rock Research, LLC 14

August 8, 2012

_______________________________________________________________________________________________________________________________________________________________________________

This information is obtained for sources believed to be reliable, but its accuracy and completeness are not guaranteed. Copying, faxing, replicating, or quoting from this report without permission is in direct violation of

copyright laws. Beacon Rock Research employees and affiliates may have positions and effect transactions in the securities or options of the issuers reported herein. Please refer to the company index in the back of this

issue for additional disclosures.

In addition to the potential for upgrading the resource classification, there is significant potential to expand

the resource by stepping out along strike. The strike length of the resource is now about 2.5 kilometers, and

based upon geophysical surveys, the anomaly along strike over an additional 2.5 kilometers is highly prospective.

The project area extends over 17.5 kilometers, which

includes other prospective areas. In addition to the

geophysical surveys, faulting over the extent of the

property may suggest some structural control, and

potential beyond the identified Wellgreen resource

for additional high-grade zones. While the focus on

the current drill season is to add value by moving

resources to indicated from inferred, if weather permits,

the company may attempt a long step-out hole

prior to the end of the season to demonstrate to the

market the potential to expand the resource.

It will be interesting to see the eventual mine plan selected. The resource is located at the end of a valley

out of sight of the Alaska Highway. The tailings from the previous operation, now reclaimed, did not appear

to be acid generating and is largely overgrown. It is too early to assess the potential for power and permitting,

but the potential to surprise the market by increasing the classification and encounter additional

mineralization of a most interesting deposit appears to be good.

As of March 31, 2012, Platinum Prophecy had

about $3.8 million in current assets. Since our visit

to the Wellgreen Project, Prophecy Platinum has

closed a $7.25 million placement. Prior to the

placement, management held about 6% of the outstanding

stock, Sprott Asset Management was

holding 13% and Prophecy Coal PCY had 41%.

There are now 58.8 million shares outstanding and

66.8 million shares diluted.

August 8, 2012