Prophecy Resource Corp.

Prophecy Resource Corp.

October 25, 2010 11:26 ET

Prophecy Announces Amendment to $2,030,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2010) - Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) reports that, further to the Company's news release dated September 21, 2010, the Company has amended the terms of its previously announced non-brokered private placement.

The Company has arranged for the placement of 3,830,189 flow through units (each a "Unit") at a price of $0.53 per Unit to raise aggregate proceeds of $2,030,000. Each Unit is comprised of one flow through common share and one share purchase warrant (a "Warrant"). Each Warrant entitles the holder to acquire one additional common share for a period of two years at a price of $0.66.

A finder's fee of 5% of the proceeds raised payable in cash will be paid to Eurasia Capital and Frontier Securities.

Proceeds of the placement will be applied to the Company's Lynn Lake Property in Manitoba and the Wellgreen Property in Yukon Territory.

For more information about Prophecy, please contact Paul McKenzie at +1.604.642.2625 ext. 107 or John Lee at +1.800.851.1528.

About Prophecy

Prophecy Resource Corporation is an internationally diversified company engaged in developing energy, nickel and platinum group metals projects. The company controls over 1.4 billion tons of open-pittable thermal coal in Mongolia (839 Mt Measured, 579 Mt Indicated). In Canada Prophecy owns Lynn Lake Nickel Project, a 10% equity stake in Victory Nickel and agreed to merge with Northern Platinum (TSX VENTURE:NTH) on June 15, 2010. Mineral resources that are not mineral reserves do not have demonstrated economic viability.


John Lee, Chairman

This news release does not constitute an offer to sell or a solicitation to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended ("the U.S. Securities Act") or any state securities law and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

"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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