Prophecy Resource Corp.

Prophecy Resource Corp.

April 04, 2007 13:11 ET

Prophecy Resource Corp.: Option Payment on OK Property Paid in Shares

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 4, 2007) - Prophecy Resource Corp. (TSX VENTURE:PCY) has agreed to issue 25,000 common shares to Eastfield Resources Ltd. for its annual option payment on the OK copper molybdenum property located on the B.C. coast. In accordance with the terms of Prophecy's agreement with Eastfield dated March 8 2006, Prophecy has elected to settle the $10,000 due in March, 2007 by the issuance of 25,000 shares valued at $0.40 per share, subject to regulatory approval.

Prophecy has the right to earn a 60% interest in the OK property by making $1,000,000 of mineral exploration expenditures on the property by March, 2010 and making cash and/or share option payments totaling $110,000.

The OK property encompasses 3,900 hectares (15 square miles) of mineral claims centered on the Bunster Hills, east of Okeover Inlet, and located 20 km north of Powell River. In late 2006, N.C. Carter, PhD, P.Eng. completed a technical report on the OK Property pursuant to National Instrument 43-101 that estimated an inferred mineral resource of 86.8 million tonnes grading 0.31% copper and 0.014% MoS2 at a 0.20% copper cut-off grade (approximately 593 Million lbs of copper and 15 million lbs of MoS2 ).

Prophecy plans to commence work on the OK project in May 2007, with drilling scheduled to follow shortly thereafter. The Company believes that there is potential to increase these resources, and with exploration success, to also find higher grade material. The mineral endowment at the OK property is enhanced by its proximity to infrastructure and tidewater on the Pacific Ocean.


Stuart Rogers, Chief Financial Officer

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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