Prophecy Resource Corp.

Prophecy Resource Corp.

May 01, 2007 11:02 ET

Prophecy Resource Corp.: Private Placement Arranged for $225,000

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 1, 2007) - Prophecy Resource Corp. (TSX VENTURE:PCY) has agreed to a non-brokered private placement of 750,000 flow-through units at a price of $0.30 per unit. Each unit will consist of one common share of the company and one share purchase warrant, with each warrant exercisable into one additional common share of the Company for a period of two years from closing at an exercise price of $0.40 per share. There are no finder's fees payable on this placement, with proceeds being used for exploration of the Company's OK copper molybdenum property located on the B.C. coast. This placement is subject to acceptance for filing by the TSX Venture Exchange.

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.


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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