Prophecy Completes $2,030,000 Private Placement

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/29/10 -- Prophecy Resource Corp. ('Prophecy' or the 'Company') (TSX VENTURE: PCY)(OTCQX: PRPCF)(FRANKFURT: 1P2) is pleased to announce that it has completed the non-brokered flow through private placement previously announced on September 21, 2010 and amended on October 25, 2010. A total of 3,830,189 flow through units (each a 'Unit') were placed at a price of $0.53 per Unit generating gross proceeds of $2,030,000.

Each Unit consisted of one flow though common share and one share purchase warrant. Each whole share purchase warrant entitles the holder to acquire one additional common share at a price of $0.66 until October 28, 2012. All of the securities issued under this placement are subject to a hold period expiring on March 1, 2011.

A cash finder's fee of 5% of the proceeds placed was payable in respect of portions of the placement to arm's length third parties, including 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 coal 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 Wellgreen PGM Project in Yukon, Lynn Lake Nickel Sulphide Project in Manitoba, and a 10% equity stake in Victory Nickel. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

ON BEHALF OF THE BOARD OF DIRECTORS of Prophecy Resource Corp.

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.'

Contacts:

Prophecy Resource Corp.

John Lee

Chairman

+1.604.642.2625 ext. 107
john@prophecyresource.com
www.prophecyresource.com