Prophecy Retracts Certain Disclosure for Lynn Lake Nickel Project, Lynn Lake, Manitoba

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/02/10 -- Prophecy Resource Corp. ('Prophecy' or the 'Company') (TSX VENTURE: PCY)(OTCQX: PRPCF)(FRANKFURT: 1P2) as part of a pre-filing review of the Company's technical disclosure in advance of the filing of the preliminary short form prospectus dated December 2, 2010, the British Columbia Securities Commission identified certain instances where the information disclosed by the Company in relation to the Lynn Lake property, did not comply with NI 43-101 and other disclosure requirements. Specifically, historical reports, including an October 23, 2006 Preliminary Economic Assessment Report and a December 5, 2007 Prefeasibility study, both by Wardrop Engineering Inc. for a prior holder, Independent Nickel Inc., contain mineral reserve estimates that were calculated under standards and assumptions that are no longer applicable or appropriate. As a result these reserve estimates cannot be relied upon until such time as Prophecy has completed an updated technical report on the property.

Prophecy retracts all past reported economic valuations, estimates, references to pending prefeasibility studies, reported mineral reserves and references to future production scheduling regarding its Lynn Lake nickel property. An updated or amended technical report in respect of the Lynn Lake nickel property will be completed by the Company in due course and the Preliminary Economic Assessment and any references to it have been removed from the Company's website. The Company therefore cautions investors that these materials should not be relied upon.

This news release has been reviewed and approved by Danniel J. Oosterman, PGeo, and a Qualified Person as defined in NI 43-101. 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 Resource

Prophecy is an internationally diversified company engaged in developing energy, nickel and platinum group metals projects.

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

John Lee, Chairman

'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.

Scott Parsons

1.604.642.2625 ext. 106


Prophecy Resource Corp.

Paul McKenzie

1.604.642.2625 ext. 107


Prophecy Resource Corp.

John Lee

1.800.851.1528
john@prophecyresource.com
www.prophecyresource.com