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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 24, 2010) -


NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN




Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) is pleased to announce that it has completed its public offering of 49,475,000 Common Shares for gross proceeds of $42,053,750 (the "Offering"). The Common Shares were sold at a price of $0.85 each. The Offering contained significant participation by Mongolian investors. The net proceeds of the offering are intended to be used by the Company to fund work on its existing properties in Mongolia, repayment of an outstanding credit facility, and for working capital and general purposes.


Jacob Securities Inc. and Renaissance Capital (Hong Kong) Ltd. acted as joint lead managers for the Offering. The Offering was conducted in the provinces of British Columbia, Alberta and Ontario, Canada through Jacob Securities Inc., and Renaissance Capital (Hong Kong) Ltd. acted as special selling agents for the purpose of procuring subscribers in certain jurisdictions outside of Canada.


This press 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 unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.



About Prophecy Resource



Prophecy 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). Prophecy's Ulaan Ovoo coal deposit in Mongolia is in production. 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