Vancouver, British Columbia, December 16,
2010: Prophecy Resource Corp. (�Prophecy� or the �Company�) (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) is pleased to announce that due to
strong investor demand for its recently announced equity offering of
common shares (the "Offering"), as announced on December 2,
2010 and December 3, 2010, the Company has increased the size of the
Offering by $12,053,000.
The Offering, which is being co-led by Jacob
Securities Inc. and Renaissance Capital (Hong Kong) Ltd.
will now include the issuance of an additional 14,180,000 common shares
at a price of $0.85 per common share, for a total of 49,475,000 common
shares being issued for aggregate gross proceeds of $42,053,750.
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.
The offering will be conducted in the Canadian provinces referred to
above through Jacob Securities Inc. Renaissance Capital (Hong Kong) Ltd.
and affiliates will act as special selling agent for the purpose of
procuring subscribers in certain jurisdictions outside of Canada. The
syndicate of agents will offer the common shares as agents on a
�commercially reasonable efforts� basis.
The offering is scheduled to close on or about
December 23, 2010 and is subject to certain conditions including, but not
limited to, the receipt of all necessary approvals including the approval
of the TSX Venture Exchange and the securities regulatory authorities.
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 Prophecy Resource Corp.
"JOHN LEE"
John Lee
Chairman
Telephone 1.800.851.1528
Email: john@prophecyresource.com
Mineral resources that are not mineral reserves do not have demonstrated
economic viability. 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.
Prophecy Resource Corp.
John Lee - Chairman and CEO
For further information:
John Lee
Telephone 1.800.851.1528
Email: john@prophecyresource.com
www.prophecyresource.com
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"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."