Vancouver, British Columbia, September 27, 2010: Prophecy Resource Corp. (�Prophecy� or the �Company�) (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2)  announces drilling has commenced at its 100% owned Wellgreen PGM Ni Cu resource project, Yukon, Canada. The Wellgreen property is located approximately 35 kilometres northwest of Burwash Landing, Yukon, 15 km from the paved 2 lane Alaska Highway and 402 km from Alaska�s Haines deep sea port. Prophecy acquired 100% of Wellgreen by merger with Northern Platinum on September 23, 2010. Prophecy retained key operations personnel from Northern Platinum and the Wellgreen program is now being guided by Dr. John Morganti P.Eng, a member of Prophecy�s Advisory Board. and Mr John McGoran P.Geol. a former Northern Platinum Director and  recently appointed Director of Prophecy Resource Corp.

Overview of Wellgreen:

1. Wellgreen is part of Kluane Ultramafic Nickel belt, which is second largest behind the Thompson Belt in Canada and remains vastly unexplored.
2. Wellgreen was discovered in 1952 and optioned to Hudson Bay Mining and Smelting Ltd. (now Hudbay). Over a 20 year period Hudbay sank 4 shafts and developed over 3 km of underground workings.
3. In 1972, Hudbay milled 171,652 tons grading 2.23% Copper and 1.39% Nickel. PGM�s while present, was neither assayed for nor credited during Hudson Bay Mining�s tenure at Wellgreen.
4. A total of 701 holes (182 surface, 519 underground) totalling 53,222 meters (28,303 meter surface, 24,919 meters underground) were historically drilled by the following mining and exploration companies: Hudbay, Chevron, All North, Galactic, Archer Cathro, Coronation, and Northern Platinum.
5. A historic, non-43-101 compliant geological resource (1989) estimated 42.37 million tonnes grading 0.35% Cu, 0.36% nickel, 0.51 g/t Pt and 0.34 g/t Pd. at Wellgreen.
6. Prophecy holds 91 claims in two groups under renewable 21-year mining leases totalling approximately 22.1 square kilometres.
7. Past drilling and production focused on 2.2 km strike of known mineralization.
8. A Fugro helicopter-borne Mag and EM survey conducted in 2008 demonstrated that the magnetic signature of the peridotite extends approximately 6 kilometres on Prophecy�s ground.
9. Past exploration and production focused on high-grade underground massive sulphide.
10. Prophecy is re-examining the surveys, geology, past drill cores, and economics of Wellgreen for a disseminated sulphide open pit scenario.

In July 2010, Prophecy commissioned a 43-101 report on the Wellgreen Property from Wardrop Engineering, a Tetra Tech Company (Wardrop).  Wardrop consultant Todd McCracken P.Geol. wrote that :

 �The potential within the Quill Creek Ultramafic intrusion on the Wellgreen property is in the range of 77 to 254 million tonnes at 0.26 to 0.38% nickel, 0.26 to 0.36% copper, 0.32 to 0.47 g/t platinum and 0.23 to 0.38 g/t palladium based on the assumption of a specific gravity of 3.22, strike length of 4000 to 7000 metres, depth of 200 to 250 metres and a width of 30 to 35 metres.�

Prophecy�s Plan

- Assay 2,112 metres of drill core from Northern Platinum�s 2010, 6-hole drill program. The recent drill program focused on expanding the eastern limit of the Wellgreen deposit (Prophecy has received preliminary data on this program and is compiling the results for a forthcoming Prophecy news release).
- Prophecy has commenced 1,000 metres of step-out surface drilling on 200 metre spacing beyond known mineralization.
- Prophecy estimates that only 20% of the past drill cores have been assayed with focus on massive sulphide. The company intends to selectively assay historic core containing visible disseminated sulphide over long intercepts.
- Assay all future and historic drill core for (not previously assayed) rare earth elements Rhodium, Rhenium, Ruthenium, Osmium and Iridium from 300+ drill core samples with combined Platinum and Palladium grades over 1g/t. The presence of these metals was confirmed by the Geological Survey of Canada.
-  During a 2005 surface exploration program, a north shear zone was discovered with rock samples yielding up to 70.1 g/t Palladium, and 77.3 g/t Platinum and 1.37g/t Rhodium ($2,240/oz) over a 3km strike. Prophecy intends to follow up on this exciting discovery zone with additional drilling in 2011.

Wellgreen Field Magnetic Map
Click to enlarge

Wellgreen Drill Hole Map
Click to enlarge

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.