Prophecy Initiates Deep IP survey and Bulk Tonnage Metallurgical Testing at Lynn Lake Nickel Sulphide Project, Manitoba

VANCOUVER, B.C. - March 23, 2010: Prophecy Resource Corp. ("Prophecy")(TSX-V:PCY, OTC: PCYRF, Frankfurt: 3P1)  is pleased to report on the following field exploration and metallurgical testing operations currently in progress on its Lynn Lake Nickel Sulphide Project located in Manitoba, Canada.

The Lynn Lake mine was operated by Sherritt-Gordon from 1953 to 1976 and ranked as the third largest nickel producer in North America, after only the Sudbury and Thompson mining camps. 

Wardrop Engineering Inc., in a National Instrument 43-101 report dated March 15, 2010 (available at www.sedar.com), estimated Lynn Lake to contain a Measured and Indicated resource of 22.9 million tons at 0.57% nickel and 0.3% copper, and an Inferred resource of 8.1 million tons at 0.51% nickel and 0.28% copper. (0.4% nickel equivalent cutoff).

The above resource estimate does not include the recent Disco Zone discovery located within 1.5 km of the outlined resource.  The Lynn Lake project has immediate access to electrical power and rail transportation and can be operated year-round.

IP Survey to Explore Extensions to Disco Discovery

In 2008, the near-surface Disco Zone ("Disco") was discovered within 1.5 km of the existing resource outlined at Lynn Lake.  Disco drill intercepts include 47 meters of 0.7% nickel and 18 meters of 1.5% nickel east of the primary trend, which is believed to reside on a secondary and previously unexplored structural trend.  Disco remains open along strike and at depth beyond the 400 meters tested in 2008.

Prophecy has retained Matrix Geotechnologies Ltd. to conduct an Induced Polarization ("IP") survey utilizing proprietary 3D techniques with a high proven drilling success rate.  The IP can effectively penetrate to depths of 600 meters (2,000 ft), where historical mining at Lynn Lake reached depths of 914 meters (3,000 ft). The survey will concentrate on areas to the east of the primary historic mine trend where no previous surveying has explored at comparable penetration depths.  Prophecy intends to prioritize drill targets based on the results from this IP survey, which are anticipated some time in April 2010.

Additional 2008 Disco drill intercepts and surface IP results can be accessed at www.prophecyresource.com/disco.

Bulk Tonnage Bioleach Metallurgical Testing

In 2007, a bioleaching bench test was performed at the Process Research Associates Ltd. laboratory ("PRA") in Vancouver.  PRA used thiobacillus thiooxidans adapted to the nickel ore. The test procedure yielded 92.5% nickel recovery and 81% copper recovery.  The test was based on 60 kg of rock samples from Lynn Lake.

Prophecy has commissioned Mintek Laboratories, in conjunction with Wardrop Engineering, to conduct large scale pilot metallurgical testing.  Five tonnes of samples are being air sealed at Lynn Lake for shipment to Mintek in South Africa, a world leader renowned for mineral processing and research.  Mintek's metallurgical testing process involves flotation method development, production of concentrate, bioleach setup, amenability and optimization pilot tests.  Final results are expected in November 2010 and, if favourable, will be incorporated into the planned Lynn Lake Feasibility Study.  

John Lee, Chairman and CEO of Prophecy Resource Corp. stated today that:

"Lynn Lake is one of a select few Nickel Sulphide deposits worldwide that is in a geopolitically safe jurisdiction with excellent infrastructure.  Nickel prices have doubled from a year ago and we intend to commission Lynn Lake to production responsibly in the quickest time frame permissible."

Further information on Lynn Lake Nickel Sulphide Project, including project photos, maps and detailed descriptions, can be found at www.prophecyresource.com/lynn

This news release has been reviewed and approved by Danniel Oosterman, P.Geo., a Prophecy Geologist and a Qualified Person under National Instrument 43-101.

About Prophecy Resource Corp.

Prophecy is a Canadian company focused on the acquisition and development of advanced mineral assets. The company holdings include the Lynn Lake nickel-copper project in Manitoba, the Titan vanadium project in Ontario, and the Okeover copper-molybdenum project in British Columbia. All together, Prophecy controls 540 million lbs of copper, 345 million lbs of nickel, and 207 million lbs of vanadium. Technical reports on all these properties are available at www.sedar.com

On March 4, 2010, Prophecy signed a definitive agreement to combine with Red Hill Energy (TSX-V: RH), which controls over 1.5 billion tons of thermal coal resource in Mongolia.

For more information about Prophecy, please contact us toll-free at 1-800-459-5583 or visit our web site at www.prophecyresource.com.

 ON BEHALF OF THE BOARD OF DIRECTORS

Prophecy Resource Corp.

"JOHN LEE"

John Lee

Chairman