Prophecy Commences Summer Exploration Program on its Titan Vanadium, Iron, Titanium Project, Ontario

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/28/10 -- Prophecy Resource Corp. ('Prophecy' or the 'Company') (TSX VENTURE: PCY)(PINK SHEETS: PRPCF)(FRANKFURT: 1P2) announced today it has commenced an exploration program on its Titan Vanadium/Iron Project. The program comprises 22 line kilometres of linecutting covering over 2.7 square km in 100 m intervals that will extend the current surveyed grid west and southwest of the Titan Ti-V-Fe deposit. A ground magnetometer survey will be conducted over this extension to close off a mag anomaly associated with the existing deposit, and to test with broader extensions highlighted in a previous airborne survey.

The grid will also provide control for a concurrent geological mapping program that will ascertain any trends and focus on determining the nature of a Pt-Pd horizon intersected in past drilling, and whether there are any expressions of this mineralization at surface.

A total of 4,898 historic assay intervals were recorded from 38 core holes drilled by Randsburg on the property. Drilling highlights reported by Randsburg included 142 meters of 0.27% Vanadium (0.48% Vanadium Pentoxide) from hole RA-5-21 and 174 meters of 0.26% Vanadium (0.46% Vanadium Pentoxide) from hole RA-5-10. The mineralization started from surface to an open vertical depth of 500 meters. The complete horizontal and vertical extent of the deposit is still to be determined. Prophecy intends to drill Titan in 2010 to expand on the existing 48.9 million tonne inferred resource, and possibly discover other zones of exploration interest.

Prophecy optioned 80% Titan from Randsburg International Gold Corp. (TSX VENTURE: RGZ) - (see Prophecy news, January 14, 2010). Titan contains a National Instrument 43-101 compliant Inferred resource of 48.9 million tonnes, grading 48.1% iron (Fe2O3) 14.8% titanium (TiO2), and 0.23% vanadium (V). The property is located approximately 120 km east-northeast of Sudbury, Ontario straddling the boundary between Angus and Flett Townships, with access to excellent infrastructure. The Titan property consists of 1,052 contiguous hectares (2,600 acres) comprising 17 patented claims and 3 mining claims.

Visit www.prophecyresource.com for the work program map superimposing the grid onto the airborne mag survey.

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

About Prophecy

Prophecy Resource Corporation is an internationally diversified company engaged in developing, energy, nickel and platinum group elements projects. The company controls over 1 billion tonnes of open-pittable thermal coal in Mongolia. In Canada Prophecy owns Lynn Lake Nickel Project, a 10% equity stake in Victory Nickel and agreed to merge with Northern Platinum (TSX VENTURE: NTH) on June 15, 2010. 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 and CEO

Cautionary Language and Forward-Looking Statements

This press release includes certain statements that may be deemed 'forward-looking statements'. All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities, anticipated metal production, internal rate of return, estimated ore grades, commencement of production estimates and projected exploration and capital expenditures (including costs and other estimates upon which such projections are based) and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.

This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.

'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 Corporation

John Lee

1.800.851.1528
john@prophecyresource.com
www.prophecyresource.com