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Six Holes Completed at Okeover Copper/Molybdenum Project in B.C.

July 8, 2008 - Prophecy Resource Corp. has completed six diamond drill holes (1,449 metres) at the Okeover copper-molybdenum project located on the south coast of British Columbia. Five of the six holes were completed as step outs to the south and west of the existing resource area at the North Lake Zone (86.8 million tonnes grading 0.31% copper and 0.014% MoS2, calculated by N.C. Carter PhD, P.Eng, in 2006). The sixth and final hole was drilled from a site located 3,000 metres to the south of the North Lake Zone.

The objectives of this drill program were twofold. Firstly, to attempt to expand the North Lake zone to an anchor resource in excess of 100 million tonnes and secondly to explore other largely unexplored areas of the 5,233 hectare property. Results of the current program are expected to be available by the middle of July and a revised resource estimate, in accordance with National Instrument 43-101, is expected to be initiated later in the season.

Okeover is located 140 kilometres north of the city of Vancouver near the community of Powell River and within 45 minutes by truck of a deep water ocean port. The extremely favourable logistics at Okeover, which include its location on the Pacific Rim, reinforce the significance of this project.

J.W. (Bill) Morton, P.Geo., a director of the Company and qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release.


About Prophecy Resource Corp.

Prophecy is currently drilling at the Okeover Copper-Molybdenum property on tidewater in B.C., twenty-five kilometres north of the City of Powell River. In 2006, N.C. Carter, PhD, P.Eng, completed a technical report on the Okeover Property pursuant to NI 43-101 that estimated an inferred mineral resource for the North Lake Zone of 86.8 million tonnes grading 0.31% copper (approximately 593,000,000 lbs.) and 0.014% MoS2 (approximately 15.9 million lbs of molybdenum) at a 0.20% copper cut-off grade. The current drill program is focused on the South Breccia area, which is one of eight prospective zones identified at Okeover and has not had any significant exploration work undertaken for more than ten years.

ON BEHALF OF THE BOARD OF DIRECTORS

"STUART ROGERS"

Stuart Rogers, Chief Financial Officer

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.  

 Forward Looking Statements: This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including, without limitation, statements potential mineralization, the estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. . Although Prophecy 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 the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals in respect of the Transaction, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with operating in foreign jurisdictions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on Prophecy and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.

"Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release."

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