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Prophecy Reports Inferred Resource of 259 Million Lbs of Vanadium at Titan Deposit in Ontario

March 11, 2010 -Prophecy Resource Corp. (TSX.V: PCY; OTC: PCYRF; Frankfurt: 3P1) (the "Company" or "Prophecy") has received an updated Technical Report on its 80% owned Titan-Vanadium Property (the "Property")  located at Flett and Angus Townships, 120 kilometres northeast of Sudbury, Ontario

The Property is estimated to contain an inferred resource of 49.0 million tonnes at 0.24% vanadium (0.43% vanadium pentoxide), 14.82% titanium dioxide, and 48.09% iron oxide. The estimate uses a 40% Fe2O3 cutoff grade. The results of the independent resource estimate are summarized in the following Table:

The updated report was completed by Mine Development Associates ("MDA") on February 26, 2010, was prepared in accordance with National Instrument 43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects and provides as update at to ownership of a report completed by MDA for Randsburg International Gold Corp. in 2006 and revised in February, 2007.  The resource estimate at Titan is based on 38 drill holes completed between 2004 and 2006, totaling 10,307 metres, that were drilled to depths between 170 metres and 604 metres on a 50 metre grid.

The Titan-Vanadium Property comprises 2,150 hectares and is located within 2.5 kilometres of a high-voltage transmission line and within 8 kilometres of a railroad. Titan-Vanadium is amenable to open pit mining and has an overburden cover between zero and approximately 1.5 metres.

The Titan-Vanadium deposit has the potential to become an important world vanadium supplier. Vanadium constitutes the next wave of car battery technology and is currently valued at approximately USD $29/kg (USD $13/lb).

Mineral resources which are not mineral reserves have not demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

The material in this news release has been reviewed and approved by Danniel J. Oosterman P. Geo, exploration manager of Prophecy and also a Qualified Person as defined by NI 43-101.

About Prophecy Resource Corp.

Prophecy is a Canadian company focused on the acquisition of advanced mineral assets. On October 21 2009, Prophecy entered into an agreement to acquire 100% of Lynn Lake from Victory Nickel Inc. The project is located in the Lynn Lake Nickel Camp, northern, Manitoba approximately 320 km by road northwest of the Thompson mining camp. Historically, Lynn Lake is the third largest nickel producing region in Canada offering excellent mining infrastructure. On January 12, 2010, Prophecy consolidated the Lynn Lake Nickel camp by acquiring 5 additional Nickel Gabbros from VMS Ventures Inc.

Prophecy on January 14 2010 acquired 80% of a Titan-Vanadium project in Ontario where, in February 2010, Neil Prenn, P.Eng, completed a technical report on the Titan-Vanadium Property pursuant to NI 43-101 that estimated an inferred mineral resource of 49 million tonnes grading 0.24% vanadium (0.43% vanadium pentoxide), 14.82% titanium oxide, and 48.09 iron oxide at a 40% iron oxide cut-off grade.. 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.  This report is available at www.sedar.com.

Prophecy also holds a 60% interest in the Okeover Copper-Molybdenum property in B.C. where, in 2006, Dr. 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 of 86.8 million tons grading 0.31% copper and 0.014% MoS2 at a 0.20% copper cut-off grade. This report is available at www.sedar.com.

ON BEHALF OF THE BOARD OF DIRECTORS of

Prophecy Resource Corp.

"JOHN LEE"
John Lee
Chairman

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

John Lee
Prophecy Resource Corp.
Chairman and CEO
1.800.851.1528
[email protected]
www.prophecyresource.com

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.