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Prophecy Announces $2,030,000 Private Placement

Vancouver, British Columbia, September 21, 2010: Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) and Northern Platinum Ltd ("Northern") (TSX-V: NTH) (together, the "Companies") reports that the Company has arranged a non-brokered private placement of 4,060,000 units (each a "Unit") at a price of $0.50 per Unit to raise aggregate proceeds of $2,030,000. Each Unit is comprised of one common share and one half of one share purchase warrant. Each whole share purchase warrant (a "Warrant") entitles the holder to acquire one additional common share for a period of two years at a price of $0.60.

A finder’s fee of 5% of the proceeds raised payable in cash will be paid to Eurasia Capital and Frontier Securities.

Proceeds of the placement will be applied to general working capital. Prophecy also advises that it has granted incentive stock options to certain officers and consultants entitling them to purchase up to 1,000,000 common shares of the capital stock of Prophecy at a price of $0.54 per share until September 21, 2015. The above is subject to regulatory approval.

For more information about Prophecy, please contact Paul McKenzie at +1.604.642.2625 ext. 107 or John Lee at +1.800.851.1528.

About Prophecy Resource

Prophecy Resource Corporation is an internationally diversified company engaged in developing energy, nickel and platinum group metals projects. The company controls over 1.4 billion tons of open-pittable thermal coal in Mongolia (839 Mt Measured, 579 Mt Indicated). In Canada Prophecy owns Wellgreen PGM Project in Yukon, Lynn Lake Nickel Sulphide Project in Manitoba, and a 10% equity stake in Victory Nickel. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

ON BEHALF OF THE BOARD OF DIRECTORS Prophecy Resource Corp.
"JOHN LEE"
John Lee
Chairman
Telephone 1.800.851.1528
Email: [email protected]

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.