Prophecy Granted Right to Buy Out Nevada Gibellini Vanadium Claims

VANCOUVER, British Columbia–(BUSINESS WIRE)–Prophecy Development Corp. (“Prophecy” or the “Company”)
(TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2N) announces an
amendment to the Gibellini mineral lease agreement dated June 22, 2017
(the “MLA”), whereby Prophecy has been granted the right to cause
the current holder (the “Lessor”) of the Gibellini mineral claims
(which Prophecy is currently leasing) to transfer their title to the
claims to Prophecy.

Mineral Lease Agreement Background:

Under the MLA, Prophecy agreed to pay the Lessor, annual advance royalty
payments which will be tied, based on an agreed formula (not to exceed
US$120,000 per year), to the average vanadium pentoxide price of the
prior year. Upon commencement of production by Prophecy, the Company
will stop advance royalty payments and instead pay to the Lessor, a 2.5%
net smelter return (“NSR”) until a total of US$3 million is paid.
Thereafter, the NSR will be reduced to 2% over the remaining life of the
mine (and referred to thereafter, as “production royalty payments”). All
advance royalty payments made, will be deducted as credits against
future production royalty payments.

Prophecy leased the Gibellini mineral claims (which comprise the
majority of the resource per the Company’s news release dated November
20, 2017) with the intent to develop and operate a mine on the claims.
In addition, Prophecy has either staked or acquired an additional 24
square kilometers surrounding the leased mining claims in the past 9
months for its proposed processing facility and potential future
resource expansion.

Details of the Amendment:

With the amendment, Prophecy shall have the option to, at any time
during the term of the MLA, require the Lessor to transfer title over
all of the leased, unpatented lode mining claims (excluding four claims
which will be retained by the Lessor for sentimental reasons and which
contain minimal resource) (the “Transferred Claims”) to Prophecy
in exchange for US$1,000,000, to be paid as an advance royalty payment
(the “Transfer Payment”). A credit of US$99,027.22 in favour of
Prophecy towards the Transfer Payment is already paid upon signing of
the amendment, with the remaining US$900,972.78 portion of the Transfer
Payment due and payable by Prophecy to the Lessor upon completion of
transfer of the Transferred Claims from the Lessor to Prophecy. The
advance royalty obligation and production royalty shall not be affected,
reduced or relieved by the transfer of title.

John Lee, Prophecy’s Executive Chairman, states: “With the rights to the
title transfer secured, Prophecy can now engage in in-depth discussions
with cornerstone investors, vanadium product off-takers and banks on
equity, debt and prepaid off-take financing. Talks are already underway
and we expect to report material progress in due course.”

Visit www.prophecydev.com
for the latest Gibellini claim map.

About Prophecy

Prophecy Development Corp. is a Canadian public company listed on the
Toronto Stock Exchange. The Company aims to provide exposure and
leverage to rising vanadium prices by defining and adding attributable
vanadium resources in the ground in politically safe jurisdictions.
Further information on Prophecy can be found at www.prophecydev.com.

PROPHECY DEVELOPMENT CORP.
ON BEHALF OF THE BOARD

“JOHN LEE”
Executive Chairman

For more information about Prophecy, please contact Investor Relations:

+1.888.513.6286
[email protected]
www.prophecydev.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.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this news release, including statements
which may contain words such as “expects”, “anticipates”, “intends”,
“plans”, “believes”, “estimates”, or similar expressions, and statements
related to matters which are not historical facts, are forward-looking
information within the meaning of applicable securities laws. Such
forward-looking statements, which reflect management’s expectations
regarding Prophecy’s future growth, results of operations, performance,
business prospects and opportunities, are based on certain factors and
assumptions and involve known and unknown risks and uncertainties which
may cause the actual results, performance, or achievements to be
materially different from future results, performance, or achievements
expressed or implied by such forward-looking statements.

These factors should be considered carefully, and readers should not
place undue reliance on the Prophecy’s forward-looking statements.
Prophecy believes that the expectations reflected in the forward-looking
statements contained in this news release and the documents incorporated
by reference herein are reasonable, but no assurance can be given that
these expectations will prove to be correct. In addition, although
Prophecy has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those
described in forward looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or
intended. Prophecy undertakes no obligation to release publicly any
future revisions to forward-looking statements to reflect events or
circumstances after the date of this news or to reflect the occurrence
of unanticipated events, except as expressly required by law.

Contacts

Prophecy Development Corp.
Investor Relations:
Bekzod
Kasimov, +1-888-513-6286
[email protected]
www.prophecydev.com
or
Danniel
Oosterman
[email protected]