Prophecy Grants Options

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NEWS RELEASE

Prophecy Grants Options

Vancouver, British Columbia, December 24, 2010: Prophecy Resource Corp. (“Prophecy” or the “Company”) (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that it has granted options to acquire an aggregate of 3 million common shares at a price of $0.93 per share for a period of five years to directors, officers, consultants and employees of the Company. The above grant is subject to regulatory approval, including the approval of the TSX Venture Exchange.

About Prophecy Resource

Prophecy 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). Prophecy's Ulaan Ovoo coal deposit in Mongolia is in production. 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 of Prophecy Resource Corp.

"JOHN LEE"

John Lee Chairman

For more information about Prophecy, please contact Scott Parsons at +1.604.642.2625 ext.

106, Paul McKenzie at +1.604.642.2625 ext.

107 or John Lee at +1.800.851.1528.

Email: [email protected] www.prophecyresource.com

"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."