Prophecy completes Private Placement with Victory Nickel

PROPHECY RESOURCE CORP.

Suite 1400 – 400 Burrard Street Vancouver, B.C.

V6C 3G2

Tel: (800) 459-5583

April 23, 2010 TSX-V: PCY OTC: PCYRF Frankfurt: 3P1

News Release

Prophecy completes Private Placement with Victory Nickel

Prophecy Resource Corp. (TSX.V: PCY; OTC: PCYRF; Frankfurt: 3P1) has completed the previously announced private placement with Victory Nickel Inc. (TSX: NI) of 675,500 units at a price of $0.59 per unit for gross proceeds of $398,545. Each unit consists of one share and one half-warrant, with each full warrant exercisable to purchase an additional share of the Company at $0.80 until April 21, 2012.

In the event that the closing price of Prophecy’s common shares on the TSX Venture Exchange is at least $1.10 for twenty consecutive trading days at any time following four months from the date of closing, the Company may reduce the remaining exercise period of the Warrants to not less than 30 days from the date of providing notice of such reduced exercise period.

All of the shares, warrants and any shares issued upon exercise of the warrants issued pursuant to the private placement are subject to a hold period and may not be traded until August 22, 2010.

This placement enabled Victory Nickel to maintain their 10% equity interest in Prophecy prior to the recent completion of the merger with Red Hill Energy, in accordance with the terms of an Equity Participation Agreement with Victory Nickel dated October 20, 2009.

For more information about Prophecy, please contact us toll-free at 1-800-459-5583 or visit our web site at www.prophecyresource.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.