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Early Warning Report

Corporate Actions

Early Warning Report

Vancouver, British Columbia, September 2 6, 201 7 – Prophecy Development

Corp. (“Prophecy” or the “Company”) ( TSX:PCY, OTC:PRPCF,

Frankfurt:1P2N) announces that John Lee, of Suite 1301, 12 Harcourt Road,

Central, Hong Kong, Executive Chairman of the Company, acquired the following

securities of the Company:

• 68,000 options on September 1, 2017; and

• 100,000 special warrants (each , convertible upon shareholder approval,

into one unit compr ised of one Common share and one half of one

warrant) via private placement on September 20, 2017.

(together, the “Transactions”)

Prior to the Transactions, Mr. Lee beneficially owned 1,058,081 shares, representing

approximately 19.63% of the issued and outstanding shares of the Company at the

time, and 0 special warrants.

As a result of the Transactions, Mr. Lee beneficially owns and exercises control over

an aggregate of 1,058,081 shares representing an interest of approximately 17.47%

of the Company’s currently issued and outstanding shares, and 26.26% of the

Company’s shares on a fully diluted basis assuming the conversion of all of the

Company’s special warrants, and ex ercise of all of the Company’s outstanding

options and share purchase warrants.

The securities were acquired by Mr. Lee for investment purposes only, and not for

purposes of exercising control or direction over the Company.

Generally, Mr. Lee intends to evaluate his investment in the Company and to

increase or decrease his shareholdings as circumstances require, depending on

market conditions and other factors, through market transactions, private

agreements or otherwise.

The information contained in thi s news release has been provided by Mr. Lee and

the Company is not responsible for its accuracy.

A copy of the early warning report pursuant to National Instrument 62 -103 required

to be filed with the applicable securities commissions in connection with t he

2

acquisition of the shares described in this news release will be available for viewing

under the Company’s profile at www.sedar.com. A copy of the early warning report

can also be obtained from the contact number for Investor Relations below.

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.