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Early Warning Report

Corporate Actions

Early Warning Report

Vancouver, British Columbia, June 15, 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:

 600 shares in the public market on April 6, 2017;

 600 shares in the public market on April 10, 2017;

 30,000 units (each, comprised of one share and one warrant) via private

placement on April 13, 2017;

 1,000 shares in the public market on May 16, 2017;

 55,000 options on June 12, 2017; and

 30,628 units (each, comprised of one share and one warrant) via debt

settlement private placement on June 13, 2017 (collectively,

the “Transactions”).

Prior to the Transactions, Mr. Lee beneficially owned 995,253 shares, representing

approximately 19.12% of the issued and outstanding shares of the Company at the

time.

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

over an aggregate of 1,058,081 shares representing an interest of approximately

19.63% of the Company’s currently issued and outstanding shares, and 31.05% of

the Company’ s shares on a fully diluted basis assuming exercise 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 this news release has been provided by Mr. Lee and

the Company is not responsible for its accuracy.

2

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

to be filed with the applicabl e securities commissions in connection with the

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 that is engaged in worldwide mineral and energy exploration and

development. 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.