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Prophecy Adds Second Drilling Rig to Pulacayo Silver Project in Bolivia

Corporate Updates

Prophecy Adds Second Drilling Rig to Pulacayo Silver Project

in Bolivia

Vancouver, British Columbia, January 8, 2020 – Prophecy Development Corp. (“Prophecy” or

the “Company”) (TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2N) is pleased to provide the following

update on its 100% owned Pulacayo silver project located in Bolivia.

Further to its news release dated December 18th, 2019, Prophecy reports it has completed the first

3 holes of the planned 17 drill holes at the Pulacayo project. These step-out drill holes are located

25-, 50- and 115 meters west of the existing Pulacayo resource model. The first assay results are

expected in late January.

Prophecy has also mobilized a second drilling rig to Pulacayo and expects to complete the proposed

5,000 meter drill program in February with full assay results available by March 2020. The remainder

step out drill holes are collared up to 2km west from the existing resource model.

Joaquin Merino, VP South American Operations, commented, “Pulacayo is a very large mineralized

system, and with this program we will test the boundaries of mineralization near the surface. Based

on a review of t he c urrent and past artisanal mining conducted on the surface , there is strong

evidence that the Tajo Vein (where underground mining took place from early 1800 to 1952) projects

to surface along its 3km strike”

The Pulacayo deposit currently has a NI43-101 compliant resource of 2.08 million tonnes at Ag 455

g/t, Pb 2.18%, Zn 3.19% in the indicated category. It also has 0.48 million tonnes at Ag 406 g/t, Pb

2.08%, Zn 3.93% in the inferred category. The Company estimates that the amounts of metals of the

indicated category are 30.4 million ounces of silver, 100.0 million pounds of lead, and 146.3 million

pounds of zinc. The Company estimates that the amounts of metals of the inferred category are 6.3

million ounces of silver, 22.0 million pounds of lead, and 41.6 million pounds of zinc (see Company

report “UPDATED MINERAL RESOURCE ESTIMATE TECHNICAL REPORT for the PULACAYO

PROJECT,” by Mercator effective October 20, 2017; available at SEDAR.COM).

Qualified Person

The technical contents of this news release have been prepared under the supervision of Danniel

Oosterman, VP Explor ation. Mr. Oosterman is not independent of the Company in that he is

employed by it. Mr. Oosterman is a Qualified Person (“QP”) as defined in the NI 43-101 guidelines.

About Prophecy

Prophecy is developing its premier Pulacayo silver project in Bolivia. Further information on

Prophecy can be found at www.prophecydev.com.

PROPHECY DEVELOPMENT CORP.

ON BEHALF OF THE BOARD

“Michael Doolin”

Chief Executive Officer

For more information about Prophecy, please contact Investor Relations:

+1.604.569.3661 ext. 101

[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.