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Prophecy Announces $3,108,000 Private Placement

Financings

Prophecy Announces $3,108,000 Private Placement

Vancouver, British Columbia, August 25, 2017 – Prophecy Development Corp.

(“Prophecy” or the “Company”) (TSX:PCY, OTCPK:PRPCF, Frankfurt:1P2N) announces

that it is undertaking a non-brokered private placement (the “Placement”) involving the

issuance of up to 888,000 units (each a “Unit”) at a price of $3.50 per Unit. Each Unit will

consist of one Common share in the capital of the Company (a “Share”) and one half of one

Share purchase warrant (a “Warrant”). Each Warrant entitles the holder to acquire an

additional Share at a price of $4.00 per Share for a period of three years from the date of

issuance.

Company management and directors will subscribe for up to $350,000, being the equivalent

of up to 100,000 Units of the Placement.

The Company expects to raise gross cash proceeds of up to $3,108,000 to be used to

develop Prophecy’s mineral projects and for general working capital purposes.

The Units will be subject to a minimum hold period of four months plus one day from the

date of issue. Finder’s fees may be paid in cash, in certain instances in connection with the

Placement.

The Placement and payment of any finder’s fees are subject to the approval of the TSX and

other customary closing conditions.

About Prophecy

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.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this news release, including statements wh ich 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 t o

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 revis ions 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.