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Prophecy Closes $4,539,390 First Tranche of Private Placement

Financings

Prophecy Closes $4,539,390 First Tranche of Private Placement

Vancouver, British Columbia, September 20, 2017 – Prophecy Development Corp.

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

that it has closed the first tranche of the $5,757,360 non-brokered private placement (the

“Placement”) announced on August 25, 2017 and increased on September 1, 2017.

The first tranche of the Placement raised gross cash proceeds of $4,539,390 through the

issuance of 667,968 units (the “Units”) and 629,000 special warrants (the “Special

Warrants”) of Prophecy. Each Unit is comprised of one Common share and one half of one

Common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles

the holder to purchase one additional Common share of the Company at an exercise price

of $4.00 for a period of three years from the closing of the first tranche of Placement. Each

Special Warrant will be exercisable for one Unit at no additional cost to the holder provided

TSX and shareholder approval for the issuance of the Units underlying the Special Warrants

is obtained at a general meeting of shareholders to be called within 60 days after the

closing of the total Placement.

John Lee, Executive Chairman of the Company, personally subscribed for $350,000, being

the equivalent of 100,000 Special Warrants of the Placement in the first tranche.

The Company paid in cash, finder’s fees totaling $30,604 and issued 87,013 finder’s

Special Warrants which are exercisable on identical terms as those Special Warrants

issued to subscribers through the Placement.

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 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 uncertaintie s

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 read ers 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 reas onable, 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.