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Prophecy Closes Gibellini Vanadium Project Acquisition and Sets Company Priority

Mergers & Acquisitions

Prophecy Closes Gibellini Vanadium Project Acquisition

and Sets Company Priority

Vancouver, British Columbia, June 23, 2017 – Prophecy Development Corp.

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

to announce that it has successfully acquired the Gibellini vanadium project on lease terms

described in the Company’s news release dated May 8, 2017.

Prophecy is reviewing the Gibellini feasibility study that was prepared for the prior operator,

American Vanadium Corp. (“ AVC”) by AMEC E&C Services, Inc. , with an effective date of

August 31, 2011, in order to bring the project information current. The Company also plans

to try to expedite completion of the Gibellini environmental and mine permitting process es

that were previously started by AVC.

With control of the Gibellini and Titan projects, Prophecy is well -positioned to be come a

leading North American vanadium exploration company. The Company’s objectives for

these two projects are to:

1. provide exposure and leverage to rising vanadium prices by defining and adding

attributable vanadium resources in the ground in politically safe jurisdictions; and

2. build the first vanadium mine in North America by steadily advancing mine

permitting, project financing and construction.

The Company’s Executive Chairman, John Lee, stated: “Believing the resource market to

have bottomed in early 2016, Prophecy is going back to its M&A roots in 2017 by focusing

on acquiring and developing vanadium mining projects in North America in what could be

the Company’s busiest year ever”.

Qualified Persons

The technical contents of this n ews release have been prepared under the supervision of

Christopher M. Kravits, CPG, LPG, General Mining Manager of Prophecy. Mr. Kravits is a

Qualified Person as defined in NI 43-101. Mr. Kravits is a consultant to the Company and is

not independent of the Company since most of his income is derived from the Company.

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.

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. S uch 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 consider ed 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 re ference 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 material ly 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.