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Prophecy Has Initiated Detailed Engineering with M3 and also Receives $1.338 Million from Warrant Exercises

Financings Share Capital & Compensation

Prophecy Has Initiated Detailed Engineering with M3 and

also Receives $1.338 Million from Warrant Exercises

Vancouver, British Columbia, December 18 , 2018 – Prophecy Development Corp.

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

announce that since October 31, 2018, it has received additional gross aggregate proceeds

of $1,338,168 from the exercise of 3,445,420 previously outstanding warrants (the

“Warrants”). This is in addition to the previously announced bought deal prospectus offering

of $5.52 million per the Company’s news release of November 22, 2018.

The Company also announces that, further to its previous news release dated August 15,

2018, the Company has selected M3 Engineering & Technology Corporation (“ M3”) of

Tucson, Arizona to provide engineering, procurement, construction and management

services (EPCM) for its Gibellini Vanadium Project in response to its Request for Proposal .

M3 was selected for its specific experience in heap leach engineering, and construction

expertise in arid environments such as Nevada and Arizona.

Gerald Panneton commented: “We are very pleased to have awarded the EPCM services

contract to M3, who bring very targeted experience to the Gibellini Vanadium Project located

in Eureka, Nevada . With their proven experience and expertise in project design and

construction management, we have completed the team to expedite the 2019 update of the

engineering previously based on the May 2018 Preliminary Economic Assessment and the

2011 Feasibility Study. We look forward to filing in 2019 all of the construction related permit

applications and initiating the Environmental Impact Statement with the Bureau of Land

Management (BLM) for the Gibellini Project.”

Finally, further to its previous news release dated July 9, 2018, the Company has currently

decided for the time being , not to spin off a royalty and streaming company as previously

contemplated.

About Prophecy

Prophecy is developing the Gibellini project – the only large -scale, open -pit, heap -leach

vanadium project of its kind in North America. Located in Nevada, Gibellini has the largest NI

43-101 compliant measured and indicated primary vanadium resource known in the USA and

is currently undergoing EPCM and permit development. Further information on Prophecy can

be found at www.prophecydev.com.

PROPHECY DEVELOPMENT CORP.

ON BEHALF OF THE BOARD

“Gerald Panneton”

President and CEO

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 historica l 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 a nd 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 achievemen ts 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 intend ed. 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.