Prophecy Provides Update regarding Northern Business Combination
NEWS RELEASE
Prophecy Provides Update regarding Northern Business Combination
Vancouver, British Columbia, September 16, 2010, 2010: Prophecy Resource Corp. (“Prophecy” or the “Company”) (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) advises that, further to its news releases dated June 14, 2010 and July 16, 2010 concerning the business combination with Northern Platinum Ltd. (“Northern”), the Company has agreed to pay a finder’s fee to three private individuals, in consideration of their assistance in negotiating the transactions, of in aggregate $50,000 payable in cash, the issuance of an aggregate of 200,000 common shares and the grant of an aggregate of 100,000 stock options exercisable at a price of $0.80 per share for a period of five years, subject to a two year vesting schedule.
Completion of the business combination remains subject to approvals from the TSX Venture Exchange. It is anticipated the business combination will be completed during the week of September 20, 2010.
Details on the Arrangement Agreement between Northern & Prophecy can be reviewed in the following joint news releases issued by the Companies: June 14 and July 16, 2010.
For more information about Prophecy, please contact Paul McKenzie at +1.604.642.2625 ext. 107 or John Lee at +1.800.851.1528.
About Prophecy
Prophecy Resource Corporation is an internationally diversified company engaged in developing energy, nickel and platinum group metals projects. The company controls over 1.4 billion tons of open-pittable thermal coal in Mongolia (839 Mt Measured, 579 Mt Indicated). In Canada Prophecy owns Lynn Lake Nickel Project, a 10% equity stake in Victory Nickel and agreed to merge with Northern Platinum (TSX- V: NTH) on June 15, 2010. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
ON BEHALF OF THE BOARD OF DIRECTORS of
Prophecy Resource Corp.
"JOHN LEE"
John Lee
Chairman
For further information:
John Lee +1.604.642.2625 ext. 107 Email: [email protected] www.prophecyresource.com
“Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”
This news release does not constitute an offer to sell or a solicitation to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (“the U.S. Securities Act”) or any state securities law and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.