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Prophecy Shareholders Pass All Resolutions at Special Meeting

Financings Shareholder Meetings

Prophecy Shareholders Pass All Resolutions at Special Meeting

Vancouver, British Columbia, December 18, 2017 – Prophecy Development Corp.

(“Prophecy” or the “Company”) (TSX:PCY, OTCPK:PRPCF, Frankfurt:1P2) is pleased

to announce that shareholders of the Company approved all of the proposed resolutions

at the Company’s Special Meeting of shareholders held on December 15, 2017 in

Vancouver, British Columbia.

An ordinary resolution of the shareholders of the Company was approved with respect to

the issuance of 1,139,711 units (the “Units” and each, a “Unit”) underlying an equivalent

number of special warrants (the “ Special Warrants” and each, a “ Special Warrant”)

previously issued at a price of $3.50 per Special Warrant under one of two tranche

closings of a private placement (the “ Placement”) as previously announced on

September 20, 2017 and October 16, 2017. Pursuant to the terms of the Special

Warrant subscription agreements, each Special Warrant has been exercised for one Unit

at no additional cost to the holder. 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 until September 20, 2020 or October 16,

2020, depending on which tranche closing the overlying Special Warrant was

previously issued under. All Common shares attached to the Units issued in

connection with the above conversion of the Special Warrants, are subject to a four

month and one day hold period beginning on the date of issuance of the overlying

Special Warrants.

The total subscription proceeds of $3,651,800 from the sale of the Special Warrants

under the Placement have now been released to the Company from escrow.

An ordinary resolution of the disinterested shareholders of the Company was approved

with respect to the issuance of 42,254 debt settlement units (which bear identical terms

to those Units referenced above, except that the attached warrants expire on December

18, 2020) to some of the Company’s directors and officers a t a price of $3.50 per debt

settlement unit as previously announced on October 16, 2017.

An ordinary resolution of the disinterested shareholders of the Company was approved

with respect to the issuance of 98,420 compensation units (which bear identical terms to

those Units referenced above, except that the attached warrants expire on December

18, 2020) to Skanderbeg Capital Advisors Inc. at a price of $3.50 per compensation unit

as previously announced on October 16, 2017.

As a result of the above issuances, the Company now has a total of 7,472,179 Common

shares issued and outstanding, and 2,575,803 Common share purchase warrants

outstanding exercisable at prices ranging from $4.00 to $7.00 and which expire between

January, 2018 and June, 2022.

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Voting results for all resolutions noted abov e are reported in the Report on Voting

Results as filed under the Company’s SEDAR profile on December 15, 2017.

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.