Prophecy Gains Gibellini Vanadium Project Data Access, On Schedule to Submit Plan of Operations and Baseline Studies

April 18, 2018

VANCOUVER, British Columbia–(BUSINESS WIRE)–Prophecy Development Corp. (“Prophecy” or the “Company”)
(TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2N) is pleased
to announce that it has signed an agreement (the “Agreement”)
with Monitor Ventures Inc. (“Monitor”) for the right to access
and use information related to the Gibellini vanadium project (the “Gibellini
Data Pack”) which was commissioned, compiled and held by Monitor.
Monitor (previously known as American Vanadium Corp. from 2010 to 2016,
and Rocky Mountain Resources Corp. from 2007 to 2010) had been
developing the project since 2007 only to relinquish it due to the low
vanadium pentoxide price of around USD 2.50/lb in 2016. The price of
vanadium pentoxide has since rebounded significantly and is currently
trading at around USD15.60/lb according to Asian Metal Inc.

In consideration, Prophecy:

(a) has paid Monitor $7,000 in cash;
(b) will, upon approval by the Toronto Stock Exchange, issue to Monitor,
50,000 warrants entitling Monitor to purchase one Common share in
the capital of Prophecy at an exercise price of $3.00 for a period
of three (3) years from the date of the Agreement; and
(c) will, upon approval of the environmental impact statement (the
“EIS”) in connection with the Gibellini vanadium project by the
Bureau of Land Management (the “BLM”), pay Monitor, $50,000 in cash.

The Gibellini Data Pack includes six boxes of printed reports and files,
and over 90 gigabytes of electronic reports, files and thousands of
drawings that include, but are not limited to:

Environmental studies and permitting:

  • Baseline environmental studies;
  • Complete Plan of Operation;
  • Preparation documents for the EIS;
  • Water line and power lines Plans of Development; and
  • All geographic information system files associated with the studies
    and plans related to the environmental studies and permitting.

Exploration, geology and mining:

  • 15,625 meters of drill database for the Gibellini and Louie Hill
    deposits;
  • Exploration data, sample assays and geologic mapping of over 10 square
    miles (26 square kilometers) of claims which are now under Prophecy’s
    control or in adjudication;
  • Other geologic and mining data and studies such as geologic,
    hydrological, geotechnical and pit design reports and maps.

Metallurgical:

  • Reports of metallurgical testing carried out by SGS S.A. in 2006, by
    Dawson Metallurgical Laboratories in 2008, and by McClelland
    Laboratories in 2011;
  • Pilot scale acid heap leach testing by McClelland Laboratories of a 16
    tonne bulk sample from the Gibellini deposit over a 400 day continuous
    period in a 6 meter tall compressed column which simulated leaching of
    a 50 meter high heap; and
  • Database of metallurgical test results and assays.

Engineering Procurement Construction Management:

  • Basic engineering design drawings by Scotia International of Nevada
    Inc. including hundreds of drawings on process flow, crushing, heap
    leach pad, pregnant leach solution pond, solvent extraction plant,
    piping and infrastructure (power, water, and haul road); and
  • Project capital and operating cost estimates based on the proposals
    and quotations received from equipment vendors.

With the Agreement now in place, and further to Prophecy’s news release
dated March 28, 2018, Prophecy is on schedule to revise and submit to
the BLM updated base line studies and an updated Plan of Operations for
the Gibellini vanadium project in May 2018. Upon acceptance by the BLM
of the Plan of Operations, baseline studies and an environmental report,
Prophecy expects in 2019 to trigger a Notice of Intent (“NOI”) by
the BLM to prepare an EIS for the Gibellini vanadium project. As a
result of direction from Secretary of the Interior Order No. 3355
(Streamlining National Environmental Policy Reviews and Implementation
of Executive Order 13807) Prophecy anticipates the Gibellini EIS will
not be more than 150 pages (excluding appendices) and the BLM shall
complete the Gibellini Final EIS within one year from the issuance of
the NOI. This means that permitting for the Gibellini vanadium project
may potentially be concluded in 2020. The Company has started
discussions with vanadium product off takers and will provide an update
on the progress in due course.

John Lee, Executive Chairman of Prophecy, states: “The Gibellini Data
Pack is the culmination of over $10 million in expenditures, tens of
thousands of man-hours of work, and the effort of a multi-disciplinary
team over a 10-year period, all of which is now in the possession of
Prophecy and will expedite project development, and help achieve the
Company’s stated objective of transforming Gibellini into the first
primary vanadium mine in North America, offering the best quality
vanadium pentoxide product that exceeds customer requirements for a
variety applications from traditional re-enforcement bars to high-tech
grid-scale batteries and aerospace.

According to United Nations estimates, by 2030, the world will witness
an urban population increase of 1 billion people which is equivalent to
100 times the current population of New York City. An important part of
the solution to this massive impending housing problem is vanadium alloy
re-enforcement steel bars to make our skyscrapers taller and safer.”

Prophecy believes the Gibellini vanadium project offers the best
leverage and a direct play in vanadium that reflects increased vanadium
prices in a politically-safe, mining-friendly jurisdiction. Prophecy
expects to report findings from an independent preliminary economic
assessment of the Gibellini vanadium project in May 2018.

The Company also announces that pursuant to the terms of the Company’s
share-based compensation plan as amended, which was approved by
shareholders at the Company’s annual general meeting of shareholders
held on June 2, 2016 and amended on June 13, 2017, it has granted in
aggregate, 140,000 incentive stock options (the “Options“), to
various directors, officers and consultants of the Company. The Options
are exercisable at a price of $2.80 per Common share for a term of five
years expiring on April 6, 2023 and vest at 12.5% per quarter for the
first two years following the date of grant.

Qualified Persons

The technical contents of this news release have been prepared under the
supervision of Christopher M. Kravits, CPG, LPG, general mining manager
to 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. 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

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 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 estimates
and assumptions are inherently subject to significant business,
economic, competitive and other uncertainties and contingencies, many of
which, with respect to future events, are subject to change and could
cause actual results to differ materially from those expressed or
implied in any forward-looking statements made by Prophecy. In making
forward-looking statements as may be included in this news release,
Prophecy has made several assumptions that it believes are appropriate,
including, but not limited to assumptions that: all required third party
contractual, regulatory and governmental approvals will be obtained for
the development, construction and production of Prophecy’s properties
and the Chandgana power plant; there being no significant disruptions
affecting operations, whether due to labour disruptions or other causes;
currency exchange rates being approximately consistent with current
levels; certain price assumptions for vanadium, silver, coal and other
metals, prices for and availability of fuel, parts and equipment and
other key supplies remain consistent with current levels; production
forecasts meeting expectations; the accuracy of Prophecy’s current
mineral resource estimates; labour and materials costs increasing on a
basis consistent with Prophecy’s current expectations; any additional
required financing will be available on reasonable terms; and market
developments and trends in global supply and demand for vanadium,
energy, silver, coal and other metals meeting expectations. Prophecy
cannot assure you that any of these assumptions will prove to be correct.

Numerous factors could cause Prophecy’s actual results to differ
materially from those expressed or implied in the forward-looking
statements, including the following risks and uncertainties, which are
discussed in greater detail under the heading “Risk Factors” in
Prophecy’s most recent Management Discussion and Analysis and Annual
Information Form as filed on SEDAR and posted on Prophecy’s website:
Prophecy’s history of net losses and lack of foreseeable positive cash
flow; exploration, development and production risks, including risks
related to the development of Prophecy’s mineral properties; Prophecy
not having a history of profitable mineral production; commencing mine
development without a feasibility study; the uncertainty of mineral
resource and mineral reserve estimates; the capital and operating costs
required to bring Prophecy’s projects into production and the resulting
economic returns from its projects; foreign operations and political
conditions, including the legal and political risks of operating in
Bolivia and Mongolia, which are developing countries and being subject
to their local laws; the availability and timeliness of various
government approvals, permits and licenses; the feasibility, funding and
development of Prophecy’s projects; protecting title to Prophecy’s
mineral properties; environmental risks; the competitive nature of the
mining business; lack of infrastructure; Prophecy’s reliance on key
personnel; uninsured risks; commodity price fluctuations; reliance on
contractors; Prophecy’s need for substantial additional funding and the
risk of not securing such funding on reasonable terms or at all; foreign
exchange risk; anti-corruption legislation; recent global financial
conditions; the payment of dividends; the inability of insurance to
cover all potential risks associated with mining operations; conflicts
of interest; and cyber-security risks related to the Company’s reliance
on information technology systems.

These factors should be considered carefully, and readers should not
place undue reliance on 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
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.

Contacts

Prophecy Development Corp.
Investor Relations:
Bekzod
Kasimov, +1-888-513-6286
[email protected]
www.prophecydev.com