CORRECTION FROM SOURCE: Prophecy Reports 5 Major IP Anomalies and Commencement of Drilling at its Lynn Lake Project, Manitoba

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2010) - A correction from source is issued with respect to the news release sent out at 1:47 pm PT, Sept. 8, 2010. The date of the Prophecy news cited in the first paragraph was incorrect, and has been revised. The corrected release follows:

Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) announces the commencement of a 3,000 metre drilling program at its Lynn Lake Project, located in Lynn Lake, Manitoba. The drilling program is designed to test newly discovered targets from its recently completed Induced Polarization (IP) survey (see Prophecy July 7, 2010 news). Five new target areas have been delineated using a proprietary deep-seeking IP-method that penetrates to depths that were previously unexplored through VTEM. The five anomalies have been dubbed the 'North', 'East', 'West', 'Middle-East', and 'Centre' anomalies based on their spatial distribution on the property.

The West anomaly occurs approximately 500 meters southwest of the A-shaft, and starts at 250 meters depth. The anomaly extends to at least 600 meters depth and remains open beyond the detection limits of the survey. It has a close spatial association with the 'G' deposit that occurs at the 3000 Level (914 meters from surface), which is below and just to the east of the West anomaly. The 'G' deposit has a NI 43-101 compliant Inferred resource of 296,000 tonnes of 0.8% nickel, 0.4% copper using a 0.7% nickel equivalent cut-off.

The Center-East anomaly occurs approximately 200 meters grid east of the Farley Shaft, and approximately 250 meters grid east of the historic 'B' open-pit. This anomaly occurs 250 metres from surface extending to greater than 600 meters depth on five grid lines over 300 meters length. The nearby Farley shaft provided access to the 'B' orebody which was mined using both open-pit and underground methods between 1952 and 1976. The mine produced a total of 4.3 Mt of 0.7% nickel and 0.5% copper during historic operations. The Center-East anomaly occurs at 250 metres from surface extending to greater than 600 meters depth. No historic drilling has been conducted in the target area.

The Centre anomaly occurs within 100 meters grid-south of the 'B' pit. The anomaly starts from 180 meters depth and extends past 600 meters from surface, and is seen on four gridlines for over a length of 250 meters.

The North Anomaly occurs in a remote swampy area on the north end of the property, and is seen over a length of four lines or over 250 meters length. It occurs as two separate anomalies overlying each other. One is a shallow anomaly centered at approximately 100 meters depth, the other anomaly is directly below this shallower expression, starting at approximately 300 meters depth.

The East anomaly centred 200 meters below the existing Disco deposit and is approximately 475 meters from surface that extends on gridlines to the south, for a total strike length of approximately 150 meters. This anomaly appears to increase in intensity with depth, beyond 610 meters from surface, where the survey was able to penetrate. The chargeability and resistivity strongly resemble that of known mineralization such as that of the 'N' orebody, which hosts an 11 MT Measured and Indicated resource (0.4 MT Measured, 10.7 MT Indicated) grading 0.6% nickel and 0.3% copper. (Please refer to Company's press release dated July 7, 2010 for complete details).

Please visit www.prophecyresource.com for drill locations and the coloured 3D IP anomaly charts for each drill target.

The current drill program is expected to take 8 to 10 weeks to complete and will test each of the targets where the anomalies have the strongest and clearest response.

This news release has been reviewed and approved by Danniel J. Oosterman, P.Geo., and a Qualified Person as defined in NI 43-101.

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, Chairman

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.

"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."

For more information, please contact Prophecy Resource Corp.
Paul McKenzie
+1.604.642.2625 ext. 107 or +1.800.851.1528
or
Prophecy Resource Corp.
John Lee
+1.604.642.2625 ext. 107 or +1.800.851.1528
john@prophecyresource.com
www.prophecyresource.com

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