Mr. John Lee reports

PROPHECY ANNOUNCES $2,000,000 PRIVATE PLACEMENT

Prophecy Development Corp. is undertaking a non-brokered private placement involving the issuance of up to 40 million units at a price of five cents per unit. Each unit will consist of one common share in the capital of the company and one share purchase warrant. Each warrant entitles the holder to acquire an additional share at a price of seven cents per share for a period of five years from the date of issuance.

Company management and directors will subscribe for a minimum of $450,000, being the equivalent of nine million units of the placement. Subject to shareholder approval, the company's creditor Linx Partners Ltd. has agreed to settle a portion of the debt owed to it by the company under an existing credit facility agreement, as previously announced by the company on March 27, 2015, and as amended on May 5, 2015, in the amount of $750,000 in exchange for 15 million units being issued to John Lee, the beneficial owner of Linx, and a director and officer of the company.

Total cash proceeds of $1.25-million are expected to be raised, and used to develop Prophecy's mineral projects and for general working capital purposes.

The warrants will be subject to the following acceleration conditions:

1. In the event that the closing price of the shares trading on the Toronto Stock Exchange exceeds 15 cents per common share;
2. The closing spot price of silver as quoted by Kitco Metals Inc. exceeds $25.00 (U.S.) per ounce.

In either instance, for a period of over 30 consecutive calendar days, at Prophecy's election, the exercise period may be reduced, in which case warrantholders will only be entitled to exercise their warrants for a period of 30 days from the date the company either disseminates a press release or sends written notice to the warrantholders, advising them of the reduced and accelerated exercise period, after which the warrants will expire.

The shares will be subject to a minimum hold period of four months plus one day from the date of issue. Finders' fees may be paid in either cash or units in certain instances in connection with the non-debt-settlement portion of the placement.

The placement and payment of any finders' fees are subject to the approval of the Toronto Stock Exchange and other customary closing conditions.

We seek Safe Harbor.