The TSX Venture Exchange has accepted for filing the assignment agreement dated June 4, 2010, between Prophecy Resource Corp. and Belleterre Quebec Mines Ltd., whereby the company will be assigned all of Belleterre's rights, interests and obligations under a back-in agreement dated May 27, 1994, between Belleterre and Northern Platinum. Pursuant to the back-in agreement, Belleterre holds the back-in right to a 50-per-cent interest in the Wellgreen property, Yukon Territory (currently 100 per cent owned by Northern Platinum with a 50-per-cent back-in right to Belleterre).

Upon the successful conclusion of the proposed Prophecy/Northern Platinum plan of arrangement, Prophecy agrees to:

• Pay Belleterre $2.1-million in cash;
• Issue 3.56 million common shares of Prophecy;
• Issue 712,000 Prophecy warrants to Belleterre.

The warrants issuable to Belleterre will have an 18-month term and an exercise price of 80 cents.

Northern Platinum holds a right of first refusal on the back-in.

No finder's fee will be paid in connection with the assignment agreement.

Further information on the agreement can be found in Prophecy's news release dated June 15, 2010.