Drilling Completed at Okeover Copper/Molybdenum Property in B.C.

January 7, 2008 - Prophecy Resource Corp. is pleased to announce that it completed its 2007 exploration season at the Okeover copper/molybdenum project on December 15, 2007. The year's final drill program, which started in late October, was designed to test the South Breccia Zone located 3,500 metres south of the North Lake Zone, where an inferred resource of 86.8 million tonnes grading 0.31% copper and 0.014% MoS2 has already been identified (see the National Instrument 43-101 report prepared on the Okeover Property by N.C. Carter, PhD, P.Eng, in October, 2006). Three holes totalling approximately 790 metres (2600 feet) were completed during this program.

At the South Breccia Zone, well altered and locally highly mineralized exposures of hydrothermal breccia and silicified quartz diorite have been identified but, until now, have had very little exploration. Both the first and second holes completed during the program returned large footages with visible chalcopyrite and molybdenite mineralization, however no conclusions can be drawn as to the nature or extent of such mineralization prior to the receipt of assays, which should be available in late January.

Several sites have been prepared in the North Lake Zone, where the company plans to resume drilling in the spring. Drilling completed at North Lake in early 2007 intersected extensive intervals of mineralization well beyond the limits of the prior resource calculation, at depth and on the east side of the North Lake Zone (where hole OK-07-02 ended with a 23 metre intercept grading 0.24% copper and 0.031% MoS2) and on the western boundary (where hole OK-07-04 ended with a 76 metre intercept grading 0.34% copper and 0.020% MoS2). Holes OK-07-01 to OK-07-04 confirmed that mineralization in the North Lake Zone has not been constrained by depth and remains open on the eastern and western edges, offering substantial opportunities for expansion of the resource. In addition, molybdenum grades appear to be increasing to the east.

J.W. (Bill) Morton, P.Geo., a director of the Company and qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release.


About Prophecy Resource Corp.

Prophecy is currently drilling at the Okeover Copper-Molybdenum property on tidewater in B.C., twenty-five kilometres north of the City of Powell River. In 2006, N.C. Carter, PhD, P.Eng, completed a technical report on the Okeover Property pursuant to NI 43-101 that estimated an inferred mineral resource for the North Lake Zone of 86.8 million tonnes grading 0.31% copper (approximately 593,000,000 lbs.) and 0.014% MoS2 (approximately 15.9 million lbs of molybdenum) at a 0.20% copper cut-off grade. The current drill program is focused on the South Breccia area, which is one of eight prospective zones identified at Okeover and has not had any significant exploration work undertaken for more than ten years.

ON BEHALF OF THE BOARD OF DIRECTORS

"STUART ROGERS"

Stuart Rogers, Chief Financial Officer

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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*Ulaan Ovoo: 174 million tonnes  of measured and 34 million tonnes of indicated coal. Ulaan Ovoo’s resource numbers are from the Behre Dolbear & Company (USA), Inc  report referenced in the Dec 2010, 43-101 Prefeasibility Study by Wardrop Engineering. Chandgana consists of two properties-Chandgana Tal and Chandgana Khavtgai. Chandgana Tal consists of 141 mt of measured resource. Chandgana Khavtgai consists of 509 mt measured and 539 mt indicated resource. Chandgana Khavtgai’s resource estimates are based on the September 2010 NI 43-101 Chandgana Khavtgai Technical Report by Kravits Geological Services, LLC. The report is authored by Christopher M. Kravits CPG, LPG of Kravits Geological Services, LLC., who was an independent Qualified Person under NI 43-101 at the time of report preparation. And the Chandgana Tal resource estimate is also based on the September 2007 NI 43-101 Chandgana Tal Technical Report by Behre Dolbear & Company (USA), Inc..The report is authored by Mr. Gardar G. Dahl, Jr., CPG of Behre Dolbear & Company (USA), Inc., who is an independent Qualified Person under NI 43-101.