Private Placement Completed for $507,500; Drilling Underway at Okeover Copper/Molybdenum Project

VANCOUVER, Nov. 6 /PRNewswire-FirstCall/ — Prophecy Resource Corp. (TSX.V: PCY) has completed the previously announced non-brokered private placement of 1,450,000 flow-through units at a price of $0.35 per unit. Each unit will consist of one common share of the company and one half share purchase warrant, with each full warrant exercisable into one additional common share of the Company for a period of eighteen months from closing at an exercise price of $0.45 per share. The shares and any shares acquired on the exercise of warrants will be subject to a hold period expiring on March 1, 2008. Finder’s fees of $37,800 were paid on a portion of this placement along with the issuance of 108,000 finder’s warrants, exercisable at $0.35 per share until April 30, 2009.

The proceeds of this placement are to be used for exploration of Prophecy’s Okeover copper/molybdenum property near Powell River, B.C., following which the Company will have satisfied its $1 Million work commitment with Eastfield Resources Ltd. (TSX.V: ETF) and have earned a 60% interest in what we believe may prove to be a significant copper/molybdenum project located near infrastructure on the B.C. coast.

The Okeover property encompasses 3,900 hectares (15 square miles) of mineral claims centered on the Bunster Hills, east of Okeover Inlet, and located 20 km north of Powell River. In late 2006, N.C. Carter, PhD, P.Eng. completed a technical report on the property pursuant to National Instrument 43-101 that estimated an inferred mineral resource for the North Lake Zone of 86.8 million tonnes grading 0.31% copper and 0.014% MoS(2) at a 0.20% copper cut-off grade (approximately 593 Million lbs of copper and 15 million lbs of MoS(2)).

Drilling is currently underway at Okeover, having commenced in late October. This drill program will continue to delineate the North Lake Zone, which is one of eight prospective zones identified at Okeover, but will also explore the South Breccia area, which has not had any significant exploration work undertaken for more than ten years.

The South Breccia area is a hydrothermal breccia first recognized in 1979. Between 1966 and 1977, seven corporations, including Noranda, Falconbridge and Asarco Exploration completed 14,000 metres of diamond drilling at Okeover. In 1979, two years following these campaigns, logging activities exposed the South Breccia Zone approximately 3.5 kilometres south of the North Lake Zone. In 1979, Aquarius Resources Ltd. completed three holes in this then newly discovered area (205 metres in total) with results which included 1.49% Copper over 9 metres in hole 79-2 and 0.49% Copper over 21 metres in hole 79-3. In 1996, Canquest Resource Corp. drilled a single 154 metre deep hole with the strongest mineralization in that hole (0.21% Cu) occurring at the bottom. A review of this drill hole indicates that it may have stopped short (to the east) of the South Breccia Zone. In addition, surface trenching returned assays of 2.4% copper and 0.52% MoS2 across a 12 metre width. Geological mapping of the area peripheral to the South Breccia discovery outcrop indicates that brecciation and silicification extend over an area of at least 300 metres by 600 metres, offering substantial potential for discovery.

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.

   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.    

CONTACT: visit our web site at http://www.prophecyresource.com/ or contact us toll-free at (888) 818-8748

Prophecy Resource Corp.

CONTACT: visit our web site at http://www.prophecyresource.com/ or contact ustoll-free at (888) 818-8748