Exclusive Interview: Prophecy Development Corp.’s Executive Chairman Discusses New 5,000 Meter Drill Program at Pulacayo Silver Mine, Recent $3.9 Million Financing Led by Eric Sprott and the Improving Political Climate in Bolivia

TORONTO, ON / December 30, 2019 / JMN Wire / Prophecy Development Corp. (TSX: PCY) (OTCQX: PRPCF) Executive Chairman Mr. John Lee discusses recent developments at the Company’s 100% owned high-grade Pulacayo Silver-Lead-Zinc Project located in Bolivia’s Silver Triangle.

Thanks to a recently completed $3.9 million private placement backed by Eric Sprott, who now owns 9% of the Company, Prophecy has commenced a Phase II diamond drill program. The 5,000 meter drilling campaign will focus on high-priority step out targets located up to 1.5 kilometers west of the current N.I. 43-101 mineral resource at Pulacayo. The objective is to further delineate the continuity of the mineralized system at Pulacayo, which historical records suggest could extend along a strike length of up to three kilometers and to a depth of as much as 1,000 meters. Lee believes that based on the historic production results at Pulacayo, in which the richest ores were discovered at the deepest depths, this next round of drilling could uncover significant mineralization not previously outlined.

The Phase II step out drill program follows an already successful Phase I infill drill program at Pulacayo. Released in October, assay results from the Phase I drill program returned high-grade intercepts including 89 meters of 378 g/t silver equivalent and 54 meters of 238 g/t silver equivalent.

Lee also offers his insight into the changing political climate in Bolivia, which he says is rapidly improving as the newly elected government looks to attract foreign investment to develop the mineral rich areas of the country. Lee says these positive developments will help the country regain its prominence as a once favorable South American jurisdiction for mineral exploration and development.

About Prophecy

Prophecy is developing Pulacayo silver project in Bolivia and Gibellini vanadium project in Nevada. Further information on Prophecy can be found at www.prophecydev.com.

Qualified Person

The technical contents of this news release have been reviewed and approved by Danniel Oosterman, VP Exploration for the Company and a Qualified Person ("QP") as defined within N.I. 43-101 guidelines.

Appendix

Table 1. Pulacayo Indicated and Inferred Mineral Resource Statement Details

Notes:
(1) Mineral resources are estimated in conformance with the CIM Standards referenced in NI 43-101.
(2) Raw silver assays were capped at 1,700 g/t, raw lead assays were capped at 15% and raw zinc assays were capped at 15%.
(3) Silver equivalent Ag Eq. (g/t) = Ag (g/t)*89.2% + (Pb% *(US$0.94/ lb. Pb /14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000*91.9%) + (Zn% *(US$1.00/lb. Zn/14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000*82.9%).
(4) Metal prices used in the silver equivalent calculation are US$16.50/Troy oz. Ag, US$0.94/lb Pb and US$1.00/lb. Zn. Metal recoveries used in the silver equivalent equation reflect historic metallurgical results disclosed by Apogee Silver Ltd. (Porter et al., 2013).
(5) Metal grades were interpolated within wire-framed, three-dimensional silver domain solids using Geovia-Surpac Ver. 6.6.1 software and inverse distance squared interpolation methods. Block size is 10m(X) by 10m(Z) by 2m(Y). Historic mine void space was removed from the model prior to reporting of resources.
(6) Block density factors reflect three-dimensional modeling of drill core density determinations.
(7) Mineral resources are considered to have reasonable expectation for economic development using underground mining methods based on the deposit history, resource amount and metal grades, current metal pricing and comparison to broadly comparable deposits elsewhere.
(8) Rounding of figures may result in apparent differences between tonnes, grade and contained ounces.
(9) Mineral resources that are not mineral reserves do not have demonstrated economic viability.
(10) ^* Tonnes are rounded to nearest 10,000.

Table 2: Contained Metals Based on October 20, 2017 Pulacayo Deposit^** Mineral Resource Estimate

^**Based on the resource estimate Ag Eq. cut-off value of 400 g/t and 100% recovery; figures are rounded to the nearest 100,000th increment

 Table 3. Paca Inferred Mineral Resource Statement Details

Notes:
(1) Mineral resources are estimated in conformance with the CIM Standards referenced in NI 43-101.
(2) Raw silver assays were capped at 1,050 g/t, raw lead assays were capped at 5% and raw zinc assays were capped at 5%.
(3) Silver equivalent Ag Eq. (g/t) = Ag (g/t) + (Pb% *(US$0.94/ lb. Pb /14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000) + (Zn% *(US$1.00/lb. Zn/14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000). 100 % metal recoveries are assumed based on lack of comprehensive metallurgical results.
(4) Metal prices used in the silver equivalent calculation are US$16.50/Troy oz. Ag, US$0.94/lb Pb and US$1.00/lb Zn and reflect those used for the Pulacayo deposit mineral resource estimate reported above.
(5) Metal grades were interpolated within wire-framed, three-dimensional solids using Geovia-Surpac Ver. 6.7 software and inverse distance squared interpolation methods. Block size is 5m (X) by 5m (Z) by 2.5m (Y). Historic mine void space was removed from the model prior to reporting resources.
(6) A block density factor of 2.26g/cm³ was used and reflects the average of 799 density measurements.
(7) Mineral resources are considered to have reasonable expectation for economic development using combined underground and open pit methods based on the deposit history, resource amount and metal grades, current metal pricing and comparison to broadly comparable deposits elsewhere.
(8) Mineral resources that are not mineral reserves do not have demonstrated economic viability.
(9) ^*Tonnes are rounded to nearest 10,000.

The contained metals estimated by the Company based on the October 20, 2017 resource estimate by Mercator are presented in Table 4.

Table 4. Contained Metals Based On October 20, 2017 Paca Deposit** Mineral Resource Estimate

^**Based on the resource estimate Ag Eq. cut-off value of 200 g/t and 100% recovery; figures are rounded to the nearest 100,000th increment

• The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM SME, a Wood employee. The Mineral Resources have an effective date of 29 May, 2018.
• Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
• Mineral Resources are reported at various cut-off grades for oxide, transition, and reduced material.
• Mineral Resources are reported within a conceptual pit shell that uses the following assumptions: Mineral Resource V2O5 price: $14.64/lb; mining cost: $2.21/ton mined; process cost: $13.62/ton; general and administrative (G&A) cost: $0.99/ton processed; metallurgical recovery assumptions of 60% for oxide material, 70% for transition material and 52% for reduced material; tonnage factors of 16.86 ft3/ton for oxide material, 16.35 ft3/ton for transition material and 14.18 ft3/ton for reduced material; royalty: 2.5% net smelter return (NSR); shipping and conversion costs: $0.37/lb. An overall 40º pit slope angle assumption was used.
• Rounding as required by reporting guidelines may result in apparent summation differences between tons, grade and contained metal content. Tonnage and grade measurements are in US units. Grades are reported in percentages.
• 43-101 Pulacayo Report dated Oct 20, 2017 By Mercator Geological Services Limited on SEDAR.

Cautionary Statements:

Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) the PEA representing a viable development option for the project; (ii) construction of a mine at the project and related actions; (iii) estimates of the capital costs of constructing mine facilities and bringing a mine into production, of sustaining capital and the duration of financing payback periods; (iv) the estimated amount of future production, both produced and metal recovered; and (vi) life of mine estimates and estimates of operating costs and total costs, cash flow, net present value and economic returns including internal rate of return estimates from an operating mine constructed at the project.   

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