December 4, 2007 - Prophecy Resource Corp. is pleased to announce that it has retained Contact Financial Corp. to provide investor relations services to the Company, subject to acceptance for filing by the TSX Venture Exchange. Contact Financial will assist Prophecy with the development and implementation of a comprehensive investor relations strategy. The principals of Contact Financial are Kirk Gamley and Karl Kottmeier.

Contact Financial has been retained for a minimum three month term at $8,000 per month, plus reimbursement of approved expenses. Prophecy has also agreed to grant 200,000 incentive stock options to the principals of Contact Financial, exercisable at a price of $0.25 for a period of two years and subject to TSX Venture Exchange rules with regard to vesting and pricing.

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.