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JOINT NEWS
RELEASE
SHAREHOLDERS
OF PROPHECY AND RED HILL
APPROVE MERGER
Vancouver, British Columbia, April
12, 2010: Prophecy Resource Corp. ("Prophecy") (TSX-V:PCY, OTC: PCYRF, Frankfurt: 3P1) and Red Hill Energy
Inc. ("Red Hill") (TSX-V:RH)
- (-collectively, "the Companies" or "new Prophecy" )
announce that their respective shareholders have approved
merging the Companies by way of a Plan of Arrangement. The
votes were tabulated during separate extraordinary shareholder meetings held
earlier today. 100.00% of Prophecy votes and 99.64% of Red Hill votes
supported the transacti on.
Completion of the arrangement
remains subject to approvals from the British Columbia Supreme Court and
the TSX Venture Exchange. Red Hill and Prophecy will seek final approval
from the B.C. Supreme Court for the Arrangement at a hearing to be held
on April 13, 2010, with arrangement completion date on or before April
19, 2010. The Companies will thereafter be named Prophecy Resource Corp. and is
expected to begin trading on or before April 19th 2010,
under the trading symbol TSX-V.PCY OTC: PCYRF, Frankfurt: 3P1)
John Lee of Prophecy Resource Corp
has been appointed as Co-Chairman and CEO of the New Prophecy with Arnold
Armstrong of Red Hill Energy as Co-Chairman.
Mr. Lee
stated today that: "This giant step taken today by our
shareholders is but a small step towards creating the new Prophecy. The
entire Prophecy team is committed to delivering exceptional equity
returns for our shareholders by developing existing and acquiring new
mineral assets, responsibly and in the quickest time frame
possible."
The company
plans to commission the Ulaan Ovoo Coal project in northern Mongolia to
production this year, and anticipates making additional acquisitions to
complement its nickel, copper, and vanadium assets.
.Details on the Arrangement
Agreement between Red Hill Energy & Prophecy Resource Corp. can be
reviewed in the following joint news releases issued by the Companies:
April 7, March, 16, March 4, 2010.
About
the New Prophecy
The new
Prophecy will have control over NI-43-101 compliant Measured and
Indicated mineral resources of 263 million pounds of nickel, 1 billion
tonnes of coal and 116 million pounds of copper as well as inferred
resources of 500 million tonnes of coal, 593 million pounds of copper and
82 million pounds of nickel. The Company's Ulaan Ovoo Coal Project,
Mongolia is expected to be in production this year. New Prophecy will
also hold properties with significant exposure to vanadium and
titanium. All new Prophecy's coal assets are located in Mongolia
with its remaining assets located in Canada. The Company is currently reviewing
additional opportunities for growth.
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