Prophecy Development Corp. (TSX: PCY | OTCQX: PRPCF) specializes in mine permitting, construction, and operations. Prophecy has two near-term producing (vanadium, silver) and one producing (coal) mining projects. Prophecy has recently announced the formation of two subsidiaries to facilitate potential future spin-offs of the Company’s wholly-owned Bolivian silver operation and Mongolian coal operation; Silver Elephant Mining Corp. and Asia Mining Inc. in order to facilitate potential future spinoffs of the Company’s wholly owned Bolivian silver operation and Mongolian coal operation.

Prophecy reorganization (to be completed by end of August)

Prophecy will be the parent company to the following direct subsidiaries:

Silver Elephant Mining Corp. (Pulacayo Silver-Zinc-Lead Projects)

The Company’s Pulacayo Bolivian property features a top-tier diamond drill intercept of 1,030 g/t Ag over 25 meters. With only 30% of the known mineralization drilled, Pulacayo has a starter resource of 30 million oz of silver at 455 g/t Indicated, and 21 million oz of silver grading 256 g/t Inferred. Added to this are significant amounts of lead, zinc, and copper.

John Lee, Prophecy Chairman, states: “We foresee a strong upward performance in silver prices. Silver Elephant is structured and intended to be a premier pure silver play, which may go public in the near term.”

Company research has shown there are very few silver underground deposits grading at over 400 g/t Ag and open pit silver projects grading at over 200 g/t Ag. To take advantage of rising silver prices the Prophecy team is examining various production scenarios at Pulacayo that can be implemented as soon as a production contract is granted. There is strong potential to increase the silver resources at Pulacayo through modern exploration and drilling methods in this prolific silver district of Bolivia.

Prophecy’s resources and some drill results over their Pulacayo property in Bolivia

Asia Mining Inc. (Ulaan Ovoo Coal mine)

The Company’s Ulaan Ovoo coal mine is located in northern Mongolia and has received over US$50 million investment since 2010. It features an average strip ratio of 1.8. The mines coal has less than 1% sulfur, and low ash (8 to 11%) which is well-suited for power plants, cement plants and boiler heat applications. Since March 2019 the mine has been operated by a lessee where Asia Mining stands to earn $2 per tonne of Ulaan Ovoo coal sold. The mine achieved a record production of 37,800 tonnes in June 2019, and has reportedly secured close to 400,000 tonnes of orders through to April 2020.

Chairman John Lee comments: “Ulaan Ovoo thermal coal is gaining steady reputation for its premium quality and reliable delivery in northern Mongolia. Barring any unforeseen circumstance which curtails production, Prophecy’s Mongolia operation is expected to become net cash flow positive for the remainder 2019.“

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