TSX: PCY O/S 312mm 52wk: $0.08-$0.04 Prophecy Development (TSX: PCY), Emerging High Grade Silver-Lead-Zinc Producer Owns 100% Pulacayo, second largest silver mine in the world based on past 670 million oz production $30 million spent last 10 years, 67,000 meters drilled, 43-101 resources of 90 million oz silver Feasibility and Environmental Permits approved, Mine is Fully Permitted with water and power on site Trial Mining and Toll Mill produced High Grade (6,000g/t Ag) Clean Concentrate sold to Trafigura 560 tonne-per-day mill foundation ready to be poured, commercial production scheduled Q2 2016 Mine is 20km by paved road to railway to Antofagasta Port, minimal infrastructure cost New management with production experience and over $100 million equity raise since 2010 High Grade Mining Blocks Planned (400g/t Ag, 4.7% Zn, 1.6% Pb), cash cost* below $10/oz AgEq High Grade on par with Tahoe Mining, exceeds Fortuna, Endeavor, First Majestc, Pan American Additional mill feed from several historic tailings, and open-pit satellite deposits Mining friendly community with long mining tradition (200 years+), social license obtained Vast potential, only 20% of 3km-strike vein drilled, plus several IP high-grade anomalies to be drilled District style play similar to Peñasquito (Western Silver) which Glamis bought for $1 billion in 2006, or Cayden Resources bought by Agnico Eagle for $200 million in 2014 PUD 109 Potential for open pit PUD 109: 4.8 meters@3,607g/t Ag 3.8% Pb 4.1% Zn ~200m from surface TSX: PCY O/S 312mm 52wk: $0.08-$0.04 Paca Resource Pacamayo Anomaly Veta Quattro Anomaly 7km Pulacayo Resource Pulacayo mine access tunnel (dotted line) Nap Pero Anomaly Tailings Anomaly found during Plant condemnation drilling Position of Planned Mill Pulacayo Town Resource Tailings Pulacayo Underground Highlights Ag Pb Zn % (g/t) (%) 11.9 689 1.9 1.4 PUD005 96.2 – 108.0 26.8 517 2.3 4.2 PUD007 70.0 – 96.8 4.0 1,184 0.8 2.3 PUD057 374.0 – 378.0 13.0 624 2.1 4.2 PUD069 281.0 – 294.0 4.8 3,607 3.8 4.1 PUD109 293.6 – 298.4 10.0 1,248 1.7 2.6 PUD118 174.0 – 184.0 23.3 514 1.3 1.9 PUD134 128.2 – 151.5 11.2 882 0.4 0.6 PUD150 290.0 – 302.0 11.0 790 0.6 0.6 PUD159 343.0 – 354.0 2.0 3,163 0.1 0.9 PUD170 237.0 – 239.0 Total 137 holes: 29 holes (21%) with Ag 1,000 to 10,000 g/t 67 holes (49%) with Pb or Zn >5% hole Nº from - to (m) int (m) Paca Open Pit Highlights vertical shaft (m) -67.5 -44.5 -137.5 -46.0 -30.4 -93.9 -55.7 -75.2 -116.6 -32.5 11.0 – 28.0 int (m) 17.0 Ag (g/t) 260 Pb (%) 0.9 PND008 18.0 – 33.5 15.5 314 PND029 12.0 – 22.3 10.3 436 PND031 0.0 – 37.0 37.0 PND062 10.0 – 52.0 ESM-2 0.0 – 38.0 hole Nº from - to (m) PND003 0.1 from surface (m) -7.8 1.0 0.4 -12.7 0.0 0.0 -8.5 217 0.9 0.3 0.0 42.0 406 0.8 0.1 -7.1 38.0 411 1.4 1.2 0.0 Zn % Historic Tailing Samples Highlights Tailings Piles WxLxH (m) Ag g/t Au g/t In g/t Pb % Zn % # Sample Pulacayo 2 70x100x30 112 1.2 7.1 0.21 0.23 105 Pero 1 90x30x12 302 0.2 3.4 1.00 0.31 36 Pero 2 65x60x7 219 0.2 18.1 1.01 0.51 4 Pulacayo 3 65x45x3 380 1.0 69.4 1.76 1.30 5 TSX:PCY O/S: 312mm 52wk: $0.08 – $0.04 *Feasibility & Disclaimer at www.prophecydev.com Garett Prins [email protected] Tel: +1.647.500.8223