They do drop exotics, I got one today on the Moon after a Warstat event.
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Extraordinarily low chance world drop exotic that you can get literally anywhere. He means a higher chance where Public events are [i]supposed[/i] to drop exotics.
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You mean like the events on Mars or the EDZ where it took at least 6 people to clear it but 8 was better? I did get some good loot from those. Heroic Public events could drop better loot.