Victory Nickel Inc.
TSX : NI

Victory Nickel Inc.

August 19, 2010 13:45 ET

Outstanding Intersections Continue From 2010 Minago Drilling

Recent Intersections Include 1.08% Ni Over 70.04m and 305.42m Grading 0.48% Ni

TORONTO, ONTARIO--(Marketwire - Aug. 19, 2010) - Victory Nickel Inc. (the "Company") (TSX:NI) (www.victorynickel.ca) today announced results from an additional six drill holes completed in the winter drilling program at its 100%-owned Minago sulphide nickel project, including assays grading up to 1.08% over 70.04m and including 0.48% over a core length of 305.42m.

The holes reported here targeted the Nose Deposit, which currently incorporates all known resources and reserves at Minago. As with results reported earlier (from 12 drill holes - see news releases dated March 31, April 14, May6 and May 28, 2010) these new results continue to confirm the remarkable extent and continuity of nickel mineralization at Minago located on Manitoba's Thompson Nickel Belt and hosting one of Canada's largest undeveloped sulphide nickel resources. 

"The very wide intersections provide additional confirmation of the extraordinary nickel endowment at Minago. Of particular importance are those intersections reported from V-10-16 and V-10-20, which were both drilled near the western extremity of the deposit, demonstrating near-surface, high-grade mineralization, exploitable by open pit extending to the known limits of the ultramafic host rock," said Paul Jones, Vice-President, Exploration. "These results, when combined with those previously reported from the 2010 program, provide clear confirmation of the presence of nickel mineralization in parts of the deposit that to date have been under-drilled. This mineralization was previously considered waste in the definitive feasibility study (DFS) and can now be included to increase the project's value. Furthermore, intervals of significant nickel grade may enhance the overall grade of the deposit."

Assays from the most recent six diamond drill holes are as follows:
 
DDH No Location From (m) To (m) Int (m) Ni (%)
           
V-10-12 24C 193.89 233.78 39.89 0.41
including   227.11 233.78 6.67 0.62
           
V-10-16 3W 180.62 320.34 139.72 0.87
including   215.09 233.84 18.75 0.86
and   239.96 310.00 70.04 1.08
           
V-10-17 22C 173.30 222.95 49.60 0.40
including   208.63 222.95 14.30 1.00
           
V-10-18 18W 207.56 512.98 305.42 0.48
including   283.36 319.19 35.83 1.07
and   351.00 383.30 32.30 1.48
and   494.25 512.98 18.73 1.04
           
V-10-19 21C 292.25 336.40 44.15 0.60
           
V-10-20 2W 100.04 153.30 53.26 0.91
    227.83 318.61 90.78 0.76
including   280.54 301.70 21.16 1.28

All intervals reported in this news release are core lengths. True widths have not yet been established. All analytical results were produced by TSL Laboratories of Saskatoon, Saskatchewan. The drill program is being supervised by Paul Jones, Vice-President, Exploration for Victory Nickel, who acts as QP under National Instrument 43-101 and has reviewed and approved the contents of this news release.

About Victory Nickel

Victory Nickel Inc. is a Canadian company with four sulphide nickel deposits containing significant NI 43-101-compliant nickel resources. Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing properties, Minago, Mel and Lynn Lake in Manitoba, and Lac Rocher in northwestern Québec, and by evaluating opportunities to expand its nickel asset base. Victory Nickel also owns approximately 9% of the shares of Prophecy Resource Corp. (TSX VENTURE:PCY) and approximately 5% of Wallbridge Mining Company Limited (SX:WM), the third largest landholder in the Sudbury Basin, which in turn owns approximately 12.9% of Duluth Metals Limited.

For further information, please visit www.victorynickel.ca. Should you wish to receive Company news via email, please email chelsea@chfir.com and specify "Victory Nickel" in the subject line.

Forward-Looking Information: This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from estimates and assumptions; uncertainties relating to the availability and costs of financing needed in the future; failure to establish estimated mineral resources; fluctuations in commodity prices and currency exchange rates; inflation; recoveries being less than those indicated by the testwork carried out to date (there can be no assurance that recoveries in small scale laboratory tests will be duplicated in large tests under on-site conditions or during production); changes in equity markets; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company's activities; the uncertainties involved in interpreting geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 31, 2010 filed on SEDAR at www.sedar.com. Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

To view the, "Victory Nickel Minago Project, Winter 2010 Drill Plan," please visit the following link:

http://media3.marketwire.com/docs/FIG1VIC819.pdf.

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