Victory Nickel Inc.

Victory Nickel Inc.

January 10, 2008 09:55 ET

Victory Nickel Begins 10,000 m of Drilling and Early Works Development at Minago

Focus in early 2008 is on resource expansion and advancing mine development

TORONTO, ONTARIO--(Marketwire - Jan. 10, 2008) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI)( today announced that it has begun 10,000 metres of diamond drilling designed to expand the overall nickel resource, as well as an Early Works program as part of work required for the start-up of nickel production in the fourth quarter of 2010 at the 100%-owned Minago nickel project.

"The 2008 drill program follows up on the potential identified in the Minago scoping study to define additional higher-grade mineralization at depth in the Nose Deposit, the area containing the entire current resource, where the most recent hole drilled ended in 1.91% nickel over almost four metres," said Brian E. Robertson, President. "In addition, we are targeting the North Limb, a zone of mineralization with a known strike length of 1.5 kilometres located to the north of the Nose Deposit."

The Minago scoping study identified the need for further drilling at depth in the Nose Deposit to better define potential lenses of higher grade mineralization. Drilling conducted in 2006 confirmed the strength and continuity of nickel mineralization as well as higher grades including 80.95 metres of 1.12% nickel and 197.6 metres averaging 0.82% nickel in hole DDH NM-06-06 which ended in 3.93 metres of 1.91% nickel at 829.85 metres. The 2008 program will target expansion and upgrading of the high-grade zone at depth.

In 2005, Nuinsco drilled a single 455.4 metre deep hole in the North Limb, intersecting 9.71 metres grading 1.03% nickel and 52.5 metres grading 0.64% nickel within a 337.9 metre intercept grading 0.33% nickel in rock similar to that hosting the Minago resource. In the current program, additional holes are planned to further characterize the mineralization and nickel grades along this potentially vast and underexplored area.

The Minago diamond drilling program is being supervised by Paul Jones, Vice-President, Exploration for Victory Nickel, who acts as QP under National Instrument 43-101.

"The Early Works program represents the first step in the design of the tailings facility, waste dumps and overall site layout in preparation for permitting and development of the Minago mine," added Mr. Robertson.

The Early Works program consists of geotechnical drilling, hydrogeological drilling, and design of a permanent access road. Design of an early site access road to support Early Works development is already complete.

Geotechnical drilling will provide data for the development of the site layout and the technical design parameters in the areas of tailings management, waste dump, open pit, sewage lagoons and pit perimeter/road berm.

The hydrogeological drilling program will provide additional data for the environmental impact statement (EIS) required for permitting, as well as information for detailed design of the mine dewatering system which is scheduled to be installed in the fourth quarter of 2008.

About Victory Nickel

Victory Nickel Inc. is a Canadian company with over 660,000,000 pounds of in-situ nickel in National Instrument 43-101-compliant measured (154,000,000 pounds) and indicated (511,000,000 pounds) resources in three sulphide nickel projects: Minago and Mel on Manitoba's Thompson nickel belt, and the high-grade Lac Rocher deposit in northwestern Quebec, and an additional 530 million pounds of in-situ nickel in inferred resources. Created from the nickel assets of Nuinsco Resources Limited (TSX:NWI), Victory Nickel is well financed and focused on becoming a substantial nickel producer by developing its existing properties and evaluating opportunities to expand its nickel asset base.

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FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements." All statements, other than statements of historical fact, that address activities, events or developments that Victory Nickel believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current expectations or beliefs of Victory Nickel based on information currently available to Victory Nickel. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Victory Nickel to differ materially from those discussed in the forward-looking statements, 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 Victory Nickel. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to successfully complete financings, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world copper, nickel and/or gold markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates, success of future development initiatives, competition, operating performance of facilities, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from government authorities, and other development and operating risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Victory Nickel disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Victory Nickel believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

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