Victory Nickel Inc.

Victory Nickel Inc.

June 22, 2010 11:28 ET

Victory Nickel Demonstrates Continuity in Minago North Limb

Drilling intersects133m of 0.5% Nickel 700 metres north of proposed open pit

TORONTO, ONTARIO--(Marketwire - June 22, 2010) - Victory Nickel Inc. (the "Company") (TSX:NI) ( today announced that the first hole drilled on the "North Limb" zone in its 2010 winter program at its 100%-owned Minago nickel project returned 133m grading 0.5% nickel, further demonstrating the wide distribution and impressive intersections of nickel mineralization that are not currently included in any resource estimate.

Drill hole DDH V-10-13 is located approximately 700m north of the proposed open pit, and is 100m south of, and parallel to, hole DDH N-5, which was drilled in 2005 and intersected 81.34m grading 0.59% Ni. The North Limb is a north-trending linear domain of nickel mineralization of at least 1.5km in length that extends north from the Minago Nose Deposit, where the entire reported Minago nickel resource is located.

"The significant width encountered in hole V-10-13, combined with its location adjacent to the previous intersection in DDH N-5, demonstrates continuity of the nickel mineralization at Minago, and shows that the North Limb has the potential to add significantly to the nickel resource on the Property," said Paul Jones, Vice-President, Exploration.

Results of note from DDH V-10-13 are as follows:

DDH No. From To Int (m) Ni (%)
V-10-13 98.49 103.72 5.23 1.649
180.77 314.63 133.86 0.496
including 259.12 311.95 52.83 0.605
including 221.00 249.00 28.00 0.638

DDH V-10-13 comprises part of a 26 drill-hole program conducted during the winter of 2010. 23 drill-holes targeted the portion of the Minago Nose Deposit resource located within the projected open pit while three holes (including V-10-13) were drilled on the North Limb mineralization which is outside of the known resource area.

The current work program is in large part directed at expanding the near-surface resource at Minago to further enhance the economics of the deposit. As expected, drilling continues to intersect nickel mineralization at the top of the deposit near the contact with the immediately overlying sandstone (frac sand). This nickel mineralization was excluded by Wardrop, a Tetra Tech Company, from the resource and reserve estimates used in the Minago Definitive Feasibility Study due to a perceived lack of drill coverage (see news release dated May 28, 2010). In addition, a significant portion of in-pit resources currently classified as Inferred are expected to be upgraded to at least the Indicated category for inclusion in future economic evaluations. An increase of 3.6 million tonnes of resources is expected to improve the net present value by approximately $80 million at an 8% discount rate.

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. The results tabulated here report total nickel values. 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.

Annual and Special Meeting

As a reminder, the Company's Annual and Special Meeting for Shareholders ("ASM") will take place today, June 22, 2010, at 4:00 p.m. Toronto Time at the Toronto Board of Trade, 1 First Canadian Place, Toronto, Ontario. The ASM will be webcast and can be accessed through Victory Nickel's website at For those attending via webcast who wish to ask questions, please e-mail

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 Quebec, and by evaluating opportunities to expand its nickel asset base. Victory Nickel also owns approximately 9% of Prophecy Resource Corp. (TSX VENTURE:PCY) and approximately 5% of Wallbridge Mining Company Limited (TSX: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 Should you wish to receive Company news via email, please email 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 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.

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