Victory Nickel Inc.

Victory Nickel Inc.

December 05, 2007 10:45 ET

Victory Nickel Engages Auramet Trading LLC to Advise on Lac Rocher Debt Financing

Preparation well underway to begin Phase I to extract 50,000 tonnes grading 4% Ni in 2008

TORONTO, ONTARIO--(Marketwire - Dec. 5, 2007) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI)( today announced that it has engaged Auramet Trading LLC ("Auramet") to provide financial advisory services in connection with debt financing for development of its Lac Rocher nickel project in northwestern Quebec, approximately 140 kilometres northeast of Matagami.

Auramet, based in Fort Lee New Jersey, is an organization focused on the global metals and mining industries. Auramet's services include structured finance advisory services, metals trading, and metals merchant banking. Auramet's role will be advising Victory Nickel on the optimal debt financing structure to finance the underground exploration and bulk sampling program planned to begin in 2008 at the Lac Rocher deposit.

"We're moving as quickly as possible to begin development at Lac Rocher, and Auramet's years of experience in debt financing metals and mining companies will be invaluable in this process," said CFO Bob Wardell. "Our target is to fully debt finance the project and start development in the second quarter of 2008 with production beginning by the end of next year."

As previously announced, in Phase I the Company expects to extract approximately 50,000 tonnes of material grading approximately 4.0% nickel at an expected rate of 750 tonnes per day. Phase II is expected to extract an additional 400,000 tonnes of material grading approximately 1.5% nickel. The existing mineral resource is relatively shallow, located between surface and 125 vertical metres, and the Company intends to access this mineralization by developing a ramp and direct shipping the extracted material offsite for processing.

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.

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.

Contact Information