Victory Nickel Inc.
TSX : NI

Victory Nickel Inc.

December 22, 2009 11:01 ET

Victory Nickel Expands Property Position at Minago Sulphide Nickel Project

Additional claims add flexibility for infrastructure development

TORONTO, ONTARIO--(Marketwire - Dec. 22, 2009) - Victory Nickel Inc. ("Victory Nickel" or the "Company") (TSX:NI) (www.victorynickel.ca), today announced that it has staked and recorded 11 additional claims at its 100%-owned Minago sulphide nickel project on Manitoba's Thompson Nickel Belt. The additional claims provide coverage to the west of Victory Nickel's existing property position, providing the Company with additional flexibility in the location of infrastructure as Minago is advanced towards production.

The claims, in part, give the Company complete coverage of a limestone outcrop that can be used to produce building material for the construction of early works roads that will provide better access to the property. A quarry permit has already been issued to Victory to allow extraction of limestone from this outcrop. As previously announced, an all weather road is planned from Highway 6 to the limestone outcrop, the construction of which is scheduled to begin this coming winter.

Minago is one of Canada's largest undeveloped sulphide nickel deposits and has been shown to be capable of producing a nickel concentrate grading up to 22.3%, making it the world's highest grade nickel concentrate. In addition to metal by-products such as copper, cobalt, gold, platinum, palladium, silver and rhodium, a layer of silica sand averaging approximately 9 metres thick overlies the nickel mineralization within the open pit. Approximately 84% of this 15 million tonne National Instrument 43-101 ("NI 43-101") compliant Indicated sand resource is marketable frac sand, which is used to improve recoveries in the oil and gas industry. The frac sand forms part of the overburden that must be removed prior to mining the nickel ore.

Located approximately 225 kilometres south of Thompson, Manitoba, Minago is superbly located with respect to infrastructure. Paved Provincial Highway 6 traverses the eastern part of the property, as does a high capacity powerline, while the rail line to the Port of Churchill is located nearby. 

Paul Jones, Vice-President, Exploration for Victory Nickel, acts as QP under NI 43-101 for Victory Nickel, 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 5% of Wallbridge Mining Company Limited (TSX:WM), the third largest landholder in the Sudbury Basin.

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

Forward-Looking Information: This news release may contain forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow and costs, estimated project economics, mineral resource and mineral reserve estimates, metallurgical recoveries and the Company's exploration and development plans and objectives with respect to its Minago Project) 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. Certain such risks are disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 31, 2009 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. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.

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