Victory Nickel Inc.
TSX : NI

Victory Nickel Inc.

October 04, 2007 11:22 ET

Victory Nickel's Lac Rocher Deposit Continues to Return Impressive Results

Metallurgical drilling returns 1.42%Ni over 45.92m, 3.07%Ni over 14.90m and 9.50%Ni over 2.29m

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2007) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI) (www.victorynickel.ca) today announced results from recent diamond drilling grading up to 9.5% nickel over 2.29 metres within a larger intercept of 45.92 metres grading 1.42% nickel at its 100%-owned Lac Rocher nickel project in northern Quebec. These results continue to confirm the presence of a high-grade, high-sulphide content nickel zone located within 150 metres of surface, along with a larger disseminated nickel zone. The drilling tested for possible extensions to nickel sulphide mineralization and provided metallurgical samples for a Preliminary Economic Assessment (PEA) to evaluate the near-term production and cash generation potential at Lac Rocher.

This drilling confirms the presence of a near-surface zone (less than 150m below surface) of high-grade, high sulphide content mineralization occurring at the footwall contact of the Lac Rocher "Discovery Intrusion" with the gneissic country rocks (see holes NLR-07-05 (5.74% Ni over 5.06 m), NLR-07-06 (9.50% Ni over 2.29 m), and NLR-07-09 (4.90% Ni over 3.55)). The drilling also provides additional confirmation as to the presence of high-grade nickel zones outside of, but in close proximity to, the known massive sulphide zone that could significantly enhance the economics of the Lac Rocher resource. These include the intercepts in NLR-07-04 (3.48% Ni over 10.12 m), NLR-07-05 (2.31% Ni over 7.44 m) and NLR-07-09 (3.07% Ni over 14.90 m).

"These results continue to expand our geological and metallurgical understanding of the massive sulphide zone at Lac Rocher," said Brian Robertson, President. "Interestingly, hole NLR-07-06 intersected significant massive sulphides, 9.5% nickel over 2.29 metres, at a point farther south than any of the previous drill holes, indicating a possible increase in the extent and volume of massive sulphide mineralization at Lac Rocher."



Analytical results from all holes are as follows:
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Length
DDH No. From To Cu% Ni % (m) Comments
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NLR-07-01 43.63 92.88 0.56 0.59 49.25
Including 44.36 53.42 0.43 1.07 9.06
and including 78.60 84.27 0.63 1.38 5.67
and including 89.64 90.56 11.38 2.01 0.92

NLR-07-02 111.45 115.57 0.54 2.09 4.12

NLR-07-03 119.86 124.77 1.09 1.49 4.91
Including 120.35 123.25 1.48 2.07 2.90

NLR-07-04 80.47 126.75 0.67 1.42 45.92
Including 110.42 126.48 1.02 2.51 16.06
or including 115.07 125.19 1.24 3.48 10.12
And 133.00 138.98 1.32 0.87 5.98

NLR-07-05 74.76 79.86 0.43 2.11 5.10 near the hanging wall
contact
And 110.02 122.27 1.13 1.90 12.25
Including 110.02 117.46 0.78 2.31 7.44
and 125.56 130.62 1.90 5.74 5.06 massive to contact
breccia sulphides

NLR-07-06 129.00 155.14 0.72 1.88 26.14
Including 143.61 145.90 1.52 9.50 2.29 suspended horizon of
massive sulphide

NLR-07-07 64.66 105.80 0.41 0.85 41.14 continuously
mineralised
intrusion
Including 77.74 105.80 0.46 0.98 28.36
Including 87.00 105.80 0.49 1.06 18.80
Including 98.85 105.80 0.51 1.14 6.95

NLR-07-08 No samples

NLR-07-09 90.80 96.32 0.54 2.07 5.52
And 103.92 113.65 0.43 1.54 9.73
And 123.10 138.00 1.25 3.07 14.90 above the footwall
contact of the
intrusion
And 141.17 144.72 2.26 4.90 3.55 footwall sulphide
intrusive breccia
into Paragneiss

NLR-07-10 No samples

NLR-07-11 1.62 52.85 0.26 0.54 51.23

NLR-07-12 128.67 1.29 0.18 3.20 0.33
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All analyses were conducted by Laboratoire Expert in Rouyn-Noranda,
Quebec, or ALS Chemex in Sudbury, Ontario; all intervals are core lengths,
not true widths.


In addition to the southern extension of massive sulphide mineralization identified in hole NLR-07-06 drilled this year, holes NLR-99-17 (54.95m grading 0.27%Ni and 0.13%Cu) and NLR-99-34 (8.2m grading 1.89%Ni and 0.58%Cu), drilled and reported in 1999, also show that the potential for additional mineralization exists elsewhere in the "Discovery Intrusion" (see map below).

As previously announced, Victory Nickel has entered into a Memorandum of Understanding ("MOU") with the Waswanipi Cree First Nation ("WCFN") whereby the parties have agreed to work together to support development of the Lac Rocher deposit in a way that respects the collective interests of Victory Nickel, the WCFN and other stakeholders. Phase One of the project is expected to consist of an underground exploration and bulk sampling program to evaluate ore continuity and provide further metallurgical evaluation. Phase One will entail the extraction of approximately 50,000 tonnes of material grading approximately 4.0% nickel. The Company is evaluating a number of options whereby mineralized material from Lac Rocher would be direct shipped to an offsite mill for processing.

Roche Engineering has begun an environmental baseline study required for permitting. Core produced from the 2007 drilling program will be used to provide a metallurgical evaluation of the deposit as part of the PEA currently being completed by Roche to evaluate the economics of the deposit. Metallurgical tests are currently underway at Xstrata Process Support in Sudbury, Ontario and Corem in Quebec.

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 (TSX:NWI), Victory Nickel is well financed and focused on becoming a producer by developing its existing properties and evaluating opportunities to expand its asset base.

Mineral resources were estimated by the Mining Innovation, Rehabilitation and Applied Research Corporation (MIRARCO), located in Sudbury, Ontario. All analyses were performed by Laboratoire Expert of Rouyn-Noranda, Quebec. Please refer to the technical report entitled "Technical Report and Mineral Resource Estimate on the Lac Rocher Project" dated and filed on December 27, 2006 for further information. Victory Nickel's Qualified Persons for the Lac Rocher Project under the NI 43-101 guidelines are P.L.Jones, P.Geol. and C.A.Wagg, P.Geo. Mr. Jones has reviewed and approved the contents of this news release. The Lac Rocher technical report was written by Ted Goettel, P.Geol, an independent qualified person under National Instrument 43-101.

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.

To view a map of Lac Rocher Project, please visit the following link: http://www.ccnmatthews.com/docs/Lac_Rocher%20Project%20map.pdf

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