Victory Nickel Inc.
TSX : NI

Victory Nickel Inc.

July 16, 2007 11:38 ET

Local Leaders Endorse Development of Victory Nickel's Minago Deposit in Manitoba

Initial round of First Nations, Metis & public meetings complete as bankable feasibility advances

TORONTO, ONTARIO--(Marketwire - July 16, 2007) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI)(www.victorynickel.ca) is working closely with local residents to develop its Minago nickel deposit efficiently and in a socially and environmentally sound manner, and is pleased to announce that it has received a universally positive response from communities of interest in the vicinity of the Minago Project on Manitoba's Thompson Nickel Belt.

"In parallel with the bankable feasibility study, we have held numerous open houses so far and are very pleased with the positive response from the communities and parties involved with the development of the Minago mine," said Brian Robertson, President, Victory Nickel. "We are committed to working closely with stakeholders in Manitoba as we progress through the feasibility study, into construction and ultimately into production, and look forward to further positive discussion."

Commenting on the Minago project, Mr. Philip Buck, Chief, Moose Lake First Nation, said: "We like the way Victory Nickel is conducting its consultation process by coming to our communities to share project information and seek our input. Our communities will work with Victory Nickel to ensure that environmental and cultural aspects within our traditional territory together with our community well being and Cree rights are not compromised. This project has the potential to create social and economic opportunities for our northern communities."

Mr. Ovide Mercredi, Chief, Misipawistik Cree Nation (Grand Rapids) said: "They have enough nickel to last 16 years. This mining project is an opportunity for the Cree people in terms of social and economic progress for the entire region if done properly to accommodate the environment, wildlife and Cree interests and rights. We must ensure that, unlike past developments, we are not victims of development."

Finally, Jim Allen, Mayor, Grand Rapids stated: "This is an exciting project that provides employment and economic opportunities to our community and we look forward to the development of the mine."

Victory Nickel is preparing for an Environmental Licence Act Application for Minago by engaging communities in the vicinity of the project and other stakeholders. This first round of open houses has been held with the First Nations and their governments, community mayors and councils, Metis people, the public and government. The meetings were held in Norway House, Moose Lake, Cross Lake, Snow Lake, Grand Rapids and Winnipeg. In addition, special meetings have been held with Chiefs and Councils, community mayors, the Manitoba Metis Federation and government officials.

The objectives of the open houses were to provide the necessary information about the Minago Project, to develop stronger relationships and to get input from the Communities of interest for project planning and permitting. Over 200 people attended the open houses, and to date the project has been well received by the First Nations, Metis and the public. The main issues brought up by Chiefs and Councils, Manitoba Metis Federation, community mayors and councils, and the public during the meetings relate to economic and employment opportunities and the potential for adverse effects on traditional resource areas.

About Minago

Minago is one of Canada's largest undeveloped sulphide nickel deposits. Located in Manitoba's prolific Thompson nickel belt, Minago hosts measured and indicated resources of 49.1 million tonnes grading 0.52% nickel, or 558 million pounds of in-situ nickel (0.25% nickel cut-off grade), comprised of a 10.3 million tonne measured resource grading 0.59% nickel and a 38.8 million tonne indicated resource grading 0.50% nickel. A further 44.1 million tonne inferred resource at 0.53% nickel contains 513 million pounds of in-situ nickel (for further information, please see Minago Preliminary Economic Assessment by Wardrop Engineering November 24, 2006, which is available on SEDAR at www.sedar.com).

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 530,000,000 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.

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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