Victory Nickel Inc.

Victory Nickel Inc.

February 19, 2008 12:53 ET

Victory Nickel Announces Continued Progress at Lac Rocher Project

Plans call for first nickel production in 2008

TORONTO, ONTARIO--(Marketwire - Feb. 19, 2008) - Victory Nickel Inc. ("Victory Nickel" or the "Company") (TSX:NI) ( is pleased to announce further positive results from metallurgical testing at its 100%-owned Lac Rocher nickel deposit in northwestern Quebec. A total of 15 flotation tests were completed by Corem in Quebec on material from the disseminated sulphide zone, yielding nickel recovery of 79.9% and copper recovery of 94.2% to a nickel/copper concentrate.

"These positive findings from the disseminated material are in-line with the excellent results announced late last year from the massive sulphide zone," said President Brian Robertson. "We expect to complete an updated resource estimate shortly and receive the preliminary economic assessment before the end of March. Our goal remains to be mining at Lac Rocher before the end of 2008."

Corem produced a nickel/copper concentrate from the disseminated sulphide zone (head grade of the sample was 1.31% nickel and 0.47% copper) Phase II of the proposed project), with grades and recoveries as follows:

Nickel Copper
Grade (%) 11.04 4.14
Recovery (%) 79.9 94.2

As previously released, final grades and recoveries to a nickel/copper concentrate from the massive sulphide zone (head grade of the sample was 4.74% nickel, 1.71% copper) (see news release dated December 11, 2007) are as follows:

Nickel Copper
Grade (%) 10.90 4.80
Recovery (%) 85.04 96.67

In Phase I, the Company expects to extract approximately 50,000 tonnes of material. In Phase II an additional 400,000 tonnes of material is targeted for extraction. 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.

The metallurgical testing and reporting of results for the massive sulphide zone was done by Xstrata Process Support at the Xstrata Process Support Centre, Falconbridge, Ontario. The metallurgical testing and reporting of results for the disseminated sulphide zone was done by Corem in Quebec. Victory Nickel's Qualified Person for these metallurgical programs under the NI 43-101 guidelines is Dr. Wm. Gordon (Gord) Bacon. Dr. Bacon has reviewed and approved the contents of this news release.

Project Updates

The updated Lac Rocher resource estimate will incorporate drilling done in 2007 and include both nickel and copper resources. Along with these metallurgical results, the resource estimate will be incorporated into the preliminary economic assessment being prepared by Roche Engineering and expected to be completed this quarter. Discussions are moving forward with respect to permitting at Lac Rocher in line with the Company's target of commencement of production in 2008.

In addition to ongoing work at Lac Rocher, three diamond drills continue to turn at the Minago project on the Thompson Nickel Belt in Manitoba. The 2008 drilling is designed to expand and upgrade higher-grade mineralization at depth in the Nose Deposit, where the entire current resource is located, as well as to test the North Limb, a zone of mineralization with a known strike length of 1.5 kilometres located to the north of the Nose Deposit. The results of this winter drill program will be incorporated into a revised resource estimate that will form part of the definitive feasibility study. Metallurgical testing and evaluation of milling and other equipment is ongoing.

Also at Minago, Wardrop Engineering Inc. ("Wardrop") is completing a definitive feasibility study on the fracturing or hydraulic "frac" sand, a high-value by-product used to enhance recoveries in the oil and gas industry. The frac sand marketing study is expected to be completed this quarter.

At the Mel project, near Thompson, Manitoba, the Company is finalizing the work program for 2008 in conjunction with Vale Inco, details of which will be announced shortly, and metallurgical testing is planned to complete a preliminary assessment for mining.

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.

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