Victory Nickel Inc.

Victory Nickel Inc.

April 17, 2008 08:45 ET

Victory Nickel Announces Dramatic Increase in Frac Sand Potential at Minago

Growing markets in Canada, US could increase annual frac sand revenue to $44 million

TORONTO, ONTARIO--(Marketwire - April 17, 2008) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI)( today announced that a marketing study by Wardrop Engineering Inc. (Wardrop") indicates the potential for a 200% increase, over initial estimates, in annual sales of the hydraulic fracturing ("frac") sand that overlies the nickel deposit at its Minago project in Manitoba.

Frac sand, which is used to enhance recoveries in the oil and gas industry, forms part of the overburden that must be removed before mining the Minago open pit. As part of the definitive feasibility study of the 100%-owned Minago nickel project, Wardrop has concluded that Victory Nickel could sell 824,000 tonnes of sand per year to existing and emerging markets in North America.

The following table shows the increase in projected sand sales since the Preliminary Economic Assessment ("PEA"):

Projected % Selling %
Annual Increase Price/t, Increase Projected %
Tonnage Over net of Over Annual Net Increase
Study Sold PEA freight PEA Revenue Over PEA
Nov., 2006 PEA 275,000 N/A $26.93 N/A $8,758,000 N/A
Dec., 2007
Interim Report 516,000 88% $26.84 N/A $13,849,000 58%
Apr., 2008
Marketing Study 824,000(1) 200% $53.58 99% $44,148,000 404%
(1) Equates to approximately eight years production based on tonnage
estimated in the pit footprint alone. The potential for additional
production exists from material outside the proposed open pit. Includes
50,000 tpy saleable as smelter flux sand.

The significant increase in potential annual sales is primarily the result of rising demand for frac sand due to the rapid development of additional oil and gas opportunities in Canada and the US, especially in the Texas and BC shales. Due to the positive findings of the marketing study, the Company is in contract discussions for the engineering and design of a frac sand plant.

"The frac sand opportunity continues to become more and more attractive as we progress through the Minago definitive feasibility study and an increasing number of markets open up both in Canada and the United States," said Steve Harapiak, President and Chief Operating Officer. "The fact that the sand must be removed prior to mining nickel from the open pit combined with the extremely attractive economics of frac sand production provides additional incentive to begin pre-stripping and producing frac sand at Minago as soon as possible."

Georgi Doundarov, P.Eng., of Wardrop Engineering, is the Qualified Person for the sand project under National Instrument 43-101. He has reviewed and approved the contents of this news release.

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 building a mid-tier nickel producer by developing its existing properties and evaluating opportunities to expand its nickel asset base.

FORWARD-LOOKING INFORMATION: This news release contains certain "forward-looking information." All information, other than information relating to historical fact, that address activities, events or developments that Victory Nickel believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Forward-looking information is 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. This forward-looking information reflects the current expectations or beliefs of Victory Nickel based on information currently available to Victory Nickel. Forward-looking information is 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 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 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. Forward-looking information speaks only as of the date on which it is given and, except as may be required by applicable securities laws, Victory Nickel 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 Victory Nickel 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.

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