Victory Nickel Inc.

Victory Nickel Inc.

December 11, 2007 12:43 ET

Victory Nickel Announces Excellent Metallurgical Results From Lac Rocher Project

Positive metallurgy another significant step toward nickel production in 2008

TORONTO, ONTARIO--(Marketwire - Dec. 11, 2007) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI)( is pleased to announce excellent results from metallurgical testing of massive sulphide composites from its 100%-owned Lac Rocher nickel deposit in northwestern Quebec. Locked cycle tests, completed by Xstrata Process Support, Process Mineralogy, in Falconbridge, Ontario, yielded nickel recovery of 85.04% and copper recovery of 96.67% to a bulk nickel/copper concentrate with an overall nickel equivalent grade of 12.66%.

"This testing confirms that a highly marketable concentrate can be produced from the massive sulphide material at Lac Rocher, and is yet another significant step forward toward Phase I development in 2008," said President Brian Robertson. "The Memorandum of Understanding signed with the Waswanipi Cree First Nation in September, the ongoing preliminary economic assessment and the recent engagement of Auramet to provide financial advisory services in connection with debt financing are all important milestones. Our goal remains to begin construction at Lac Rocher early in the second quarter of next year and to mine first ore prior to the end of 2008."

As previously announced, in Phase I the Company expects to extract approximately 50,000 tonnes of material grading approximately 4.0% nickel at an expected rate of 750 tonnes per day. Phase II is expected to extract an additional 400,000 tonnes of material grading approximately 1.5% nickel. 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.

Approximately 65 kilograms of massive sulphide core was submitted for testing by Xstrata. The grade of the diluted sample was 4.74% nickel, 1.71% copper, 0.12% cobalt, 19.29% sulphur, and 0.55 g/t PGEs and gold.

Mineralogical and metallurgical tests were performed on blended composites divided into 2.2 kilogram flotation charges. The mineralogical analysis was completed with QEMSCAN (Quantitative Evaluation of Materials by Scanning Electron Microscope), and EPMA (Electron Probe Micro Analysis). Metallurgical testing consisted of hardness evaluation, grind time determination for laboratory scale mills, high confidence flotation and locked cycle flotation tests.

Mineralogical work indicates that Lac Rocher massive sulphides consist primarily of pyrrhotite, actinolite, feldspar, pentlandite, chalcopyrite and pyrite in decreasing order of abundance. Nickel sulphides are predominantly pentlandite, while copper primarily occurs as chalcopyrite.

Based on the locked cycle flotation testing, the projected bulk concentrate final grades and recoveries, with magnesium oxide (MgO) content well within the acceptable limit for smelters, are as follows:

Nickel Copper Nickel Equivalent(%)
Grade (%) 10.90 4.80 12.66
Recovery (%) 85.04 96.67

As a result of these positive results, a second phase of testing, which will include Acid Base Accounting tests, will be performed by Xstrata Process Support. In addition, metallurgical testing on the disseminated material is ongoing at Corem in Quebec.

The metallurgical testing and reporting of results was done by Xstrata Process Support at the Xstrata Process Support Centre, Falconbridge, Ontario. Victory Nickel's Qualified Person under the NI 43-101 guidelines is Dr. Wm. Gordon (Gord) Bacon. Dr. Bacon 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 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.

Contact Information