Victory Nickel Inc.
TSX : NI

Victory Nickel Inc.

May 16, 2008 16:00 ET

Victory Nickel Announces First Quarter Financial Results, Provides Update of Activities

TORONTO, ONTARIO--(Marketwire - May 16, 2008) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI)(www.victorynickel.ca) today announced financial results for the three months ended March 31, 2008. Achievements during and subsequent to the first quarter include:

- Reporting a significant intersection from the first hole of the drill program at its Minago nickel project, which confirmed the presence of higher-grade nickel mineralization at depth, assaying 1.51% nickel over 38.42 metres as part of a 193.01 metre interval grading 0.59% nickel.

- Signing an option agreement with Xstrata Nickel to acquire a 100% interest in five mineral claims located adjacent to the Minago property package.

- Increasing both the quantity and value of the frac sand by-product at its Minago nickel deposit.

- Confirming that excellent nickel and copper recoveries can be obtained from Lac Rocher ore.

- Confirming the potential for a continuous mineralized body at Minago linking the Nose Deposit and the North Limb to a depth of 1.5 kilometres.

- Purchasing an equity position in Wallbridge Mining Company Limited, providing the Company with participation in the Sudbury basin, one of the world's most prolific nickel camps, and in the rapidly emerging Duluth Complex in northeastern Minnesota through Wallbridge's 13% equity interest in Duluth Metals Limited.

- Appointing Steve Harapiak, an engineer with years of senior international mining experience, as President and Chief Operating Officer.

- Obtaining the Certificate of Exemption from the Quebec government, a key permit that temporarily exempts the Company from the environmental and social impact assessment process and thus allowing Victory Nickel to proceed expeditiously with the underground exploration and bulk sampling program at the Lac Rocher property.

"During the first quarter we reached a number of milestones that take us that much closer to production," said Rene Galipeau, Vice-Chairman and CEO. "We expect to exit the current quarter with more clarity on the timing of production at both Lac Rocher and Minago, and to be in a position to begin aggressively moving Mel toward a production decision. It's getting exciting."

Financial Performance

As a development stage enterprise, none of Victory Nickel's exploration or development projects have commenced commercial production and, accordingly, the Company does not yet have revenue.

The Company reported a loss for the three months ended March 31, 2008 of $430,000, versus $1,057,000 in the 2007 comparative period. The current period loss was lower due to reduced stock option compensation expense.

At March 31, 2008, the Company had working capital of $8,401,000, including cash and cash equivalents and cash for exploration expenditures of $7,167,000. During the three-month period ended March 31, 2008, the Company used $1,066,000 in operating activities.

Investing activities during the quarter included $2,780,000 expended on exploration and development projects and $1,913,000 spent to acquire marketable securities. The Company acquired 7,500,000 units of Wallbridge and, subsequent to the end of the quarter, acquired an additional 1,500,000 Wallbridge common shares at a cost of $577,515, increasing its ownership in Wallbridge to approximately 10.2%.

Full financial statements and management's discussion and analysis will be posted on the Company's website and at www.sedar.com.

Outlook

With one of Canada's largest undeveloped sulphide nickel inventories, Victory Nickel remains focused on building a mid-tier nickel company. Objectives for the balance of 2008 include:

- Completing the Preliminary Economic Assessment of Lac Rocher.

- Obtaining permitting at Lac Rocher.

- Obtaining production financing and building Lac Rocher.

- Completing the Minago frac sand feasibility study.

- Completing the Minago definitive feasibility study.

- Placing orders for long lead time items at Minago.

- Completing metallurgical testing on mineralization at the Mel Deposit.

- Completing the Preliminary Economic Assessment of the Mel Deposit.

Annual Meeting

Please join us at our Annual Meeting of Shareholders, to be held on May 21, 2008 at 4:00 pm, Toronto time. The meeting will be held at the Toronto Board of Trade, 1 First Canadian Place, Toronto, Ont., and will also be webcast.

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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