Victory Nickel Inc.

Victory Nickel Inc.

March 29, 2007 16:16 ET

Victory Nickel Completes Private Placement

Proceeds to be used to accelerate activities on the Minago, Mel and Lac Rocher projects

TORONTO, ONTARIO--(CCNMatthews - March 29, 2007) - Victory Nickel Inc. ("Victory Nickel" or the "Company") (TSX:Ni) ( today announced that it has completed its previously announced "bought deal" private placement financing of 14,285,714 common shares issued on a "flow-through" basis (each, a "Flow-Through Share") at $0.70 per share for gross proceeds of $10.0 million. The financing was substantially oversubscribed, and the underwriting syndicate of Raymond James Ltd., Octagon Capital Corporation and Sprott Securities Inc. exercised its option to increase the size of the financing by 2,142,857 Flow-Through Shares at the same issue price per share for additional gross proceeds of $1.5 million. In total, 16,428,571 Flow-Through Shares were issued for gross proceeds of $11.5 million.

Victory Nickel plans to use the proceeds primarily to accelerate the activities on its Minago, Mel and Lac Rocher sulphide nickel projects. A final feasibility study is underway at Minago, located on the Thomson Nickel Belt.

- A recent scoping study confirmed Minago as a robust project generating total pre-tax cash flow of $953 million for a net present value of $334.0 million using an 8% discount rate and an internal rate of return of 23.1% at US$7.43/ lb nickel.

- A $2.0 million drill program is underway at Mel, also on the Thomson Nickel Belt, to complete the Company's earn-in on 100% of this advanced project from CVRD Inco Limited. CVRD Inco Limited has a back-in right and option to earn-back a 51% interest in the project.

- At Lac Rocher in Quebec, the Company is completing an economic assessment with a view to achieving near-term production by direct shipping high-grade material for processing. At a 2.5% nickel cut-off grade, Lac Rocher has a high-grade core with a measured and indicated resource of 51,178 tonnes grading 4.06% nickel. Roche Consulting Engineers has been engaged to complete all environmental studies necessary to obtain a Certificate of Authorization for a 50,000 tonne bulk sample.

About Victory Nickel

Victory Nickel Inc. is a Canadian company with over 660 million pounds of in-situ nickel in National Instrument 43-101-compliant measured (154 million pounds) and indicated (511 million 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. Victory Nickel is focused on becoming a producer by developing its existing properties and evaluating opportunities to expand its asset base.

The Minago Preliminary Economic Assessment ("Minago PEA") was prepared by Wardrop Engineering Inc. dated November 2006. For detailed disclosure regarding the Minago project, please refer to the Minago PEA which is included under Nuinsco's Sedar profile at www.sedar .com. The Minago project is being supervised by P.L. Jones, Vice-President of Exploration for Victory Nickel, who acts as a Qualified Person under National Instrument 43-101. Independent Qualified Persons involved in the scoping study are:

- Eric Harkonen, P.Eng, MBA, Wardrop Engineering;

- Gordon R. Zurowski, P.Eng, Wardrop Engineering; and,

- P.J. Chornoby, P.Geo., Mineral Resource Geologist.

The technical report entitled "Technical Report and Mineral Resource Estimate on the Lac Rocher Project" (the "Lac Rocher Report") dated December 27, 2006 is included under Nuinsco's Sedar profile at www.sedar .com. The Lac Rocher project was produced under the supervision of P.L. Jones, Vice-President of Exploration for Victory Nickel, who acts as a Qualified Person under National Instrument 43-101; the Lac Rocher Report was written by Ted Goettel, P.Geol, an independent qualified person under National Instrument 43-101.

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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