Victory Nickel Inc.
TSX : NI

Victory Nickel Inc.

July 25, 2011 14:05 ET

Victory Nickel Completes Reporting of North Limb Drilling at Minago Project

Five Drill Holes Test North Extension of North Limb, Continue to Confirm Continuity and Grade

TORONTO, ONTARIO--(Marketwire - July 25, 2011) - Victory Nickel Inc. (the "Company") (TSX:NI) (www.victorynickel.ca) today announced further results from drilling conducted on the North Limb nickel-mineralized domain at its 100% owned Minago Nickel Project located on the Thompson Nickel Belt approximately 485 kilometres north of Winnipeg, Manitoba.

The drill holes reported here were drilled along the northern part of the North Limb as part of a 15-hole, 6,000+ metre drill program done this past winter over 1,600 metres of strike in an effort to generate sufficient data to produce a grade and tonnage estimate in the North Limb. The North Limb extends to the north from the Nose Deposit which is the area currently containing the entire nickel resource at Minago.

"All results are currently being incorporated into the first estimate of grade and tonnage for North Limb mineralization," said Paul Jones, Vice-President, Exploration. "All resources reported from the Minago Project to date have been restricted to the Nose Deposit; no resource has ever been estimated on the North Limb. The nickel mineralization in the North Limb is an enhancement to the total resource at Minago that could be of great economic significance to the project."

The nickel analytical results tabulated below evaluate an additional 660 metre of strike length in the North Limb over and above drill results released to date. In total the 2011 North Limb drilling covers 1,100 metres of strike, all of which continues to indicate strong nickel mineralization with continuity between holes and sections.

DDH V-11-20 was a significant step-out hole that tested the trend of the North Limb a further 490 metres north of DDH V-11-14 for a total tested strike length of approximately 1,600 metres. It intersected nickel mineralized serpentinite over 81.48 metres down-hole. Analytical results demonstrate significantly anomalous nickel over substantial core lengths (e.g. 13.98 metres grading 0.24% Ni between 369.25-383.23 metres) further demonstrating the potential for nickel mineralization over a far more extensive area than previously reported.

DDH From (m) To (m) Int (m) Grade (%Ni)
V-11-11 217.90 235.00 17.10 0.58
238.00 246.00 8.00 0.61
255.00 304.00 49.00 0.56
Incl. 259.00 295.00 36.00 0.64
V-11-12 Strongly anomalous nickel analyses
V-11-13 194.21 255.18 60.97 0.46
Incl. 208.00 237.00 29.00 0.60
261.65 275.22 13.57 0.32
280.83 289.20 8.37 0.33
333.28 336.00 2.72 0.70
V-11-14 209.45 218.60 9.15 0.32
226.00 231.14 5.14 0.32
302.44 338.70 36.26 0.68
345.65 355.40 9.75 0.34
369.63 372.00 2.37 0.53

Victory Nickel's Qualified Person under the NI 43-101 guidelines is Paul Jones, Vice-President, Exploration. Mr. Jones has reviewed and approved the contents of this news release. The results tabulated here report total nickel values. All intervals reported in this news release are core lengths. True widths have not yet been established. All analytical results were produced by TSL Laboratories of Saskatoon, Saskatchewan using HNO3-HCl atomic absorption with detection limits of between 1 ppm and 5,000 ppm for nickel; over limits employed HNO3-HF-HClO4-HCL atomic absorption with detection limits between 0.01% and 45%.

About Victory Nickel

Victory Nickel Inc. is a Canadian company with four sulphide nickel deposits containing significant NI 43-101- compliant nickel resources. Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing properties, Minago, Mel and Lynn Lake in Manitoba, and Lac Rocher in northwestern Québec, and by evaluating opportunities to expand its nickel asset base. Victory Nickel also owns shares in Prophecy Coal Corp. (TSX VENTURE:PCY), Prophecy Platinum Corp. (TSX VENTURE:NKL) and Wallbridge Mining Company Limited (TSX:WM), the third largest landholder in the Sudbury Basin, which in turn owns approximately 9% of Duluth Metals Limited.

Please visit the Company's website at www.victorynickel.ca. Should you wish to receive Company news via email, please email michelle@chfir.com and specify "Victory Nickel" in the subject line.

Forward-Looking Information: This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company 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 the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from estimates and assumptions; uncertainties relating to the availability and costs of financing needed in the future; failure to establish estimated mineral resources; fluctuations in commodity prices and currency exchange rates; inflation; recoveries being less than those indicated by the testwork carried out to date (there can be no assurance that recoveries in small scale laboratory tests will be duplicated in large tests under on-site conditions or during production); changes in equity markets; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company's activities; the uncertainties involved in interpreting geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 31, 2010 filed on SEDAR at www.sedar.com. Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company 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 the Company 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.

To view the "North Limb Drilling - Minago Project" map, please visit the following link: http://media3.marketwire.com/docs/ni721fig1.pdf.

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