Victory Nickel Inc.

Victory Nickel Inc.

July 09, 2010 09:00 ET

Victory Nickel Continues to Demonstrate Continuity in Minago North Limb

Assays of 52m of 0.57% Ni and 0.13m of 13.4% Ni indicates resource expansion potential

TORONTO, ONTARIO--(Marketwire - July 9, 2010) - Victory Nickel Inc. (the "Company") (TSX:NI)( today announced additional assays, grading up to 13.4% over 0.13m, that continue to indicate the potential for resource expansion in the North Limb of Victory Nickel's 100%-owned Minago nickel deposit.

"The most recent results from the North Limb in DDH V-10-21 build upon an earlier intersection obtained from DDH V-10-13 (see news release of June 22, 2010) and DDH N-5 and continue to demonstrate continuity in the North Limb and the potential to expand the nickel resource at the Minago Project beyond that presently defined at the Nose Deposit," said Paul Jones, Vice-President, Exploration.

DDH V-10-21 is located approximately 900m north of the northern limit of the Minago Nose Deposit resource and approximately 70m north of DDH V-10-13 (see map attached). The North Limb is a north-trending linear domain of nickel mineralization at least 1.5km in length that extends north from the Minago Nose Deposit, where the entire reported Minago nickel resource is located.

Of particular interest are the intervals of higher grade nickel mineralization, tabulated below, that further enhance the potential of the North Limb. A noteworthy, narrow, shallow, intercept of sulphide-bearing metasediment between 88.59m and 88.72m and immediately adjacent to the sulphide-bearing serpentinite rock that comprises the North Limb, returned an assay grading 13.35% Ni (as well as 2.18g/t Pt and 7.05g/t Pd). Also of significance is the intercept between 482.56m and 486.77m, grading 1.394% Ni, which provides firm evidence of the depth potential of the North Limb mineralization.

DDH No From (m) To (m) Int (m) Ni (%)
V-10-21 173.00 225.24 52.24 0.571
including 186.00 222.66 36.66 0.651
and 259.56 277.81 18.25 0.543
including 259.56 268.00 8.44 0.704
and 283.40 405.00 121.6 0.332
and 482.56 486.77 4.21 1.394

DDH V-10-21 comprises part of a 26 drill-hole program conducted during the winter of 2010. 23 drill-holes targeted the portion of the Minago Nose Deposit resource located within the projected open pit while three holes (including V-10-21) were drilled on the North Limb mineralization which is outside of the known resource area.

The current work program is in large part directed at expanding the near-surface resource at Minago to further enhance the economics of the deposit. As expected, drilling continues to intersect nickel mineralization at the top of the deposit near the contact with the immediately overlying sandstone (frac sand). This nickel mineralization was excluded by Wardrop, a Tetra Tech Company, from the resource and reserve estimates used in the Minago DFS due to a perceived lack of drill coverage (see news release dated March 31, 2010). In addition, a significant portion of in-pit resources currently classified as Inferred are expected to be upgraded to at least the Indicated category for inclusion in future economic evaluations. An increase of 3.6 million tonnes of resources is expected to improve the NPV by approximately $80 million at an 8% discount rate.

The drill program is being supervised by Paul Jones, Vice-President, Exploration for Victory Nickel, who acts as QP under National Instrument 43-101 and 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.

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 Quebec, and by evaluating opportunities to expand its nickel asset base. Victory Nickel also owns shares in Prophecy Resource Corp. (TSX VENTURE:PCY) and approximately 5% of Wallbridge Mining Company Limited (TSX:WM), the third largest landholder in the Sudbury Basin, which in turn owns approximately 12.9% of Duluth Metals Limited.

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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 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.

Please note: To view the map titled "Victory Nickel Minago Project, Winter 2010 Drill Plan - North Limb," please visit the following link:

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