Victory Nickel Inc.

Victory Nickel Inc.

December 10, 2007 11:46 ET

Victory Nickel, Grand Rapids, Cross Lake, Moose Lake Cree First Nations Sign MOU Regarding Development of Minago Sulphide Nickel Deposit

TORONTO, ONTARIO--(Marketwire - Dec. 10, 2007) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI)( today announced further progress toward permitting its 100%-owned Minago sulphide nickel project on Manitoba's Thompson Nickel Belt with the signing of a Memorandum of Understanding ("MOU") with the Misipawistik Cree Nation (Grand Rapids), Mosakahiken Cree Nation (Moose Lake) and Cross Lake Band of Indians.

The MOU addresses traditional rights of these First Nations communities, and establishes the guiding principles for the development of an Impact and Benefit Agreement(s) ("IBA"). The IBA will cover a number of areas, including communication; the environment; social support; training, employment and contract opportunities; and education.

"As we move ahead with the Minago definitive feasibility study we have been working closely with all the communities that will be impacted by mining at Minago, and are pleased to be part of the first joint MOU signed by the Grand Rapids, Moose Lake and Cross Lake Cree First Nations," said David Mchaina, Vice-President Environment and Sustainable Development. "Throughout the process we've developed an excellent dialogue, and the signing of this MOU is testament to the commitment on the part of Victory Nickel and the First Nations to working together to rapidly develop the Minago mine while respecting traditional rights."

Commenting on the Minago project, Mr. Philip Buck, Chief, Moose Lake First Nation, said: "This is a unique opportunity for the community and its members. It is a special occasion for our community to witness a mining company coming to the people for input in order to develop the Minago Project in a sustainable manner. Moose Lake Band members will work together with Victory Nickel Inc. and other signatories of the MOU to maximize the benefits in a sustainable manner."

Mr. Ovide Mercredi, Chief, Misipawistik Cree Nation (Grand Rapids) said: "We are determined to benefit from future development that occurs within our traditional territory. The signing of this Memorandum of Understanding is a first step towards ensuring that our people have a significant voice in the development of the Minago Project as well as ensuring the protection of our treaty rights, the environment and in obtaining socio-economic benefits."

Mr. John Miswagon, Chief, Cross Lake Band of Indians said: "It is truly a historic day for indigenous people of Treaty 5 Territory and we hope it brings benefits to Northern Manitoba and we look forward to moving towards a meaningful and respectful way for our citizens."

Wardrop Engineering Inc. is currently completing the definitive feasibility study on the open pit portion of the Minago deposit. Metallurgical and by-product testing, along with permitting activities are ongoing and moving ahead as expected, and the Company is preparing for a winter work program to evaluate mineralization at depth in the Nose Deposit, which contains the entire current Minago nickel resource. Drilling will also be conducted along the North Limb, a two-kilometre long domain of little exposed nickeliferous ultramafic rock with the potential to contain a substantial nickel resource.

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.

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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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