Victory Nickel Inc.

Victory Nickel Inc.

February 26, 2007 07:30 ET

Victory Nickel Increases Mel Nickel Resource

Measured & Indicated resource rises 79%, grade up 14%; aggressive drill program underway

TORONTO, ONTARIO--(CCNMatthews - Feb. 26, 2007) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:Ni), today announced a 79% increase in the amount of contained nickel, and a 14% rise in grade, in the measured and indicated resource at its Mel sulphide nickel project on Manitoba's prolific Thompson Nickel Belt. In addition, the Company is actively exploring the Mel property with a $2.0 million winter drill program currently underway.

The new Mel resource estimate, conducted by Wardrop Engineering Inc., significantly enhances Victory Nickel's overall sulphide nickel inventory which stands at over 660 million pounds of in-situ nickel in measured and indicated resources and an additional 530 million pounds of in-situ nickel in inferred resources at its Mel, Minago and Lac Rocher deposits. The Mel resource is located near surface, within 180 metres of the overburden-bedrock interface. The updated resource is as follows, using a 0.50% nickel cut-off grade:

Classification Tonnes Grade (%Ni) Contained Ni (lbs.)
Indicated 4,279,000 0.875 82,520,515
Inferred 1,010,000 0.839 18,676,476

"This new resource represents a tremendous increase over past estimates and enhances the potential for near-term production at Mel," said Paul Jones, Vice-President, Exploration. "In addition to evaluating possible production scenarios from the near-surface deposit, we are conducting an aggressive program this winter to further augment the resource and test exploration targets on the 108 square kilometre property."

In addition to resource drilling, the two drills currently on site will, conditions permitting, test the numerous geophysical targets identified on the property, including a prospective EM response with an associated nickel intersection located approximately 700 metres north of the Mel Deposit. The program is being carried out by Victory Nickel's joint venture partner CVRD Inco Limited under the supervision of Paul Jones, Victory Nickel's Vice-President, Exploration and Qualified Person for the project. Victory Nickel is in the process of earning a 100% interest in the Mel Property, which includes both the Mel Lease (where the entire resource is hosted), and the Mel Claims, by spending an aggregate of $6.0 million by February 28, 2008. On completion of the current $2.0 million program, including $500,000 on the Mel Claims portion of the property, Victory Nickel will have earned a 100% interest in the Mel project; CVRD Inco Limited has a back-in right and option to earn-back a 51% interest in the project.

About Mel

The Mel sulphide nickel project is located on the prolific Thompson Nickel Belt, approximately 25 kilometres north of the city of Thompson in northern Manitoba. Victory Nickel is earning a 100% interest from CVRD Inco Limited. The Mel deposit is located on the Mel Lease and consists of a National Instrument 43-101-compliant indicated resource of 4.3 million tonnes grading 0.875% nickel (approximately 83 million pounds in-situ nickel) and an additional inferred resource of 1.0 million tonnes grading 0.839% nickel (approximately 19 million pounds in-situ nickel). This near-surface resource, along with a stipulation in the option agreement that CVRD Inco Limited shall mill ore mined from the Mel deposit at cost plus 5% (provided that the product meets CVRD Inco specifications and that CVRD Inco has sufficient mill capacity), makes near-term nickel production from the Mel deposit a possibility.

About Victory Nickel

Victory Nickel Inc. is a Canadian nickel company with over 660 million pounds of in-situ nickel in National Instrument 43-101-compliant measured and indicated resources and an additional 530 million pounds of in-situ nickel in inferred resources in three sulphide nickel projects: Minago and Mel on Manitoba's Thompson nickel belt from which in excess of four billion pounds of nickel has been produced, and the high-grade Lac Rocher deposit in northwestern Quebec. Created from the nickel assets of Nuinsco Resources (TSX:NWI), Victory Nickel is well financed and focused on becoming a producer by developing its existing properties and evaluating opportunities to expand its 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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