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Victory Nickel Inc.: Exploration Drilling Confirms Widespread Nickel Mineralization on Victory Nickel's Minago Project

^{Published on 2008-11-25 17:54:36 - Market Wire}
 

TORONTO, ONTARIO--(Marketwire - Nov. 25, 2008) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI)([ www.victorynickel.ca ]) today reported further drilling results from the 2008 drilling program that significantly expand the scope of the exploration potential on the Minago sulphide nickel project in Manitoba and further highlights the widespread nature of nickel mineralization on the property.

An eight-hole drilling program (holes designated VX-08-01 through VX-08-08) was conducted approximately 3 kilometres north of the Minago Nose Deposit (which hosts the entire Minago nickel resource) on claims optioned from Xstrata Nickel (see news release dated January 31, 2008). Drill hole VX-08-03 (302m total length) intersected 66m grading 0.52% Ni within sulphide bearing ultramafic rock. The mineralization, grade and host rocks are similar to those of the Minago Nose Deposit and serve to confirm the prospective nature of the local region at Minago which includes the extensive nickeliferous rock of the under-explored North Limb.

A total of 2,512m of drilling was completed on the optioned claims, with all of the holes targeting geophysical anomalies and intersecting considerable Thompson and Pipe formation rock - host to nickel mineralization in the Thompson Nickel Belt. Locally abundant sulphide was observed. Nickel analyses peaked at 1.69% Ni over 1.5m within the 66m interval between 78.55m and 144.55m that graded 0.52% Ni in DDH VX-08-03; this mineralized interval occurs at shallow depth in the Thompson Nickel Belt rocks.

Importantly the drilling reported here is located northwest of the "North Limb" mineralization (reported in previous news releases and believed to be an offset extension of the Minago Nose Deposit) thus extending the distribution of known nickeliferous rock on the property well to the north of the Minago Deposit. Other historic drilling has identified nickel mineralization elsewhere in the local region providing further evidence of substantial nickel endowment. When coupled with the recent reinterpretation of magnetic surveys using inversion techniques - which indicate possible depth extension to known nickel mineralization - the exploration potential at Minago is enormous and the possibility to expand on the existing resource at the Minago Nose Deposit is significant.

All intervals reported in this news release are core lengths and not true widths as true widths are not yet known. All analyses were conducted by TSL Laboratories of Saskatoon, Saskatchewan and are reviewed for QA\QC purposes prior to public release. The Minago work 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.

About Victory Nickel

Victory Nickel Inc. is a Canadian company with three sulphide nickel deposits containing significant 43-101-compliant nickel resources. Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing properties, Minago and Mel in Manitoba, and Lac Rocher in northwestern Quebec, and by evaluating opportunities to expand its nickel asset base. Victory Nickel also owns approximately 84% of the outstanding shares of Independent Nickel Corp. ("Independent") (TSX:INI).

For further information, please visit our website at [ www.victorynickel.ca ].

Forward-Looking Information: This news release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow, costs, economic return, net present value, mine life and financial models, mineral resource estimates, potential mineralization, potential mineral resources, timing of possible production and the Company's development plans and objectives) 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 frac sand prices and currency exchange rates; inflation; frac sand 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 August 18, 2008 filed on SEDAR at [ www.sedar.com ]. 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, 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 a map of the Minago Drill Program please visit the following link: [ http://media3.marketwire.com/docs/NiMap.pdf ]