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Minago Drilling Continues to Return Exceptional Intersections

TORONTO, ONTARIO--(Marketwire - May 28, 2010) - Victory Nickel Inc. (the "Company") (TSX:NI), ([ www.victorynickel.ca ]) today announced positive results from six more drill holes on its 100%-owned Minago sulphide nickel deposit in Manitoba's Thompson Nickel Belt. The results of the 2010 winter program continue to demonstrate the presence of additional nickel mineralization in parts of the deposit that to date have been under-drilled.

These new intercepts are significant because mineralization that was previously considered waste in the Minago Definitive Feasibility Study (DFS) can now be included to enhance project economics. Further intervals of significant nickel grade may increase the overall grade of the deposit.

"The results provide continuing confirmation of the widespread nature of nickel mineralization at Minago as well as the presence of significant domains of strong nickel grade within the deposit," said Paul Jones, Vice-President, Exploration. "These very wide intersections confirm the extraordinary nickel endowment at Minago - one of Canada's largest undeveloped sulphide nickel resources."

These holes comprise part of a 23 drill-hole program that targeted the portion of the Minago Nose Deposit resource located within the confines of the contemplated open pit. (Three additional holes were drilled on the North Limb mineralization to the north outside of the current resource area). The results tabulated here, combined with the results of seven holes previously reported, show significant total nickel intercepts that occur within an extensive domain of nickel mineralized ultramafic rock that define the global resource at Minago.

 Length From Interval Assay 
 DDH No. Location (m) (m) To (m) (m) (Ni %) 
 V-10-07 23C 611 351.79 358.10 6.31 0.67 
 and 376.31 379.55 3.24 1.15 
 and 502.23 513.35 11.12 1.55 
 and 523.34 544.74 21.40 0.42 

 V-10-09 30E 339 176.36 233.96 57.60 0.47 
 including 220.23 233.96 13.73 0.80 
 and 311.60 318.32 6.72 0.76 

 V-10-10 25C 313 147.42 248.40 100.98 0.95 
 including 150.98 192.30 41.32 1.10 
 including 206.86 248.40 41.54 1.09 

 V-10-11 23C 423 161.50 353.15 191.65 0.51 
 including 192.90 285.69 92.79 0.81 

 V-10-14 22C 295 249.16 259.41 10.25 0.27 

 V-10-15 15W 334 111.67 315.00 203.33 0.63 
 including 126.00 228.00 102.00 0.90 
 including 142.00 200.74 58.74 1.11 

The Minago Deposit is folded about a near north-south oriented fold axis. The drill holes reported here are located on sections adjacent to or within the fold hinge at the centre of the deposit. Results reported here are 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.

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.

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.

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.

For further information, please visit [ www.victorynickel.ca ]. Should you wish to receive Company news via email, please email [ chelsea@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 Minago Project, Winter 2010 Drill Plan, please visit the following link: [ http://media3.marketwire.com/docs/MinagoProject.pdf ].