Drilling Continues to Confirm Continuity at Victory Nickel's Minago Deposit: Financial News

Drilling Continues to Confirm Continuity at Victory Nickel's Minago Deposit
Thursday August 28, 2008 2:25 pm ET

Highlights potential for substantial resource increase, deposit remains open to depth

TORONTO, ONTARIO--(MARKET WIRE)--Aug 28, 2008 -- Victory Nickel Inc. ("Victory Nickel" or the "Company")(Toronto:NI.TO - News)(www.victorynickel.ca) today reported further drilling results from the 2008 winter drilling program that continue to confirm continuity of nickel mineralization to depth beneath the large, open pit exploitable resource and for substantial expansion of the known resource at its Minago sulphide nickel project in Manitoba.

The results from these holes complement those reported earlier from the 2008 work program (see news releases of May 21, and July 10 2008). Hole V-08-09 was collared to enhance confidence in a deeper resource designated the eastern "Root" of the deposit, while Hole V-08-10 tested an undrilled area directly beneath the known open pit resource.

 

Significant intersections from holes V-08-09 and V-08-10 are as follows:

                                            Interval
Hole ID             From (m)       To (m)         (m)      Ni (%)
-----------------------------------------------------------------

V-08-09              712.27        756.00      43.73        0.78
      including      741.27        756.00      14.73        1.02

V-08-10              549.93        570.00      20.07        0.45
            and      587.58        600.51      12.93        1.38

"These drill holes, which are among the deepest drilled at the project to date, continue to show that nickel mineralization persists to considerable depth beneath the known open pit resource," said Vice-President, Exploration Paul Jones. "The drilling clearly supports the potential to further enhance the nickel resource at Minago. The deposit remains open at depth, and of particular importance is hole V-08-10, drilled in the gap between existing resources, which demonstrates the potential presence of a volume of rock comparable in size to the existing open pit exploitable resource."

This completes reporting of the ten drill holes that were collared to test for continuity of the Minago Deposit, comprising 7,532 metres. The holes were drilled as part of a larger 2008 winter work program that included condemnation drilling around planned infrastructure sites and exploration drilling elsewhere on the property. Further drilling was undertaken to provide data for hydrogeological and geotechnical studies.

All intervals reported in this news release are core lengths and not true widths. 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 substantial National Instrument 43-101-compliant resources (see website). 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.

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

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.

To view the map titled, "Drill Plan, Minago Deposit, Thompson Nickel Belt, Manitoba" for this release, please visit the following link: http://media3.marketwire.com/docs/ni828map.pdf.