TORONTO, ONTARIO--(Marketwire - May 14, 2012) - Victory Nickel Inc. (the "Company") (News - Market indicators) (www.victorynickel.ca) today announced several developments arising from the winter work program at its 100%-owned Minago sulphide nickel project in Manitoba.

"Since receiving our Environment Act Licence our primary task has been to secure construction financing for the Minago mine. To this end, recent meetings with offshore groups have been very encouraging, but the focus on financing doesn't mean site work is not continuing," said René Galipeau, Vice-Chairman and CEO. "In addition to the drill program, other site activities are ongoing in anticipation of the start of the first phase of construction once mine financing is secured."

These activities include drainage ditching and an overburden characterization program.

Drainage Ditching:

The Company has constructed a 2.3 kilometre test drainage ditch from the centre of the proposed one kilometre-plus diameter Minago open pit, extended with two chevrons to the outer edges of that pit. The intent is to investigate the potential for site drainage using more cost-effective means. Thus far, the system is performing better than expected. The next step is to install additional drainage ditches to drain the entire pit area in preparation for the overburden removal.

"This positive result should put to rest once-and-for-all any historical perception of serious water issues at Minago that could impede construction and mining," said Steve Harapiak, President and COO. "More importantly, this finding will have a positive impact on capital and operating costs and it establishes that year-round mine construction is feasible at Minago."

Overburden Characterization:

An overburden characterization program over the proposed open pit area has produced two results predicted to have a positive impact on costs and timing of pre-stripping the nickel deposit:

• First, the program incorporating test pitting and drilling has reduced the expected volume of overburden by 18.5% from the feasibility study estimate, resulting in an estimated cost savings of $5.6 million.
• Second, there are no soft clays overlying the pit area. This, combined with the ability to drain surface water by ditching, again will lead to cost reduction from replacing the expensive dredging process projected in the feasibility study with more cost-effective mechanical overburden removal.

"This too is great news," said Mr. Harapiak. "Minago continues to provide better-than-expected results in a number of areas, and we anticipate more will come."

Single Blanket Work Permit:

Another positive development is the issuance by the Manitoba Government of a single blanket Work Permit covering all work done on the project site for a period of one year. This development will expedite site work as it eliminates the need to apply for permits to undertake individual activities.

Winter Drill Program:

The winter drill program is now complete. Assays are pending from the approximately 4,150 metre program that includes exploration holes testing potentially nickel-bearing magnetic and electromagnetic anomalies and geological targets around the property, some of which were also considered to be condemnation drill holes necessary in advance of infrastructure development.

Victory Nickel's Qualified Person under the NI 43-101 guidelines is Paul Jones, Vice-President, Exploration. Mr. Jones has reviewed and approved the technical 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 Québec, and by evaluating opportunities to expand its nickel asset base. Victory Nickel also owns shares in Prophecy Coal Corp. (TSX VENTURE:PCY), Miocene Metals Limited (TSX VENTURE:MII) and Wallbridge Mining Company Limited (TSX:WM), the third largest landholder in the Sudbury Basin, which in turn owns an interest in Duluth Metals Limited.

Please visit the Company's website at www.victorynickel.ca. Should you wish to receive Company news via email, please email juliet@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 30, 2012 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.