TORONTO, ONTARIO--(Marketwired - Jul 7, 2014) - Victory Nickel Inc. ("Victory Nickel" or the "Company") (NI.TO) (www.victorynickel.ca) today announced that it has completed an offering of unsecured convertible promissory notes (the "Offering") having an aggregate principal amount of approximately US$5 million (each, a "Note") with a number of buyers (each, a "Lender").

The Company intends to use the proceeds for general corporate purposes and for working capital related to frac sand production managed by the Company's wholly-owned subsidiary Victory Silica Ltd. ("Victory Silica"). Victory Silica is currently completing commissioning of the Company's Seven Persons frac sand plant (the "7P Plant") near Medicine Hat, Alberta.

Each Note matures on a date which is two years following the issue date and bears interest at a rate of 14.8% calculated monthly with quarterly cash payments. Each Lender has the option to convert all or a portion of the principal amount of their Note into common shares in the capital of the Company (each, a "Common Share") at any time during the term of such Note at a conversion price of CDN$0.10 per Common Share.

Combined with a previously-completed US$2 million convertible promissory note financing on the same terms as the Note (see news release of November 11, 2013) and a US$4 million secured line of credit financing (see news release of May 15, 2014), the Offering provides the Company with sufficient capital for Phase 1 of the Company's frac sand business plan.

"We continue to see rising customer demand in the Canadian market for premium-quality Wisconsin frac sand, and expect to sell all of the frac sand produced at our 7P Plant during 2014," said René Galipeau, Vice-Chairman and CEO.

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