Victory Nickel Inc has announced further positive drill results at its 100% owned Minago sulphide nickel deposit in Manitoba's Thompson Nickel Belt.

The current work program is, in large part, directed at optimizing the near surface resource at Minago to enhance the economics of the deposit. As expected, drilling continues to intersect mineralization at the top of the deposit near the contact with the immediately overlying sandstone. This mineralization was excluded by Wardrop, a Tetra Tech Company, from the resource and reserve estimates used in the Minago definitive feasibility study due to a lack of drill coverage.

In addition a considerable 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. Converting these areas to resources has the double benefit of reducing waste which must be removed and increasing the amount of nickel to be recovered. As previously reported, based on the DFS, an additional 3.6 million tonnes, representing one year of mine life, adds approximately USD 80 million to the project's net present value at an 8% discount rate.

Drill hole V-10-02 was drilled to the north of the currently defined pit limits area to determine the extent of additional shallow nickel mineralization. It was drilled to a length of 160 meters and, as expected, did not intersect significant sulphide mineralized rock.

The drill program is being supervised by Mr Paul Jones VP exploration for Victory Nickel, who acts as QP under National Instrument 43-101.

In addition to the drilling, construction of the 4.3 kilometers exploration road that provides direct access from paved provincial Highway 6 to a limestone outcrop and the Minago property in general has been completed on schedule and on budget. This road provides a basis for year round site access allowing cost effective exploration and other work planned for the Minago site.