Victory Nickel Announces Amended and Restated Loan Agreement

TORONTO, ONTARIO -- (Marketwire) -- 03/26/13 -- Victory Nickel Inc. ("Victory Nickel" or the "Company") (TSX: NI) (www.victorynickel.ca) today announced that it has executed an amended and restated loan agreement (the "Amended Loan Agreement") in respect of the original $1 million secured loan facility announced on January 25, 2013 (the "Original Loan"), whereby the lender (the "Lender") has increased the amount available under the secured loan facility to up to $3.0 million (the "Amended Loan"). As with the Original Loan, the Amended Loan bears interest at 12% per annum, payable quarterly in arrears and matures on January 31, 2015.

The additional amounts available under the Amended Loan are to be used to fund capital expenditures relating to the Seven Persons sand recycling facility (the "7P Plant") located southwest of Medicine Hat, Alberta which Victory Nickel has agreed to purchase subject to certain conditions (see news release dated January 9, 2013).

At the option of the Lender and under certain circumstances, the Lender can elect to receive prepayment of $1.0 million of the Amended Loan from the proceeds of an option payment due to the Company, from the sale of a property and payable in periodic instalments through August 2014.

Prior to June 1, 2014, the Lender has the right to convert the outstanding balance of the Amended Loan into a participating interest (the "Conversion") whereby the Lender is entitled to receive a share of cash flows earned from the sale of frac sand from the 7P Plant. The Lender's participation is capped at $10 million, with a minimum of $7.5 million, and is subject to adjustment under certain circumstances. On Conversion, the Amended Loan would be considered paid in full. The Lender has also agreed to backstop an equity issue, if any is undertaken, with cash or by converting a portion of the Amended Loan into shares, at the Lender's option to an amount up to $1.5 million under certain circumstances.

"The completion of the Amended Loan Agreement is a huge step forward, as it puts Victory Nickel on the road toward generating cash flow from frac sand sales through Victory Silica Ltd. which is vitally important particularly in the current challenging equity market environment," said Rene Galipeau, Vice-Chairman and CEO. "As previously announced, the application to change the permit of the 7P Plant to a frac sand processing facility has been filed. Once that approval is received, reclamation, engineering, equipment acquisition and construction of plant upgrades to convert the 7P Plant to a 400,000 ton per annum frac sand processing plant can begin immediately."

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 (under option to Prophecy Platinum) in Manitoba, and Lac Rocher in northwestern Quebec, and by evaluating opportunities to expand its nickel asset base. Through a wholly-owned subsidiary, Victory Silica Ltd., Victory Nickel is establishing a presence in the frac sand market prior to commencing frac sand production and sales from Minago.

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 amended annual information form dated November 5, 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.

Contacts:

Victory Nickel Inc.

Rene Galipeau or Sean Stokes

416.363.8527

416.626.0890 (FAX)
admin@victorynickel.ca
www.victorynickel.ca


Victory Silica Ltd.

Ken Murdock

403.899.0141


CHF Investor Relations

Juliet Heading

416.868.1079 ext. 239

416.868.6198 (FAX)
juliet@chfir.com