Victory Nickel Announces Successful Rights Offering to Shareholders

Offering generates gross proceeds of $2.4 million

TORONTO, ONTARIO--(Marketwired - Jul 31, 2013) - Victory Nickel Inc. ("Victory Nickel" or the "Company") (TSX:NI) today announced that it has successfully completed its previously announced rights offering. The rights offering generated gross proceeds of $2.4 million.

Pursuant to the rights offering, the Company will issue 100,000,000 units (each, a "Unit"); each Unit comprises one Common Share and one Common Share purchase warrant (each a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.035 during the 12-month period beginning at 9:00 a.m. (Toronto time) on July 31, 2014 and ending at 4:00 p.m. (Toronto time) on July 31, 2015. Including the additional subscription privilege, a total of 100,000,000 Units were subscribed for, representing 88.4% of the maximum number of Units issuable of 113,073,715.

"We are very pleased with the outcome of the rights offering, and would like to thank all of our loyal shareholders for their continued support of Victory Nickel," said Vice-Chairman and CEO René Galipeau. "We are pushing ahead with the development of the frac sand business via our 100%-owned subsidiary, Victory Silica, and remain on track to begin frac sand production and sales before the end of 2013."

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 Québec, 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 (including, the Company's development plans and objectives (including for the Minago, Mel, lac Rocher and Lynn Lake properties) and estimates and/or assumptions in respect of production, revenue, sales, cash flow, costs, economic return, and net present value (including for the Minago, Mel, Lac Rocher and Lynn Lake properties)) 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: the possibility that actual circumstances will differ from estimates and assumptions; changes in equity markets; the inability of the Company to generate cash flow in the future; the inability of the Company to meet its development plans and objectives; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 28, 2013 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.