Victory Nickel Announces Process to Improve Capital Structure

TORONTO, October 30, 2020 - Victory Nickel Inc. ("Victory Nickel" or the "Company") (CSE:NI)(www.victorynickel.ca) today announced that it has engaged Red Cloud Securities Inc. ("Red Cloud") on an exclusive basis as its financial advisor to manage a process (the "Process") on behalf of the Company to improve the capital structure of the Company.

Red Cloud will be paid a retainer fee of C$50,000 (the "Retainer Fee") plus applicable taxes payable in cash. In addition to the Retainer Fee, Red Cloud will receive a transaction fee in the event that a transaction ("Transaction") is consummated dependent on the value of that Transaction.

Victory Nickel has three 100%-owned nickel projects, its flagship Minago project in Manitoba; the Mel project, also in Manitoba; and the Lac Rocher project in Quebec. Red Cloud and the Company will evaluate all potential opportunities and structures to improve the Company's capital structure and allow the Company to move forward to the benefit of all stakeholders. The Process is expected to be complete in the first quarter of 2021.

In connection with the Process, the Company and its secured lender, City Hall Capital LLC (the "Lender") have executed a forebearance agreement, effective October 30, 2020, related to the outstanding secured debt held by the Lender in the aggregate amount of U.S.$11,364,685.58 (inclusive of accrued interest to and including October 30, 2020) under which the Lender agrees to forbear from the exercise of its rights and remedies under the security in respect of the Indebtedness for a period of time during the course of the Process. During the forebearance period, the Lender has agreed to fund the Company up to a maximum principal amount of U.S.$282,000.

About Victory Nickel

Victory Nickel Inc. is a Canadian company with four sulphide nickel deposits containing significant NI 43-101-compliant nickel resources and a significant frac sand resource at its Minago project. Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing properties, Minago, Mel and Lynn Lake (currently under option to Corazon Mining Ltd.) in Manitoba, and Lac Rocher in northwestern Québec. Through a wholly-owned subsidiary, Victory Silica Ltd., Victory Nickel at its 7P Plant frac sand processing facility in Seven Persons Alberta, has established itself in the frac sand business prior to commencing frac sand production and sales from Minago.

Contact:

Victory Nickel Inc.
Sean Stokes
Phone: 416.712.7481
Email: admin@victorynickel.ca
www.victorynickel.ca

Forward-Looking Information: This news release contains certain forward-looking information. All information, other than information regarding historic fact that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future is forward-looking information. The forward-looking information contained in this news release, including information related to the completion and outcome of any debt restructuring activities reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. The forward-looking information contained in this news release is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, the Company disclaims any obligation to update or modify such forward-looking information, either because of new information, future events or for any other reason. 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.

SOURCE: Victory Nickel Inc.