Victory Nickel Completes Flow-Through Financing

TORONTO, ONTARIO -- (Marketwire) -- 05/25/11 -- Victory Nickel Inc. ('Victory Nickel' or the 'Company') (TSX: NI) (www.victorynickel.ca) announced today that it has completed a non-brokered private placement financing of 8,695,652 flow-through units at a subscription price of $0.115 per flow-through unit. The Company raised gross proceeds of $999,999.98. Each flow-through unit consisted of one common share of the Company and one-half of one warrant (each whole warrant, a 'Warrant'), each issued on a 'flow-through' basis pursuant to the Income Tax Act (Canada). Each Warrant entitles the holder thereof to purchase one (non-flow-through) common share until November 25, 2012 at an exercise price of $0.15 per share.

Proceeds of the private placement will be used for exploration of the Company's Canadian sulphide nickel projects: Minago and Mel in Manitoba and Lac Rocher in Quebec.

The Company issued an aggregate of 456,960 finder's warrants to registrants in connection with the private placement (the 'Finder's Warrants'). Each Finder's Warrant entitles the holder thereof to acquire one unit of the Company (each, a 'Finder's Unit') at an exercise price of $0.15 per Finder's Unit until November 25, 2012. Each Finder's Unit consists of one common share of the Company and one-half of one Warrant.

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 in Manitoba, and Lac Rocher in northwestern Quebec, and by evaluating opportunities to expand its nickel asset base. Victory Nickel also owns shares in Prophecy Resource Corp. (TSX VENTURE: PCY) and Wallbridge Mining Company Limited (TSX: WM), the third largest landholder in the Sudbury Basin, which in turn owns approximately 9% of Duluth Metals Limited.

Please visit the Company's website at www.victorynickel.ca. Should you wish to receive Company news via email, please email cathy@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 including the expected use of proceeds. 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 annual information form dated March 31, 2011 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


CHF Investor Relations

Cathy Hume

416.868.1079

416.868.6198 (FAX)
cathy@chfir.com