Victory Nickel Updates Status of Victory Silica Frac Sand Initiative

TORONTO, ONTARIO -- (Marketwire) -- 10/18/12 -- Victory Nickel Inc. ("Victory Nickel" or the "Company") (TSX: NI) (www.victorynickel.ca) today provided an update regarding ongoing initiatives by the Company's subsidiary Victory Silica Ltd. ("VSL").

VSL was created earlier this year to establish Victory Nickel's presence in the frac sand market prior to commencing production of both nickel and frac sand at the 100%-owned Minago mine in Manitoba. The Minago feasibility study envisions production of up to 1.14 million tonnes per year of premium-quality frac sand from the Winnipeg Formation sandstone resource that overlies the Minago nickel deposit. In order to establish Victory Nickel as a premier frac sand supplier today, VSL plans to produce premium-quality Midwest frac sand in Canada by shipping raw or partially processed sand from Wisconsin to an existing sand processing facility in Alberta. Discussions concerning VSL's acquisition of the Alberta plant are well advanced.

At the same time as it is developing this business, VSL is pursuing additional opportunities it has identified to generate near-term cash flow in the frac sand market. VSL is in negotiation with several firms involved in the processing and provision of frac sand and associated products.

"The frac sand market is constantly evolving, and this presents new opportunities to VSL," said VSL CEO Ken Murdock. "High-quality Midwest frac sand remains at a premium, and the relationships we are establishing in the US and Canada today will benefit Victory Nickel in near-term and down the road when Minago financing, mine development and production moves forward."

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. 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 annual information form dated March 30, 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


CHF Investor Relations

Juliet Heading

416.868.1079 ext. 239

416.868.6198 (FAX)
juliet@chfir.com