TORONTO, ONTARIO--(Marketwire - Dec. 10, 2007) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI)(www.victorynickel.ca) today announced further progress toward permitting its 100%-owned Minago sulphide nickel project on Manitoba's Thompson Nickel Belt with the signing of a Memorandum of Understanding ("MOU") with the Misipawistik Cree Nation (Grand Rapids), Mosakahiken Cree Nation (Moose Lake) and Cross Lake Band of Indians.

The MOU addresses traditional rights of these First Nations communities, and establishes the guiding principles for the development of an Impact and Benefit Agreement(s) ("IBA"). The IBA will cover a number of areas, including communication; the environment; social support; training, employment and contract opportunities; and education.

"As we move ahead with the Minago definitive feasibility study we have been working closely with all the communities that will be impacted by mining at Minago, and are pleased to be part of the first joint MOU signed by the Grand Rapids, Moose Lake and Cross Lake Cree First Nations," said David Mchaina, Vice-President Environment and Sustainable Development. "Throughout the process we've developed an excellent dialogue, and the signing of this MOU is testament to the commitment on the part of Victory Nickel and the First Nations to working together to rapidly develop the Minago mine while respecting traditional rights."

Commenting on the Minago project, Mr. Philip Buck, Chief, Moose Lake First Nation, said: "This is a unique opportunity for the community and its members. It is a special occasion for our community to witness a mining company coming to the people for input in order to develop the Minago Project in a sustainable manner. Moose Lake Band members will work together with Victory Nickel Inc. and other signatories of the MOU to maximize the benefits in a sustainable manner."

Mr. Ovide Mercredi, Chief, Misipawistik Cree Nation (Grand Rapids) said: "We are determined to benefit from future development that occurs within our traditional territory. The signing of this Memorandum of Understanding is a first step towards ensuring that our people have a significant voice in the development of the Minago Project as well as ensuring the protection of our treaty rights, the environment and in obtaining socio-economic benefits."

Mr. John Miswagon, Chief, Cross Lake Band of Indians said: "It is truly a historic day for indigenous people of Treaty 5 Territory and we hope it brings benefits to Northern Manitoba and we look forward to moving towards a meaningful and respectful way for our citizens."

Wardrop Engineering Inc. is currently completing the definitive feasibility study on the open pit portion of the Minago deposit. Metallurgical and by-product testing, along with permitting activities are ongoing and moving ahead as expected, and the Company is preparing for a winter work program to evaluate mineralization at depth in the Nose Deposit, which contains the entire current Minago nickel resource. Drilling will also be conducted along the North Limb, a two-kilometre long domain of little exposed nickeliferous ultramafic rock with the potential to contain a substantial nickel resource.