TORONTO, ONTARIO--(Marketwire - Jan. 10, 2008) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI)(www.victorynickel.ca) today announced that it has begun 10,000 metres of diamond drilling designed to expand the overall nickel resource, as well as an Early Works program as part of work required for the start-up of nickel production in the fourth quarter of 2010 at the 100%-owned Minago nickel project.

"The 2008 drill program follows up on the potential identified in the Minago scoping study to define additional higher-grade mineralization at depth in the Nose Deposit, the area containing the entire current resource, where the most recent hole drilled ended in 1.91% nickel over almost four metres," said Brian E. Robertson, President. "In addition, we are targeting the North Limb, a zone of mineralization with a known strike length of 1.5 kilometres located to the north of the Nose Deposit."

The Minago scoping study identified the need for further drilling at depth in the Nose Deposit to better define potential lenses of higher grade mineralization. Drilling conducted in 2006 confirmed the strength and continuity of nickel mineralization as well as higher grades including 80.95 metres of 1.12% nickel and 197.6 metres averaging 0.82% nickel in hole DDH NM-06-06 which ended in 3.93 metres of 1.91% nickel at 829.85 metres. The 2008 program will target expansion and upgrading of the high-grade zone at depth.

In 2005, Nuinsco drilled a single 455.4 metre deep hole in the North Limb, intersecting 9.71 metres grading 1.03% nickel and 52.5 metres grading 0.64% nickel within a 337.9 metre intercept grading 0.33% nickel in rock similar to that hosting the Minago resource. In the current program, additional holes are planned to further characterize the mineralization and nickel grades along this potentially vast and underexplored area.

The Minago diamond drilling program is being supervised by Paul Jones, Vice-President, Exploration for Victory Nickel, who acts as QP under National Instrument 43-101.

"The Early Works program represents the first step in the design of the tailings facility, waste dumps and overall site layout in preparation for permitting and development of the Minago mine," added Mr. Robertson.

The Early Works program consists of geotechnical drilling, hydrogeological drilling, and design of a permanent access road. Design of an early site access road to support Early Works development is already complete.

Geotechnical drilling will provide data for the development of the site layout and the technical design parameters in the areas of tailings management, waste dump, open pit, sewage lagoons and pit perimeter/road berm.

The hydrogeological drilling program will provide additional data for the environmental impact statement (EIS) required for permitting, as well as information for detailed design of the mine dewatering system which is scheduled to be installed in the fourth quarter of 2008.