This report filed on SEDAR on january 31, 2008:

Toronto, January 31, 2008 – Victory Nickel Inc. (“Victory Nickel” or the “Company”)(TSX:Ni, www.victorynickel.ca) today announced that it has signed an option agreement with Xstrata Nickel, (“Xstrata”), a business unit of Xstrata Canada Corporation, to acquire a 100% interest in five mineral claims located adjacent to Victory Nickel’s existing Minago property package.

Prior to the option, Victory Nickel held approximately 15,068 hectares of ground at Minago, incorporating the Nose Deposit, which is the area containing the entire current resource, and 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 option agreement with Xstrata adds five mineral claims (“the Properties”) totalling 691 hectares covering the extension of the North Limb to the north.

Past drilling by previous operators on the Properties optioned from Xstrata returned significant nickel mineralization.

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