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Victory Nickel Announces Loan Agreement
Proceeds to Fund General Working Capital Requirements

TORONTO, ONTARIO -- (Marketwire) -- 01/25/13 -- Victory Nickel Inc. ("Victory Nickel" or the "Company") (TSX:NI) (www.victorynickel.ca) today announced that it has completed a loan agreement (the "Loan Agreement") whereby the lender provided the Company with a secured loan facility for $1 million (the "Loan"). The Loan bears interest at 12% per annum, payable quarterly in arrears and matures on January 31, 2015.

As well, negotiations are well advanced to increase this Loan to up to $3.0 million with the additional amount available to fund capital expenditures relating to the Seven Persons sand recycling facility (the "7P Facility") located southwest of Medicine Hat, Alberta which Victory Nickel has agreed to purchase subject to certain conditions (see news release dated January 9, 2013).

At the option of the Lender and under certain circumstances, the Lender can elect to receive prepayment of the Loan from the proceeds of an option payment payable prior to March 1, 2013 pursuant to a property sale agreement.

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: the failure to finalize negotiations concerning the increase of the Loan or to close such transaction and the failure of the Company to complete the acquisition of the 7P Facility; 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; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's amended annual information form dated November 5, 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

About Marketwired .
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