ENVIRONMENTAL IMPACT: Victory Nickel files statement for Minago nickel project

MANITOBA - Toronto-based Victory Nickel has filed the environmental impact statement (EIS) for its 100%-owned Minago nickel project in the Thompson Nickel Belt. If development proceeds, it will provide approximately 600 construction jobs and 400 full-time jobs once production begins.

The company expects that the technical review of the EIS and subsequent Manitoba conservation advice with respect to public consultations and requests for specific additional information will require several months.

Victory files the feasibility study in March 2010. It is to be an open pit mine with a
10,000-t/d conventional flotation mill. Pre-production capital expenditures would be $588.5 million in current Canadian dollars. Operating cost over the life of the mine is estimated at $2.12/lb net of byproduct credits. Frac sand would be the byproduct. The project has a net present value of $294 million (8% discount), and the initial capex would be repaid over seven years. The deposit contains a measured resource of 11 million tonnes at 0.56% Ni, an indicated resource of 34 million tonnes at 0.51% Ni, and an inferred resource of 15 million tonnes at 0.53% Ni (0.25% nickel cutoff).

Visit www.VictoryNickel.com to read the feasibility report in full.