Victory Nickel Inc. TSX: NI

TORONTO, ONTARIO--(Marketwire - Oct. 21, 2009) - Victory Nickel Inc. ("Victory Nickel" or the "Company") (TSX:NI) (www.victorynickel.ca) today announced that it has optioned its Lynn Lake Project to Prophecy Resource Corp. ("Prophecy") (TSX VENTURE:PCY).

Under the terms of the agreement, which is subject to required regulatory approvals, Prophecy can acquire a 100% interest in the Lynn Lake Project by paying Victory Nickel an aggregate of $4,000,000 over approximately four-and-a-half-years, by incurring $3,000,000 in exploration expenditures over approximately three years and by issuing Victory Nickel 10% of Prophecy's outstanding shares subsequent to Prophecy completing a private placement. The Company also has the right to participate in future equity financings on a pro-rata basis to maintain its 10% interest in Prophecy.

The Lynn Lake Project is located in the historic mining town of Lynn Lake in northern Manitoba, about 320 kilometres by road northwest of the Thompson mining camp. The property is the former Sherritt Gordon Mines Limited mine site known as the Lynn Lake A Mine and Farley Mine, comprised of 30 mineral leases covering an area of 590 hectares. The property was operated by Sherritt Gordon from 1953 to 1976 with reported production of 22.2 million tons at an average grade of 1.023% nickel and 0.535% copper. Victory Nickel acquired the Lynn Lake Project, in addition to the royalty on Victory Nickel's Minago Project, through its acquisition of Independent Nickel Corp. which was finalized in January 2009.

"Victory Nickel's focus is on the large, sulphide nickel resource at Minago in Manitoba's Thompson Nickel Belt," said Rene Galipeau, Vice-Chairman and CEO. "In addition to providing cash to the Company on a non-dilutive basis, this transaction enables Lynn Lake to move forward rapidly while providing upside participation for Victory Nickel shareholders."

About Prophecy

Prophecy is in the process of earning a 60% interest in the Okeover Copper-Molybdenum property in British Columbia from Eastfield Resources Ltd. (TSX VENTURE:ETF). In late 2006, N.C. Carter, PhD, P.Eng. completed a technical report on the Okeover Property pursuant to National Instrument 43-101 that estimated an inferred mineral resource of 86.8 million tonnes grading 0.31% copper and 0.014% MoS2 at a 0.20% copper cut-off grade (approximately 593 million lbs of copper and 15 million lbs of MoS2).

About Victory Nickel

Victory Nickel Inc. is a Canadian company with four sulphide nickel deposits containing significant 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. Victory Nickel also owns approximately 5% of Wallbridge Mining Company Limited (TSX:WM), the third largest landholder in the Sudbury Basin.

For further information, please visit the Company's website at www.victorynickel.ca. Should you wish to receive Company news via email, please email catarina@chfir.com and specify "Victory Nickel" in the subject line.