Mel

March 17, 2007
Revised Mel Resource Estimate March 2007 - Summary

March 17, 2007
Revised Mel Resource Estimate March 2007 - Full Report

The Mel Project is located in northern Manitoba 25 kilometres from the city of Thompson and VALE Inco Limited's metallurgical facility. Victory Nickel has earned a 100% interest from VALE Inco Limited by expending $6.0 million on exploration.

The Mel deposit is located on the Mel Lease and hosts a National Instrument 43-101-compliant measured and indicated resource of 4.3 million tonnes grading 0.875% nickel (83 million pounds in-situ nickel). The resource is located between 46 and 183 metres, making access to the mineralization relatively straightforward. This near-surface resource, along with a stipulation in the option agreement that VALE Inco Limited shall mill ore mined from the Mel deposit at cost plus 5% (provided that the product meets VALE Inco Limited' s specifications and that VALE Inco Limited has sufficient mill capacity), makes nickel production with a low capital requirement a possibility.

The Mel Claims offer significant upside potential. Past drill programs have tested numerous geophysical anomalies associated with known nickel bearing geology. In addition, a preliminary evaluation has been carried out to determine the potential for open pit and underground mining of the Mel Deposit. Geotechnical studies have been completed to evaluate the overburden cover and metallurgical test work carried out.