Victory Nickel Inc. Update on Domestic Frac Sand Development

TORONTO, December 22, 2021 - Victory Nickel Inc. ("Victory Nickel" or the "Company") (CSE:NI) (www.victorynickel.ca) today announced that its subsidiary Victory Silica Ltd.'s ("Victory Silica") initial application to have the previously-announced property under an exploration and option agreement with Short Grass Ranches Ltd (the "Short Grass Property") has been not been approved. The municipal planning commission cited concerns with regard to the impact of traffic, noise and dust on the local community.

The Company is continuing to examine its options to identify is own source of domestic sand as well as revisiting the permitting of the Short Grass Property. The expectation is the Company will reapply for a permit in the spring of 2022 and in the intervening months will work diligently with the local community to address the concerns detailed in the decision. Third party testing confirms the Short Grass Property deposit as one of the best quality in-basin sand resource in Western Canada.

In the mean time the Company will continue to purchase from local domestic sand and gravel operations to supply our customers.

"The Short Grass Property is a high-quality sand resource, with it and access to current domestic sand resources, Victory Silica is positioned to be a low cost producer of in-basin frac sand for Southern Alberta and Southern Saskatchewan, well-located to capitalize on the increased oilfield activity expected in the 2022," said Ken Murdock, CEO of Victory Silica.

About Victory Nickel

Victory Nickel Inc. is a Canadian company with three sulphide nickel deposits containing significant NI 43-101-compliant nickel resources and a significant frac sand resource at its formerly owned Minago project. Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing properties at Mel and Lynn Lake (currently under option to Corazon Mining Ltd.) in Manitoba, and Lac Rocher in northwestern Québec. Through a wholly-owned subsidiary, Victory Silica Ltd., Victory Nickel at its 7P Plant frac sand processing facility in Seven Persons Alberta, has established itself in the frac sand business prior to commencing frac sand production and sales from Minago.

Contact:

Victory Nickel Inc.
Email: admin@victorynickel.ca
www.victorynickel.ca

Victory Silica Ltd.
Ken Murdock
Phone: 403.899.0141

Forward-Looking Information: This news release contains certain forward-looking information. All information, other than information regarding historic fact that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future is forward-looking information. The forward-looking information contained in this news release, including information related to the completion and outcome of any debt restructuring activities reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. The forward-looking information contained in this news release is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, the Company disclaims any obligation to update or modify such forward-looking information, either because of new information, future events or for any other reason. 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.

SOURCE: Victory Nickel Inc.