Mr. Rene Galipeau reports

VICTORY NICKEL UPDATES SECURED DEBT STATUS

Victory Nickel Inc. has not repaid the amounts due, including the principal amount, on July 30, 2015, under the $5.15-million (U.S.) senior secured 14.8-per-cent notes dated as of April 24, 2014, and amended June 3, 2015, and which matured on July 30, 2015. The SPA loan is secured by the assets of the company.

The company is continuing with discussions among the holder of the SPA loan and other potential financing sources to restructure the company's debt and recapitalize the company. Although sales of frack sand resumed in May, they are not yet at levels which will allow the company to repay the SPA loan, there can be no assurance that the company will be able to restructure its debt and/or recapitalize, and there is no certainty as to what steps the lenders may take in light of these defaults.

We seek Safe Harbor.