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Nuinsco Provides Update on Progress Toward Frac Sand Sales by Victory Nickel

February 24, 2014

TORONTO, ONTARIO--(Marketwired - Feb. 24, 2014) - Nuinsco Resources Limited ("Nuinsco" or "the Company") (TSX:NWI) (www.nuinsco.ca) today provided an update on the status of the development of a frac sand production and marketing operation by its investee company Victory Nickel Inc. ("Victory Nickel") (TSX:NI) from which Nuinsco stands to benefit through participation in net cash flow derived from the sale of processed frac sand.

In a series of recent news releases, Victory Nickel has announced the shipping and arrival of rail consignments of partially-processed frac sand at its 500,000 ton-per-annum Seven Persons frac sand plant (the "7P Plant") near Medicine Hat, Alberta. A regular, ongoing schedule of sand shipments from Wisconsin, USA to the 7P Plant has been developed, and the production of commercial quantities of finished, premium-quality, Midwest frac sand is anticipated imminently from the 7P Plant.

"Nuinsco is obviously closely monitoring the progress of Victory Nickel and its subsidiary Victory Silica towards frac sand production and sales," said Nuinsco's CEO Paul Jones. "The potential benefit to Nuinsco from participation in this project cannot be overstated as it is expected to provide financial stability to Nuinsco, distinguishing it from many peers and providing the financial means to continue to aggressively explore its outstanding exploration projects and to evaluate new opportunities as they arise."

In March 2013, Nuinsco provided a secured loan to Victory Nickel (see news release dated March 26, 2013) to assist in financing acquisition and construction of the 7P Plant. Nuinsco also provided a backstop to last year's Victory Nickel rights offering. Under terms of the loan agreement, Nuinsco has the right to convert the outstanding balance of the loan into a participating interest in cash flow from the sale of frac sand from the 7P Plant. As reported by Victory Nickel, the 7P Plant is now being commissioned, with frac sand sales anticipated shortly. Nuinsco can elect, following recovery of capital costs by Victory Nickel, to participate in net cash flows from the sale of frac sand through a net cash flow-sharing formula and thereby obtain a non-dilutive income stream to the Company. In addition, Nuinsco is a substantial shareholder of Victory Nickel and anticipates benefitting financially from an appreciation in Victory Nickel's share price following commencement of commercial production.

About Frac Sand

Frac sand is a proppant used in the oil and gas business as a part of the hydraulic fracturing process - a means of increasing flow to the wellhead. Frac sand must have particular characteristics including achieving certain levels of crush resistance, sphericity and roundness, and it is therefore a relatively rare commodity. Vast quantities of frac sand are consumed, and more is needed all the time, as shale gas and oil plays in Canada and the US rise to prominence.

About Victory Silica Ltd.

Victory Silica is a wholly-owned subsidiary of Victory Nickel and is charged with a phased plan to establish that company in the frac sand market. In Phase 1, Victory Nickel plans to begin sales in 2014 of premium quality Midwestern white frac sand from the 7P Plant in Seven Persons, Alberta near Medicine Hat by shipping partially-processed sand purchased in Wisconsin to the 7P Plant for final processing and distribution. The 7P Plant is well located in an area populated with fracking companies, its potential customers, and is within only a few hours' trucking distance of major oil or gas play well sites. Phase 2, which includes the construction of a concentrator in Wisconsin, is expected to reduce costs and assure security of sand supply through the control of a frac sand mine in Wisconsin. In Phase 3, Victory Silica has identified a site in Winnipeg, Manitoba, where it plans to build a larger frac sand plant to process and distribute both imported and domestic sands, including sand mined as a co-product of development of a nickel mine at its 100%-owned Minago project in Manitoba. With margins expected to be in excess of $25 per ton of frac sand sold, Victory Nickel should generate sufficient cash flow in Phases 1 and 2 to provide the financial flexibility to expand its activities by developing a second plant as Phase 3 of its growth plan.

About Nuinsco Resources Limited

Nuinsco is a growth-oriented, multi-commodity mineral exploration company that is focused on world-class mineralized belts in Canada and internationally. In addition to its property holdings in Ontario, Saskatchewan and Turkey, Nuinsco owns common shares in Chalice Gold Mines (TSX:CXN) and Victory Nickel Inc. (TSX:NI), and a 50% interest in CBay Minerals Inc. (50% Nuinsco, 50% Ocean Partners Investments Limited), a private company that is a dominant player in Quebec'sChibougamau mining camp with assets including a permitted mill and tailings facility, eight past-producing copper/gold mines, three potential near-term copper producers and a 96,000 acre land position. Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements." All statements, other than statements of historic fact, that address activities, events or developments that Nuinsco believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current expectations or beliefs of Nuinsco based on information currently available to Nuinsco. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Nuinsco to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Nuinsco. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to successfully complete financings, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world copper and/or gold markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates, success of future development initiatives, competition, operating performance of facilities, environmental and safety risks, delays in obtaining or failure to obtain tenure to properties and/or necessary permits and approvals, and other development and operating risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Nuinsco disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Nuinsco believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

FOR FURTHER INFORMATION PLEASE CONTACT: Nuinsco Resources LimitedSean Stokes or Paul Jones 416.626.0470 416.626.0890 (FAX) admin@nuinsco.ca Source: Nuinsco Resources Limited


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