VMS Ventures Inc.

COMPANY DATA | INTRODUCTION |  PROJECT IN HAND | MANAGEMENT
NEWS UPDATE | CHINESE

COMPANY DATA

INTRODUCTION

VMS Ventures Inc. has the second largest land position in Manitoba's prolific Flin Flon - Snow Lake Volcanogenic Massive Sulphide (VMS) belt. The largest is held by Canada's HudBay Minerals (TSX-V:HBM) with mines and mills in both Flin Flon and Snow Lake. More than 20 VMS deposits, rich in copper-zinc as well as gold and silver, have been discovered in this belt.

The Company's projects are all in mining friendly Manitoba, Canada and have the economic advantage of being close to the industrial power and infrastructure required to support a discovery.

PROJECT IN HAND

(1) The Snow Lake VMS Project, Manitoba (Copper / Zinc)

VMS Ventures has over 70 sq.km of prospective VMS discovery ground inside three property groupings. The Sails Lake and Reed Lake Projects are self-contained while the Cover Project includes six distinct claim blocks.

The Flin Flon - Snow Lake Volcanogenic Massive Sulphide belt is the most prolific Proterozoic belt in the world. To date, the belt has produced more than $29 billion of nickel, copper, zinc, gold and silver from over 20 mines. The average deposit contains in excess of 5 million tonnes with a gross metal value in excess of $1 billion. With the second largest land holdings in the belt, VMS Ventures believes that they have an excellent opportunity to find one, or several, economic deposits.

VMS Ventures is now focusing on an aggressive exploration program using VTEM airborne geophysical technology and sophisticated ground geochemistry programs to generate extremely specific drill targets. These new methods give them a distinct exploration advantage in the belt.

The infrastructure provided by HudBay's operations in nearby Snow Lake provides a clear economic advantage for discoveries in the region.

Value Proposition

Geological Setting: Flin Flon - Snow Lake Greenstone Belt. Proterozoic Marine Volcanic Rocks.

VMS Target: Multiple 5,000,000 tonne (plus) copper-zinc deposits.

World-Class Deposits: 
Flin Flon, Manitoba, (Cu, Zn, Au, Ag) 60,000,000 tonnes.
Kidd Creek, Ontario, (Cu, Pb, Zn, Au, Ag) 150,000,000 tonnes.

Value Proposition:

5,000,000 tonnes grading 2.5% Copper, equals 50 lb/t at price of US$3.5/lb totals US$175/t, plus 4.5% Zinc which equals 90 lb/t at a price of US$1.50/lb totals US$135/t for Zinc.

Total contained metal (Gross Metal Value) = US$310 x 5,000,000 = US$1.55 billion

(Excluding Gold and Silver credits which can be significant in these deposits)

(2) The Lynn Lake Gabbros Nickel Project, Manitoba (Nickel / Copper)

The Lynn Lake Mine produced over 20 million tonnes of Nickel-Copper ore from two Gabronic Plugs between 1953 and 1978. It is now the exploration focus of Independent Nickel (TSX-V:INI).

VMS Venture's five optioned claim blocks cover the known extent of five separate mafic-ultramafic bodies which have noted similarities to the two mined nickel producing intrusions. The geometry, styles of mineralization and other important geologic features of the mined deposits, are well documented. This background information offers an advanced footing from which to explore for the same styles of Nickel-Copper mineralization mined in those two intrusions. Independent Nickel is now actively exploring in and around the Lynn Lake mining camp and their recent successes should bring additional attention to the Company's efforts.

Value Proposition

Geological Setting: Lynn Lake, Manitoba, Nickel Belt; Five Gabbro Plugs.

Nickel Target: 5,000,000 tonnes of 1% Nickel with Copper, Cobalt and Platinum Group Element credits (PGE).

Deposit Models:
The Lynn Lake Mine: 20,000,000 tonnes, 1% Nickel and 0.5% Copper plus Cobalt.

EL (U) Plug: 1,000,000 tonnes, 3.25% Nickel and 1% Copper mined in nearby plug as part of the Lynn Lake mine complex.

Namew Mine: 2,400,000 tonnes, 2.4% Nickel and 0.9% Copper.

Value Proposition:
5,000,000 tonnes grading 1% Nickel, approximately 20 lb/t, x US$22/lb equals US$440/t plus 0.5% Copper x US$3.50/lb equals US$35/t.

Total contained metal value equals US$2.375 billion.

(3) The South Bay Nickel Project, Manitoba (Nickel / Copper / Cobalt / PGE)

The South Bay Nickel Project is located near the mining community of Leaf Rapids, Manitoba. It covers approximately 100 sq.km and is centered around the high grade nickel-copper-cobalt-PGE mineralized outcrop discovered in 2004.

VMS Ventures plans to undertake further geochemistry surveys to establish future drill targets. The Company will also consider joint venture partners for the South Bay project.

Value Proposition

Minimum target: a 5 million tonne deposit, grading 2% Nickel equivalent.

Using this target as a model for calculating the Gross Metal Value of a deposit in the ground, 2% nickel represents approximately 40 pounds of nickel per tonne.

40 lbs of nickel multiplied by a price for a pound of nickel of US$22 totals a value of US880 per tonne.

5 million tonnes of rock grading 2% nickel would have a Gross Metal Value of approximately US$4.4 billion in contained metal.

Comparable Mine: Lynn Lake Ni-Cu Mines produced over 20 million tonnes averaging 1% Ni.

The mine life was over 20 years.

(4) The Eden Lake Rare Earth Elements (REE)-Uranium Project, Manitoba 
(REE Metals / Uranium)

The Eden Lake Rare Earth Elements (REE)-Uranium Project has been in the Company since 2001. Ground samples have shown values of 13% total REE's. These levels compare favorably to those found in REE mines around the world. 90% of the REE's consumed in North America are sourced in China and the geopolitical and economic potential of a viable North American source is enormous.

The drill results provide a framework for further evaluation of the vegetation, soil and rock data collected over the property. This review will help in the planning the next phase of exploration. The Company is also exploring opportunities to Joint Venture the property with a suitable partner.

Value Proposition

These metals are more difficult to value than base or precious metals. Using values for processed refined metals gathered from publicly available documents provides some context for the potential value. All numbers are based on processed purified metals.

Eden Lake, Manitoba Target: large tonnage deposit, 100 million tonnes or greater in size.

The total Gross Metal Value of the metals in an apatite concentrate grading 2.5% approximates $11,000/t.

REE vein sample approximately $62,000/t Gross Metal Value of combined elements refined.

Mean grades of 30 separate REE vein samples approximate $21,000/t Gross Metal Value.

As a comparison, using a common metal such as Copper in a 28% concentrate, approximates (2000 lb at a grade of 28% Cu) or roughly $1,100/t Gross Metal Value.

These metals, if discovered in economic concentrations and volumes, have the potential to add tremendous value to the Company.

MANAGEMENT

VMS Ventures Inc. has a well management team with experience in different areas.

Rick Mark, M.Ed. (Admin), CEO & Chair
Mr. Mark has over 18 years experience in the public market place. His leadership positions in various organizations over the last 30 years provides the Company with experience in developing short and long term corporate goals, securing financings, building cost-effective property development plans, creating effective communication platforms and managing regulatory functions.

Now in his fifth year with VMS Ventures Inc., Mr. Mark is also the CEO and Chair of Harvest Gold Corporation (TSX-V:HVG), a December 2005 "spin off" of Rare Earth Metals Corp., and is the President and CEO of Centram Exploration Ltd., a shell company trading on the NEX Exchange (CNA.H).

John A. Roozendaal, B.Sc. Geol., President and Director
Mr. Roozendaal has been involved with the mineral exploration industry for over 10 years, focusing on precious, base and specialty metals in North America. He has experience exploring for a variety of precious and base metal deposit types. Of particular significance were exploration programs for nickel in the Thompson Nickel Belt of Manitoba and for high-grade shear-hosted gold in the Yellowknife gold camp. Mr. Roozendaal has experience with various aspects of corporate governance through his involvement with private, public and governmental boards of directors. His experiences include dealing with the media including radio, television and print media outlets.

Dr. George H. Gale, B.A. (Ed.), B.Sc., M.Sc., Ph.D., Vice President of Exploration, Director
Dr. Gale has been involved in the field of Geology for over 40 years, focused on mineral deposits and exploration techniques. He was the head of the Manitoba Geological Survey since 1977. Dr. Gale plays an integral role in the planning and execution of the Company's overall exploration strategies.

Evan Sleeman, CFO and Director
Mr. Sleeman has been involved in the mineral exploration industry for 39 years. During his career, he has held the position of President and Founder of a number of public companies including Arizona Star Resources Corp. Mr. Sleeman has extensive experience in field exploration, property negotiation and corporate governance.

Keith Patey, Director of Communications
Mr. Patey has worked in the corporate communications industry for the past 18 years and has prepared and managed media relationship programs for a variety of companies and corporate entities. Mr. Patey has prepared and presented to corporate finance professionals, analysts, brokers and has built strong relationships in the investment community.

Jay Butterworth, Director
Mr. Butterworth has extensive experience in mineral exploration and property acquisition in the Western United States and Canada and has been involved with public companies for over 30 years.

Bill McWilliam, Advisory Board

John Lee, Advisory Board

John Ackerman, Advisory Board

NEWS UPDATE

On September 23, 2008, VMS Ventures Inc. released the assay results from drill holes RD-08-54 to RD-08-57 at its Reed Lake discovery zone near the Snow Lake area of Manitoba.

Highlights:

· RD-08-55 intersects 61.96 m (203.28 ft) of 5.96% copper, including: 20.83 m (68.34 ft) 0f 9.13% copper, including: 7.15 m (23.46 ft) of 16.51% copper;
· RD-08-56 intersects 19.87 m (65.09 ft) of 3.25% copper;
· RD-08-57 intersects 2.04 m (6.69 ft of 7.73% copper.


On September 16, 2008, VMS Ventures Inc. released the assay results from drill holes RD-08-50 and RD-08-53 at its Reed Lake discovery zone near the Snow Lake area of Manitoba.

Highlights:

· RD-08-53, intersects 53.19 m (174.51 ft) of 3.08% copper, including 9.72 m (31.89 ft) of 5.18% copper;
· RD-08-50 intersects 8.96 m (29.40 ft) of 2.24% copper.

On October 18, 2007, VMS Ventures Inc. announced that the Company plans on raising up to 19.5-million through a brokered private placement offering of units and flow-through shares. The private placement will consist of up to 8 million units of the Company at a price of $1.50 per unit and up to 5 million common shares of the Company which qualify as flow-through shares at a price of $1.50 for each flow-through share.

The net proceeds from the sale of the units will be used to finance continuing exploration and development activities, and for general corporate purposes.

On October 17, 2007, VMS Ventures Inc. announced that the Company has entered into a letter of intent with a private investor group to acquire the Copperman claims in Snow Lake, Manitoba. The Copperman claims are approximately 300 hectares in size and are contiguous with and situated at the north end of the Company's 100%-owned Copper claims. Drilling on the Copperman property in 1967 by Western Nuclear Mines Ltd. indicated that the A zone contains 149,672 tonnes with 3.08% copper and 3.08% zinc. Combined reserves of 221,308 tonnes with 2.63% Cu and 4.46% Zn were reported in Manitoba Mineral Deposit Series Report 21. Grab samples from the trenches assayed up to 12% Zn and 2.3% Cu (note: these are historic results and are not considered compliant with today's NI 43-10 reporting requirements). 

On October 15, 2007, VMS Ventures Inc. announced that the Company has sourced a drill for its second core drilling program on and around its recent Reed Lake VMS discovery. A program comprising up to 3,000 metres in 13 core holes is planned. The Company anticipates drilling will begin within 10 days.

This drill program is designed primarily to determine the extensions, orientation and geometry of the copper-rich mineralization discovered in DR 07-02 and to explore for its extension.

On October 4, 2007, VMS Ventures Inc. released the assay results (weighted average) from drill hole RD 07-02 on its new discovery on its Reed Lake project, near Snow Lake, Manitoba.

Highlights of high-grade copper-rich intervals:

· 2.50 m (8.2 ft) of 15.30% copper, within 10.50 m (34.4 ft) of 11.19% copper, within 22.25 m (72.9 ft) of 7.75% copper, within 43.05 m (141.2 ft) of 4.38% copper.

Vice President of Exploration, Dr. George Gale, states, "Obviously we are encouraged by the copper grades in this drill hole, but I think it is also important to note we have results for gold, silver and zinc that are consistent with the historic and producing VMS mines in the Flin Flon-Snow Lake belt."

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