Vms presentation january_2012_final

VMS:TSX.V

Explorer to Producer

January, 2012

Discovering High Grade Copper Deposits in Manitoba, Canada

FORWARD-LOOKING STATEMENTS

NOTE:

Some of the statements contained herein may be forward-lookingstatements which involve known and unknown risks and uncertainties.Without limitation, statements regarding potential mineralization andresources, exploration results, and future plans and objectives of theCompany are forward-looking statements that involve various risks. Thefollowing are important factors that could cause the Company’s actualresults to differ materially from those expressed or implied by suchforward-looking statements: changes in the world wide price of mineralcommodities, general market conditions, risks inherent in mineralexploration, risks associated with development, construction and miningoperations, the uncertainty of future profitability and the uncertainty ofaccess to additional capital. There can be no assurance that forward-lookingstatements will prove to be accurate as actual results and futureevents may differ materially from those anticipated in such statements.VMS Ventures Inc. undertakes no obligation to update such forward-lookingstatements if circumstances or management’s estimates or opinionsshould change. The reader is cautioned not to place undue reliance onsuch forward-looking statements.

Introduction to VMS Ventures Inc.HudBay Minerals JV and 4 Option Agreements

• Reed Copper Deposit• Preliminary Economic Assessment • Additional targets…expanding resource

Flin Flon – Snow Lake Belt - a World Class VMS Camp2011 Highlights/2012 PlanNorth American Nickel – 45% VMS ownership


VMS VENTURES INC.

CAPITAL STRUCTURE(as at January, 2012)

Issued & Outstanding: 123,523,955Options: 10,183,850Fully Diluted: 133,707,805

Well funded junior with approximately $9.8 M in the treasury.

Discovered the Cu-rich Reed Lake Deposit in Manitoba in 2007.

• JV Partner HudBay Minerals (T.HBM) is project operator and financiers of Reed Lake development. Project ownership is 70% HBM & 30% VMS.

Reed Copper deposit PEA announced in December 2011. Exploration budget for JV and Option areas $2.3 Million and AEP expenditures of $34.5 Million.

Large, highly prospective land package in the prolific Flin Flon – Snow Lake Greenstone Belt of Manitoba.

QUICK FACTSVMS - TSX.V





VMS VENTURES – HUDBAY JV & OPTIONS PROJECTS

VMS-HudBay JV• 30-70 joint venture, VMS

carried to production.• Hudbay is operator.• NI 43-101 Geological

Resourced April, 2011• PEA announced

December, 20114 Option Agreements• HudBay is operator.• $2.6 M in cumulative

expenditures to earn 70%.• Upon discovery VMS is

carried on first $50 million of expenditures.

• Cumulative $2.8 M paid to VMS in July, 2010.

43-101 indicated resource estimate completed (30% VMS)Super Zone discovered (30% VMS)Cowan River Zone discovered (100% VMS)

2011 HIGHLIGHTS

NI 43-101 INDICATED / INFERRED GEOLOGICAL RESOURCE

Snow Lake 75 km

Flin Flon 115 kmCategory Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%) Au (oz) Ag (oz) Cu (lbs) Zn (lbs)

Indicated 2,555,000 0.64 7.86 4.52 0.91 57,674 708,303 254,069,200 51,151,100

Inferred 170,000 0.38 4.55 4.26 0.52 2,278 27,281 15,932,400 1,944,800

Planview

Sectional View

REED COPPER DEPOSIT - PEA

Preliminary Economic Assessment – Announced December, 2011

• Approximate daily ore production of 1,300 tonnes at Reed is expected by late 2013, subject to receipt of required permits.

• Average expected production grades of 3.78% copper, 0.45 g/t gold and 5.77 g/t silver.

• Assumed metal recoveries in HudBay’s Flin Flon Concentrator of 94% copper, 58% gold and 62% silver.

• Average production in concentrate of approximately 17,000 tonnes per year of copper metal.

• Total operating costs estimated to average approximately $91 per tonne milled ($67 per tonne mining, $16 per tonne milling and $8 per tonne administration) over a five year mine life.

• Sustaining capital expenditures are expected to total approximately $55 million over the five year mine life.

REED COPPER DEPOSIT - PEA The high grade nature of the Reed Copper deposit gives the project substantialleverage to copper prices. The following table outlines a copper price sensitivity analysis based on the operating parameters set out in the PEA.

PEA 3 Year HistoricalBase Case (1) Average Price Case (2) Cu = $3.50/lb USD (3)

Price and Exchange AveragesCopper (USS/lb) $2.78 $3.20 $3.50Gold (US$/oz) $1,059.00 $1,235.00 $1,235.00Silver (US$/oz) $21.14 $22.85 $22.85

US$/CDN$ 0.92 0.94 0.92Pre‐tax

Cash Flow $112,283,000 $182,975,000 $257,028,000NPV 8% $64,917,000 $109,904,000 $174,365,000

IRR 36.70% 46.60% 61.40%

(1) PEA Base Case metal prices projections compiled by HudBay based on 11 well‐known financial institutions.

(2) Bloomberg three year historical average (December 1, 2008 to December 1, 2011)(3) $3.50 copper price for perspective on valuation impact of copper price

REED COPPER DEPOSIT - PEA

REED COPPER DEPOSIT - PEA VMS-HudBay JV• Ramp development

proposed to the 260ml for bulk sample.

• Production scheduled with 60T ore trucks

• Levels developed every 25 metres

• 510ml the final production level with the current geological resource boundaries

• Mine plan 2.3MT at 3.78% Cu, 0.45 g/t Au, 5.77 g/t Ag

MORE MINERALIZATION AT REED LAKE??

VMS-HudBay JV

• Borehole Pulse Electromagnetic targets indicate the deposit is open at depth

• Large BHPEM plates exist between the Reed Copper Deposit and the historical Highway zone – UNTESTED!!

• Winter 2012 drill target.

Open down plunge

REED NORTH DISCOVERY

Longitudinal View, Looking North Cross Sectional View, Looking West

BHPEM Plates

Open DownPlungeUntested BHPEM

Plates

Multi-lenses, 2011 discovery with limited drilling

RLE006 – 7.18m, 7.44% Cu, 0.23% Zn, 0.48 g/t Au, 7.57 g/t AgRLE021 – 3.95m, 9.31% Cu, 1.87% Zn, 3.59 g/t Au, 35.53 g/t Ag

ORE BODIES TEND TO GROW IN THE FLIN FLON BELT

After K. Gilmore (Hudbay Minerals), 2007





FLIN FLON GREENSTONE BELT

• Largest Proterozoic VMS District in the world.

• Most prolific greenstone belt in Canada in terms of $ value of production/km2.

• Continuous production for past 80 years

• 183 million tonnes from 27 mines.

• VMS mines/deposits rich in copper, zinc, gold and silver.

• Deposits typically occur in clusters.

• Gold mines/deposits throughout belt.

MAP AREAA WORLD CLASS VMS CAMP

SNOW LAKE BELT

Lalor Lake(Hudbay)

Reed Lake(VMS Ventures Inc.)

DISCOVERY PROGRESSION

• Early discoveries were made by prospecting.

• Recent discoveries made through a combination of geological and geophysical work in the exposed portion of the belt.

• VMS now employs state of the art airborne geophysics and high powered, Time-Domain Electromagnetic surveys (surface and borehole) to look deeper, under the Phanerozoic cover to refine the targeting of drill holes on mineralized zones. After K. Gilmore (Hudbay Minerals), 2009

VMS LAND POSITION IN THE SNOW LAKE AREA

DOMINANT LAND POSITION

• More than 108,000 hectares of ground.

RIGHT GEOLOGY• Focused on

juvenile arc rocks (shown here in medium green), juvenile arc rocks host all the mined VMS deposits in the Flin Flon – Snow Lake camp.

VTEM COVERAGE OVERVMS VENTURES’ PROJECTS

• Many recent discoveries, including VMS’s Reed Lake Deposit, were made with VTEM

• VMS Ventures has flown over 17,000 line-km of VTEM over its projects, majority flown at 100 m line spacing.

• 5 years and $13 million in work –Targets ready to drill.





2011 HIGHLIGHTSHudBay JV Option Properties• NI 43-101 resource at Reed Copper deposit; PEA on Reed Copper deposit• Reed North Discovery (Super Zone property)

• 7.44% Copper over 7.18 metres discovered in hole RLE006• 5.94% Copper over 2.23 metres discovered in hole RLE007

• New targets on JV and option ground

VMS 100% Owned Properties• Drilled 13,128 metres in 41 holes• Flew 4,648 km of VTEM surveys• 87 km of TDEM surveys• Cowan River Copper Zone

• 9.81% Copper over 1.37 metres within 6.59 metres of 2.25% Copper• 32 km TDEM Grid recently completed

• Sails Lake• 3D Induced Polarization Integrated with trench mapping and channel

sampling at Sails Lake gold showing

2012 PLANHudBay JV Option Properties

• 4,000 m of drilling on JV • 4,000 m of drilling on optioned properties• 50 line km of TDEM

VMS 100% Owned Properties

Manitoba Projects

• Morton, Puella Bay, Cowan River and McClarty projects scheduled for diamond drilling in Q1

Sudbury Projects

• Golden Pine, Black Creek & Terra Incognita scheduled for prospecting/trenching in Q2, auger drilling and diamond drilling in Q3





NORTH AMERICAN NICKEL INC.

VMS owns ~45% of North American Nickel.

Dr. Mark Fedikow, President and COO.

Camp-scale land position in the emerging Maniitsoq Nickel Belt, Greenland

Major projects situated in Thompson and Sudbury, the two most productive mining camps in the world class Circum-Superior Nickel Belt.

TSX.V: NAN

MANIITSOQ PROJECT, GREENLAND

100% interest in a giant mineral exploration licence covering 4,841 km2

covering the highly prospective, but underexplored Maniitsoq Nickel Belt.

Located on year-round, ice free tide water on the southwest coast of Greenland, near the village of Maniitsoq.

Maniitsoq (looking east)

THE MANIITSOQ NICKEL BELT- PLENTY OF ROOM FOR WORLD CLASS

DEPOSIT(S)Belt is arcuate shaped, 75 km long by 15 km wide and characterised by nickel-bearing noritic intrusions.Numerous significant nickel showings with consistently high nickel tenor.

From Eckstrand & Hulbert, 2007

Voisey’s Bay Deposit at map scale.

Plan view of the Voisey’s Bay intrusion (from Eckstrand & Hulbert, 2007)

MANIITSOQ PROJECT2011 SKYTEM RESULTS

Helicopter EM and magnetic surveys by NAN in 2011 over two small areas (totaling only 8% of the project area) successfully delineated new targets.

Additional helicopter EM surveys and drilling planned for 2012.

Historical Work

Almost all showings were discovered in the 1960’s and early 70’s.

Average hole length less than 50 meters.

VMS VENTURES INC.

CAPITAL STRUCTURE(as at January, 2012)

Issued & Outstanding: 123,523,955Options: 10,183,850Fully Diluted: 133,707,805

Well funded junior with approximately $9.8 M in the treasury.

Discovered the Cu-rich Reed Lake Deposit in Manitoba in 2007.

• JV Partner HudBay Minerals (T.HBM) is project operator and financiers of Reed Lake development. Project ownership is 70% HBM & 30% VMS.

Reed Copper deposit PEA announced in December 2011. Exploration budget for JV and Option areas $2.3 Million and AEP expenditures of $34.5 Million.

Large, highly prospective land package in the prolific Flin Flon – Snow Lake Greenstone Belt of Manitoba.

QUICK FACTSVMS - TSX.V

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Vms presentation january_2012_final