VMS Reports That the First Step Out Drill Hole at Reed Lake Has Intersected 10 Metres of 2.39% Copper 214 Meters Down Plunge of the Reed Lake Deposit

The company announced that joint venture partner HudBay Minerals Inc. (TSX:HBM)(NYSE:HBM) has informed the Company that the first step out drill hole undertaken by the joint venture has been successful in intersecting massive sulphide mineralization approximately 214 meters down plunge from the deepest intersection previously drilled into the deposit.

Drill hole RLD-015 intersected 10.09 meters of massive sulphide in the Zone 10 horizon, which assayed 0.67 g/t Au, 5.20 g/t Ag, 2.39% Cu and 0.23% Zn. This massive sulphide mineralization indicates the zone remains open down plunge and up plunge toward the main deposit. The exploration drill will continue delineating this zone up-plunge towards known mineralization.

Two drills are currently operating on site at Reed Lake. One drill is conducting in-fill drilling on the deposit in preparation for a National Instrument 43-101 mineral resource estimate, which is expected to be completed in the first quarter of 2011. A second drill is drilling deeper exploration holes down plunge to the west of the deposit.

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