VMS Ventures hires Huashan for advisory services
Ticker Symbol: C:VMS

VMS Ventures hires Huashan for advisory services

VMS Ventures Inc (C:VMS)
Shares Issued 123,523,955
Last Close 9/19/2011 $0.40
Tuesday September 20 2011 - News Release

Mr. John Roozendaal reports

VMS VENTURES ENGAGES HUASHAN CAPITAL TO PROVIDE ADVISORY SERVICES IN ASIA

VMS Ventures Inc. has engaged the services of Huashan Capital of Shanghai, China, and in connection therewith, has appointed the principals of Huashan Capital, David Chen and Hock Ong, to its Advisory Board. In connection with his appointment, Mr. Chen has been granted 200,000 options, exercisable at a price of $0.42 for a term of 5 years.

Under the term of the consulting agreement VMS has engaged Huashan Capital to provide fiscal and corporate advisory and consulting services to VMS on a non-exclusive basis in Asia for a term of 18 months, subject to renewal and subject to a mutual right of termination on 30 days' notice.

As consideration for the services under the Agreement, VMS has agreed, subject to the acceptance of the TSX Venture Exchange, to pay Huashan a success fee (the "Success Fee") in connection with any transaction involving one or more of VMS's mineral properties entered into with a third party introduced by Huashan Capital (a "Transaction"). The Success Fee will consist of a cash payment equal to 1% of the monetary value of a Transaction and such number of warrants or shall have a total exercise price equal to 2.5% of the monetary value of a Transaction, such warrants to have a term of two years and an exercise price based upon the trading price of VMS shares at the time of the Transaction.

Huashan Capital was established in 2009 as an advisory firm focusing primarily on the mining industry, specializing in cross border M&A, advisory and fundraising transactions for mining companies globally. Since formation, Huashan Capital has achieved a track record of successfully assisting Chinese companies to acquire and invest in international mining projects and companies; and global mining capitals to access capital and strategic investors from China to develop their mining projects and development capital.

Examples of notable transactions that Huashan Capital has completed include: assisting Vale to identify a Chinese acquirer for their Central Asia copper project; assisted an Australian gold exploration company to exit its China gold mine project; and assisting an African gold exploration company to complete its fundraising for further exploration.

Rick Mark, VMS' CEO, states: "When we met David Chen in Hong Kong last spring we were impressed with his understanding of the mining industry in China and throughout Asia. VMS has an extensive land package prospective for base metals that merits a major exploration campaign and we are asking Huashan to be our ears and eyes in Asia for possible partners who might see opportunities in advanced exploration in Manitoba. We are very pleased they are now a part of our team."

David Chen states: "We are very impressed with the VMS technical team which has already established a record of discovery and we believe the Flin Flon - Snow Lake belt is among the most prospective areas in the world to hunt for Copper. Our objective is to bring Chinese investors to these opportunities and realize their full potential."

We seek Safe Harbor.

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