Dear VMS followers,

Last week's news regarding our new JV agreement with HudBay is very good news for VMS shareholders.

As I said in the release:

“The merging of the 4 separate claim groups into a single Joint Venture agreement is positive for both parties and will reduce the redundancy of having to report and plan separately exploration activities on targets that geologically cross over neighboring claim blocks. This will streamline our future exploration and development activities on the property and allow our project technical team a free hand to focus on searching for our next discovery without being burdened by separate property deals within a contiguous exploration area.”

To earn their 70% position in the 4 claim blocks surrounding the soon to be producing Reed Mine, HudBay has spent approximately $2.5M. Under the terms of the new Reed Exploration Properties Joint Venture Agreement, Hudbay has now paid VMS $610,000.

This agreement was built on the Reed JV agreement and, so, includes the following:

• VMS has a 30% carried interest in the JV.
• HudBay Minerals will make all exploration and development expenditures under the JV up to the point of commencement of commercial production.
• VMS will repay 30% of the expenditures to bring any new deposit(s) on the property(ies) into commercial production from its 30% interest in the production from the mine(s).
• Should economic conditions dictate VMS, in its sole discretion, may convert its participating interest into a conversionary 2% net smelter royalty and a payment based on tonnage of production from the mine.
• The JV will be operated by HudBay and overseen by a management committee of the joint venture partners, HudBay and VMS Ventures.

Best regards,

Rick Mark
CEO
VMS Ventures Inc.

VMS owns ~27M shares of NAN

VMS VENTURES ANNOUNCES REED EXPLORATION PROPERTIES JOINT VENTURE WITH HUDBAY

Vancouver, B.C., October 23, 2012. VMS Ventures Inc. (TSX-V:VMS) (“VMS” or the “Company”) is pleased to report that the Company has formed a joint venture with Hudbay Minerals Inc. (TSX, NYSE:HBM) ("Hudbay") respecting four separate but contiguous claim blocks surrounding the Reed Copper Project, near Snow Lake, Manitoba. The joint venture properties, consisting of the Tower Zone, Super Zone, Northeast Zone and Northwest Zone, were under option from VMS to Hudbay pursuant to option agreements entered into on July 5, 2010. Hudbay completed its obligations under the option agreements and the parties formed the Reed Exploration Properties Joint Venture, in which VMS holds a 30% interest and Hudbay holds a 70% interest.

CEO Rick Mark states: “The merging of the four separate claim groups into a single joint venture simplifies the administration of these properties and ensures that exploration activities can be focused on the most prospective areas, regardless of where they are located. There are a number of promising targets on these properties and we look forward to continued exploration success with Hudbay."

Under the terms of the joint venture agreement, Hudbay will make an immediate payment of $610,000 to VMS.

The Company’s geological team is currently meeting to review and assess drill targets for the upcoming winter exploration season on properties in Manitoba that are 100% owned by VMS. Development work on the mine at the Reed Copper Project is progressing well and VMS expects to update shareholders soon. CLICK HERE TO READ MORE