for VMS shareholders, this spinning off of Ni assets we are seeing and the market seems to agree. For one, when we bought VMS shares we held 100% of the Ni assets. Now with the wave of a wand a new company is being formed and we only will own 60% of them through VMS. We are not even being given shares for them thereby reducing any up side we may see in exploration of the Ni deposits.

What I believe is happening is that VMS is coming to the realization that it will take a lot to get the SP back to initial financing levels of $1.50, never mind the warrant exercise price of $2.20. Going to the market for further financing through the VMS moniker could be suicide, so thats why they will start this new company. Purely for further financing which at last I spoke with the company we had nothing but $$$ and further financing would not be an issue.

The following is from Evergreen's report.I know that Reed was a large part of their recommendation. But, how does the spin off of the NI affect their recommendation? I will be e-mailing them and let you know their answer.

Speculative Buy recommendation with a

$2.00/share target price. We arrive at our 12-month

target price by blending the success-discounted gross

metal value of both Snow Lake Project and Nickel

portfolios ($1.85/share) with the Net Asset Value

($2.20/share).

still love VMS potetial just a little concerned that management is starting to dump on the SH.

constructive criticism appreciated. I would love to see the light on this one.

Cheers