VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 8, 2007) - VMS Ventures Inc. (TSX VENTURE:VMS - News; the "Company") is pleased to announce that it has finalized the terms of an option agreement whereby it can earn a 100% interest in Claim Blocks CB 5503 (377ha) and FRE 5030 (196ha) near Snow Lake, Manitoba from HudBay Minerals Inc. (TSX:HBM - News).

The agreement requires the Company to make cash payments of $55,000 and exploration expenditures of $300,000 over a term of three (3) years. Subject to the Company's completion of these expenditures, HudBay Minerals Inc. can elect to exercise a back-in right that enables it to earn up to a 70% interest in the property by making certain exploration expenditures, a one-time cash payment of $1,500,000 and bringing the property to commercial production.

These claims are contiguous to the Company's Reed Lake project and contain HudBay's Cu-Zn Highway Zone that was originally discovered by Freeport Exploration in 1974. The property is located 52 km southwest of Snow Lake MB. The property has historical drilling information to assist in exploration planning.

VMS Ventures Inc. is focused on acquiring, exploring and developing copper-zinc properties in the Flin Flon-Snow Lake VMS Belt. The Company also holds the largest package of land considered prospective for nickel-copper mineralization at Lynn Lake, which, historically, is Canada's third largest nickel producing camp. The Company's project portfolio consists of the Snow Lake VMS project, the Lynn Lake Gabbros nickel-copper project, the South Bay nickel-copper-cobalt PGE property, and the Eden Lake Carbonatite Complex, Specialty Metals property. All VMS Ventures Inc. properties are located in the mining friendly province of Manitoba, Canada.

now take this quote from the early march release...

"The Letter of Intent contemplates that the parties will enter into a definitive Joint Venture Agreement respecting the two Reed Lake property claims and the two claims immediately south of the Reed Lake property. HudBay will have a 70% interest in the Joint Venture and VMS will have a 30% interest. Upon execution of the definitive Joint Venture Agreement, HudBay will make certain cash payments to VMS in satisfaction of its obligation to earn back in to the property and as consideration for VMS transferring the southern claims to the Joint Venture. In turn, VMS agrees to abandon all disputes respecting the location of the boundary between the Reed Lake property and the southern claims."

quite clearly allowing the option claims to lapse would severely complicate issues.. just more proof that these companies want to work together in a partnership to find and develope mines together

an arguement in claim lines, and the location of the deposit being split over the boundary, and with parties owning certain percentages of claims, this is by far the fastest way to production. without this agreement to forgive boundary issues, it could be tied up for years.