Dear VMS Followers,

This morning's announcement answers the long asked question, "Will the Reed Lake deposit get bigger?" The answer is yes.

As you are aware VMS stopped drilling in mineralization at 450 meters in September of 2008. The world's stock markets were crashing and commodity prices were falling and falling some more. VMS conserved its cash and waited for better days and began discussions with HudBay Minerals to execute our JV agreement and get the deposit developed.

In July, 2010 we finally signed our deal with HudBay and they have been hard at the Reed Lake project since. Today, we have announced that the very first drill hole testing a target outside the known parameters of the deposit has intersected Copper mineralization over 200 meters from where we left off in 2008. We are thrilled. And, it continues to be open at depth.

How big will it be? HudBay is now drilling deeper to chase it and is also drilling back towards the deposit to determine the continuity of the mineralization to assist in their 43-101 work and their mine development thinking.

In our Corporate Presentation (available on the home page of the VMS website), there are two slides I'm providing for you to review now. One uses a HudBay graph to demonstrate how VMS deposits in this belt often grow from their original size. The second details the array of anomalies that exist on the Joint Venture claims and the surrounding option claims, which will be drilled aggressively in the first quarter of 2011 by HudBay. Both images can be accessed by linking here:

Reed Lake Joint Venture Update and Exploration Results

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.

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.

Reed Lake Collar Information

Reed Lake Assay Information