Today’s news release provides an update and more detail on the advanced exploration targets HudBay will be drilling this winter on our Reed JV ground and the surrounding four optioned property packages.

I’m pleased to report that the normal seasonal bone chilling temperatures in the Snow Lake, Manitoba area have arrived and that the winter freeze up is talking effect. This should allow drilling to commence very soon.

Our COO, Neil Richardson has included some images in today’s release to help you see the targets as the geologists do. The science and technology behind targeting is constantly improving and it is safe to say that between the VMS and HudBay teams, we are at the leading edge of these innovations.

We will have more to say about our 100% owned property plans later this month. I remind our shareholders that the cost of the planned 8,000 metre program on the HudBay JV and option ground will be covered by HudBay, as per our agreements.

Finally, it was nice to see the Reed Deposit development story on the front page of the Northern Miner last week. The link to it is below this morning’s press release excerpt. The development plans are aggressive.

Best regards,

Rick Mark
CEO
VMS Ventures Inc.

VMS owns approximately 45% of North American Nickel Inc.

VMS VENTURES PROVIDES EXPLORATION TARGET UPDATE AT THE REED COPPER DEPOSIT AND OPTION PROPERTIES NEAR SNOW LAKE, MANITOBA

Vancouver, B.C., January 18, 2012 - VMS Ventures Inc. (VMS: TSX-V) (“VMS”) is pleased to announce an exploration update on targets around the Reed Copper deposit and four option properties.  The Reed Copper deposit is located 120 kilometres from Flin Flon, Manitoba and is the subject of a Joint Venture with HudBay Minerals (TSX, NYSE:HBM) (“HudBay”). VMS owns 30% of the Reed Joint Venture.

VMS Ventures COO Neil Richardson, states: “2012 promises to be an exciting year with exploration and development planned for the Reed Copper deposit and surrounding exploration properties. The HudBay and VMS joint management committee have approved a budget for a 4,000 metre Diamond drill program focusing on targets around the Reed Copper deposit and an additional 4,000 metres on the option properties, with a primary focus on the Reed North target.  Recent work by VMS and HudBay has resulted in the discovery of two additional mineralized zones within our option properties.  These recent discoveries are further evidence supporting our belief in the camp scale potential at the Reed project.  The drilling will occur as soon as freeze-up and site preparation is completed.”

Reed Copper Deposit

The copper rich lens (Zone 10) at the Reed Copper deposit is still open down plunge.  A proposed hole will be collared south of the deposit targeting the mineralization horizon approximately 600 metres below surface (see figure 1).  Drill site preparation is on-going, but start-up is expected to be delayed due to the unusually mild winter weather and significant snow accumulation thus far.  Additional targets are located just north of the deposit and are spatially associated with drill holes RD-08-45, RLD037 and RD-08-42DNP.  Hole RD-08-42DNP is being re-surveyed with borehole time-domain geophysics using two different loop configurations to accurately determine the location of the anomaly for drill testing this winter.