Dear VMS Ventures followers,

Management of VMS Ventures recently visited the Reed Copper project near Snow Lake. I’m pleased to provide the following update:

    - Ramp development is now down 200 metres laterally.   

    - The sinking of the escape raise is on-going and we are currently down about 25 metres. 

    - A new MacLean bolter and new jumbo have been added to the fleet of new equipment.  We have saved over $7 million in capital expenditures by utilizing used equipment within the current fleet at HudBay Minerals.  A picture of the new jumbo and bolter are available on our website.

    - We have completed over 339 days without a lost time accident (LTA). 

The Hudbay team at Reed is highly skilled and dedicated to the success of the operation and we continue to see progress towards production later this year. 

I think you will find the photographs of the mine tour the most interesting part of this report, so please use this link to view the Reed Copper Project as it is today.  http://www.vmsventures.com/Projects/Manitoba-Properties/VMSHudBayJointVentures/VMS-Ventures---HudBay-Joint-Venture-Project/default.aspx

As always we welcome your feedback and will try to answer any questions you might have for us.

Best regards,