Dear VMS Followers,

Today's release is to inform the market that the Reed prefeasibility study is now available for review on SEDAR (www.sedar.com) and we invite you to do so, if you wish.

The release outlines the economic validity of the Reed Copper deposit with diluted indicated reserve tonnage and grade. Initial production is slated for the last quarter in 2013 with full production scheduled in the first quarter of 2014.

Below is the economic model results based on 100% ownership of Reed with metal price assumptions from the prefeasibility study.

We will continue to update shareholders with project advancements on a regular basis.

Best regards,

Neil Richardson
COO
VMS Ventures Inc.

Vancouver, B.C., May 16, 2012. VMS Ventures Inc. (TSX-V:VMS) (“VMS”) is pleased to announce the Prefeasibility Study of the Reed Lake polymetallic deposit near Snow Lake, Manitoba with Joint Venture partner Hudbay Minerals Inc. (TSX : HBM) (NYSE : HBM) is available for viewing on www.sedar.com.

The pre-feasibility study prepared by Hudbay and Stantec in respect of the Reed deposit demonstrates that the indicated resources can be converted to reserves and economically viable for extraction by long-hole open stoping at a rate of 1300 TPD. Reed Copper Project Assumptions and Qualifications

Production at Reed is scheduled to begin at the 260 metre level from Zones 10 and 20 and in Zone 30 from the 135 metre level. Mining is expected to finish in Zone 30 from the 85 metre level, in Zone 20 from the 110 metre level and in Zone 10 on the 285 metre level.

Run of mine ore will be transported by truck directly to Flin Flon where it will be crushed to less than 150 millimeters. The Reed ore will be batched independently through the Flin Flon concentrator with assumed metal recoveries of 94% copper, 58% gold and 62% silver producing a copper concentrate.

Access to the underground mineral resources will be via a trench, portal and decline located near the center of the surface site. The decline will be excavated 6 metres wide and 5 metres high to a depth of 510 metres from surface and be able to accommodate a 60 tonne truck. Ore and development waste will be hauled to surface via the decline. Each mining level, spaced 25 metres vertically, will be accessed from the decline and will be 5.5 metres wide by 4.5 metres high to accommodate a 10 yard load, haul and dump scooptram.

The project will be powered by diesel generators and power distributed to surface buildings and underground.

Stantec provided capital estimates for: surface infrastructure, underground dewatering, indirect costs (contractor, construction management). Hudbay provided capital estimates for underground development and construction, mine equipment, all other indirect costs, operating costs, sustaining capital, production schedule and metal price forecast. CLICK HERE TO READ MORE

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