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VMS:TSX.V Explorer to Producer NAN: TSX.V The World’s Next Nickel Belt New York Hard Assets Investment Conference May 14-15, 2012 Discovering High Grade.

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Presentation on theme: "VMS:TSX.V Explorer to Producer NAN: TSX.V The World’s Next Nickel Belt New York Hard Assets Investment Conference May 14-15, 2012 Discovering High Grade."— Presentation transcript:

1 VMS:TSX.V Explorer to Producer NAN: TSX.V The World’s Next Nickel Belt New York Hard Assets Investment Conference May 14-15, 2012 Discovering High Grade Copper Deposits in Manitoba, Canada

2 FORWARD-LOOKING STATEMENTS NOTE: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward-looking statements that involve various risks. The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. VMS Ventures Inc. undertakes no obligation to update such forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.

3 VMS VENTURES INC. CAPITAL STRUCTURE (as at April, 2012) Issued & Outstanding:129,168,399 Warrants: 163,333 Options: 9,909,850 Fully Diluted:139,241,582  Well funded junior with approximately $10.8M in the treasury.  Discovered the copper rich Reed Copper deposit in Manitoba in 2007. JV Partner HudBay Minerals (T.HBM) is project operator; VMS costs carried to production. Project ownership is 70% HBM & 30% VMS.  Reed Copper deposit Prefeasbility announced in April 2012. Indicated Reserve: 2.2M Tonnes of 3.83% Cu, 0.48 g/t Au, 6.02 g/t Ag  Large, highly prospective land package in the prolific Flin Flon – Snow Lake Greenstone Belt of Manitoba  VMS owns ~45% of North American Nickel QUICK FACTS VMS - TSX.V

4 4 Rick Mark, M.Ed (Admin) - CEO & Chairman VMS & NAN: Rick has over 23 years experience in the public market place. He is also the CEO & Chair of VMS Ventures Inc. (VMS:TSX.V), and Harvest Gold Corporation (HVG-TSX.V), a December 2005 "spin off" from VMS, and is the President and CEO of Pancontinental Uranium Corp. (PUC-TSX.V). Neil Richardson P. Geo. COO, VMS, Advisor to NAN: Neil has a long history of mineral exploration and mining experience with HudBay Minerals and others. Neil is the Chief Operating Officer for VMS Ventures responsible for developing and implementing exploration programs. Mark Fedikow, HBSc., M.Sc., Ph.D., P.Eng., P. Geo., C.P.G. - President and C.O.O., Director NAN, VP Exploration VMS: Mark has 35 years of industry and government experience Chief Geologist of the Mineral Deposits Section in Manitoba. Recipient of Canadian national award for outstanding geoscientific achievement. He is President of NAN the Vice President of Exploration and Technical Services of VMS. John Roozendaal B.Sc – President of VMS, Director of NAN: Founding director and President of VMS Ventures Inc. 20 years of Mineral Exploration experience, directly involved in the Reed Copper discovery.. John Pattison, P. Geo., B.Sc. Chief Geologist VMS and NAN: John has extensive experience in base metal exploration. John worked with Falconbridge Limited and associated companies for 19 years managing base metal, PGE and gold exploration projects throughout Canada and southern Africa. VMS/NAN MANAGEMENT

5 Independent Directors: Don Whalen, VMS: Mr. Whalen was Executive Chairman and Director of High River Gold Mines. Before joining High River, he held numerous marketing, technical and management positions over a 29 year career with IBM Canada Ltd. Jim Clucas, NAN: Jim was Chief Financial Officer of Inco’s Canadian operations and has been involved in the development of several mineral deposits, including the Snow Lake Mine (High River Gold Mines), Montana Tunnels (Pegasus Mining) and the Fenix Project in Guatemala. He was the founder of International Nickel Ventures Inc. which acquired and developed the Santa Fe/Ipora Nickel Laterite deposit in Brazil. Jim is currently President and CEO of Search Minerals Advisory Board Cashel Meagher B.Sc. P. Geo.: Cashel is currently Vice President South America Business Unit of Hudbay Minerals. He has worked with the technical and management teams at VMS Ventures and North American Nickel through the Reed Lake joint venture with VMS. Prior to joining Hudbay, Mr. Meagher held management positions with Vale Inco in exploration, technical services, and mine operations. Mike Muzylowski - Callinan Mines Ltd. (CAA-TSX.V) accomplished President and CEO, has played key roles in the discovery of 15 Canadian mines, 13 in Manitoba, during his distinguished career as a geologist, geophysicist and senior mining executive. James M. Patterson B.A. D.I.C. Ph.D. P. Geo.: Jim a former VP Exploration for FNX Mining Company, has over 40 years experience in mineral exploration with major and junior exploration companies, government and international development agencies. 5 INDEPENDENT DIRECTORS & ADVISORY BOARD

6 REED COPPER DEPOSIT VMS-HudBay JV VMS owns 30% and is carried to production Prefeasibility report indicates 2,157,000 tonnes of 3.83% Cu, 0.59% Zn and 0.48 g/t Au NPV 8% @ $3.75 Cu = $191,361,000; IRR 68.40% Borehole Pulse Electromagnetic targets indicate the deposit is open at depth Open down plunge

7 ORE BODIES TEND TO GROW IN THE FLIN FLON BELT After K. Gilmore (Hudbay Minerals), 2007

8 REED COPPER DEPOSIT: CASH FLOW WITHIN SIGHT The high grade nature of the Reed Copper deposit gives the project strong leverage to copper prices. The following table shows a copper price sensitivity analysis based on the operating parameters set out in the prefeasibility. Prefeasibility 3 Year Historical Base Case (1) Average Price Case (2) Cu = $3.75/lb USD (3) Price and Exchange Averages Copper (USS/lb)$2.95$3.20$3.75 Gold (US$/oz)$1,269.00$1,235.00 Silver (US$/oz)$24.78$22.85 US$/CDN$0.950.940.92 Pre-tax Cash Flow$102,426,000$182,975,000$300,964,000 NPV 8%$57,443,000$109,904,000$191,361,000 IRR34.70%46.60%68.40% (1) Prefeasibility Base Case metal prices projections compiled by HudBay based on 11 well- known financial institutions. (2) Bloomberg three year historical average (December 1, 2008 to December 1, 2011) (3) $3.75 copper price for perspective on valuation impact of copper price

9 VMS VENTURES – HUDBAY JV & OPTIONS PROJECTS VMS-Hudbay JV 30-70 joint venture, VMS carried to production. Hudbay is operator. NI 43-101 Geological Resourced April, 2011 PEA announced December, 2011 Permits in place for bulk sample and surface, announced Jan 2012 Prefeasibility announced April 2012 Started portal entrance 4 Option Agreements HudBay is operator. $2.6 M in cumulative expenditures to earn 70%.  Prefeasibility study completed on Reed Copper project  Bulk sample and underground development permits in place  Started portal entrance – milestone for underground development 2012 HIGHLIGHTS Reed Copper deposit Reed North zone

10 VTEM COVERAGE OVER VMS’ 100% OWNED PROJECTS Many recent discoveries, including VMS’s Reed Lake Deposit, were made with VTEM VMS Ventures has flown over 17,000 line-km of VTEM over its projects, majority flown at 100 m line spacing. 5 years and $13 million in work – Targets ready to drill.

11 VMS 2012 ACTIVITIES HudBay JV: The Reed deposit, Manitoba’s next copper mine Prefeasibility report announced April 2, 2012 Mine Portal entrance established Mine Decline started; Hudbay crew to take over underground development in Q3 Production commences Q3 - 2013 VMS 100% Owned Properties Sudbury Projects Golden Pine, Black Creek & Terra Incognita scheduled for prospecting/trenching in Q2, auger drilling and diamond drilling in Q3 – Q4 North American Nickel (VMS owns 26M shares) Maniitsoq project will be drilled; own VMS or NAN ahead of drilling

12 Slide 12 NORTH AMERICAN NICKEL INC. CAPITAL STRUCTURE (as at April, 2012) Issued & Outstanding: 56,747,693 Warrants: 30,141,450 Options: 5,618,000 Fully Diluted: 92,507,143 NAN - TSX.V  Acquired the large, prospective Maniitsoq property in Greenland in August, 2011  High-grade nickel intercepts in historic drill holes: 9.85 m at 2.67% Ni and 60% Cu at Imiak Hill 12.89 m averaging 2.24% Ni and 0.63% Cu at Fossilik  Sudbury Ontario land position includes the Post Creek, Halcyon and Wahnapitae properties.  VMS owns 26M shares QUICK FACTS

13 MANIITSOQ PROJECT, GREENLAND  100% interest in a giant property covering 4,983 km 2 of the highly prospective, but underexplored, Greenland Norite Belt.  Located on tide water (navigable year- round) on the southwest coast of Greenland, near the village of Maniitsoq. Maniitsoq (looking east towards the project area)

14 THE GREENLAND NORITE BELT - PLENTY OF ROOM FOR WORLD CLASS NICKEL DEPOSIT(S)  Belt is J-shaped, 75 km long by 15 km wide and characterised by nickel- bearing noritic intrusions.  Numerous significant nickel showings with consistently high nickel tenor. From Eckstrand & Hulbert, 2007 Voisey’s Bay Deposit at map scale. Plan view of the Voisey’s Bay intrusion (from Eckstrand & Hulbert, 2007)

15 Slide 15 Nickel Tenor Maniitsoq sulphides have a relatively consistent nickel tenor of 6 to 8% Ni recalculated to 100% sulphide. Presence of pyrite means there is more S for a given amount of sulphide than in typical magmatic sulphide deposits consisting mainly of pyrrhotite-pentlandite and chalcopyrite. Typical 100% sulphide mixture of Po+Cp+Pn contains 35.7% S Kerr, 2003 After Shore, 2000 (Falconbridge Limited) Nickel wt. % Sulphur wt. % Ni vs. S for Maniitsoq Drill Core DRILL CORE

16 MANIITSOQ PROJECT 2011 SKYTEM RESULTS NAN WORK (2011)  Helicopter EM surveys by NAN in 2011 over two small areas (<8% of the project area) successfully delineated new targets.  Additional helicopter EM surveys and drilling planned for 2012. HISTORICAL WORK  Almost all showings were discovered in the 1960’s and early 70’s.  Average hole length less than 55 meters.

17 Slide 17 3D EM Modeling Target B1-B 700 m long, near surface conductive zone. No previous drilling. Characteristics and orientation of the conductor vary considerably along strike suggesting it is not formational. Magnetic data suggests that it is hosted in a large (2.5 x 1.0 km) norite body (shown in light purple). Target B1-B Interpreted Norite 1 km

18 Slide 18 3D EM Modeling Target B1-J 170 m long by 16 m wide conductor that comes to surface and is directly coincident with the Imiak Hill showing. The model shows that the mineralization strikes parallel to most of the historical drilling and therefore has not been properly tested. The model has very limited dip extent (21 m) but the best intersection on the showing (9.85 m averaging 2.67% Ni and 0.60% Cu) occurs 130 m below surface indicating that strong mineralization at surface is masking the EM response from mineralization at depth. FOOTWALL CONTACT OF NORITE 9.85m @ 2.67% Ni, 0.60% Cu STRIKE 9.85m @ 2.67% Ni, 0.60% Cu TARGET B1-J (IMIAK HILL): 3D VIEW LOOKING WEST TARGET B1-J: 3D VIEW LOOKING DOWN (PLAN)

19 Slide 19 3D EM Modeling Target B1-L Modeled as a 330 x 100 m flat- lying conductor located 160 m below surface within a norite intrusion. The conductor is untested but shallow, historical drilling 100 m above intersected weakly disseminated, nickeliferous sulphides grading up to 0.52% Ni and 0.26% Cu over 12.94 m. Clearly, mineralizing processes were at work here as indicated by the disseminated near-surface mineralization and the most logical location to look for massive sulphides is at depth. 100 m 330 m TARGET B1-L (SPOTTY HILL): 3D VIEW LOOKING NORTH ~ 160 m BELOW SURFACE (i.e. 100 m BENEATH PREVIOUS DRILLING)

20 Slide 20 Plans for 2012 & Beyond 2012 Ground truth all 25 conductive target zones identified by SkyTEM with emphasis on 3 highest priority zones (B1-B, B1-J and B1-L). Minimum 2,000 m of drilling to the three highest priority targets. 3,000 line-km of helicopter TEM over prospective norites in southern part of the norite belt. Prospecting outside of main norite belt looking for new showings and norites. Estimated cost $3.0 million 2013 Minimum 6,000 m of follow-up drilling on targets derived from 2012 work 3,000 line-km of helicopter TEM Estimated cost $ 7.5 million.

21 Slide 21 Investor Risk Mitigation 100% ownership; Camp-sized land package (Sudbury) Public Co management/financing experience Technical team is deep Secure political jurisdiction Regional setting; year round exploration Historic exploration data is remarkable ($10M plus) Geology Abundance of Ni-Cu occurrences at surface & in drilling Undeformed norite host rocks Mineralization: inclusion-bearing sulphides Nickel Tenor – consistent and economic grade New technologies in “old” camp work –25 EM targets in 8% of land package


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