Wildcat Exploration Ltd

VANCOUVER, BRITSH COLUMBIA--(Marketwire - July 6, 2010) - VMS Ventures Inc. (TSX VENTURE:VMS) (the "Company") is pleased to announce it has entered into a joint venture agreement and four separate option agreements with a subsidiary of HudBay Minerals Inc. (TSX:HBM), respecting its copper-rich Reed Lake Discovery Zone properties and a series of adjacent mineral properties held by VMS in Manitoba's Flin Flon Greenstone Belt. These transactions were contemplated by the previously announced letter of intent entered into by the parties on March 4, 2010.

Pursuant to the joint venture agreement, HudBay has a 70% interest and VMS has a 30% interest in a joint venture respecting the Reed Lake property and the two claims immediately to the south. HudBay will act as operator of the joint venture with authority and discretion as to the exploration and potential development of the property and will have exclusive rights to purchase and market the ore produced from the property.

HudBay will also provide full financing for VMS' proportionate share of the costs to develop the property, which will be repayable solely from VMS' share of cash flow generated by the project. Upon VMS making certain filings to confirm the previously-disputed boundaries of the joint venture claims, HudBay will make a cash payment to VMS of $2.6 million, as consideration for VMS transferring the southern claims to the joint venture and in lieu of HudBay's obligation to earn back into the property under the initial option agreement between the parties.

VMS Ventures CEO Rick Mark, states: "This agreement allows our most important asset, the Reed Lake Discovery Zone to be developed. Our shareholders have waited patiently for this moment and I want to thank them for their perseverance. We are excited to work with the HudBay team to aggressively explore the Reed Lake property to determine the ultimate size of the deposit and advance it towards development. We are also pleased that exploration can again commence on the surrounding claims so that any other deposits on the properties can be identified. The agreement with HudBay removes any impediment to financing the project and provides the technical expertise and infrastructure necessary to help realize its full potential."

"We are very pleased to be entering into a joint venture with VMS Ventures and we are optimistic that the Reed Lake property can be developed into a source of copper feed for our Flin Flon concentrator," said W. Warren Holmes, HudBay's executive vice chairman and interim chief executive officer. "We intend to commence drilling on the Reed Lake property as soon as possible and we are also looking forward to conducting exploration on a number of promising targets on the option properties."

The option agreements grant HudBay the right to earn a 70% interest in four adjacent claim parcels held by VMS, including the Tower Zone and Super Zone properties. Upon making certain cash payments and meeting work commitments over two to three years, HudBay will earn a 70% interest in the applicable property and a new joint venture will be formed between HudBay and VMS which will have substantially the same terms as the Reed joint venture. Any failure to make the required cash payments and work commitments with respect to a particular property will cause that property to revert to VMS but will not affect HudBay's option over the other properties.

In order to fulfill the requirements to earn a 70% interest in the four optioned claim packages, HudBay will make payments totaling $1,120,000 with $255,000 paid on signing and make expenditures totaling $2,600,000 over a three year period. HudBay will also provide financing for the first $50 million dollars of VMS's portion of exploration and development costs for each of the four separate option agreement claim groups.