May 2014 presentation

North Shore Mining Group

Combined Company Presentation, May 2014 VMS OWNS 23.9% OF NAN

TSX.V:VMS TSX.V:NAN

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TSX-V : VMS

Forward Looking Statements:

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. and North American Nickel 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.

TSX-V : NAN

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Typical Exploration Stock Price Cycle

NAN

May 2014?

VMS

Oct.2007

VMS

May 2014?

3

VMS Ventures owns

~23.9% of

North American Nickel

VMS Ventures: Overview

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Reed Copper Deposit discovered 2007

June 2010: Joint Venture signed with HudBay

Minerals as operator (NYSE:HBM); 70% HBM &

30% VMS carried to production.

Reed Copper Deposit Probable Mineral Reserves

(January 1, 2014): 2.12M tonnes of 3.80% Cu, 0.42

g/t Au, 5.28 g/t Ag

Underground development continues; Full

production to begin 2014; cash flow expected in

2015

Well funded; $5M in the treasury

Market Cap: ~ $35M

Other assets :

Owns 23.9% of North American Nickel

(NAN.TSX.V) (current value ~ $10M)

Large 100% owned land package in the

Snow Lake-Flin Flon Greenstone Belt in

Manitoba, Canada;

www.vmsventures.com

CAPITAL STRUCTURE

(as at May, 2014)

Issued & Outstanding: 129,730,899

Options: 8,017,500

Fully Diluted: 137,748,399

52 Week high/low $0.31/$0.15

Current Price $0.285

Year to Date Performance 42.5%

Market Cap $35 million

Reed Project: Discovery to Production

www.vmsventures.com 5

Reed Copper Mine

VMS owns 30% of the project and is financed to production

Borehole Pulse Electromagnetic targets indicate the deposit remains open at depth.

First production of 8,235 tonnes completed in September 2013

43,829 tonnes of ore mined by the end of February 2014.

Commercial production to begin in Q2-2014

Cash flow expected in 2015

Open Down Plunge

VMS-HudBay Reed Mine


Reed Copper Mine: Cash Flow Expected In 2015

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 Study Published in May 2012:


PFS VMS Ventures VMS Ventures Inc. VMS Ventures Inc. VMS Ventures Inc. VMS Ventures Inc.

Cu = $3.25/lb USD Cu = $3.00/lb USD Cu = $3.30/lb USD Cu = $3.50/lb USD Cu = $4.00/lb USD

Prices and Exchange Rate

Copper (USS/lb) $3.25 $3.00 $3.30 $3.50 $4.00

Gold (US$/oz) $1,500.00 $1,300.00 $1,300.00 $1,300.00 $1,300.00

Silver (US$/oz) $30.00 $22.00 $22.00 $22.00 $22.00

US$/CDN$ 1 1 1 1 1

Pre-tax

VMS Reed Cash Flow $43,228,000 $29,530,000 $44,278,000 $54,110,000 $78,691,000

Assets and Opportunities

The Reed Copper Mine

Cash flow expected to commence 2015

Underground drill stations will explore for additional ore bodies and further define the size of the deposit.

Full production expected in Q2, 2014.

$5M and cash flow coming = New Opportunities

We are actively seeking an advanced stage project and are continuously reviewing prospective projects. The

current business climate is favorable for high value acquisitions as many companies are struggling to raise money

and finance existing projects.

North American Nickel (VMS owns 23.9% of NAN Shares)

The world’s next nickel sulphide camp?

NAN is exploring a 75 km long, camp scale property near Maniitsoq, on the S.W coast of Greenland.

Why Own VMS ?


TSX-V : NAN

Maniitsoq Project

Sulphide Hosted Nickel Copper Cobalt & Precious Group Metals

Southwest Greenland

100% Owned

www.northamericannickel.com 9

Acquired the (Sudbury Basin sized) Maniitsoq

property in Greenland in August, 2011; 100% owned

High grade nickel sulphide mineralization (locally

over 7% nickel at Imiak Hill) intersected in 2013

drilling

Over +200 conductive target zones identified

through Helicopter EM (VTEM) geophysical surveys

Extensive prospective belt (15km x 75km) hosting

mineralized intrusions within a large meteor impact

structure

$11M invested to date; Cash position today $5.8M

VMS Ventures holds 23.9% of NAN shares

Sentient Group holds 41% of NAN shares

(the Sentient Group manages over $2.7B in quality

metal, mineral and energy assets across the globe.)

www.northamericannickel.com

North American Nickel: Overview

10

CAPITAL STRUCTURE

(as at May, 2014)

Issued & Outstanding: 141,070,701

Warrants: ($0.21 - $1.00) 25,137,027

Options: 7,887,500

Fully Diluted: 174,095,228

53 Week High/Low $0.47/$0.12

YTD Performance 106%

Current Price $0.36

Market Cap $50 million

Nickel Supply/Demand: In Our Favor

The Nickel market is likely to face large deficits in 2nd half of this decade – only a doubling of NPI output could

balance it (difficult given Indonesian ore constraints combined with Chinese cost pressures) Nickel prices, as in

2005‐2007, will likely have to rise to force demand in line with available supply.

China is going to need 1+ MILLION tonnes more nickel annually during this decade and ROW will

also need more.

Supply response will be structurally insufficient as current projects under construction only

provide half this requirement (at best, as many are struggling) and “project cupboard” is largely

empty ‐ underpinned by 35+ years of underdevelopment.


Courtesy of Royal Nickel

Presentation, Jakarta

Location

Maniitsoq harbour looking east towards the Maniitsoq project on the mainland

Located on the southwest coast of Greenland, which is pack ice free year-round.

Maniitsoq’s mild climate allows for all year round mining & shipping of concentrate.

Greenland is a democratic, pro-mining country with a transparent regulatory system, competitive mining tax regime and no land claims issues.

Maniitsoq Ni-Cu-Co-PGM Project

South West Greenland


Property

Greenland’s capital, Nuuk, is 30 minutes by helicopter and provides European standard coastal re-supply and logistics facilities 4 to 6 hours shipping time to Maniitsoq coastline.

Maniitsoq is a greenfields nickel sulphide exploration project with valuable by-products.

NAN owns 100% of Maniitsoq via two contiguous exclusive mineral exploration licences covering 3,601 km2.

Maniitsoq has the scale and the potential metal endowment to be the world’s next nickel sulphide province.






Project Geology

Nickeliferous Noritic Intrusions

Concentrated in a 75 x 15 km curvilinear belt known as the Greenland Norite Belt.

Range in size from small dykes and plugs to elongated bodies covering up to 8 km2. (Fossilik intrusion, new discovery Sept. 26, 2013).

Hybridized margins and xenoliths of partially resorbed country rock are common.

Believed to represent open ended magma conduits.




Distinct Appearance

Rounded hills covered with brownish-grey, often rusty, coarse gravel.

Multi-phase: compositions range from quartz diorite, through norite, to lherzolite. Gabbronorite is most common.

Magmatic and cumulus textures often well preserved. Locally pyroxenes are partially or completely replaced by hornblende.

Post Kinematic

Massive, little or no foliation except at margins.

Contacts often crosscut country rock foliation.

Norite Intrusions




Consists of monoclinic pyrrhotite, pentlandite, chalcopyrite and pyrite.

Often coarse-grained.

Likely to produce a clean concentrate.

Inclusion-bearing sulphide (i.e. solid sulphide matrix with fragments of host rock) is a common texture.

Disseminated, blebby, net texture and vein sulphides are also common.

Sulphide

Mineralization




Mantle melting in response to a giant impact.

Hot ultramafic magma flows to surface through a

“conduit system” comprised of restricted conduits

and larger magma chambers.

Hot magma assimilates country rock (locally sulphidic)

resulting in sulphur saturation and production of a

sulphide liquid.

Ni+Cu+Co±PGE sulphide collects in zones of lower

velocity within the conduit system.

Continual magma flow upgrades the nickel tenor of

sulphide already deposited.

Magmatism eventually ceases and conduit system is

preserved as noritic rock.

Over time, uplift and erosion expose parts of the

magma conduit system and some of the

Ni+Cu+Co±PGE sulphides.

Modified after Maier et al., 2001

Deposit Model


J. Mungall, Ni Short Course Fig 4

Potential Sulphide

Accumulation Sites

in a Magma Conduit



Historical Work

Kryolitselskabet Øresund, 1962 to 1973: extensive mapping, prospecting defining the trend and shallow diamond drilling (average hole length <55 m), no subsurface geophysical modelling to orientate drilling but some success: Fossilik II: 12.89 m @ 2.24% Ni and 0.63% Cu

Cominco & Falconbridge, 1993 to 2000: Cominco flies extensive fixed wing time domain EM unsuited to undulating terrain and hampered by flight path.

Falconbridge completed surface magnetic and EM surveys, plus extensive high quality re-analysis of historical core that confirmed historical high-grade assays and establish Maniitsoq nickel tenor.

Neither Cominco nor Falconbridge did any drilling.




Ni vs. S for Historical GNB Drill Core

Nickel tenor is the amount of nickel in pure sulphide and it tends to be consistent on a deposit scale.

Falconbridge studied core from 119 drill holes around the entire 75km Greenland Norite Belt.

The norite hosted sulphides have a remarkably consistent nickel tenor of 6 to 8% Ni recalculated to 100% sulphide.

Nickel Tenor

The Nickel Calculator


www.northamericannickel.com 20 www.northamericannickel.com

Maniitsoq Project

2011 / 2012: Laying the Groundwork

North American Nickel Inc. TSX-V: NAN



Total of 5,746 line-kilometers of helicopter borne SkyTEM / VTEM covering approximately 860km2 mainly focused on the Greenland Norite Belt (GNB) but small survey also flown over the Pingo showing (about 15 km to the northwest of the GNB).

Nominal flight line spacing of 200 to 100 meters.

+ 200 conductive zones recognized to date.

Map shows total magnetic intensity reduced to pole and electromagnetic anomaly picks over the GNB.

The resulting identified conductors are 3 dimensionally modeled, providing low risk sub surface drill targets that returned significant drill intercepts.

Helicopter TDEM

New Technology in an Old Camp

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2012 Drill Program

1,551 METERS in 9 HOLES in 3 AREAS

Spotty Hill VTEM conductor P-55 tested intercepts:

123.94 m at 0.81% Ni, 0.21% Cu and 0.03% Co

incl. 24.20 m at 1.75% Ni, 0.34% Cu and 0.06% Co

Imiak Hill VTEM Conductor P-54 tested intercepts:

26.98 m at 0.98% Ni, 0.44% Cu and 0.04% Co

incl. 16.64 m at 1.36% Ni, 0.52% Cu and 0.05% Co

Fossilik II VTEM conductors P-58 & P-59 tested:

Anomalous mineralization and off hole BHEM conductors (future drill

target: see Sept. 26, 2013 results)




Nickel Deportment - QEMSCAN

Mass (

% N

i)

Legend

Pentlandite is the main nickel-

bearing mineral and contains 95.5

to 96.3% of all the nickel in the

samples.

Total potentially floatable

pentlandite ranges from 96.3 to

97.6%.

Pyrrhotite hosts 2.71 to 4.03% of

the nickel.

Silicates host < 1% of the nickel.

Sample


Elemental Deportment (Mass % Ni)

www.northamericannickel.com 24 www.northamericannickel.com North American Nickel Inc. TSX-V: NAN

Maniitsoq Project

2013: Confirmation and Discovery



2013 Drill Program

25 holes totaling 4,266 meters completed.

Four significant intersections at Imiak Hill

(Aug 23, Sept 4 and Nov 5 news releases).

New zone of near solid to solid sulphides

intersected at Imiak North

(Sept 12 and Oct 23 news releases).

Fossilik: Potential for tonnage, 9km from Imiak

Hill (Sept 26, 2013 news release).

Spotty Hill: additional disseminated

mineralization intersected (October 23 news

release).

Recognition of the Imiak Hill Conduit Complex

Results released to date:


IMIAK HILL

IMIAK NORTH

SPOTTY HILL



Imiak Hill Conduit Complex (IHCC)


12 km2 area at north end

of the Greenland Norite

Belt.

Three mineralized

norites within a 2 km

radius

Imiak Hill

Imiak North

Spotty Hill

Only 25 km from nearest

tide water at Kangia

Fjord.



Imiak Hill Conduit Complex: 3 Mineralized Intrusions




Imiak Hill Longitudinal Section

NAN’s 2013 drilling has intersected Zones 10 and 30 at

depth. Deepest intersection is 185m vertically below

surface.

Zone 30 sulphide mineralization is increasing in intensity

with depth.

2013: Oct. 10, 2013 News


MQ-13-023 (Zone 10) 10.33m (5.94m) @ 1.10% Ni, 0.38% Cu

MQ-13-028 (Zone 30) 24.75m (11.08m) @ 3.19% Ni, 1.14% Cu

MQ-13-026 (Zone 30) 25.51m (11.94m) @ 3.25% Ni, 0.48% Cu

MQ-13-019 (Zone 30) 8.68m (5.58m) @ 1.53% Ni, 0.43% Cu

MQ-13-024 (Zone 30) 14.90m (8.33m) @ 2.67% Ni, 0.39% Cu

MQ-13-019: 8.68m (5.58m)* @ 1.53% Ni, 0.43% Cu, 0.06% Co

MQ-13-024: 14.90m (8.33m)* @ 2.67% Ni, 0.39% Cu, 0.09% Co

MQ-13-026: 25.51m (11.94m)* @ 3.25% Ni, 0.48% Cu, 0.11% Co

Incl. 18.62m (8.70m)* @ 4.31% Ni, 0.62% Cu, 0.14% Co

MQ-13-028: 24.75 m (11.08m)* @ 3.19% Ni, 1.14% Cu, 0.11% Co

Incl. 17.91m (8.10m)* @ 3.80% Ni, 1.42% Cu, 0.13% Co

And 2.40 m (1.10m)* @ 4.44% Ni, 1.13% Cu, 0.15% Co

BHEM response is also increasing with depth.

Open at depth.

*Estimated true width is shown in brackets



55.75 m @ 1.28% Ni, 0.36% Cu, 0.04%Co, 0.06 g/t TPM

Incl. 9.99 m @ 4.65% Ni, 0.33% Cu, 0.13% Co, 0.14 g/t TPM

Imiak North Discovery – Assay Results


64.11 m @ 0.44% Ni, 0.20% Cu, 0.01%Co, 0.04 g/t TPM

Incl. 24.98 m @ 0.71% Ni, 0.31% Cu, 0.01% Co, 0.07 g/t TPM

2013 ADDITIONAL DRILLING:

2012 DISCOVERY:



Spotty Hill

123.94 m of high grade sulphides in hole MQ-12-005.

119 m of anomalous mineralization in MQ-12-009.

Significant 2012 Drill intersections from Spotty Hill

www.northamericannickel.com

123.94 m @ 0.81% Ni, 0.21% Cu, 0.03% Co, 0.26 g/t PGM

Incl. 24.20 m @ 1.75% Ni, 0.34% Cu, 0.06% Co, 0.52 g/t PGM

Incl. 8.20 m @ 2.39% Ni, 0.21% Cu, 0.07% Co, 0.60 g/t PGM

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MQ-13-022

Collared 53 m southeast of MQ-12-005.

Intersected 20.07 m grading 0.68% Ni, 0.28% Cu,

0.02% Co and 0.32 g/t TPM.

Including 2.07 m assaying 2.03% Ni, 0.11% Cu,

0.07% Co and 0.78 g/t TPM.



Fossilik Area: Additional Tonnage Potential for IHCC


Within 10 km of the IHCC

New discovery: MQ-13-018

Two historical occurrences with

grades up to 2.24% Ni and 0.63%

Cu plus a new discovery in hole

MQ-13-018

Hole MQ-13-018

3 zones of disseminated mineralization:

32.19m @ 0.59% Ni, 0.18% Cu, 0.21 g/t TPM*

Incl. 4.53m @ 1.06% Ni, 0.23% Cu, 0.33 g/t TPM*

26.00m @ 0.24% Ni, 0.11% Cu, 0.16 g/t TPM*

Incl. 9.00m @ 0.42% Ni, 0.15% Cu, 0.27 g/t TPM*

8.71m @ 0.26% Ni, 0.15% Cu, 0.12 g/t TPM*

*TPM = total precious metals (Pt+Pd+Au)

www.northamericannickel.com 32 www.northamericannickel.com North American Nickel Inc. TSX-V: NAN

Maniitsoq Project

2014 Plan:

Surface Geophysics,

Outlining Tonnage at IHCC,

Exploration Drilling of Priority Targets



NAN holds exclusive rights to explore the area containing the Greenland Norite Belt and Maniitsoq Impact Structure and all significant associated nickel sulphide occurrences and significant occurrences of nickel mineralization in the area.

Three intrusions, comprising the Imiak Hill Conduit Complex (IHCC) with significant, high grade sulphide mineralization now identified.

Additional mineralized norites within 10 km of the IHCC creating the potential for an initial mining complex.

Sudbury camp sized,100% owned property with many unexplored and underexplored areas creating the potential for multiple deposits.

Summary Of Work To Date: What’s Possible


2014 Program Mid-April: Ground geophysical crews commence surveying the IHCC area for deep conductors to target with

drilling.

June 2014: Focused drilling to build tonnage and further define mineralized zones at IHCC.

Drill test priority regional targets across the belt.

VMS/NAN Management


Rick Mark, M.Ed (Admin) CEO & Chairman NAN: Rick has over 25 years experience in the public market place. He

is also CEO & Chairman of VMS Ventures Inc. (VMS-TSX.V). Over the last eight years, Rick and the group have

raised more than $75 million for exploration and development activities.

Neil Richardson P. Geo. COO, NAN: Neil has a long history of mineral exploration and mining experience with

Hudbay Minerals and others. As the COO of both companies, Neil is responsible for creating and implementing

exploration and development programs.

Mark Fedikow, HBSc., M.Sc., Ph.D., P.Eng., P. Geo., C.P.G. President & Director NAN: Mark has 35 years of

industry and government experience, including Chief Geologist of the Mineral Deposits Section in Manitoba. He is a

recipient of the Canadian national award for outstanding geoscientific achievement.

John Pattison, P. Geo., B.Sc. Chief Geologist NAN: John worked with Falconbridge Limited and associated

companies for 19 years managing base metal, PGE and gold exploration projects throughout Canada and southern

Africa. He has led the Maniitsoq Project since its inception at NAN in 2011.

Jim Sparling, P. Geo., B.Sc., MBA Project Manager NAN: Jim has worked for over 25 years in the exploration

industry, most recently as COO for Skyline Gold and Exploration Manager for StrataGold, He is the principal geologist

for the Maniitsoq Project in Greenland.

John Roozendaal B.Sc, President of VMS Ventures; Director of NAN: John was the founding director of VMS

Ventures Inc. He has 20 years of Mineral Exploration experience and was directly involved in the Reed Copper

discovery.

Independent Directors & Advisory Boards Independent Directors

Gilbert Clark, Director, NAN: Mr. Clark is a European based Geologist with more than 13 years of industry experience; principally in mining

and international resource developments. He is currently an Investment Advisor with The Sentient Group, an independent private equity

investment firm specializing in the global resources industry.

Jim Clucas, Director & Audit Committee Member, 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.

Don Whalen, Director & Audit Committee Chair, VMS: Don 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.

Advisory Board

Dr. Tony Naldrett: Tony is an internationally recognized expert in the field of nickel sulphide mineralization and was Professor of

Geology at the University of Toronto from 1967 to 1998. He has authored or co-authored over 240 refereed papers and 8 books and has

supervised 15 M.Sc. and 16 Ph.D. students and 15 Postdoctoral Fellows with focus on magmatic nickel, copper and platinum-group element

sulphide deposits, worldwide.

Mr. Alex Balogh: Alex is the former Chairman and CEO of Falconbridge Ltd., Deputy Chairman of Noranda Inc. and CEO of Noranda

Minerals Inc. He has served as Chairman and Director for various mining organizations, sits on The Sentient Council and is a current member

of the Advisory Board of Hatch Associates. Mr. Balogh is a metallurgical engineer and has more than 40 years of experience in the mining and

metallurgical industry.

Dr. James M. Patterson , P.Geo., Ph.D. , Technical Advisor: James is the former Geological Consultant, Vice President Exploration

and VP & Executive Consultant with FNX Mining Company Inc. He was instrumental in the revival and building of the company from a

market capitalization of $20 million to $2.5 billion. Dr. Patterson has over 40 years experience in mineral exploration globally. Dr. Patterson

received his Ph.D. Mining Geology from the University of London, England, Diploma of Imperial College from Imperial College, London,

England, BA (Honours) in Natural Sciences – Geology from Trinity College, University of Dublin, Ireland, and has over 25 publications on

mineral exploration.


Why Own NAN?: Is It The World’s Next Nickel Sulphide Camp?

Investor Risk Mitigation: These “boxes” are already ticked Greenland is a secure political jurisdiction supported by pro-mining government;

Access to ice free tide water, 12 month of the year: Moderate climate

Significant historic exploration data and drill core analyzed and interpreted by NAN

Maniitsoq’s geology is exemplary for district scale nickel potential:

Abundance of Ni-Cu sulphide occurrences at surface & in drilling;

High Nickel tenor – consistent across 75KM belt

Major, long lived structures

Large-scale mafic igneous event

QEMSCAN testing suggests excellent recoveries expected

Modern helicopter “terrain hugging” surveys optimal for Maniitsoq’s topography and mineralization immediate success >200 EM anomalies

Low cost power potential, (hydro electricity generation) and near by access to deep water shipping

Management has a discovery track record;

NAN has a strategic investor: The Sentient Group; owns 41% (VMS Owns 23.9%)

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May 2014 presentation

Business

Transcript of May 2014 presentation