CALGARY, Dec. 5, 2011 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce that subject to the approval of the TSX-Venture Exchange, the Company intends to increase the size of its previously announced non-brokered private placement (see news release dated November 17, 2011) by $2,000,000 bringing the total private placement proceeds to $4,000,000 CDN (the "Offering"). The Offering is expected to consist of 3,278,689 units at a purchase price of $1.22 per unit, for aggregate gross proceeds of $4,000,000. Each unit consists of one common share of Copper Fox and one common share purchase warrant of Copper Fox. Each warrant entitles the holder thereof to acquire one common share of Copper Fox at an exercise price of CDN $1.35 prior to 5:00pm on the one year anniversary of the closing date of the Offering. The proceeds of the offering will be used to fund the work on the feasibility study of the Schaft Creek project.

Mr. Ernesto Echavarria a director, an insider and a control person of Copper Fox, as defined by the regulations of the TSX-Venture Exchange, has committed to participating in 100% of the Offering.

"This financing commitment combined with direct advances already provided to the company by Mr. Echavarria continue to demonstrate his strong commitment to Copper Fox and to the Schaft Creek project" says Elmer Stewart, President and CEO of Copper Fox.

About Copper Fox

Copper Fox is a Canadian based resource company listed on the TSX-Venture Exchange (CUU-TSX-V). Copper Fox was recently recognized by TSX Venture Exchange Inc. as a member of the distinguished TSX Venture 50® group where it had the distinction of being ranked first overall for 2010.

The Company is working on completing a feasibility study on the Schaft Creek deposit, one of the largest undeveloped copper, gold, molybdenum and silver deposits in North America. The feasibility study is being led by Tetra Tech WEI Inc. on a minimum 120,000 tpd open pit mine and is expected to be completed during the fourth quarter of 2011.

Copper Fox holds title and a 100% working interest in a contiguous 21,024.96 hectare (51,954 acre) property which includes the Schaft Creek deposit subject to a 3.5% Net Profits Interest held by Royal Gold, Inc., a 30% carried interest held by Liard Copper and an earn back option held by Teck Resources Limited ("Teck"). Copper Fox is currently earning a 78% interest in Liard Copper from Teck. Teck's earn back option to acquire 20%, 40% or 75% of the Copper Fox interest in the Schaft Creek project is triggered upon completion of a positive feasibility study. Should Teck elect to exercise its option for 75% they are required to fund subsequent property expenditures up to a total of 400% of those incurred by Copper Fox ($63.6 million as of July 31, 2011) and arrange for project financing, including the Copper Fox portion. For full details of the option please refer to the Company's website www.copperfoxmetals.com.

In March 2011, the Company acquired mineral claims located adjacent to the Schaft Creek property totaling 2,978.32 hectares (7,360 acres) (the "March 2011 Mineral Claims") which are subject to a 2% Net Smelter Return ("NSR"). Copper Fox has the option to repurchase, at any time, one-half of the NSR on the March 2011 Mineral Claims for a total purchase price of $3 million. In September 2011, the Company acquired mineral claims located adjacent to the Schaft Creek property totaling 6,115.11 hectares (15,111 acres) (the "September 2011 Mineral Claims") which are subject to a 2% NSR. Copper Fox has the option to repurchase, at any time, one-half of the NSR on the September 2011 Mineral Claims for a purchase price of $1 million. The March 2011 Mineral Claims and the September 2011 Mineral Claims are subject to inclusion with the Schaft Creek project under the terms of the Area of Interest provisions of the Teck Option Agreement.

Additionally Copper Fox holds mineral claims totaling 3,947.06 hectares (9,753 acres) in the Liard Mining District of BC not subject to the Teck earn-back.

On behalf of the Board of Directors

Elmer Stewart, P. Geol. MSc.
President and CEO