Drill Results from the Discovery Zone at the Schaft Creek Project

EVENT: Copper Fox Metals recently released assay results from two diamond drill holes from the Discovery Zone at the Schaft Creek copper project in Northern British Columbia.

DISCUSSION: Drill core CF427-2012 intercepted extremely strong copper mineralization; part of the core intersected mineralization as high as 1.23% Cu (over a 12.0m drill core length) which is relatively high compared to the grades of other Western Copper porphyry copper deposits. It also intersected 47.0m of 0.62% Cu mineralization, again higher than similar deposits of this kind in Western Copper.

EXPLORATION POTENTIAL: The high grade intercepts, in the absence of material grades of molybdenum, could be signs of the existence of a separate mineralization event on the Schaft Creek project site.

UPCOMING CATALYSTS: Copper Fox Metals intends to release a feasibility study during September 2012. Currently, sensitivity studies to different mine design parameters are being evaluated to select the optimal start-up scenario. Teck Resources, who has an option to acquire 20, 40 or 75% of the project, could then be “triggered” to exercise its options.

VALUATION/RECOMMENDATION: We do not cover the shares of Copper Fox Metals and offer no opinion on its share price.