We are engaged in a facilities study agreement with BCHydro, that is similar to a feasibility study, for which we are committed to paying at least $1 million. This is not connected to a production decision at this point--they are looking at costs and timing and then locking up the option with BCHydro will come after the FSA is complete. We already know we are in line to get connected to the NTL should we opt to go into production.

March 25, 2013 News Release:

Vancouver, British Columbia - March 25, 2013 - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce that it has entered into a facilities study agreement (the "Facilities Study Agreement") with the British Columbia Hydro and Power Authority ("BC Hydro") in connection with the proposed power supply to the Company's Schaft Creek project. The Facilities Study Agreement sets forth the terms and conditions for BC Hydro to perform a facilities study to assess the requirements to connect the Schaft Creek project to the forthcoming BC Hydro Bob Quinn substation and the associated system reinforcements.

Pursuant to the Facilities Study Agreement, Copper Fox has requested transmission voltage service (69,000 kV and above) at the Schaft Creek project and BC Hydro will conduct a facilities study (the "Study") consisting of: (i) conducting preliminary engineering design to develop equipment specifications; (ii) developing a project plan that describes the Schaft Creek interconnection project and includes a schedule for implementation of detailed engineering, procurement, construction, testing and commissioning; (iii) developing a +/-30% cost estimate for implementation of the Schaft Creek interconnection project, and (iv) developing internal (BC Hydro) documentation for financial approvals to proceed with the Schaft Creek interconnection project. In order to conduct the Study, Copper Fox will pay a required deposit to BC Hydro. Copper Fox previously submitted a system impact study request to BC Hydro; an interconnection queue position was assigned to the Schaft Creek project and the system impact study was conducted. The queue position is used to prioritize study work and allocate interconnection costs. The Study is expected to be completed on or before May 31, 2014 and is estimated to cost in excess of $1 million to complete.

Upon completion of the Study and following presentation, review and acceptance of the Study, Copper Fox expects to sign a facilities agreement whereby BC Hydro would then implement interconnection work, including detailed design and engineering, procurement for major equipment and construction and commissioning of the facilities. Upon entering a facilities agreement, Copper Fox would provide financial commitment to BC Hydro in the form of cash payment for the basic transmission extension and security for the system reinforcement portion. Part of the implementation for the interconnection work that BC Hydro would undergo includes installing revenue metering equipment. Prior to energization, BC Hydro and Copper Fox would execute an electricity supply agreement. The average timeline from execution of the facilities agreement to energization is six months to three years, depending on the complexity of the project and the resources available.