Copper Fox Metals Inc. - Termination of Letter of Intent with Lions Gate Metals Inc.



    CALGARY, April 24 /CNW/ - Copper Fox Metals Inc. ("Copper Fox") (TSX-V:
CUU) announces that the binding Letter of Intent ("LOI") entered into with
Lions Gate Metals Inc., ("Lions Gate"), as previously announced February 27,
2009 and extended on March 30, 2009, has terminated.
    Under the terms of the LOI, Lions Gate was to have entered into
settlement agreements with the creditors of Copper Fox. Lions Gate, despite
strong efforts, was unable to negotiate debt settlement agreements conditional
upon completion of the transaction as stated in the LOI, with two of Copper
Fox's total 31 creditors prior to the extended deadline of April 17, 2009.
Management of Copper Fox has therefore determined that the conditions of this
LOI were not achievable and it will be allowed to expire...
    Copper Fox has indicated it will participate in open discussions with
Lions Gate to pursue a business combination on other mutually satisfactory
terms, and also will pursue alternate financing or business arrangements or
solutions with other independent third parties.

    About Copper Fox

    Copper Fox is a Canadian-based mining company listed on the TSX-Venture
Exchange (CUU). The Company's activities are focused exclusively on the Schaft
Creek mineral property, one of the largest undeveloped copper, gold,
molybdenum and silver deposits in Canada. Copper Fox holds the Schaft Creek
property pursuant to an option agreement with Teck Resources Limited ("Teck)
and has earned a direct 70% interest in the Schaft Creek Mineral Deposit. The
Company may acquire up to a 93.4% direct and indirect interest in the
property, subject to certain back-in rights to Teck.
    Schaft Creek comprises 20,932 hectares situated in northwest British
Columbia, Canada at 57 degrees 21' N latitude and 130 degrees 59' W longitude
on the eastern slopes of the Coastal Mountain ranges. Schaft Creek is situated
between the highway and the glaciers in the area, and benefits from a
significantly lower average rain and snowfall compared to the Pacific (west)
side of these same ranges. The Company released the results of its preliminary
feasibility study on September 15, 2008. The PFS was based on a 100,000 tonne
per day open pit mine with a minable reserve of 812 million tonnes. The report
indicated Schaft Creek could produce 4.762 billion pounds of Copper, 255.1
million pounds of molybdenum, 4.493 million ounces of gold and 32.480 million
ounces of silver over a 22.6 year mine life with a pretax NPV of $2.764
billion discounted at 8%.

    
    On behalf of the Board of Directors

    Guillermo Salazar S, President and CEO

    The TSX Venture Exchange has not reviewed the contents of this news
    release and accepts no responsibility for the adequacy or the accuracy
    thereof.

    Cautionary Note Regarding Forward-Looking Information
    

    This news release includes "forward-looking information" within the
meaning of the Canadian securities laws. All statements, other than statements
of historical fact, included herein and including, without limitation;
anticipated dates for receipt, commencement or completion of permits,
approvals, construction, production and other milestones; anticipated results
of drilling programs, scoping, prefeasibility and feasibility studies and
other analyses; anticipated availability and terms of future financings;
estimated timing and amounts of future expenditures; Copper Fox's future
production, operating and capital costs; operating or financial performance;
geological interpretations and potential mineral recovery processes, are
forward-looking statements. Information concerning mineral reserve and
resource estimates also may be deemed to be forward-looking information in
that it reflects a prediction of the mineralization that would be encountered
if a mineral deposit were developed and mined. Forward-looking information is
necessarily based upon a number of estimates and assumptions that, while
considered reasonable by management, are inherently subject to significant
business, economic and competitive uncertainties, risks and contingencies. For
any forward looking information given, management has assumed that the
geological, metallurgical, engineering, financial and economic advice it has
received is reliable, and is based upon practices and methodologies which are
consistent with industry standards. There can be no assurance that such
information will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such information. Important
factors that could cause actual results to differ materially from Copper Fox's
expectations include: fluctuations in copper and other commodity prices and
currency exchange rates; uncertainties relating to interpretation of drill
results and the geology, continuity and grade of mineral deposits; uncertainty
of estimates of capital and operating costs, recovery rates, production
estimates and estimated economic return; the need for co-operation of
government agencies and native groups in the exploration and development of
properties and the issuance of required permits; the need to obtain additional
financing to develop properties and uncertainty as to the availability and
terms of future financing; the possibility of delay in exploration or
development programs or in construction projects and uncertainty of meeting
anticipated program milestones; uncertainty as to timely availability of
permits and other governmental approvals; and other risks and uncertainties
disclosed in Copper Fox's continuous disclosure filings with Canadian
securities regulatory authorities at www.sedar.com. The forward-looking
information in this news release is based on Copper Fox's current expectations
and Copper Fox assumes no obligations to update such information to reflect
later events or developments, except as required by law.




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