Copper Fox Reports 2011 Third Quarter Financial Results and a Corporate Update

VANCOUVER, Sept. 28, 2011 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to provide an overview of the work completed during the quarter, including exploration, progress with advancing the feasibility study of the Schaft Creek deposit, other activities and its 2011 third quarter financial results. Technical information contained in this news release was previously disseminated by way of news releases and posted on SEDAR at www.sedar.com and on the Company's website at www.copperfoxmetals.com.

Elmer Stewart, President & CEO, stated, "The 2011 drilling program continues to expand the higher-grade copper-gold-molybdenum-silver mineralization in the Paramount zone to the east, along strike and at depth. Based on the geophysical signature, it appears that a considerable portion of the higher-grade zone remains to be tested by diamond drilling. Work on the feasibility study including pit optimization and pit slope design is progressing well.  The receipt of the updated resource estimate was a major milestone that allowed our contractors to start the next phase of the feasibility study on the Schaft Creek project.  The recently acquired land covers the extensions of the Schaft Creek Mineral Trend and at the same time provides extra land for use in the proposed operations at Schaft Creek".

Quarterly Highlights
During the quarter, Copper Fox was active on a number of activities including the receipt of the updated resource estimation for the Schaft Creek deposit, land acquisitions, the acquisition of shares in Liard Copper Mining and the 2011 Schaft Creek field program.

Resource Estimation
AMEC Americas Limited ("AMEC") completed the National Instrument 43-101 compliant report updating the current mineral resource estimate for the Schaft Creek deposit.  Copper Fox adopted a strategy of maximizing the value of the resource by excluding low grade (potentially uneconomic) material from the resource estimate.

Table-1: Mineral Resource Estimate - Schaft Creek Deposit - David Thomas P. Geo., Effective Date: May 1, 2011

Resource Tonnage Copper Molybdenum Gold Cu Eq. Contained Metal
Category (Million Tonnes) (%) (%) g/t (%) Cu (Mlbs) Mo (Mlbs) Au (Moz)
Measured 40.30 0.36 0.023 0.25 0.61 319.60 20.5 0.32
Indicated 971.20 0.27 0.017 0.18 0.45 5,795.70 363.2 5.50
Measured and Indicated 1,011.50 0.27 0.017 0.18 0.46 6,113.70 383.6 5.81
Inferred 283.60 0.24 0.011 0.15 0.39 1,517.20 68.8 1.34

Mlbs = pounds expressed in millions
Moz = ounces expressed in million
Cu Eq. = copper equivalent grade

*The copper equivalent ("Cu Eq.") cut-off calculation is based on metal prices of 1,200 US$/oz gold, 2.90 US$/lb of copper and 15.95 US$/lb of molybdenum, a mining cost of $1.35 US$/t mined and a processing cost of 5.12 US$/t milled.  The Mineral Resource is reported at a cut-off grade of 0.20 % Cu Eq. contained within a Lerchs-Grossman resource pit shell optimized on copper, gold and molybdenum grades.  The contained metal figures shown are in situ.  All figures have been rounded to reflect accuracy and to comply with securities regulatory requirements following "best practice principles".  AMEC undertook quality assurance and quality control studies on the mineral resource data and concludes that the collar, survey, assay and lithology data are adequate to support resource estimation.

The silver content (estimated to range between 1 and 2 g/t) of the deposit has not been included in the resource estimate due to legacy data issues due to the number of exploration companies (including Teck and Hecla) that explored the Schaft Creek deposit over the past 50 years.

Airborne Magnetic Survey

This high resolution survey identified a number of significant structural features typical of a porphyry copper district within the Schaft Creek Property.  The Schaft Creek deposit, the ES and GK zones of copper mineralization, the Mike chargeability anomaly and the recently identified Schaft Creek Mineral Trend are located within the area.

2011 Diamond Drilling Program

Three diamond drills are currently working on the Paramount zone of the Schaft Creek deposit and have extended the higher-grade mineralization to the east past the limits of the 2008 proposed open pit into an area that was previously considered to be waste rock.  This area measures 1,200m long by 800m wide and is identified by a large chargeability anomaly identified in 2010. The weighted average grades for the mineralized intervals (at zero cut-off) and the estimated recoverable copper equivalent grades are set out below:

DDH ID Dip Azimuth From (m) To (m) Interval (m) copper (%) gold (g/t) silver (g/t) molybdenum (%) Cu Eq (%)
CF407-2011 -70 90 5.3 524,47 519.17 0.4 0.24 1.98 0.025 0.69
    including 264.26 424,62 160.36 0.65 0.53 3.8 0.034 1.18
CF408-2011 -60 270 11.05 350.57 339.52 0.36 0.07 1.90 0.03 0.57
    including 114.78 191.48 76.70 0.42 0.07 2.45 0.05 0.74
CF409-2011 -60 85 116.00 473.66 357.31 0.36 0.26 1.83 0.03 0.71
    including 319.13 473.66 154.33 0.43 0.27 1.70 0.04 0.81
CF401B-2011 -70 90 262.08 514.85 250.75 0.30 0.10 1.23 0.02 0.52
    and 544.6 569.28 24.68 0.51 0.18 1.42 0.03 0.78

The above intervals are not true widths. The recoverable copper equivalent calculations are based on 88% of the copper content plus 81% of the gold content, 72% of the molybdenum content and 71% of the silver content.  Metal prices are copper $US2.50/pound, gold $US1,075/ounce, molybdenum $US17.00/pound and silver $US16.10/ounce.

Titan-24 DCIP & MT Survey

The Titan-24 survey over the Mike zone and the recently acquired ES and GK zones (all within a 6 kilometre strike length) located north of the Schaft Creek deposit has been completed.  Results are pending.

Feasibility Study

During the quarter, Wardrop, a TETRA TECH Company, commenced work on selecting the optimal pit based on a number of scenarios using various input parameters and metal prices.  Knight Piesold are currently working on the geotechnical aspect of the proposed open pit concentrating on the pit slope design and overall pit slope angle. This work would result in the design of the proposed production pit used as the basis for completion of the feasibility study as well as a mineral reserve, mine plan and overall strip ratio.

Environmental Studies

During the quarter, progress was made on the environmental assessment application and the environmental impact statement through the advancement of a transportation study for both operations and construction of the mine.  Work has also progressed on the Tahltan Traditional Use and Knowledge studies which will be finalized in 2011.  Finally, Copper Fox continues to work closely with representatives from the Tahltan Nation on the economic, social and cultural impact assessment.

Selected Financial Information

         
    Net Loss   Net (loss)/income per share
- basic and diluted
2011        
Third Quarter $ (502,944)     $ 0.00
Second Quarter           $                    (2,378,650) $ (0.01)
First Quarter $ (358,211) $ 0.00
2010        
Fourth Quarter $ (421,346) $ 0.00
Third Quarter $ (436,792) $ 0.00
Second Quarter $ (309,067) $ 0.00
First Quarter $ (446,822) $ 0.00
2009        
Fourth Quarter $ 1,533,575 $ 0.01

Liquidity and Capital Resources

The Company's working capital deficit, defined as current assets less current liabilities, was $878,689 at July 31, 2011.

During the nine month period, the Company raised a total of $12,902,625 due to the completion of private placements totaling $7,755,000, 2,235,000 options exercised for total proceeds of $1,053,750, 1,828,500 warrants exercised for total proceeds of $2,593,875 and a Director loaned $1,500,000 to the Company.  The loan is unsecured, bears no interest and there are no fixed terms of repayment.

To July 31, 2011, the Company has spent approximately $63.6 million of qualifying expenditures toward the feasibility study.  The Company will require additional capital to complete this study and to provide for the administration of its Vancouver and Calgary offices.  The Company believes that it will be able to raise the capital required to complete the feasibility study through the continued exercise of its outstanding options or through the public market as required.  Circumstances that could affect liquidity are early positive or negative results from the feasibility study, the general state of the equity markets for junior exploration companies and the overall state of the economy.

Copies of the financial statements and notes and related management discussion and analysis may be obtained on SEDAR at www.sedar.com, our Company web site at www.copperfoxmetals.com or by contacting the Company directly.  All amounts are in Canadian dollars unless otherwise stated.

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, silver and molybdenum deposits in North America.  The feasibility study is being led by Wardrop, A Tetra Tech Company on a minimum 120,000 tpd open pit mine and is expected to be completed during the fourth quarter 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 Mines Ltd. ("Liard") and an earn back option held by Teck Resources Limited ("Teck").  Copper Fox is currently earning a 78% interest in Liard 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 totalling 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 totalling 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 B. Stewart
President & Chief Executive Officer

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of the Canadian securities laws.  Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "budgets", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions.  Forward-looking information in this news release include statements about the timing and completion of a feasibility study; the chargeability anomalies at the Schaft Creek project; the scope and timing of work on the outstanding sections of the feasibility study; the potential to find additional porphyry style copper deposits within the Schaft Creek property; expected capital requirements to continue planned activities; expected sources and the adequacy of required capital resources; the results and interpretation of the high resolution airborne magnetic survey over the Schaft Creek project; the timing and scope of expected diamond drilling; the timing and completion of the Feasibility Study and Environmental Assessment application for the development of the Schaft Creek project; potential existence and size of mineralization within the Schaft Creek project; estimated timing and amounts of future expenditures and "earn-back" options; geological interpretations and potential mineral recovery processes.  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.

In connection with the forward-looking information contained in this news release, Copper Fox has made numerous assumptions, regarding, among other things: the interpretation of the results of the high resolution airborne magnetic survey over the Schaft Creek project; the geological, metallurgical, engineering, financial and economic advice that Copper Fox has received is reliable, and is based upon practices and methodologies which are consistent with industry standards; and the continued financing of the Feasibility Study; and the anticipated analytical results of the current drilling program.  While Copper Fox considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies.  Additionally, there are known and unknown risk factors which could cause Copper Fox's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein.  Known risk factors include, among others: the feasibility study may not be completed within the expected timeframe, or at all; the actual mineralization in the Schaft Creek deposit may not be as favourable as suggested by the interpretation of the results of the high resolution airborne magnetic survey; another deposit may never be discovered on Copper Fox's property, or contain anticipated mineralization, or mineralization of any significance at all; the Feasibility Study  or the Environmental Assessment may not be completed within the contemplated time frame, or at all; the possibility that the analytical results from the core sampling does not return significant grades of copper mineralization; the possibility that future drilling on the Schaft Creek project may not occur on a timely basis, or at all; 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, and estimated economic return; 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.

A more complete discussion of the risks and uncertainties facing Copper Fox is disclosed in Copper Fox's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com.  All forward-looking information herein is qualified in its entirety by this cautionary statement, and Copper Fox disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

SOURCE Copper Fox Metals Inc.

For further information:

For additional information contact:  Investor line 1-866-913-1910 or J. Michael Smith, Executive VP, at 1-604-689-5080

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