News Releases


June 10, 2010
Copper Fox Advances Feasibility Study And Reports 2010 Second Quarter Financial Results

Vancouver, British Columbia -- June 10, 2010 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 on the feasibility study of the Schaft Creek deposit and its 2010 second quarter results. During the quarter the Company has spent an additional $2,137,539 towards completion of the feasibility study and reported a loss for the second quarter of $309,067. Technical information contained in this News Release has previously been disseminated by way of news releases and other technical reports and is posted on SEDAR at and on the Company's website at

Elmer Stewart, President & CEO, stated, "We are very pleased with the results and progress to date on the feasibility study for the Schaft Creek deposit. The technical data related to the ongoing environmental studies and the conclusions of the updated geological model significantly advance these aspects of the feasibility study, which is expected to be completed in the fourth quarter of 2010".

Quarterly Highlights
Highlights of the work related to the completion of the feasibility study as of the date of the MD&A are outlined below.
  • An estimate of 3.6% to 5.1% of the total waste rock mined could potentially be net acid generating, a very low percentage compared to other porphyry copper deposits,
  • a Section 11 Order has been received regarding the public consultation process for the Environmental Assessment process, and
  • a higher-grade zone of copper-gold-molybdenum-silver mineralization previously referred to as the West Breccia has been extended over a distance of 2,500 metres ("m") and is open to the north, south and at depth,
  • the results of the recently completed TITAN-24 DCIP and MT Survey are expected to be received before the end of June
Operating Activities:
To the end of December 2009, Copper Fox incurred a total of $43,299,162 that has been accepted by Teck as applicable expenditures pursuant to the Option Agreement on the Schaft Creek Project. A brief overview of the components of the feasibility study completed during the quarter is set out below.

Environmental Studies:
Copper Fox has been collecting environmental baseline information on the Schaft Creek area since mid 2005. As part of the environmental baseline studies, 634 Acid/Base Accounting Samples and numerous Humidity Cell Tests were performed. Copper Fox's consultant, Dr Kevin Morin, has concluded that an estimated from 3.6 to 5.1% of the total rock mined from the Schaft Creek deposit could potentially be net acid generating which is low compared to other porphyry copper deposits.

The Section 11 Order from the Government of British Columbia is an important milestone that allows Copper Fox to commence the public consultation process as part of its ongoing environmental and the socio-economic impact studies related to development of the Schaft Creek deposit. The Section 11 Order allows consultation with interested parties, the Tahltan Nations and federal and provincial regulatory bodies and is a significant milestone in the environmental assessment process.

Geological Model:
The updated geological model for the Schaft Creek deposit was prepared by Cambria Geosciences Ltd.,
and has identified the following:
  • the copper-molybdenum-gold-silver mineralization is constrained within a 1,200 m wide fault bounded north-northwest trending structure,
  • the Paramount Zone and the West Breccia Zone are interpreted to be one zone Paramount-West Breccia Zone,
  • the Paramount -- West Breccia Zone hosts higher-grade, steeply dipping to vertical disseminated, fracture and breccia-hosted copper-molybdenum-gold-silver mineralization that average about 100 to 150 m in width with a 2500 m strike length and is open at depth

    The geological model suggests that the mineralization could be open to the north and to the south.

    Future Activities:
    During the next quarter, it is expected that the level of work related to the feasibility study should increase substantially. A few of the aspects of the feasibility study that will be looked during the next quarter are outlined below.

    Feasibility Study:
    Copper Fox plans to complete a series of trade off studies related to the feasibility study with the objective of:

    a) reducing the capital and operating costs related to the development of the Schaft Creek deposit,
    b) shortening the period of time required to recover the initial capital costs referred to as the "payback" period,
    c) identify a zone of higher grade mineralization to mine during the first several years of mining and milling operations, and
    d) increasing the daily milling rate.

    Geophysical Survey:
    During the next Quarter, the results of the TITAN-24 DCIP and MT geophysical survey completed by Quantec Geosciences Limited are expected to be received. This survey was completed to locate and more precisely define two large geophysical anomalies outlined in a geophysical survey completed in 2008. This type of geophysical survey is commonly used worldwide in the exploration for porphyry copper deposits such as Schaft Creek. The results of the geophysical survey are expected to be received and announced before the end of June 2010.

    Resource Estimation:
    AMEC Americas Limited has commenced working on the preparation of an updated resource estimation for the Schaft Creek deposit. The initial work to be completed includes identifying the lithologic domains and creating copper and molybdenum grade shell to delineate the areas of mineralization that will be used in the updated resource estimation. It is expected that the updated resource estimation will be completed during the next quarter and include all drilling and analytical work completed at Schaft Creek to the end of December 2008.

    Engineering work related to the access road, construction of bridges, additional environmental studies and preliminary mine planning will continue during the quarter.

    Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the Corporation's nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, and has reviewed the technical information disclosed in the preceding paragraphs.

    Selected Financial Information

      Net Loss Net (loss)/income per share - basic and diluted
    Second Quarter $ ($309,067) $ 0.00
    First Quarter $ ($446,822) $ 0.00
    Fourth Quarter $ ($1,533,575) $ 0.01
    Third Quarter $ ($491,057) $ -
    Second Quarter $ ($431,763) $ -
    First Quarter $ ($29,135,359) $ (0.28)
    Fourth Quarter $ ($1,890,230) $ 0.02
    Third Quarter $ ($1,307,512) $ (0.01)

    Liquidity and Capital Resources:
    At the end of this quarter the Company has spent approximately $46 million toward completing the feasibility study on the Schaft Creek deposit. The Company's working capital was $1,156,391 at April 30, 2010. The Company has sufficient funds available to meet its current obligations.

    Copper Fox has been funding the work related to completion of the feasibility study through the exercise of warrants issued to shareholders and insiders pursuant to private placements of share capital completed in 2009. As of the date of this MD&A (June 10, 2010) 40,801,690 of the warrants exercisable at $0.075 and 1,986,511 of the warrants exercisable at $0.115 have been exercised. A total $3,288,576 has been received by Copper Fox and resulted in the issuance of 42,788,201 common shares of the Company.

    The cash requirements in the coming months will be significant as the Company works toward completing the feasibility study. At the end of this quarter the Company has spent approximately $46 million toward this 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 and warrants or through the public market if required.

    Copies of the financial statements and notes and related management discussion and analysis may be obtained on SEDAR at, our Company web site at 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). Copper Fox is focused exclusively on completing the feasibility study on Schaft Creek, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Copper Fox has earned a 100% working interest in the Schaft Creek project subject to a 30% net proceeds interest held by Liard Copper Mines Limited (Liard) a private company 78% owned by Teck Resources Limited ("Teck") and a 3.5% net profits interest held by International Royalty Corporation. Teck's 78% equity interest in Liard represents 23.4% of Liard's 30% net proceeds interest in the Schaft Creek project (referred to as the "indirect interest"). Copper Fox can also earn Teck's 23.4% "indirect interest" by completing a "positive" Feasibility Study, under the terms of the 2002 Option Agreement with Teck.

    Teck may at any time elect to exercise one of its "earn back options" pursuant to the terms and conditions of the 2002 Option Agreement. On receipt of a Positive Bankable Feasibility Study, as defined, Teck has 120 days in which to elect to either: i) exercise one of its earn-back options, or ii) retain a 1% net smelter return royalty, or iii) receive shares of Copper Fox to a value of $1,000,000.

    If Teck exercises its earn back option, then Teck can elect to acquire either a 20%, a 40% or a 75% of Copper Fox's interest in the Schaft Creek Project from Copper Fox by solely funding subsequent expenditures equal to either 100%, 300% or 400% of Copper Fox's prior expenditures (of which approximately $44 million expenditures have been incurred to date). If Teck elects to earn-back a 75% working interest, Teck will be responsible for arranging Copper Fox's share of project financing and will recover the project financing funds from Copper Fox's share of metal sales until payout is reached.

    The Schaft Creek Project is a contiguous land package of claims that comprises 21,025 hectares and a further contiguous group of 3,947 hectares that is not subject to Teck's earn-back, situated in northwest BC Canada. On September15, 2008, Copper Fox announced the results of a Preliminary Feasibility Study on the Schaft Creek deposit that contemplated processing 100,000 tonne per day from an open pit mine using a standard flotation recovery process. The PFS estimated the current Mineral Resources* (using a 0.2% copper equivalent cutoff) at Schaft Creek includes; Measured Resources of 436.5 million tonnes grading 0.30% copper, 0.23 g/t gold, 0.02% molybdenum and 1.55 g/t silver, Indicated Resources of 929.8 million tonnes grading 0.23% copper, 0.15 g/t gold, 0.02% molybdenum and 1.56 g/t silver.

    For additional information contact: J Michael Smith telephone 604 689 5080 or Investorline 1 866 913 1910

    On behalf of the Board of Directors

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

    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 anticipated timing and results of feasibility studies, geophysical surveys and drilling programs; the environmental implications of the estimated percentage of net acid generating waste rock mined; the economic impact of a higher grade "starter pit" in the West Breccia zone; the impact of the Section 11 Order on the application by Copper Fox for an Environmental Assessment Certificate; the continued financing of the Feasibility Study and the continued exercise of outstanding warrants held by insiders of Copper Fox; estimated timing and amounts of future expenditures and "payback" periods; and 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. 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. With forward-looking information contained in this news release, Copper Fox has made numerous assumptions regarding, among other things: 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; the positive environmental impact that the existence of low net acid generating potential from waste rock mined will have; the significant impact on the project economics as a result of the potential higher grade "starter pit" in the West Breccia zone; the positive impact that the receipt of the Section 11 Order will have on obtaining an Environmental Assessment Certificate; and the continued financing of the Feasibility Study, including the continued exercise of outstanding warrants held by insiders. 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 and Geophysical Survey may not be completed within the contemplated timeframe, or at all; the possibility of higher than estimated percentages of net acid generating waste rock; the possibility that an Environmental Assessment Certificate may not be obtained 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, 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. 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 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.


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