SOURCE: Copper Fox Metals Inc.

September 24, 2007 17:22 ET

Copper Fox Metals Inc. Announces Third Quarter Results and Expenditures in Excess of $15 Million on the Schaft Creek Property

CALGARY, AB--(Marketwire - September 24, 2007) - Copper Fox Metals Inc. (TSX-V: CUU) ("Copper Fox" or the "Company") announces its third quarter results for the three months ended July 31, 2007.

Copper Fox has filed, on SEDAR, quarterly unaudited financial statements for the three months ended July 31, 2007, along with the related Management Discussion and Analysis.

Mr. Guillermo Salazar, President and Chief Executive Officer, announces that the Company incurred a loss from operations for the three months ended July 31, 2007 of $1,012,528 related to the ongoing activities of the Company in its third quarter. In addition, the Company incurred $5.4 million of expenditures on its Schaft Creek mineral property. The Company surpassed the accumulated expenditure of $15 million on the property in the third quarter of 2007 thereby achieving the second threshold of the Schaft Creek Option, the 70% direct interest of Teck Cominco Limited. The Company received an additional $1.8 million of share capital through the exercise of share purchase warrants during the quarter.

Third Quarter Highlights: During the nine months ended July 31, 2007, the Company spent a further $7.3 million on its option interest at Schaft Creek and has accumulated over $15.6 million on this property to date. The Company believes it has satisfied its commitment with Teck Cominco and earned a 70% direct interest in the Schaft Creek property. The Company is awaiting confirmation of this event from Teck Cominco. Significant activity at the Schaft Creek property site is ongoing with four drills on site and a program to drill 10,000 meters of core by the end of the drilling season and fiscal year end of October 31. The core samples will then be sent for analysis to provide more information on the extent and quality of the mineralogy of this world-class deposit.

On May 9, 2007, the Company released a technical report and resource estimate of the deposit at Schaft Creek which has quantified the size of the deposit and composition of the various ore bodies contained therein. A revision of this resource estimate was announced on July 10, 2007, and is available at www.sedar.com.

In addition, the Company has made continued progress in the study of the environmental and social impact implications of establishing a mine operation in the area through the services of Rescan Environmental Services Limited. These studies are an important aspect of the permitting process and will be incorporated in the bankable feasibility study which the Company expects to complete by December 31, 2008.

Subsequent Event:

The Company completed a brokered "flow-through" and "non flow-through" private placement financing on August 15, 2007. The Offering raised an aggregate $9,602,100 CDN funds consisting of a "flow-through" portion of 5,772,400 common shares at a price of $1.25 and a non flow-through component of 2,169,635 units priced at $1.10. Each unit consists of one non flow-through common share and one-half of a non flow-through common share purchase warrant. Each full warrant will entitle the Purchaser to purchase one warrant share at a price of $1.60 per warrant share, exercisable up to February 16, 2009.

Selected Financial Information:

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                             Net Loss          Net loss per share -
                                               basic and dilutive

2007
First Quarter              $(407,802)                      $(0.01)
Second Quarter           $(1,783,054)                      $(0.03)
Third Quarter            $(1,012,528)                      $(0.01)
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Total                    $(3,203,384)                      $(0.05)
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2006
First Quarter              $(124,522)                      $(0.01)
Second Quarter             $(409,896)                      $(0.02)
Third Quarter              $(929,939)                      $(0.02)
Fourth Quarter             $(192,356)                      $(0.00)
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Total                    $(1,656,713)                      $(0.04)
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Liquidity and Capital Resources: During the third quarter ended July 31, 2007, the Company's working capital decreased from $5.6 million to $1.6 million as the Company entered into its busy season at the Schaft Creek mine site. Expenditures during this part of the season are approximately $2 million per month. The Company was able to raise approximately $1.7 million during the third quarter through the exercise of share purchase warrants that provided an important component in meeting its current obligations. Subsequent to July 31, 2007, the Company successfully completed a $9.6 million financing. This will provide the Company with sufficient funds to complete this year's drilling program at Schaft Creek in the next quarter and provide sufficient working capital to continue with the technical analysis of the drilling results, and other ongoing environmental and social impact studies required to complete the Company's bankable feasibility study. As the Company continues to work on the completion of its bankable feasibility study by December 31, 2008, the Company will continue to access the capital markets to raise the funds necessary to complete this study from time to time.

Share Capital: The Company has issued 81,657,650 outstanding shares and has 2,903,819 warrants and 6,338,000 options outstanding as of September 21, 2007.

About Copper Fox

Copper Fox is a Canadian-based Junior Natural Resource mining company listed on the TSX Venture Exchange trading under the symbol CUU. The Company is working toward the economic development of the world-class copper-gold-molybdenum mineral deposit located at Schaft Creek situated in north west British Columbia, Canada. The Company is in the process of evaluating the feasibility of developing an open pit mine with a minimum capacity of 65,000 tonnes/day processing rate over a minimum life of 35 years. Copper Fox holds the property pursuant to an option agreement with Teck Cominco Limited whereby Copper Fox may acquire up to a 93.4% direct and indirect interest in the Schaft Creek property.

For further information on Copper Fox please contact Jason Shepherd, Investor Relations, toll free at 1-866-913-1910, Email investor@copperfoxmetals.com or contact Guillermo Salazar at 403-264-2820. Please visit the Copper Fox web site at www.copperfoxmetals.com.

On behalf of the Board of Directors

(S) Guillermo Salazar
President & 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.

Certain statements included and incorporated by reference in this news release constitute forward-looking statements or forward-looking information under applicable securities legislation. Forward-looking statements or information typically contain statements with words such as "anticipate," "believe," "expect," "plan," "intend," "estimate," "propose," or similar words suggesting future outcomes or statements regarding an outlook. Although the Company believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. The forward-looking statements or information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publically or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless as required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

Please visit the Copper Fox web site at www.copperfoxmetals.com.

Contact Information

  • For further information on Copper Fox please contact:

    Jason Shepherd
    Investor Relations
    Toll free: 1-866-913-1910
    Email: Email Contact

    Guillermo Salazar
    403-264-2820