Copper Fox updates activities at Schaft Creek

CALGARY, Jul 15, 2010 (Canada NewsWire via COMTEX News Network) --

Copper Fox Metals Inc. (TSX-Venture: CUU) is pleased to provide its shareholders with an update of activities on the Schaft Creek copper-gold-molybdenum-silver deposit located in Northwest British Columbia. Copper Fox also advises that the report on the Quantec Titan-24 DCIP and MT survey completed at Schaft Creek is expected shortly.

Highlights:

    <<
    -  Diamond drilling has commenced with the following objectives;
       i) geotechnical testing of the proposed mill site, ii) to better
       define a possible higher grade starter pit on the West Breccia zone
       and iii) test the 2008 Induced Polarization anomalies,

    -  The watershed areas around the Schaft Creek deposit are non fish
       bearing,

    -  Six hydro-geological test holes have been completed to better define
       and monitor the subsurface water flow in the area of the proposed
       waste piles, and

    -  Since June 10, 2010; a total of 67,250,863 representing the balance
       of the outstanding July 13, 2010 warrants have been exercised
       resulting in $5.04 million being received by Copper Fox. Currently
       Copper Fox has $3.3 million in cash.
    >>

Mr. Stewart, President of Copper Fox stated that "I am pleased that the fish habitat portion of the environmental studies on the Schaft Creek deposit concluded that no fish species have been found from 1 to 6 kilometer radius of the deposit. The lack of fish habitat and low acid generating potential of the waste rock to be mined are very positive environmental features of the Schaft Creek deposit. The exercise of the warrants provides cash to continue our feasibility study on the Schaft Creek deposit which is expected to be completed before the end of 2010".

Diamond Drilling Program:

Cabo Drilling Limited have been contracted to complete a minimum of 2,000 metres (8 holes) of diamond core drilling as part of the feasibility study on the Schaft Creek deposit. The objectives of the drilling program are:

    <<
    -  two geotechnical holes in the area of the proposed mill site to test
       the bedrock stability.

    -  six inclined diamond drill holes to better define the distribution of
       the copper-gold-molybdenum-silver grades in the vertical dipping West
       Breccia zone (see News Release dated June 1, 2010) as a possible
       higher-grade "starter pit".

    -  Contingent on the Quantec Titan-24 DCIP and MT survey confirming the
       Induced Polarization/Resistivity ("IP") anomalies outlined in 2008,
       two additional diamond drill holes are planned to test these
       anomalies.
    >>

Environmental Assessment Update:

Copper Fox is working with the Tahltan Heritage Resources Environmental Assessment Team and provincial and federal regulators to submit an Environmental Assessment (EA) Application for the Schaft Creek deposit in the fourth quarter of 2010. One aspect of the EA Application will require authorizations under the Canadian Fisheries Act. The exhaustive studies completed by Copper Fox show that the tailings storage facility, the open pit and the waste rock storage areas, all three of which are major components of the feasibility study and the proposed mine site are not located within fish bearing waters. Naturally occurring barriers prevent fish from accessing to within 1, 2.5 and 6 kilometers of the tailings storage facility, waste rock storage area and open pit.

Due to the absence of fish, approval under the British Columbia Environmental Assessment Act, the Canadian Environmental Assessment Act and the Canadian Fisheries Act will not be contingent upon the reclassification of fish habitat as mine waste disposal facilities. Copper Fox expects that due to the absence of fish in the area around the proposed mine site, a Schedule 2 Amendment under the Fisheries Act would not be required.

Copper Fox has selected the tailings and waste rock storage areas based on consultation with the regulatory agencies with the goal of minimizing impacts on the environment and is working with provincial, federal and Tahltan Heritage Resources Environmental Assessment Team representatives to develop the Schaft Creek Project in an environmentally responsible manner. Following the mandatory review period of the EA Application, Copper Fox expects to obtain a BC Environmental Assessment Certificate and an approval under the Canadian Environmental Assessment Act in the second quarter of 2011.

Financing:

Since June 10, 2010 (the date of the MD&A for the quarter ended April 30, 2010) a total of 67,250,863 warrants issued pursuant to a private placement of securities (see News Release dated June 18, 2009) completed on July 13, 2009 have been exercised. As a result of the exercise of these warrants, Copper Fox received $5.04 million a portion of which has been used to fund the completion of the feasibility study on the Schaft Creek project. After exercise of the warrants, Copper Fox has 352.4 million common shares issued. As of July 13, 2010, Copper Fox has $3.3 million cash that will be principally used to fund completion of the feasibility study on the Schaft Creek project.

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, has reviewed the technical information disclosed in this news release.