Copper Fox announces the closing of $5,000,000 financing by an insider

Press Release Source: Copper Fox Metals Inc. On Monday October 3, 2011, 8:00 am EDT

VANCOUVER , Oct. 3, 2011 /CNW/ - Mr. Elmer Stewart , President and CEO of Copper Fox Metals Inc. ("Copper Fox" or "the Company") (TSX-V: CUU) is pleased to announce the closing of a financing by an insider for net proceeds of $5,000,000 ("Financing").

The Financing replaced the offering announced on September 7 th and September 12 th, 2011 and consisted firstly of the issuance of 1,851,852 units at a purchase price of $1.35 per unit, for aggregate net proceeds of $2,500,000 . Each unit consists of one common share of Copper Fox and one common share purchase warrant of Copper Fox. Each warrant entitles the holder thereof to acquire one common share of Copper Fox at an exercise price of CDN $1.50 prior to 5.00 PM September 30, 2012 .

The second component of the Financing is for the amount of $2,500,000 previously advanced to the Company by Mr. Echavarria , which amount was settled by a shares for debt transaction through the issuance of 1,851,852 common shares of Copper Fox at an issue price of $1.35 . No warrants were issued in respect of the shares for debt transaction. Mr. Echavarria is a Director, an insider, and a control person of Copper Fox, as defined by the regulations of the TSX-Venture Exchange, and has from time to time made advances to the Company, as required, interest free and with no set terms of repayment.

Monies raised from the Financing have been used to fund costs associated with completing the Feasibility Study which include environmental studies, metallurgical testing, engineering studies, and exploration expenses at Schaft Creek and pay down advances.

In accordance with applicable securities legislation securities issued pursuant to the Financing are subject to a hold period of four months plus one day from the date of completion of the Financing. The TSX Venture Exchange has confirmed its final acceptance in respect of the offering and the shares for debt transaction in its bulletin to be dated October 3, 2011 .

No fees or commissions were paid as part of these transactions.

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