T his issue continues the focus on the

Golden Triangle, an incredibly rich

gold-silver-copper region of northwest

BC. The previous issue summarized

the history of that region and discussed the

geology, infrastructure and politics that

impact the region. Two companies were

introduced, both of which have huge gold

and base metal deposits on which feasibility

studies are underway. This issue discusses

some of the companies with earlier

stage projects: companies trading for pennies

a share that have potential to replicate

the exploration success of neighboring

companies which carry billion dollar

valuations.

Company Updates

Copper Fox Metals

(CUU-TSXV)

Copper Fox is working toward completion

of a feasibility study on its huge Schaft

Creek copper-gold-moly-silver deposit in

northwest British Columbia. That study is

now expected in the next couple of

months. In the meantime, drilling and

other work is underway that continues to

expand the deposit, in essence outlining a

mineral district that extends for more than

10 kilometers.

An updated resource estimate earlier this

year outlined a measured and indicated

resource of 1.23 billion tonnes grading

0.26 per cent copper, 0.017 per cent molybdenum,

0.19 g/t gold and 1.69 g/t silver

containing 7.1 billion pounds copper,

455 million pounds molybdenum, 7.7

million ounces gold and 67 million

ounces silver. An inferred resource, at

slightly lower grades, adds a further 2.9

billion pounds copper, 206 million

pounds molybdenum, 3.4 million ounces

gold and 31 million ounces silver. The

resources outlined so far are hosted in the

Main (Liard) zone and the Paramount

zone.

Copper Fox is continuing to explore other

zones along a north-northwest trending

zone that has been outlined by structure,

geology, surface samples, geophysics and

drilling. Two drills are now operating on

the Discovery zone. Two holes recently

completed returned long intervals with

copper and molybdenum minerals visible

in the core. Hole 426 was reported to carry

mineralization over 90% of its 788 meter

length and 427 had over 500 meters. Assays

are pending and drilling is continuing.

Two holes were attempted in the Mike

zone, but were terminated at 140 meters

when they encountered difficult ground

conditions, before the depth at which there

is a geophysical (chargeability) anomaly.

Surface work and geophysics have identified

two other zones – ES zone and GK

zone – further along the trend.

Clearly, there is enormous potential in

what is emerging as a district-scale project.

Those new zones will not be formally

part of the evaluation of the project, but

certainly add an element of upside to the

project that will make it more enticing for

a major mining company.

Delivery of the feasibility study to Teck

begins a 120 day period in which the major

can back-in to the project, increasing

its ownership to as much as 75%. If Teck

elects to back-in to 75%, that company

would be required to fund the next $300

million and arrange for project financing,

including the Copper Fox portion of the

capital cost.

A back-in by Teck would be a very positive

development, as it would confirm the

large-scale and favor economics of the

project. If they do not back in, or back in

for a lesser amount, Copper Fox will have

more time to further evaluate the new

zones and then bring in another senior

partner.

Copper Fox has also acquired two copper

projects in Arizona on which considerable

work has been carried out. The projects are

on a much smaller scale than Schaft Creek,

making them suitable for development by

a junior. Further details are awaited.

The Copper Fox share price will be subject

to considerable news flow over the coming

weeks, which could push the price either

way, depending on whether the news

meets expectations.

Price August 22, 2012: C$1.19

Shares Outstanding: 392 million

Shares Fully Diluted: 415 million

Market Cap: C$466 million

Contact: Investor Relations

403-264-2820

www.copperfoxmetals.com

Last updated April 2012-1

...Discovering value in natural resource stocks

INS IDE

1– Company Updates

2– Initiating Coverage

8-Conferences

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The last issue was

August 2012-1

Volume 15, #11 August 2012-2