Hello all,

I have been getting a number of private messages from Copper Fox shareholders and board members asking me to state what Elmer has said to me in my last exchange with him. I was not planning on releasing this information as the content was more for my personal understanding regarding "Desert Fox Minerals" as a public entity on the TSX-Venture exchange. But based on the strong interest from the AG community I do not mind releasing this information that I have gathered. Thank-you.

The communication exchange

Mike
Thanks for the e-mail.

See comments to your questions in brackets below.

Call me if you have any questions. I am on my way back to Calgary. Will be in the office tomorrow morning

Regards

Elmer

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Excerpts from my message to Elmer (his response in bold):

A company known as "Excelsior Mining" which trades under the symbol MIN.V released a Pre-feasibility study on their North Star deposit which resulted in a 350% gain in share price. This deposit is only hours away from the Van Dyke property.

(True, 2 hours to be exact, like our Sombrero Butte and Van Dyke oxide copper deposit, Excelsior's project is located in the Arizona Porphyry copper belt. Grade is lower than what we have at Van Dyke, Van dyke could be larger than stated in historical data)

My question is from a value and investment perspective, would Copper Fox Metals engage and pursue an Initial Public Offering (IPO) for Desert Fox Minerals to obtain maximum value when we release the PEA study on the deposit?

( That is a possibility and was part of the strategy around putting all assets except Schaft Creek outside Copper Fox)

Would Copper Fox consider a public listing on the TSX.V with a low market capitalization and limited shares outstanding to extract full value from Arizona properties?

(It would not make sense to bring a large cap company to the market. The way this is handled by most companies is that they issues shares and warrants to shareholders at some ratio to exiting share holdings when new companies are floated publicly. A lower market cap and a high NPV project would make sense)

In regards to the Van Dyke PEA study and an I.P.O of Desert Fox Minerals I was thinking if the company released this huge announcement under the "Copper Fox Metals" name the true value would not be represented and utilized due to the fact Copper Fox has a large market Capitalization and 404 million shares outstanding. This would drown or discourage the value of the PEA announcement. I realize a small share float and low market capitalization with the announcement of a PEA would drive the stock price to the stratosphere realizing the proper value of the study announced to the public. Would management consider a spin-co where current shareholders could retain 1 Desert Fox share for every 15 Copper Fox shares for example? Your thoughts?

( No thoughts on any share ratio at this time, I would have to put a lot of thought and get advice to see what the market would bear based on value at that time. The key is holding Copper Fox shares to have access to shares of Desert Fox is such a transaction is put into place)