Mr. Elmer Stewart reports

COPPER FOX REPORTS 2011 ANNUAL FINANCIAL RESULTS AND A CORPORATE UPDATE

Copper Fox Metals Inc. has released its operating results for the 2011 fourth quarter and year-end. During the year, Copper Fox acquired additional mineral tenures around the Schaft Creek project, completed a large Titan-24 DCIP and MT survey, purchased shares in Liard Copper Mines, completed metallurgical testwork on the mineralization from the Paramount zone and completed a 22-hole diamond drilling program of various purposes totalling 9,662.3 metres at Schaft Creek.

During the quarter, Copper Fox also made considerable progress toward completing the feasibility study. Copper Fox incurred a net loss for the fourth quarter of $692,576 (zero-cent loss per share) and a loss of $3,882,381 (one-cent loss per share) for the year ended Oct. 31, 2011. Copies of the financial statements and notes, and related management's discussion and analysis may be obtained on SEDAR, the company's website or by contacting the company directly.

Highlights

Schaft Creek -- An emerging porphyry copper district

The 2011 program demonstrated that the Schaft Creek property has the potential to host a number of porphyry-style plus or minus gold-silver-molybdenum deposits. The intersection of significant copper-gold-silver-molybdenum mineralization located 1,200 m north of the Paramount zone associated with a large Titan-24 chargeability anomaly and the intersection of copper-gold-silver-molybdenum mineralization in a geotechnical hole located 300 m east of the Paramount in an interpreted leakage zone support the mineral potential of the Schaft Creek property. These mineralized intervals in conjunction with the technical aspects of the Schaft Creek mineral trend strongly indicate considerable potential to host additional deposits at Schaft Creek.

Feasibility study

Tetra Tech WEI Inc. (formerly Wardrop), the main contractor on the Schaft Creek feasibility study, is working to complete this study by the end of March of 2012. Feasibility studies are complex and require a substantial amount of detailed engineering work with very narrow estimation limits. Copper Fox holds a 100-per-cent working interest in the Schaft Creek property subject to a 30-per-cent net-proceeds interest held by Liard Copper Mines. The option agreement between Copper Fox and Teck Resources Ltd. requires Copper Fox to deliver Teck a feasibility study to earn the 78-per-cent interest in Liard Copper Mines held by Teck and start the 120-day period for Teck to make its election regarding participation in the Schaft Creek project. Tetra Tech WEI is currently working on a detailed mine plan, including the first five years of mining operations. The mine plan includes, for example, detailed estimates of material movement, haulage distances and waste dumping locations. Mine planning is a fundamental part of the feasibility study and has a significant impact on the economics of the Schaft Creek deposit. Until this work is completed, completion of the feasibility study is not possible. Work related to all other aspects of the feasibility study, except the economic sensitivity analysis, has essentially been completed.

Quantec Titan-24 DCIP and MT survey

During the quarter, a total of 38.8 kilometres of a Titan-24 DCIP and MT survey were completed over an area extending from the north end of the Paramount zone to the ES zone (a distance of three kilometres) and an 800 m long portion of the GK zone. This survey located large chargeability anomalies on the Mike, ES and GK zones, and has extended the chargeability signature of the Paramount zone to the north along the mineralized corridor referred to as the Schaft Creek mineral trend.

Diamond drilling program in 2011

During the fourth fiscal quarter, four diamond drills worked on the Schaft Creek property collecting geotechnical data for the feasibility study and delineating the zone of higher-grade mineralization in the Paramount zone. At the end of the 2011 drilling program, two significant aspects of the Schaft Creek project are notable: the size of the zone of high-grade mineralization in the Paramount zone has not yet been defined; and a new zone of copper mineralization that correlates with a chargeability anomaly approximately 1,200 m north of the Paramount zone has been located. To provide an example of the potential size of the Paramount zone, DDH CF415-2011, located 280 m north of the previous drilling on the Paramount zone, intersected a 582 m interval of mineralization including a 67 m interval that averaged 1.10 per cent copper-equivalent.

               SELECTED FINANCIAL INFORMATION

                        Net (loss)   Net (loss)/income per
                                     share -- basic and diluted
2011
Fiscal year        $   (3,882,381)                    $   (0.01)
Fourth quarter     $     (642,576)                    $    0.00
Third quarter      $     (502,944)                    $    0.00
Second quarter     $   (2,378,650)                    $   (0.01)
First quarter      $     (358,211)                    $    0.00
2010
Fiscal year        $   (1,614,027)                    $    0.00
Fourth quarter     $     (421,346)                    $    0.00
Third quarter      $     (436,792)                    $    0.00
Second quarter     $     (309,067)                    $    0.00
First quarter      $     (446,822)                    $    0.00

Liquidity and capital resources

Copper Fox operates in a capital-intensive industry in which the demands for capital to finance exploration and development of mineral properties, as well as its corporate overheads generally occur far in advance of projects being put in production and generating cash flow.

The company's working capital deficit, defined as current assets less current liabilities, was $1,811,392 at Oct. 31, 2011. During the year, the company raised a total of $18,685,671 from the completion of private placements totalling $15,038,046, 2,235,000 options exercised for total proceeds of $1,053,750 and 1,828,500 warrants exercised for total proceeds of $2,593,875. In addition, a director loaned $3.9-million to the company. The loan is unsecured, bears no interest and there are no fixed terms of repayment. In October, 2011, the company issued 1,851,852 shares for repayment of $2.5-million of this debt. Subsequent to year-end, in January, 2012, the company issued 1,272,727 for repayment of the balance of this loan of $1.4-million.

At Dec. 31, 2011, the company had spent $74.2-million of qualifying expenditures toward the feasibility study. The company will require additional capital to complete this study and to provide for the administration of its Vancouver and Calgary offices. The company believes that it will be able to raise the capital required through the continued exercise of its outstanding options and warrants or through the public market. Although management has been successful in raising capital in the past, there is no assurance that these initiatives will be successful in the future. Circumstances that could affect liquidity include early positive or negative results from the feasibility study, the general state of the equity markets for junior exploration companies and the overall state of the economy.

We seek Safe Harbor.