Mr. Elmer Stewart reports

COPPER FOX UPDATES MINERAL MOUNTAIN PROJECT

Copper Fox Metals Inc. and its wholly owned subsidiary, Desert Fox Copper Inc., have provided an update of recent studies and its exploration plans for its 100-per-cent-owned Mineral Mountain porphyry copper project located approximately 15 miles east of Florence, Ariz.

Highlights

• SWCA Inc. has been retained to complete an environmental assessment in advance of the proposed geophysical survey (see news release dated July 13, 2020). A geochemical factor analysis has identified a clearly defined copper-molybdenum-gold-silver-tellurium target measuring about 2,000 metres north-south by 500 metres east-west in target No. 1.
• The vectoring analysis has identified an overlapping multiphased hydrothermal event related to the Laramide intrusion. The vector study recommended a 1,500 m long diamond drill hole to determine if the source of the surface Cu-Mo-Au-Ag-Te target is within economically minable depths and whether it comprises potentially economic grades.

Elmer B. Stewart, president and chief executive officer of Copper Fox, stated: "Copper Fox welcomes the opportunity to complete the requested environmental assessment prior to commencing the proposed geophysical survey at Mineral Mountain. This assessment is expected to provide significant information that would be beneficial in the planning of future drilling programs. The vector study has better constrained the interpreted centre of the porphyry system and identified multiple overlapping hydrothermal events that supports the project's geological model, and suggests that a substantial porphyry copper system exists in the subsurface, situated directly beneath the Cu-Mo-Au-Ag-Te anomaly."

Environmental assessment

Copper Fox was advised by the Bureau of Land Management (BLM) that it is required to complete an environmental assessment (EA) of the project prior to commencing the proposed ground geophysical survey (see news release July 13, 2020). The plan of operations is located within designated critical habitat for the Acuna cactus, presence of which triggers a National Environmental Policy Act analysis requirement. Copper Fox has retained SWCA of Phoenix, Ariz., to complete the EA and to comply with the BLM and other Arizona state statutes and requirements. Commencement of the EA is subject to receipt of authorization from the BLM to complete the EA survey. The request for authorization has been submitted to the BLM and is pending. The EA will consist of three specific components.

Task 1: cactus survey

This portion of the EA consists of surveying a portion of the property for the Acuna cactus and other vegetation species within the project area.

Task 2: cultural resources

This portion of the EA process includes a cultural resources survey over a portion of the property administered by the BLM and consists of an archeological survey of the project to locate and document previously recorded and new archeological features or sites. If features or sites are located, the survey may also include consultation with any affected native American tribes.

Task 3: preparation of environmental assessment

The results from task 1 and 2 provide the information required for natural/biological and cultural resources to be included in the EA. The EA will be published on the BLM's website where it will have a 30-day public comment period. Based on any public comments and those of the BLM, the EA will be updated and revised to reflect those comments. The EA will then move through a process of finding of no significant impact (FONSI) and final draft decision record (DR) describing any selected alternatives or project mitigation, prior to final approval.

Rationale for geochemical factor analysis study

The geochemical factor analysis was completed by Dr. T. Marsh, PEng. Q-Mode factor analysis was conducted on 618 rock chip and trench samples, for which 48-element multiacid digestions and gold fire assays have been completed. The conclusions and interpretation of the study results are:

• The study indicates shallow-level hydrothermal fluid leaks out of a geochemically well-zoned deeper porphyry copper system. These leaks are manifested in the steeply dipping, copper-bearing veins and aplite dikelets that support the conjecture that significant (for example, 15 degrees) postmineral rotation of the entire district has not occurred since the Laramide mineralizing event.
• The mineralization constitutes leaks from a buried system is supported by:
  • The extreme contrasts between the geochemical factor scores in samples a few metres apart can only be explained by hydrothermal fluids from an evolving fluid reservoir utilizing the same tightly constrained fluid pathways (veins, veinlets, fractures).
  • The district scale extent of distinct but related geochemical factors is consistent with an evolved porphyry copper hydrothermal system.

Study procedure

The factor analysis approach groups elements that behave in a statistically similar manner into multielement factors, which explain most of the geochemical variance in the dataset. Once the geochemical factors are identified, the entire database can be reconstituted in terms of these factors and it is common for the geographic distribution of factors to show a more robust relationship to geology than individual chemical elements. Factor analysis results were subjected to Oblimin rotation to yield the 18 geochemical factors.

Elmer B. Stewart, MSc, PGeol, president and chief executive officer of Copper Fox, is the company's non-independent, nominated qualified person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, and has reviewed and approves the scientific and technical information disclosed in this news release.

About Copper Fox Metals Inc.

Copper Fox is a Tier 1 Canadian resource company listed on the TSX Venture Exchange, focused on copper exploration and development in Canada and the United States. The principal assets of Copper Fox and its wholly owned Canadian and United States subsidiaries, being Northern Fox Copper Inc. and Desert Fox Copper Inc., are the 25-per-cent interest in the Schaft Creek joint venture with Teck Resources Ltd. on the Schaft Creek copper-gold-molybdenum-silver project located in northwestern British Columbia and a 100-per-cent ownership of the Van Dyke oxide copper project located in Miami, Ariz.

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