Mr. Elmer Stewart reports

COPPER FOX ANNOUNCES UPDATED MINERAL RESOURCE ESTIMATE FOR THE SCHAFT CREEK PROJECT

Copper Fox Metals Inc. has provided the results of a resource estimate for the Schaft Creek polymetallic copper-gold-molybdenum-silver porphyry copper project located in northwest British Columbia. The Schaft Creek project is managed through the Schaft Creek joint venture (SCJV) formed in 2013 between Teck Resources Ltd. (75 per cent) and Copper Fox (25 per cent), with Teck being the operator. The resource estimate was prepared by Tetra Tech Canada Inc. and Red Pennant Geoscience in accordance with National Instrument 43-101 standards (May 9, 2016), CIM definition standards (May 19, 2014) with guidance from CIM best practice guidelines (Nov. 29, 2019).

Resource estimate

The resource estimate for the Schaft Creek project, as prepared by Tetra Tech and Red Pennant, and reported below, forms the base case used in the upcoming preliminary economic assessment (PEA) under preparation by Copper Fox. The effective date of the resource estimate is Jan. 15, 2021. The NI 43-101 technical report disclosing the resource estimate will be filed on SEDAR within 45 days.

                                      Average value                        Metal content     

                 Mass      Cu      Au      Mo      Ag    CuEq         Cu      Au       Mo      Ag
Category           Mt       %     g/t       %     g/t       %        Mlb     Moz      Mlb     Moz

Measured        176.4    0.32    0.22   0.018    1.46    0.48   1,261.49    1.28    71.03    8.26
Indicated     1,169.1    0.25    0.15   0.017    1.22    0.37   6,502.98    5.69   439.56   46.00
Total M&I     1,345.5    0.26    0.16   0.017    1.25    0.39   7,764.47    6.97   510.59   54.26
Inferred        343.6    0.17    0.11   0.013    0.84    0.26   1,303.07    1.18    95.50    9.28

Mt is millions of tonnes, Cu is copper, Au is gold, Mo is molybdenum, Ag is silver, CuEq is copper 
equivalent, lb is pounds, oz is ounces.

Mineral resources are reported using the 2014 CIM definition standards.

The qualified person for the estimate is Michael F. O'Brien, PGeo, Red Pennant Geoscience.

Mineral resources have an effective date of Jan. 15, 2021.

Mineral resources are reported within a conceptual constraining pit shell that includes the following 
input parameters:                 

 * $3/lb Cu, $1,200/oz Au, $10/lb Mo, $20/oz Ag and pit slope angles that vary from 40 to 44 degrees, 
   metal prices are in U.S. dollars.

Metallurgical recoveries reflective of prior test work that averages:                 

 * 86.6 per cent for copper, 73.0 per cent for gold, 58.8 per cent for molybdenum and 48.3 per cent for 
   silver.

Mineral resources are reported using a net smelter return (NSR) cut-off of $4.31 (U.S.)/t.

Tonnes are metric tonnes, with copper and molybdenum grades as percentages, and gold and silver grades 
as gram per tonne units.

Copper and molybdenum metal content is reported in pounds and gold and silver content is reported in 
troy ounces.

Totals and metal content may not sum due to rounding and significant digits used in calculations.

Copper equivalent per cent was estimated using average metallurgical recoveries for copper, gold, 
molybdenum and silver, and metal prices stated in this release.

Elmer B. Stewart, president and chief executive officer of Copper Fox, stated: "The geological and resource modelling completed on the Schaft Creek deposit over the past several years has informed a high level of confidence in the current resource estimate which forms the basis for the Schaft Creek PEA. The recently announced 2021 Schaft Creek program is focused on further refinements to the conceptualized pit used to constrain the resource estimate with the objective of obtaining additional information to confirm opportunities to lower capital and operating costs and refine overall pit slope angles."

Resource estimate uncertainty

Areas of uncertainty that may materially impact the mineral resource estimates include changes to: long-term metal price assumptions; interpretations of mineralization geometry, fault geometry and continuity of mineralized zones; net smelter return used to constrain the estimates; the regression equation used to fill in missing gold and silver values; metallurgical recovery assumptions; input assumptions used to derive the conceptual open-pit outlines used to constrain the estimate; variations in geotechnical, hydrogeological and mining assumptions; and environmental, permitting and social licence assumptions.

There are no other known environmental, legal, title, taxation, socio-economic, marketing, political or other relevant factors that would materially affect the estimation of mineral resources that are not discussed in the report.

Mineral resources are estimated within a $4.31 (U.S.) NSR grade shell to meet "reasonable prospects for eventual economic extraction." The mineral resources are estimated using criteria consistent with the CIM definition standards (2014) and the CIM Estimation of Mineral Resources and Reserves Best Practice Guidelines (2019).

Cautionary note to investors

While the terms measured (mineral) resource, indicated (mineral) resource and inferred (mineral) resource are recognized and required by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, investors are cautioned that except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic viability. Investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be upgraded into mineral reserves. Additionally, investors are cautioned that inferred mineral resources have a high degree of uncertainty as to their existence, as to whether they can be economically or legally mined or will ever be upgraded to a higher category.

United States investors are advised that current mineral resources are not current mineral reserves and do not have demonstrated economic viability.

Geological model

The Schaft Creek deposit is a Late Triassic calc-alkaline Cu-Mo-Au-Ag porphyry deposit with three major distinct mineralized zones as described below.

The Liard zone comprises narrow, porphyritic quartz monzonite to quartz monzodiorite dikes intruding andesitic volcanic and volcaniclastic host rocks. A single, thicker Central porphyry dike occurs within the central portion of the Liard zone. The porphyritic dikes are spatially associated with potassic alteration, increased density of quartz-sulphide veins and vein stockworks and a zone of elevated Cu-Au grades. The most intense alteration and highest copper grades commonly occur in the host rock immediately adjacent to the porphyry dikes. Chalcopyrite, bornite and pyrite also occur as disseminations in the host rocks and the porphyry dikes. Three styles of vein-hosted mineralization (Cu-Au-Mo) with no preferred trend occur in the Liard zone and have associated K-feldspar and epidote alteration assemblages. The boundaries of the Liard zone are defined by faults in most directions.

The Paramount zone comprises an elongate, multiphase igneous-hydrothermal, north-northwest-trending breccia body emplaced into quartz monzonite and andesitic volcanic host rocks. High-grade mineralization occurs within the breccia body and extends up to 200 metres into the quartz monzonite hangingwall and, to a lesser extent, into the footwall andesitic volcanic rocks. Mineralization in the Paramount zone consists of quartz-sulphide stockwork outside of the breccia body and three styles of mineralization within the breccia body. Potassic alteration intensity, vein density and vein thickness all increase toward the breccia zone. A sulphide zonation (from chalcopyrite and pyrite, to chalcopyrite and bornite, to bornite andchalcopyrite) is apparent outside of the breccia body and extends inward. Molybdenite occurs throughout the Paramount zone. The mineralization in the Paramount zone is open at depth and to the south, toward the West Breccia zone.

The West Breccia zone comprises an elongated, north-northwest-trending hydrothermal breccia body that has been emplaced into andesitic volcanic and volcaniclastic rocks. The breccia has a strike length of approximately 500 m and extends at least 200 m below the surface. The West Breccia zone is like the Paramount zone breccia and comprises different styles of mineralization dominated by low to medium temperature breccia mineralogy. The mineralization assemblages in the West Breccia zone include (1) Cu-Mo-Au, (2) Cu-Mo and (3) high-grade Cu-Mo-Au. The boundaries of the West Breccia zone are poorly constrained and the breccia remains open to the north and south.

Resource estimate methodology

Exploration data analysis

The exploration data and analytical database were verified by preparation and review of histograms, scatter plots, sample statistics, mean versus standard deviation plots and spatial review of mineralization patterns. Leapfrog Geo version 6.0.3 and Leapfrog Edge software was used to complete the resource estimate and review of the sampling data and the resulting block estimates.

Domains

The 22 estimation domains are labelled with a four-digit code denoting lithology, structural block and sequence number. Copper, gold, molybdenum and silver were estimated within these domains. The domains were verified for geometric and logical integrity and consolidated to reflect similar variography. The estimate was compared with the 2018 SCJV resource modelling and the resource estimate previously completed by Tetra Tech.

Domain estimation boundaries

Contact analysis and structural context were used to determine which domains could be combined for resource estimation and whether hard or soft boundaries should be used. Sixteen domains were estimated using hard boundaries (using only data from within the relevant domain). Six domains were estimated using soft boundaries (inclusion of limited additional samples outside the relevant domain).

Density

Bulk density was applied to the model by assigning the average value of 2.69 grams per cubic centimetre for all domains except overburden (domain 1000), which has an assigned bulk density of 2.0 g/cubic cm.

Grade outlier restriction

Statistical analysis of the drill hole assay data indicates the need to limit the influence of select high-grade samples in the estimates. Threshold values were determined by analysis of composites distribution using histograms and mean variance plots for each grade estimation domain. Composite grades that exceeded the threshold values identified from the statistical analysis were reduced to the threshold for estimation purposes.

Composites

The drill core had been most frequently sampled at three m or two m intervals, with shorter intervals having been sampled at geological boundaries. For the purposes of the resource estimate, the data were composited to six m intervals, broken at geological boundaries. Short residual samples (less than three m) at the base of the domains were merged with the composite sample above to homogenize sample support.

Variography

Variogram modelling was undertaken using Leapfrog Edge. Variograms were modelled for copper, molybdenum, silver and gold using normal scores transformed data to reduce the masking effects of extreme values. Traditional variograms with a nugget effect and up to two spherical models were used to model the data in all cases. Nugget values were estimated using the downhole variogram, with six m lag spacing to match the composite length. Lag spacing for the directional variograms was generally set to multiples of the six m composite length and the angular tolerance was adjusted where necessary to develop experimental variograms. The direction of continuity varies by domain. Variograms were modelled with a nugget and either one or two spherical structures.

A local orientation model for variography and search was developed from the orientations of the copper variogram models. The orientations of the variogram models were used to build smoothed and nested form interpolants in Leapfrog Geo. The orientations of these form interpolants were projected as meshes to each block in the block model and used to orientate the search and variogram ellipsoids to improve conformance to local spatial grade patterns.

Estimation interpolation methods

Copper, molybdenum, silver and gold were estimated using ordinary kriging (OK) with inverse distance and nearest neighbour estimates generated for validation. Locally oriented search ellipses for copper, molybdenum, silver and gold interpolation with search ranges of twice the maximum ranges of the modelled variograms were applied. A block discretization of five by five by three (X, Y, Z) points was used. Blocks were estimated in one pass using a minimum of three and a maximum of seven composites with a maximum of three composites per drill hole and thus a minimum of three drill holes to estimate a block.

Block model

The model has a parent block size of 20 by 20 by 15 m and five by five by five m subblocks to preserve volumes of complex domain shapes. Solids of the domains were created and used to code the block model and control the subblocking.

Block model validation

Several validation techniques have been utilized to ensure that the estimates are reasonable. Swath plots comparing composite grade with the kriged estimate in corridors in the X, Y and Z directions were completed. Comparison was also made with inverse distance to the second power (ID2) estimates and nearest neighbour (NN) estimates (representing declustered composite grades). Visual comparisons on section and in plan and comparison of grade-tonnage curves for the kriged estimates and the previous mineral resource estimates and the inverse distance estimates were also completed.

Qualified persons

Michael F. O'Brien, PGeo, of Red Pennant Geosciences is the qualified person (QP) who prepared the resource estimate, J. Huang, PhD, PEng, of Tetra Tech is the qualified person who completed the metallurgical review and H. Ghaffari, MASc, PEng, of Tetra Tech is the QP who compiled and reviewed the QA/QC for the resource estimate disclosed in this news release. The QPs have approved the scientific and technical content of this news release. Elmer B. Stewart, MSc, PGeol, president of Copper Fox, is the company's nominated QP pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, has reviewed the scientific and technical information disclosed in this news release. Mr. Stewart is not independent of Copper Fox.

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 100-per-cent ownership of the Van Dyke oxide copper project located in Miami, Ariz.

We seek Safe Harbor.