Mr. Elmer Stewart reports

COPPER FOX PROVIDES UPDATE ON DRILL PERMITTING AT MINERAL MOUNTAIN

Copper Fox Metals Inc. and its wholly owned subsidiary, Desert Fox Mineral Mountain Co., have provided an update on the permitting process to complete a drilling program (see news release dated May 22, 2024) on its 100-per-cent-owned Mineral Mountain porphyry copper project (2,692.4 hectares), located within the Mineral Mountain mining district in Arizona. The Mineral Mountain mining district is located within a northeast-trending porphyry copper belt approximately 25 kilometres southwest from Rio Tinto and BHP's giant Resolution porphyry copper-molybdenum deposit and approximately 20 kilometres northeast of Taseko's Florence porphyry copper deposit.

Background to drilling program environmental assessment

In early 2024, Copper Fox submitted a plan of operations (PoO) to the Bureau of Land Management (BLM) to conduct a maiden drilling program at four locations on its Mineral Mountain porphyry copper project. The PoO was approved by the BLM Tucson field office. Prior to granting a drill permit the BLM requires, pursuant to the National Environmental Policy Act (NEPA), that Copper Fox prepare an environmental assessment (EA) due to the project being partially located within the designated critical habitat for the acuna cactus, followed by a 30-day solicitation of public comment (SoPC) period. SWCA Environmental Consultants, an Arizona-based firm specializing in environmental, regulatory and natural and cultural resources management services, was retained by Copper Fox to complete the EA and provide support, if required, during the SoPC period.

Highlights:

• The biological evaluation (BE) has been completed and accepted by the BLM, preparation of the EA is in progress.
• The BE, prepared to address the Endangered Species Act (ESA), covered approximately 447 acres and addresses all relevant federal biological regulations.
• The BE identified eight ESA-listed species. Of these eight species, the monarch butterfly and acuna cactus may occur within the project area as well as the latter species's designated critical habitat. The project would have no effect on the other six species.
• A species-specific survey for acuna cactus covered approximately 89 acres. No acuna cactus were observed in the species-specific survey area.
• Based on the data, SWCA determined that the proposed drilling program may affect but is not likely to adversely affect the acuna cactus and its designated critical habitat.

Elmer B. Stewart, president, and chief executive officer of Copper Fox, stated: "We are pleased with the progress of the environment review process. With completion of the biological evaluation, the permitting process can transition to the environmental assessment -- the next stage in the permitting process.

"While the conclusions of the BE are encouraging, it is too early to speculate on the outcome of the EA and SoPC processes. If the drilling permit is granted, our drilling program would be conducted in keeping with our strong commitment to environmental stewardship, to minimize any surface disturbance or impacts to the environment within the Mineral Mountain project."

Update on permitting process

This BE was prepared to address the ESA and specifically addressed the species covered under the ESA Migratory Bird Treaty Act, Bald and Golden Eagle Protection Act, as well as addressing an ecological overview and collection of data on the vegetation, wildlife and soil types. The project-specific official information for planning and consultation (IPaC) includes species that are currently listed as endangered or threatened under the ESA as well as non-essential experimental population and candidate species.

The objective of the BE is to describe vegetation communities in the project area and vicinity, evaluate habitat suitability for species listed under the ESA, and make recommendations regarding determination of effects of the proposed drilling program on these species. The BE identified eight ESA-listed species that appear on the IPaC list and concluded that:

1. Of these eight species, the monarch butterfly and acuna cactus may occur in the project area as well as the latter species's designated critical habitat.
2. The project area is beyond the known geographic or elevational range of the remaining six protected species, or it does not contain vegetation or landscape features known to support those species, or both.
3. The project would have no effect on these six species.

Approximately 27 acres in the vicinity of drill pads 1, 2 and 3, are within the acuna cactus critical habitat designation unit No. 5 -- Mineral Mountain. The BE found that all primary constituent elements of physical or biological features (PBFs) identified for acuna cactus in its critical habitat designation include native vegetation within the elevational range, with substrates for acuna cactus occurring within the 27-acre area.

A species-specific survey for acuna cactus was accomplished within an approximately 89-acre planned disturbance area consisting of a 300-foot-wide buffered corridor (per the BLM's guidance) centred on the drill pads and existing roads within the project area. Based on the survey, no acuna cactus were observed in the species-specific survey area, and SWCA concluded that:

1. The proposed drilling program may affect but is not likely to adversely affect the acuna cactus and its designated critical habitat through the removal of 0.180 acre of potential seed bank at drill pads 1 to 4, including disturbance of 0.135 acres of PBFs of its critical habitat at drill pads 1 to 3.
2. The cumulative effects related to future mining proposals in the project area and continuing development in the species range may affect individual acuna cactus.
3. Other activities, including livestock grazing, off-highway vehicle use, dispersed recreation and cross-border activities, could impact acuna cactus.
4. Incremental effects on acuna cactus from the proposed drilling program are anticipated to be insignificant because no acuna cactus are present in the planned disturbance area.

Elmer B. Stewart, MSc, PGeo, 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 focused on copper exploration and development in Canada and the United States. Its wholly owned subsidiaries, being Northern Fox Copper Inc. and Desert Fox Copper Inc., are the 100-per-cent owners of the Van Dyke ISCR project and the Mineral Mountain and Sombrero Butte porphyry copper exploration projects -- all located in Arizona. They also hold a 25-per-cent interest in the Schaft Creek joint venture with Teck Resources Ltd. on the Schaft Creek copper-gold-molybdenum-silver project and the 100-per-cent-owned Eaglehead polymetallic porphyry copper project, each located in northwestern British Columbia.

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