Copper Fox Announces Third Quarter Results

Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce its third quarter ended July 31, 2012 operating and financial results. The Company is working toward completing an Environmental Assessment Application and a Feasibility Study of the Schaft Creek mineral deposit. Copper Fox incurred a net loss for the third quarter of $1,328,328 ($0.00 loss per share) and incurred $5,273,240 in expenditures toward furthering the development of the Schaft Creek project. Copies of the financial statements, notes and related management discussion and analysis may be obtained on SEDAR at www.sedar.com, the Company web site at www.copperfoxmetals.com or by contacting the Company directly. All amounts are in Canadian dollars unless otherwise stated.

Highlights
During the Quarter, the Company achieved a significant milestone with the completion of an Updated Resource Estimate on the Schaft Creek deposit which includes the silver component in the mineralization. The inclusion of the silver component is expected to have a small but positive impact on the economics of the Schaft Creek deposit. In addition to the Updated Resource Estimate, work on the Feasibility Study concentrated primarily on preparation of the mine plan, a fundamental part of a feasibility study. A substantial portion of the other parts of the Feasibility Study were completed during the quarter. In addition there was continuing progress on the preparation of the Environmental Assessment Application together with discussions with BC Hydro.

Subsequent Event
Subsequent to July 31, 2012, the Company announced closing of a financing by an insider. The financing consisted of the issuance of 3,500,000 units at a purchase price of $1.15 per unit, for aggregate net proceeds of $4,025,000. Each unit consists of one common share of Copper Fox and one common share purchase warrant of Copper Fox. Each warrant entitles the holder thereof to acquire one common share of Copper Fox at an exercise price of CDN $1.25 prior to 5:00 PM September 10, 2013.

Also subsequent to July 31, 2012, the Company announced that it intends to complete a non-brokered private placement to raise up to CDN $4,000,000. The Offering is expected to consist of 3,478,261 units at a purchase price of $1.15 per unit, for aggregate gross proceeds of $4,000,000. Each unit consists of one common share and one common share purchase warrant of Copper Fox. Each warrant entitles the holder thereof to acquire one common share of Copper Fox at an exercise price of CDN$1.25 prior to 5:00 pm on the one year anniversary of the closing date of the Offering.

In addition, subsequent to July 31, 2012, the Company announced the closing of the acquisition from Bell Copper Corporation ("Bell Copper") of 100% of Bell Copper's interests in the Sombrero Butte property located in Pinal County, Arizona (the "Sombrero Butte Copper Project") and all Bureau of Land Management (Arizona) lode claims (the "Van Dyke BLM Claims") that Bell Copper acquired which are adjacent to Bell Copper's interests in the Van Dyke copper deposit located in Miami, Arizona. Copper Fox acquired the Sombrero Butte Copper Project and Van Dyke BLM Claims by paying to Bell Copper the US-dollar equivalent of CDN$1,000,000 in cash and assuming Bell Copper's continuing obligations in respect of the Sombrero Butte Copper Project and Van Dyke BLM Claims.

Financial
During the quarter ended July 31, 2012 the Company received $4,480,000 in proceeds from a private placement and incurred an additional $5,062,568 of capital expenditures related to the Schaft Creek project.

Selected Financial Results

Liquidity and Capital Resources
Copper Fox operates in a capital intensive industry in which the demands for capital to finance exploration and development of its Schaft Creek property as well as corporate overheads generally occur far in advance of the project being put into production and generating cash flow. The financial requirements of Copper Fox related to development of the Schaft Creek project are mitigated to some extent by the obligations of Teck should they exercise their earn back right on the Schaft Creek property (see "Description of Business" above).

The Company's working capital deficit, defined as current assets less current liabilities, was $1,616,527 at July 31, 2012.

During the nine months ended July 31, 2012, the Company raised a total of $11,023,127 from the completion of private placements totaling $10,680,000, 725,000 options exercised for total proceeds of $248,002 and 126,833 warrants for total proceeds of $95,125. In addition, the Company issued 1,272,727 common shares for repayment of a loan of $1,400,000. Additional funds will be required to complete the current planned activities and the Company may need additional equity in order to develop the project (Refer to Teck Earn Back Option).

About Copper Fox
Copper Fox is a Canadian-based resource development company listed on the TSX Venture Exchange (TSX-V:CUU) with a corporate office in Calgary and an operations office in Vancouver and is involved in the exploration and development of the Schaft Creek copper-gold-molybdenum-silver deposit located in northwest British Columbia, Canada.

The Company is working on completing a feasibility study on the Schaft Creek mineral deposit, one of the largest undeveloped copper, gold, molybdenum and silver deposits in North America. The feasibility study is being led by Tetra Tech Wardrop on a minimum 120,000 tpd open pit mine.

Copper Fox holds title and a 100% working interest in the Schaft Creek project consisting of 55,779.56 hectares (137,834 acres). Included in this total are the "Schedule A" mineral tenures originally conveyed to Copper Fox pursuant to the option agreement dated January 1, 2002 between Teck Resources Limited ("Teck") and Copper Fox (the "Teck Option Agreement"), which consist of 8,334.34 hectares (20,594 acres). The "Schedule A" mineral tenures are subject to a 3.5% Net Profits Interest held by Royal Gold, Inc., a 30% carried Net Proceeds Interest held by Liard Copper Mines Limited ("Liard") and, together with the additional mineral tenures held by Copper Fox within the "Area of Interest" provided for in the Teck Option Agreement, and an earn back option held by Teck. On completion of the feasibility study, Copper Fox will earn Teck's 78% interest in Liard. Teck's earn back option to acquire either, 20%, 40% or 75%, of Copper Fox's interest in the Schaft Creek property is triggered upon delivery of a positive feasibility study to Teck. Should Teck elect to exercise its option for 75%, Teck is required to fund subsequent property expenditures up to a total of 400% of those incurred by Copper Fox ($84.9 million to July 31, 2012) and arrange for project financing, including the Copper Fox portion. For full details of the Teck earn back option please refer to the Company's website www.copperfoxmetals.com.

The remainder of Copper Fox's registered interests in mineral tenures in British Columbia total 47,445.22 hectares (117,240 acres). These interests have been acquired by Copper Fox through mineral tenure acquisitions and mineral tenure purchase agreements subsequent to Copper Fox entering into the Teck Option Agreement. Certain portions of these registered mineral tenures are subject to inclusion within the Schaft Creek project pursuant to the terms of the Teck Option Agreement.

For additional information contact: Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080
On behalf of the Board of Directors

Elmer B. Stewart
President & Chief Executive Officer