Slide 1: A Canadian Based Resource Company Focused on Copper Projects
A Canadian Based Resource Company Focused on Copper Projects in Canada and the USA March 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This Power Point presentation contains certain forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and forward-looking information within the meaning of the Canadian securiti
Slide 3: Copper Fox – Highlights
Copper Fox – Highlights • Canadian exploration and development company focused on copper in Canada and the USA • Schaft Creek Project (1) before tax NPV(8%) of $C128 million • Van Dyke Project(2) before tax NPV(8%) of $US213.1 million • Large holdings of copper and gold reserves and resources • Expl
Slide 4: Company Strategy
Company Strategy 1 ACQUIRE EXPLORE 2 ..and REPEAT 5 4 SELL DEVELOP 3 4
Slide 5: Our Projects
Our Projects 1) 25% interest in the Schaft Creek Joint Venture With Teck Resources Limited on the Schaft Creek copper-gold-molybdenum-silver project in British Columbia. 2) 100% ownership of the Van Dyke In-Situ Leach (ISL) oxide copper project in Arizona. 3) 65.4% of the shares of Carmax Mining Cor
Slide 6: Management Bios
Management Bios Elmer B. Stewart, Chairman, President and CEO Mr. Stewart has a Masters Degree in Geology and over 38 years of domestic and international experience in mining and mineral exploration. Mr. Stewart has been involved in putting five gold mines into production. Mr. Stewart has approximat
Slide 7: Capital Market Summary
Capital Market Summary TSX-V: CUU 52 week share price range: OTC Pink: CPFXF $0.11 - $0.365 Current share price (Jan 6, 2016): $0.125 Market Capitalization, basic: $52.13 million Common shares 417.06 million Options 1.58 million Warrants 3.36 million Total 421.99 million Shares held by insiders1: 56
Slide 8: Our Investment Advantage
Our Investment Advantage Cu (Mlb) Mo (Mlb) Au (Moz) Ag (Moz) Reserves1 2 (P+P) 1,407.28 93.31 1.51 12.98 Assets Resources2 (M+I) 1,776.57 115.08 1.85 16.68 Resources2 (Inf) 2,587.51 65.50 1.01 7.90 Management Extensive experience in the mining sector Built mines in Canada and the Former Soviet Union
Slide 9: Our Assets
Our Assets PRODUCTION None Schaft DEVELOPMENT Creek Van Dyke Schaft Creek Van Dyke EXPLORATION Sombrero Butte Eaglehead Mineral Mountain 9
Slide 10: Company NI 43-101 Reserves & Resources
Company NI 43-101 Reserves & Resources Mineral Reserves Reserve Estimate Data Copper Fox Share Metal Holdings Project Reserve Category Tonnes (Mt) Cu (%) Mo (%) Au (g/t) Ag (g/t) Cu (Mlb) Mo (Mlb) Au (Moz) Ag (Moz) Schaft Creek (1) Proven 135.40 0.31 0.018 0.25 1.81 231.28 13.43 0.27 1.97 Probable 8
Slide 11: Schaft Creek – Location/Highlights
Schaft Creek – Location/Highlights • Teck Resources Limited (75% & operator), Copper Fox 25% ownership • Mining friendly jurisdiction • Long life/expansion potential • Financing provided by operator • Port facilities & electrical power available • Low Environmental Impact (est. 8% of rock is PAG) •
Slide 12: Schaft Creek – Feasibility Study
Schaft Creek – Feasibility Study • 21 Year Mine Life at 130,000 tpd1 • Low C1 cost per pound of Cu (US$1.02)1 • At Mine Revenue and Net Free Cash Flow significantly impacted by FOREX and Copper price1 • Potential Economic Enhancements identified2 1. Based on Technical Report prepared by Tetra Tech t
Slide 13: Schaft Creek – Estimated NSR/t Section 6359600N
Schaft Creek – Estimated NSR/t Section 6359600N Based on Technical Report prepared by Tetra Tech titled “Feasibility Study on the Schaft Creek Project, BC, Canada” with Effective Date January 23, 2013, A. Farah, P. Eng., et al as Qualified Persons 13
Slide 14: Schaft Creek - Reserves
Schaft Creek - Reserves All numbers are representative of Copper Fox’s 25% share in Schaft Creek Reserve Category (1) Cu (Mlb) Mo (Mlb) Au (Moz) Ag (Moz) Proven 231.28 13.43 0.27 1.97 Probable 1,176.00 79.88 1.24 11.01 Proven & Probable 1,407.28 93.31 1.51 12.98 • The NI 43-101 Technical Report1 con
Slide 15: Schaft Creek - Economic Enhancements
Schaft Creek - Economic Enhancements • Upgrade Inferred Mineral Resource located within pit shell. The pit shell contains 171.2 million tonnes of inferred resource grading: 0.25% copper, 0.16 g/t gold, 0.018% molybdenum and 1.58 g/t silver (NSR of $US24.88/t) which for purposes of the feasibility st
Slide 16: Schaft Creek - Proposed Infrastructure
Schaft Creek - Proposed Infrastructure TSF N 2015 Drilling Conveyor Plant LaCasse zone system Camp Discovery zone (drilled in 2012) Airstrip Rock storage Mineralization exposed in pit wall at end of 21 year mine life 2 kilometres Based on Technical Report prepared by Tetra Tech titled “Feasibility S
Slide 17: Schaft Creek Peer Comparables
Schaft Creek Peer Comparables C1 2 Schaft Creek LOM (941 Mt) (130,000 tpd) 1.02 Schaft Creek Y1-Y7 (313 Mt) 2014 C1 Cost Copper Mountain - (217 Mt) (36,000 tpd) 1.98 Current Operating British1 Highland Valley - (663 Mt) (130,000 tpd) 1.65 Columbia Cu Mines Gibraltar - (749 Mt) (82,000 tpd) 2.08 Mt.
Slide 18: Van Dyke Project (In-Situ Leach)
Van Dyke Project (In-Situ Leach) • 100% owned & operated • Preliminary Economic Assessment shows NPV (8%) after tax of $US149.5 million • Preliminary Feasibility Study recommended ($US16.6 million) • Deposit open to expansion • Mining friendly jurisdiction • Local infrastructure • Environmentally fr
Slide 19: Van Dyke – PEA
Van Dyke – PEA • The NI 43-101 Technical Report confirmed: Positive IRR of 35.5% pre-tax and 27.9% post tax 11 year LOM 60 million lbs annualized copper production Y1-Y6 Direct Cash Cost of $US0.60/lb and AISC of $US1.44/lb Project economics most sensitive to copper price and recovery Si
Slide 20: Arizona ISL Peer Comparables
Arizona ISL Peer Comparables IN-SITU RECOVERY COMPARABLES TOTAL TOTAL ANNUAL INITIAL PRE-TAX TOTAL COST RECOVERY MINE LIFE PAYBACK COPPER COPPER PRODUCTION CAPITAL NPV* COPPER DEPOSIT (BILLION LBS) GRADE (%) ESTIMATED (%) (MILLION LBS) YEARS ($US MILLION) YEARS ($US MILLION) $US/LB FLORENCE (1) 2.84
Slide 21: Van Dyke - Economic Enhancements
Van Dyke - Economic Enhancements • Drilling to Upgrade Inferred Mineral Resource and expand size of the deposit • ISL pilot test program to investigate: metal recoveries, well field design, and extent of rock stimulation required, if any • Opportunities to lower capital, sustaining and operati
Slide 22: Eaglehead Project
Eaglehead Project • Owned and operated by Carmax Mining Corp. • Copper Fox owns 65.4% equity in Carmax • 9 km long porphyry system • Preliminary testwork indicated 80-88% Cu, 72% Au, 76% Ag and 55% Mo recovery • Clean copper concentrate (28- 36% Cu) with gold-silver credits • 2016 exploration budget
Slide 23: Eaglehead - Exploration Target
Eaglehead - Exploration Target • Mineralized 5 km long continuous geophysical target INFERRED MINERAL RESOURCE • Similar to Schaft Creek Zone Tonnes (Mt) Cu (%) Mo (%) Au (g/t) CuEq* (%) • Large portion of target is not tested East 61.6 0.28 0.011 0.06 0.38 Bornite 40.9 0.32 0.008 0.11 0.45 Total 10
Slide 24: Sombrero Butte Project
Sombrero Butte Project • 100% owned and operated by Copper Fox • Located in a major Cu district in proximity to 2 major Cu deposits (7 – 14 Blbs Cu) • 4 km long target • IP survey identified large chargeability signature • A major Cu producer (Anglo American) is spending $64 million over seven years
Slide 25: Sombrero Butte Project
Sombrero Butte Project • Mineralization, alteration and geophysical signature indicative of a large porphyry Cu system • High grade Cu mineralization in breccia pipes • 4 km long exploration target • Looking for partner to continue exploration Selected mineralized intervals from the 34 holes complet
Slide 26: Mineral Mountain Project
Mineral Mountain Project • 100% owned and operated by Copper Fox • Covers 4,180 acres in the Mineral Mountain District, Pinal County, Arizona • Located between the Florence and Resolution copper deposits • Three large coincident copper- molybdenum-gold-silver targets identified • Typical porphyry co
Slide 27: 2015 Achievements
2015 Achievements • Optimization work continued at Schaft Creek • Schaft Creek Joint Venture increased ownership of Liard Copper Mines Ltd. from 78% to 85.4% • Positive Preliminary Economic Assessment completed on the Van Dyke project • Increased equity ownership in Carmax Mining Corp. to 65.4% • Sa
Slide 28: Additional information
Additional information FOX 28 TSX.V: CUU
Slide 29: Copper - Supply versus Demand
Copper - Supply versus Demand 26 Demand exceeds Supply 24 22 Mt Copper 20 18 Need 7.3 Mt of new 16 mine production capability by 2024 14 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 Year Supply Demand Source: Wood Mackenzie, Q4 2014 29
Slide 30: Why Copper?
Why Copper? • Demand: Expected to continue at 2.5% per annum. • Consumption: Developed country uses 22 lbs of copper per year/per person whereas developing country uses only 1-2 lbs of copper per year/per person. The average person requires 1,500 lbs of copper just to enjoy today's standard of livin
Slide 31: Organizational Chart
Organizational Chart Copper Fox Metals Inc. Northern Fox Copper Desert Fox Copper Schaft Creek Inc. Inc. Joint Venture Carmax Mining Corp. Copper Fox Teck Resources Desert Fox (65.4% equity Metals Inc. Limited interest) Minerals Co. (25%) (75% & Operator) Eaglehead Desert Fox Desert Fox In-Situ CuEq
Slide 32: Schaft Creek Joint Venture Components
Schaft Creek Joint Venture 3 Components Pre-Production Cash Payments Construction Decision Costs 1st Payment Teck covers 100% of CapEx. On signing JV Teck pays first $60 million Total Expenditures = $60 M Recovers Copper Fox share $20 million from production 2nd Payment > $60 million On production d
Slide 33: Schaft Creek Net Cash Distribution (before tax)
Schaft Creek Net Cash Distribution (before tax) Before Payout After Payout Capital & Sustaining Average NCF/year $4.3 B (year 1-7) $415 M Net Cash Flow (NCF) $4.6 B Year 1-7 Teck 75% CUU 25% $311 M/year $104 M/year Net Cash Flow Capital Recovery 10% $0.3 B 90% $4.3 B 2 Separate Concentrates Cu 28% +
Slide 34: Schaft Creek – Pit Shell Line of Section 6361000N
Schaft Creek – Pit Shell Based on optimized Whittle Pit Line of Section 6361000N B Untested (potential to extend mineralization) A 34
Slide 35: Schaft Creek – FOREX Sensitivity
Schaft Creek – FOREX Sensitivity 21 year mine life @ 130,000 tpd open pit/flotation mill (CDN$) (100% Project Numbers) Foreign Exchange: $CDN/$US (Base Case) 0.97 NPV (8% discount rate) $513 M NPV (5% discount rate) $1,694 M IRR 10.1% C1* cost per lb copper ($USD) $1.02 Metal Prices: US$3.25 lb Cu,
Slide 36: Van Dyke – Project Sensitivity
Van Dyke – Project Sensitivity Based on Preliminary Economic Assessment Technical Report for the Van Dyke Copper Project", dated December 18, 2015 prepared by Moose Mountain Technical Services, J, Gray P.Eng., et al as Qualified Persons;. NPV = Net Present Value 36
Slide 37: Eaglehead Project Untested Chargeability Target
Eaglehead Project • Excellent correlation between mineralization & chargeability • Large portion of project has not been tested CROSS SECTION 495200 mE Untested Chargeability Target Width 400 m Mineralized Interval 200 metres 37
Slide 38: Sombrero Butte Location
Sombrero Butte Location Deposit 2 KILOMETERS Geochemical/Alteration Cu+/-Mo Mineralized Breccias 38
Slide 39: Mineral Mountain Maps
Mineral Mountain Maps UTHOLOGY Su oon 3888000 nN ~ LEGEND Project Boundary 4] exctuded Area >100 ppm Cu >10 ppb Au MINERAL MOUNTAIN |; et Copper & Gold GEOLOGY MAP PROJECT =, In Outcrop MINERAL MOUNTAIN PROJECT
Slide 40: Corporate Contact Information
Corporate Contact Information Corporate Office Desert Fox Van Dyke Office Suite 650, 340 – 12th Avenue SW 3445 E Highway 60 Calgary, AB, Canada T2R 1L5 Miami, AZ, USA 85539-1353 Contact: Investor Relations Telephone: +1 (403) 264-2820 Toll free: +1 (844) 464-2820 Email: investor@copperfoxmetals.com