SE Samuel Engineering, Inc. We Provide Solutions Copper Fox Metals Inc. Canadian NI43-101 Technical Report Preliminary Economic Assessment on the Development of the Schaft Creek Project Located in Northwest British Columbia, Canada Effective Date: December 7, 2007 Prepared By: Qualified Persons: Samuel Engineering, Inc. Matt R. Bender, P.E. Keith McCandlish, P. Geo. 8450 E. Crescent Parkway, Suite 200 Jim Gray, P. Eng. Greenwood Village, CO 80111 Ray Hyyppa, P.E. 303.714.4840 SE Samuel Engineering, Inc. We Provide Solutions SE Samuel Engineering, Inc. We Provide Solutions Table of Contents 1.0 Executive Summary ................................................................................... 1-1 1.1 Overview of the Study .....................................................................................................1-1 1.2 Schaft Creek Property Location, Description and History ..........................................1-1 1.3 Geology and Resources..................................................................................................1-4 1.4 Metallurgy .........................................................................................................................1-7 1.5 Process .............................................................................................................................1-9 1.6 Mine Plan.........................................................................................................................1-13 1.7 Operating Costs .............................................................................................................1-16 1.8 Capital Costs ..................................................................................................................1-16 1.9 Project Economics.........................................................................................................1-18 1.10 Conclusions and Recommendations...........................................................................1-20 2.0 Introduction ................................................................................................ 2-1 2.1 Purpose.............................................................................................................................2-1 2.2 Sources of Information....................................................................................................2-1 2.3 Site Visit ............................................................................................................................2-2 3.0 Reliance on Other Experts ........................................................................ 3-1 3.1 Disclaimer .........................................................................................................................3-1 3.2 Reliance on other Experts...............................................................................................3-1 4.0 Property Description and Location .......................................................... 4-1 4.1 Location ............................................................................................................................4-1 4.2 Mineral Tenure..................................................................................................................4-3 4.3 Teck Cominco Option Agreement ................................................................................4-10 4.4 Environmental Liabilities...............................................................................................4-11 4.5 Permits ............................................................................................................................4-11 Schaft Creek Preliminary Economic Assessment ♦ SE Project 6097-01 ♦ TOC SE Samuel Engineering, Inc. We Provide Solutions 5.0 Accessibility, Climate, Local Resources, Infrastructure & Physiography....... 5-1 5.1 Physiography ...................................................................................................................5-1 5.2 Accessibility .....................................................................................................................5-1 5.3 Proximity of Property to a Population Center...............................................................5-2 5.4 Climate and Length of Operating Season .....................................................................5-2 5.5 Local Resources ..............................................................................................................5-2 5.6 Infrastructure....................................................................................................................5-3 6.0 History......................................................................................................... 6-1 7.0 Geological Setting...................................................................................... 7-1 7.1 Regional Geological Overview .......................................................................................7-1 7.2 Property Geology .............................................................................................................7-2 8.0 Deposit Type............................................................................................... 8-1 8.1 Porphyry Copper Definition ............................................................................................8-1 8.2 Schaft Creek Porphyry System ......................................................................................8-1 9.0 Mineralization ............................................................................................. 9-1 9.1 Mineralization ...................................................................................................................9-1 9.2 Description of Mineralized Zones...................................................................................9-2 10.0 Exploration ............................................................................................... 10-1 10.1 Recent Exploration Summary.......................................................................................10-1 10.2 2006 Exploration Program.............................................................................................10-1 10.3 Proposed Exploration Program....................................................................................10-4 11.0 Drilling....................................................................................................... 11-1 11.1 Drill Program ..................................................................................................................11-1 12.0 Sampling Method and Approach ............................................................ 12-1 Schaft Creek Preliminary Economic Assessment ♦ SE Project 6097-01 ♦ TOC SE Samuel Engineering, Inc. We Provide Solutions 12.1 Drilling Methods .............................................................................................................12-1 12.2 Analysis of Down Hole Surveys ...................................................................................12-3 12.3 Drill Hole Logging ..........................................................................................................12-4 12.4 Sampling Protocol, 2006 Drilling Program..................................................................12-4 13.0 Sample Preparation, Analysis and Security .......................................... 13-1 13.1 Sample Preparation, at IPL Labs ..................................................................................13-1 13.2 Ore Grade Elements by Multi-Acid Digestion/ICP or ASS .........................................13-1 13.3 Fire Assay Gold Assay ..................................................................................................13-1 14.0 Data Verification....................................................................................... 14-1 14.1 2006 Quality Assurance and Quality Control..............................................................14-1 14.2 Review of Analytical Database for Resource Modeling .............................................14-4 15.0 Adjacent Properties ................................................................................. 15-1 16.0 Mineral Processing and Metallurgical Testing ...................................... 16-1 16.1 Historical Test Programs...............................................................................................16-1 16.2 Review of 2005 Drill Core Tests at PRA.......................................................................16-2 16.3 Mineralogical Evaluation of 2005 Samples by Lehne & Associates.........................16-4 16.4 Mineralogical Evaluation of 2005 Moly Samples by Dr. Peter Fischer .....................16-4 16.5 2005 Core Grade Variability Testing ............................................................................16-4 16.6 Hydrometallurgical Treatment of Copper Concentrates............................................16-4 16.7 Flotation Tailings Thickener Tests...............................................................................16-5 16.8 Review of the 2006 Drill Core Tests at PRA ................................................................16-5 16.9 2006 Core Comminution Testing..................................................................................16-6 17.0 Mineral Resource and Mineral Reserve Estimates................................ 17-1 17.1 Mineral Resource Estimate ...........................................................................................17-1