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CUU: Copper Optionality in Tier-1 Jurisdictions

What you need to know:
• Copper Fox owns 25% of Schaft Creek, a PEA-stage (after-tax NPV8% $842M and 13% IRR) copper-gold-molybdenum asset, funded by Teck (75% owner) to production.
• CUU also owns 100% of the PEA-stage Van Dyke ISCR Project which boasts a highly profitable project (after-tax NPV7.5% $645M & 43% IRR).
• The Company holds a portfolio of three other copper exploration assets, all showing early signs of being legitimate projects. The Eaglehead project is at the resource stage, hosting a resource of 1.82Blbs CuEq.
• CUU trades at just ~0.1x its attributable NAV vs. peers at ~0.3x.

Copper Fox Metals Inc. (CUU:TSXV, CPFXF:OTC) is a copper development company with advanced-stage assets in British Columbia and Arizona, two of the world’s top copper jurisdictions. Its flagship asset is a 25% interest in the Schaft Creek Project, a major porphyry copper system operated by Teck Resources (75%), and fully carried to production. In Arizona, Copper Fox owns the Van Dyke Project, a low-impact ISCR development project with strong economics and favorable permitting dynamics. The Company also holds the Eaglehead Project in B.C., along with two early-stage exploration projects in Arizona, Mineral Mountain and Sombrero Butte, which together provide scalable long-term upside. Copper Fox is majority-held by insiders, with over 59% insider ownership. We are initiating coverage on Copper Fox Metals with a BUY rating and a target price of C$0.50/share.

Investment Thesis Summary
Tier-1 Asset, Carried to Production. Schaft Creek is one of North America’s largest undeveloped porphyry copper systems, with a 21-year mine life and an after-tax NPV8% of $842M at $3.25/lb copper. Copper Fox owns 25% of the project with no cash or capital obligations until production, as Teck funds all development and recoups costs from 90% of future free cash flow. This structure gives Copper Fox significant leverage to rising copper prices without dilution.

High-Margin, Low-Impact U.S. Project. Van Dyke is a 100%-owned ISCR project in Arizona with 0.5Blbs of soluble copper in M&I resources and 0.7Blbs of soluble copper in Inferred resource and an after-tax NPV7.5% of $645M using $3.15/lb copper. With a 43% IRR and strong margin profile, the project offers scalable, ESG-aligned copper exposure. A $0.25/lb increase in the copper price adds $90M to the NPV and $190M in FCF, highlighting significant upside at spot prices.

Exploration Pipeline Adds Optionality. CUU has built a 7.3Blbs CuEq base through low-cost exploration. Eaglehead in B.C. hosts 1.8Blbs CuEq in an open-ended porphyry system, while Mineral Mountain and Sombrero Butte in Arizona offer early-stage upside in proven copper belts, enhancing long-term upside.

Strategic Partner and Strong Insider Alignment. Teck’s 75% interest and operator role at Schaft Creek reduces development risk. Insider ownership of CUU is 59%, including 57% held by Director Ernesto Echavarria, ensuring tight control, minimal dilution, and strong shareholder alignment.

Discounted Valuation. CUU currently trades at 0.07x NPV and $0.03/lb in-the-ground compared to its peers at 0.27x NPV and $0.19/lb in-the-ground.