NEW EXPLORATION RESULTS AT RADIO HILL

Pilbara-based nickel developer, Fox Resources (ASX:FXR), has today announced encouraging assay results from the first hole of a 2,000 metre drilling program at its Radio Hill project near Karratha.

The program, which commenced on 6 December 2008, is testing a series of Electromagnetic (EM) anomalies for mineralisation between 400 metres and 600 metres down plunge of mine workings ? see figure 1.

The drilling program, (Table 1) is part of the re-evaluation and interpretation of the geological and geophysical information at Radio Hill, which is being managed by renowned nickel exploration specialists Newexco Services Pty Ltd in conjunction with Fox.

Fox Resources Managing Director Bruno Seneque said although incomplete, the study implies the high probability of an extensive disseminated mineralised system enveloping the existing mine, but also extending down plunge of the mine for at least 600 metres.

?The financial modelling suggests that a range of lower grade and higher processed tonnage will offer a profitable alternative to that previously mined,? Mr Seneque said.

?Our initial results highlight the excellent potential for further discoveries, which if positive, will meet the Company?s target of at least three million tonnes of low grade at Radio Hill with the aim of opening a robust, higher annual tonnage operation,? he said.

Mr Seneque said Fox Resources was aiming to have Radio Hill back into production, subject to market conditions, before the end of 2009.

To further develop the target of the higher tonnage operating scenario, Newexco are implementing an evaluation strategy which includes the integration of existing and new drill hole and geophysical data.

Geological re-logging of 543 underground drill holes from around and down plunge of the mine has commenced. The majority of these holes have been reviewed and a total of 857 metres of the estimated 1,100 metres of required sampling from relevant drill holes has been completed. Assays are pending with initial results expected to be available in February.

Drill Progress and Results

The first new drill hole 08RHDD109 has delivered encouraging results, intersecting thick mineralisation containing 55 metres of disseminated and matrix sulphides from 337 metres to 392 metres, including 6.4 metres @ 0.90% nickel and 1.13% copper from 360 metres down hole depth ? see Table 2. This hole was terminated at 417.9 metres in basalt basement - see Figure 2. Re-examination of core from hole RHPD519 as shown in Figures 1 and 2, has identified 62 metres of disseminated sulphides between 328 metres and 390 metres, assays and detailed relogging is pending.

Hole 08RHDD110 (reported in the last quarter) was drilled adjacent to RHP360 into an off hole anomaly. It intersected a thick mine gabbro sequence with 51 metres disseminated sulphide from 462 metres to 513 metres - assays are pending. The hole was terminated in basalt basement at 534.4 metres.

Hole 09RHDD111, drilled between 08RHDD110 and 08RHDD109, intersected a thick mine gabbro containing 57 metres disseminated and matrix sulphides from 392 metres to 449 metres - assays are pending. The hole was terminated in basement at 474.8 metres

Hole 07RHDD084 located to the south of 08RHDD110 was extended to intersect basement and act as a Downhole Transient Electromagnetic (DHTEM) platform to test down plunge of the newly interpreted mineralised trend. This hole intersected 40 metres of weakly mineralised mine gabbro from between 530 metres 570 metres which included stringers and blebby sulphides and was terminated in basalt basement at 597.7 metres.

Interpretation of DHTEM data recently recorded in holes, 07RHDD084, RHP360, 08RHDD109 and 08RHDD110, combined with previous data suggest this conductive horizon is continuous as shown by the plates in Figure 1 which is in line with the new mining model.  

To test an interpreted new mineralised trend, four historic holes located southeast of the existing workings were opened and surveyed using DHTEM. Interpretation of the results revealed a coherent, weakly conductive target as shown by the plate in Figure 1. Subsequently, Hole 09RHDD112 was drilled which returned 26 metres of mineralised mine gabbro from between 230 metres and 256 metres and was terminated in basalt basement at 285.8 metres. This demonstrates this new trend is prospective for nickel sulphides and assay results are pending. Follow up DHTEM is planned for early February.

Table 1: Drill Hole Co-ordinates

Table 2: 08RHDD109 significant intersection

Please click on the following link to view Figure 1: Radio Hill Drill Programs

http://www..purplecom.com.au/_content/documents/1071.JPG

Please click on the following link to view Figure 2: Schematic Cross-Section (Mine Grid 3250N) of Simplified Geology and Sulphide Distribution in 08RHDD109

http://www..purplecom.com.au/_content/documents/1072.JPG

-ENDS-

For further details please contact:

Bruno Seneque, Managing Director                       +61 8 9318 5600

Warrick Hazeldine ? Purple Communications       +61 8 9485 1254

About Fox Resources

Fox Resources is a nickel focused metals developer, with a substantial resource footprint in the world-renowned Pilbara region.

Fox?s Radio Hill project has been producing and shipping nickel and copper concentrate for more than four years. It was placed on care and maintenance during 2008 following adverse movements in nickel prices.

The project offers the advantages of established infrastructure, including a new 84 man village, a 425,000 tonne per annum nickel processing plant, a fully developed underground mine at Radio Hill and concentrate storage facilities at the Port of Dampier, 40km from the Radio Hill Mine. The concentrates produced at Radio Hill are also high value due to their low levels of magnesium oxide and arsenic.

Fox Resources has an off-take arrangement in place with marketing partner Jinchuan Group Limited - China's largest producer of nickel, and a major Fox Resources shareholder. The Company has also the benefit of a highly experienced Board and management team, with particular expertise in the development of major nickel projects.

The Company is also advancing its substantial Mount Oscar magnetite project in the Pilbara, where it is working to deliver an initial JORC resource estimate during the first half of 2009.

COMPETENT PERSON STATEMENT

The information within this report as it relates to mineral resources is based on information compiled by Fox Resources Ltd and Adrian Black of Newexco Services Pty Ltd. Adrian Black is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to this style of mineralisation and deposit under consideration to qualify as a Competent Person as defined in the 2004 Edition of the ?Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves?. Adrian Black consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

The information within this report as it relates to mineral exploration and geophysics is based on information compiled by Fox Resources Ltd and William Amann of Newexco Services Pty. Ltd. William Amann is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to this style of mineralisation and deposit under consideration to qualify as a Competent Person as defined in the 2004 Edition of the ?Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves?. William Amann consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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