26 February 2009

ASX / Media Announcement

ENCOURAGING DRILL RESULTS CONTINUE PROGRESS AT MT OSCAR

Highlights

? DTR results received from all remaining holes of the RC and Diamond drilling programs

? Metallurgical tests indicate a saleable concentrate can be produced

? Initial Resource in 1st Quarter 2009

? Further drilling planned in 2nd Quarter 2009

? Reconnaissance to commence on Mt Kristie, Mt Carla & Mt Catherine Magnetite projects

? Fox participating in Anketell Point Port Conceptual Study

Pilbara based minerals developer Fox Resources (ASX: FXR) is pleased to announce further drilling results from its Mt Oscar Iron Ore Project, continuing its progress toward completion of an initial JORC resource by the end of this quarter.

The Davis Tube Recovery (?DTR?) results are from the last of a 27 hole, 5,283 metre reverse circulation (?RC?) drilling program recently completed at Mt Oscar, which intersected significant magnetite mineralisation.

DTR results have also been received for the previous diamond drilling program.

Significant DTR results are summarised in Table 1 and include:

? 08ORRC015, 56 metres at an average DTR recovery of 37.4% mass to concentrate with a concentrate grade of 60.6% Fe

? 08ORRC017, 56 metres at an average DTR recovery of 38.3% mass to concentrate with a concentrate grade of 61.8% Fe

? 08ORRC022, 49 metres at an average DTR recovery of 34.7% mass to concentrate with a concentrate grade of 63.5% Fe

? 08ORRC024, 105 metres at an average DTR recovery of 35.6% mass to concentrate with a concentrate grade of 60.9% Fe

? 08ORRC026, 82 metres at an average DTR recovery of 47.6% mass to concentrate with a concentrate grade of 60.9% Fe

? 08ORDD005, 43.5 metres at an average DTR recovery of 40.2% mass to concentrate with a concentrate grade of 60.6% Fe

Initial Resource

All drill and assay data has now been compiled and handed to Golders Associates to produce an initial Resource for the Mt Oscar Project. The Resource is expected to be completed by the end of the first quarter 2009.

Background

The Mount Oscar project area is on granted Exploration Licence E47/1217 located 30km south of the port of Cape Lambert (see Figure 1). This location gives the project massive advantages in terms of access to infrastructure and vital services. Gas, water and power are all within 20km of the project and port facilities are 30km from the project.

The Mount Oscar Magnetite mineralisation is hosted within sub-vertical and outcropping Banded Iron Formations (?BIF?) of approximately 10kms strike length which are part of the Cleaverville formation.

The Cleaverville Formation hosts several other major Magnetite projects in the Pilbara region.

These BIF?s are coincident with a regional magnetic high. A detailed airborne high resolution magnetic survey flown in August 2007 along with rock chip sampling and field mapping conducted early in 2008 confirmed these anomalies were due to large widths of Magnetite mineralisation hosted within the BIF?s.

Drilling Programs

Two separate drilling programs have been undertaken at Mt Oscar. An initial diamond drilling program supported by helicopter drilled 7 holes (694 metres) at the top of the BIF ridges. These confirmed the geometry and widths of the mineralised zones.

A second program using a track mounted RC rig drilled a total of 27 holes (5283 metres) at the base of the BIF ridges to test extensions of mineralisation at depth. Magnetite rich BIF horizons of up to 178 metres in apparent width have been encountered at Anomaly 1 and 2 which have a strike length of approximately 1 km each.

Metallurgical Testwork

Metallurgical test-work has been undertaken by Promet Engineering of Perth on a bulk sample from holes RC01 and RC03. Results from these tests indicate that the Mt Oscar ore can produce a saleable concentrate using conventional crushing, grinding, magnetic separation and flotation techniques.

Further metallurgical test-work is continuing to enhance silica reduction strategies and to optimise reverse flotation techniques.

The DTR results for holes RC15 ? 27 announced today, display lower concentrate silica levels than previous drilling results.

Planned Exploration

Further drilling is planned at Mt Oscar to grow the resource, with 8km of strike yet to be tested. RC drilling programs are planned for Anomalies 3 and 4 during the second quarter of 2009. Field mapping has indicated the presence of similar widths and quality of Magnetite mineralisation at these locations.

Table 1: Drilling Intercepts at Mount Oscar

1. Intercept widths are apparent not true

2. Sample intervals are based on 4 metre composites

3. Each composite is individually tested by DTR, with all composite results averaged for the interval

4. Minimum interval 20 metres, maximum internal waste 8 metres

5. DTR head samples prepared to nominally 80% passing 25 micrometres

6. Assays performed by AMDEL Limited (IML laboratory) with chemical analysis by X-ray Fluorescence Spectrometry (XRF).

Reconnaissance to commence on further magnetite projects

Following the success at the Mt Oscar Project, Fox Resources is now examining other magnetite projects within its tenement holdings that are also hosted within the Cleaverville Formation.

The Company plans to commence reconnaissance mapping and sampling programs at the Mt Kristie, Mt Carla and Mt Catherine magnetite projects during the second quarter of 2009. These projects are all located on the Miaree Magnetite Trend, which is an exposure of the magnetite rich Cleaverville Formation that extends for more than 50km from Cape Lambert through to Cape Preston.

The Mt Kristie, Mt Carla and Mt Catherine magnetite projects comprise approximately 12 km of strike length of the Miaree trend and are considered to have the potential to host substantial quantities of magnetite mineralisation. The reconnaissance mapping and sampling will be undertaken to define suitable targets to be drilled during the third quarter of 2009.

Please follow the link below to view:

Figure 1: Mt Oscar Iron Ore Project showing proximity to proposed Anketell Point Port and other Magnetite projects

http://www..purplecom.com.au/_content/documents/1104.JPG

Anketell Point Port

Anketell Point is the proposed site for a deep water port for the API JV (Aquila, AMCI) to export ore from their West Pilbara Project. Several other major projects in the region are also expected to export ore through the Anketell Point Port. The port will be a deep water multi-user facility capable of handling Cape sized vessels.

Anketell Point is approximately 30 km from the Mount Oscar Project.

Fox Resources is participating in conceptual studies by DOIR and DPI to establish the requirements of potential users of the Anketell Point facilities.

Please follow the links below to view:

Figure 2: Anomalies 1 & 2 showing Diamond Drilling and RC Collars

http://www..purplecom.com.au/_content/documents/1105.JPG

Figure 3: Aeromag Anomalies at Mt Oscar

http://www..purplecom.com.au/_content/documents/1106.JPG

-ENDS

For further details please contact:

Bruno Seneque, Managing Director +61 8 9318 5600

Ryan McKinlay ? Purple Communications +61 8 6314 6300

COMPETENT PERSON STATEMENT

The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by

Mr Neil Winfield who is an employee of the company and is a member of the Australasian Institute of Mining and Metallurgy. Mr Winfield has

sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is

undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ?Australasian Code for Reporting of Exploration Results,

Mineral Resources and Ore Reserves?. Mr Winfield consents to the inclusion in the report of the matters based on his information in the form

and context in which it appears

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