FURTHER OUTSTANDING NICKEL INTERSECTION AT RADIO HILL 18 Metres...

FURTHER OUTSTANDING NICKEL INTERSECTION AT RADIO HILL

18 Metres @ 5.1% Nickel Equivalent


Fox Resources Ltd (“Fox”) (ASX Code: FXR) is pleased to announce that after recently intersecting massive nickel sulphides in drill hole UGD148, a subsequent drill hole, UGD150, has increased the lateral extensions in the A zone at Radio Hill.

This drill hole UGD150, intersected 18 metres @ 5.1% nickel equivalent and was drilled down dip to UGD148 which intersected at 25 metres @ 4.4% nickel equivalent (see attached section). These drill holes are from an area 135 metres below the surface. This area is only 8 metres from existing mine development which allows quick access to the ore with little extra lateral development. The massive sulphides can be mined using conventional longhole mining methods, with the ore being stripped into the existing stope void and easily retrieved using a remote loader from the level below.

Further definition of the lateral extension of this zone will be undertaken in follow up drilling over the next few months.

The current underground diamond drilling program has now confirmed that massive nickel sulphide mineralisation continues beyond existing stopes and previously interpreted geological contacts. The massive sulphide mineralisation also continues deeper than the existing Radio Hill underground decline.

Fox will recommence underground diamond drilling at Radio Hill in mid October and will continue to provide drilling results during the current program.

Fox is proving up additional reserves and resources to be included in the mining development study. It is aimed to complete this bankable study by the end of the year and following the successful outcome of this study, Fox anticipates production to commence at Radio Hill by mid 2004.


RECENT HIGH GRADE DRILL RESULTS AT RADIO HILL

Hole Intersection Nickel Eq Nickel Copper Cobalt Palladium
Number Metres % % % % g/t
UGD150 (latest hole) 18.0 5.1 3.62 3.06 0.20 0.50
UDG148 (previous hole) 25.4 4.4 3.25 2.01 0.16 2.15

Nickel Equivalent: Ni% + Cu% x 0.33 + Co% x 1.91 + Pd g/t x 0.1

Hole Depth Local Local Dip Azimuth
Number Metres East North Degrees (Local Grid)
UGD150 135 6926.5 3760.5 -28 164
UGD148 135 6926.5 3760.5 7 164

Yours sincerely,


Barry Bolitho
Technical Director

The technical information contained in this report is based on information compiled by Ed Mead who is a member of the AusIMM and is able to sign off on resources and reserves as a competent person with over 10 years experience in the minerals industry. This person is competent in the field activity being reported on and consents to the inclusion of this information in the form and context in which it appears in this report.