30 million off take

Fox Resources Limited (ASX: FXR, Fox) today announced the signing of a non-binding
Memorandum of Understanding (MOU) with Jiangxi Jiangli Sci-Tech Co., Ltd (Jiangli)
regarding the development of the Radio Hill and Sholl Nickel/Copper Bacterial Heap Leaching
Project (the Project) in the Pilbara region of Western Australia.
The agreement contemplated by the MOU and matters described in this announcement are
subject to the agreement of, and entry into, formal documentation between Jiangli and Fox,
which the parties will seek to finalise and agree as soon as practicable following this
announcement.
Under the proposed agreement contemplated by the MOU, Jiangli, a Chinese cooperative, is
to provide Fox A$30 million to fund the initial phase of the Project and other associated project
activities required at Radio Hill Mine, as detailed in the 25 August 2011 announcement on the
Revised Scoping Study. Fox plans to mine an inventory of six million tonnes of mineralisation
over an initial mine life of nine years.
Interim Chief Executive Officer, Mr Laurie Chew, said the signing of this MOU and its formal
documentation will represent a very significant milestone in returning Radio Hill to production.
“It confirms the potential of the Project and reflects the culmination of many months of hard
work optimising processes. With the proposed funding arrangements now underway, we can
look forward to the commencement of construction to develop the bacterial heap leaching
Project. We’re very pleased to have Jiangli’s support and look forward to working
cooperatively with them in the future,” said Mr Chew.
As part of the proposed arrangement, Fox will provide Jiangli with 100% of the nickel and
copper sulphide concentrates produced by Fox from its Radio Hill and Sholl Project over the
initial nine year mine life. Extensions to this term will be negotiable.
The A$30 million (plus interest) will effectively be repaid by shipments of the concentrates to
Jiangli. The concentrates will be transported to and shipped from Dampier Port which is
approximately 40km away.
Further updates will be provided once the details of the negotiations are completed and formal