high grade nickel intersections

FOX RESOURCES LIMITED 2003-04-23 ASX-SIGNAL-G

HOMEX - Perth

+++++++++++++++++++++++++
Fox Resources today announced outstanding results from its first
drilling programme at Radio Hill, Western Australia, since acquiring
the nickel treatment plant in September 2002.

The first two drill holes produced intersections of high-grade
massive nickel sulphide mineralisation including 4 metres @ 3.2%
nickel, 6.9% copper, 5.4g/t gold, 6.0g/t palladium and 2.0g/t
platinum (6.3% nickel equivalent) from 109 metres in RAHRC4 and 3
metres @ 4.8% nickel and 3.5% copper (5.5% nickel equivalent) from 91
metres in drillhole RAHRC3.

These intersections are contained within a broader halo of
disseminated sulphide mineralisation that averaged 1.6% nickel and
4.0% copper (3.2% nickel equivalent) over 9 metres from 108 metres in
RAHRC4 and 30 metres @ 0.9% nickel and 1.5% copper (1.4% nickel
equivalent) from 75 metres in drillhole RAHRC3. The intersections
reported are down-hole lengths as the true width is unknown.

"The discovery of a new nickel sulphide zone at Radio Hill has great
significance for its potential to increase the existing nickel
reserves and extend the mine life of the project. It is very
encouraging that the new zone is accessible from the existing decline
and close to the treatment plant," said Brett Matich, Managing
Director."

"As a result of this discovery step out drilling has been undertaken
to test the strike and down dip extension of the new zone
mineralisation."

Result Highlights:

* Two nickel massive sulphide intersections, 50 metres apart and at
depths of 109 metres and 75 metres near existing decline.

* New nickel zone has the potential to develop into a high grade
nickel deposit at Radio Hill. Potential strike and down dip of this
new zone is still unknown.

* New nickel sulphide zone is expected to have a positive impact on
the economics of the existing project adding to the current nickel
reserves.

* The drilling results demonstrate the potential for further nickel
sulphide discoveries in the under explored areas surrounding the
Radio Hill Nickel Mine.

* Immediate extension of drilling programme has begun along strike.

The drillholes tested a poorly defined zone of massive and
disseminated nickel-copper- PGE's sulphide mineralisation located 200
metres west of the main mineralised trend. The mineralisation is
hosted by gabbroic units of the Radio Hill layered intrusion. The
drilling in this area by Fox suggests that the mineralisation forms a
shoot that runs parallel to the ore zones previously mined by Titan
and Agip.

Follow up exploration using the latest geophysical and geological
techniques together with an experienced exploration team will enhance
the ability to make further successful discoveries at Radio Hill.


Brett Matich
MANAGING DIRECTOR
Contact phone: (08) 9420 7300

The information in this report that relates to exploration results
was compiled by Mr Donald Thomson, an employee of Fox Resources Ltd
and a member of the AusIMM. Mr Thomson 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 competent Person as defined in the Australasian Code for
the Reporting of Resources and Ore Reserves. Mr Thomson consents to
the inclusion in the report of the matters based on their information
in the form and context in which it appears.

Radio Hill Project Background:

* Fox Resources Limited acquired the Radio Hill nickel mine and
treatment plant in September 2002, opening the way for the newly
listed Fox to move from explorer to a producer. Fox's due diligence
review of the plant indicated that a significant increase in mill
throughput and flotation capacity could be readily achieved. It
planned to mine a mix of high and lower grade ore and expected that
exploration would prove further reserves to extend the life of the
mine.

Treatment Plant:

* The Radio Hill nickel operations, 35 km south of Karratha, WA, was
built at a cost of almost $50m by Agip in the late 1980s. It was
operated for only a few months before a combination fall in the
nickel price and inappropriate mining methods resulted in closure.
Titan reopened the mine in April 1998 after spending $5 million on
upgrades and producing over 200,000 tonnes of nickel concentrate to
September 2002.

Existing Resources:

* When Fox acquired the operation, Radio Hill included a stringer
reserve of 395,000 tonnes at 1.03% nickel, 1.14% copper, 0.061%
cobalt; a massive sulphide reserve of remnant pillars within stoping
blocks of 50,000 tonnes at 3.21% nickel, 2.11% copper, 0.177% cobalt,
and a disseminated nickel/copper sulphide resource of 1,447,000
tonnes at 0.67% nickel, 0.98% copper, and 0.045% cobalt.

* Fox also sourced additional resources from Titan: the Mt Sholl B1,
B2 and A1 deposits, containing in situ resources in excess of 22,000
tonnes of contained nickel, 66,000 tonnes of copper, 1,100 tonnes of
cobalt and 1,750 kg of palladium and three other targets where
similar mineralisation has been intersected. The Mt Sholl complex
includes a resource of 720,000 tonnes at 1.8% nickel and 1.3% copper.

* Fox also has the Whundo deposit, which includes stockpiles of
31,000 tonnes @ 4% copper and a resource of 2 million tonnes @ 2%
copper, 1.3% zinc and 11 g/t silver. There is potential for further
discoveries of massive base metal sulphide mineralisation extending
over 12 kilometres of strike.

* Fox controls the largest exploration land holdings in the Karratha
area totaling over 1,000 sq km including 13 granted mining leases.