Fox Resources Limited announced that the maiden shipment of copper metal in concentrate departed the Port of Dampier in Western Australia for Lianyungang China earlier this week.

The maiden shipment carried 728 tonnes of unhedged copper metal in concentrate valued at A$7 million (gross of smelter charges).

The copper metal in concentrate was mined from Fox's newly commenced West Whundo low cost, high grade open pit. Mill production remains on track to ramp up to an average of 45 tonnes of copper metal per day. Total production from West Whundo has been contracted to China's Jinchuan Group Ltd, China's largest nickel producer.

Due to contracted freight space arrangements 184 tonnes of copper metal in concentrate remained at the Port of Dampier. The next shipment, scheduled for early September, will total an estimated 1,100 tonnes of copper metal in concentrate valued at A$11m, at current metal prices.

The Company reaffirms its production target for the September 2006 quarter of 3,348 tonnes of copper metal in concentrate.

Fox Resources' Managing Director Don Harper said the shipment represented a significant milestone for the Company.

"So far we have delivered this project on time, on budget and both the resource model and recoveries are performing better than expected," Mr Harper said. "Yet while it is a great result, it is really a foundation that allows us to focus on bigger goals which include extending mine life at West Whundo as well as developing our exciting regional Pilbara exploration targets."

As previously announced, the re-optimised pit design at the West Whundo mine indicates the project has a current recoverable metal value of $150 million over a 12 month period. Reverse Circulation drilling is underway around the mine targeting an additional two-year open pit mine life, with results to be released as they become available.

Production from the West Whundo mine also continues to perform better than anticipated with an 11 per cent increase in the ore tonnes mined compared to resource model and a 13 per cent increase in copper grades compared to the resource model.