Deep Fox (Formerly Deepwater Fox) is located 12 km east of the Foxtrot deposit, and became Search’s second major discovery within the Fox Harbour volcanic belt (part of the Port Hope Simpson CREE District) following an initial channel sampling program during the 2014 field season.

The Deep Fox prospect is easily accessed via a small boat trip across Fox Harbour Pond, as well as by foot via a cut trail near the St. Lewis Airport. The 53 initial channel samples taken at Deepwater Fox were used to plan a much more extensive exploration program in 2015. Including the 2014 sampling program, a total, 26 channels have been cut at the Deep Fox prospect and 951 samples have been collected and analyzed.

While the Deep Fox Discovery has yet to be drilled, based on extensive mapping, sampling and geophysics, Search is able to make the following observations:

• The geology and mineralization at Deep Fox is the same as at FOXTROT
• At 400 metres, Deep Fox is similar in strike extension as FOXTROT
• Mineralized zone widths are as wide or wider (up to 30 m) than at FOXTROT.
• Mineralized channel sample assays are on average greater than 15% higher than those at Foxtrot.

This is an exciting discovery in an excellent location and is Search’s next target for exploration drilling. If reserves are delineated here they would be close enough to the proposed FOXTROT mine development to provide additional feed to either extend the life of the overall operation or to facilitate a scaling-up for greater operational economies. The table below summarizes several significant surface channel REE assay intercepts taken at the Deep Fox prospect.