Mr. Johan Raadsma reports

CRAZY HORSE RESOURCES INC.: PRELIMINARY SCOPING STUDY ON TAYSAN PROJECT INDICATES A US$734M NPV AT 10% (DISCOUNTED AFTER TAX) USING 3.00 US/LB

Crazy Horse Resources Inc. has released the results of a preliminary economic assessment of its Taysan copper-gold porphyry project in the Philippines.

Highlights:

• Net present value of Taysan project of $734-million (U.S.) at 10 per cent (discount after tax) using copper price of $3.00 (U.S.) per pound;
• Production forecast of 22.7 per cent internal rate of return at $3.00 (U.S.) per pound of copper;
• NI 43-101-compliant resource report to be completed within 30 days;
• Crazy Horse proceeding with bankable feasibility study.

A soon-to-be-completed independent scoping study as managed by AMEC Minproc Ltd. of Australia, and contributed to by a number of third party industry consultants, indicates the Taysan project has an NPV (10 per cent) of $783-million (U.S.) at $3 (U.S.) per pound of copper, $1,000 (U.S.) per ounce of gold, $28 (U.S.) per ounce of silver and $60 (U.S.) per tonne of magnetite. The Taysan project remains sensitive to copper prices.

                     TAYSON PROJECT PRICE SENSITIVITIES

               $2.50 (U.S.)/lb Cu    $3.00 (U.S.)/lb Cu    $4.00 (U.S.)/lb Cu
 
NPV (10%)             $77,000,000          $783,000,000        $1,963,000,000
IRR                         11.4%                 22.7%                 40.1%

The Taysan project is estimated to produce 3.1 billion pounds of Cu, 1.5 million ounces of Au, 7.4 million ounces of Ag and 18.5 million tonnes of magnetite over the 24-year mine life. Annual average production for years one to four is estimated at 173 million pounds of Cu and 79,400 ounces of Au. Average annual production over the life of mine is 129 million pounds of Cu, 62,000 ounces of Au, 308,000 ounces of Ag and 807,000 tonnes of magnetite (commencing year two).

A capital cost estimate of $1,040-million (U.S.) is higher than originally estimated ($914-million (U.S.)) due to the addition of the magnetite plant, additional mining fleet, aggressive prestrip plan and a general increase in cost of materials.

The C1 cost, net of byproduct credits is low at 77 U.S. cents per pound of Cu for years one to four and $1.14 (U.S.) per pound of Cu over the 24-year mine life. Unit cost is estimated at $8.54 (U.S.) per tonne of ore processed and is driven by the low waste-to-ore ratio (0.7 to 1); proximity to port (20 kilometres); and low freight costs to expected market (China, Japan and Korea).

The potential quantities and grades are conceptual in nature, that there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Further, the preliminary assessment is preliminary in nature, and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

AMEC Minproc

This release must be read as a whole and is subject to, and limited by, the information available at the time of preparation of the report, the data supplied by the company and outside sources, and the assumptions, methodology and procedures, that have been agreed as the scope of work to be conducted by AMEC Minproc in connection with any report. To the extent permitted by law, AMEC Minproc disclaims any liability or responsibility for the use of or reliance on the report, or reference within this release by any third party.

An updated NI 43-101-compliant resource report is being prepared by Mining Associates of Brisbane, Australia, and is due for release this month following the completion of the scoping study by AMEC Minproc.

The company has approved the next stage of the feasibility study on the Taysan project that is estimated to take up to 18 months to complete. Five diamond drill rigs continue infill drilling of the resource.

Johan Raadsma, president of Crazy Horse, states: "We remain bullish on the copper price and these positive results clearly show the tremendous economic upside potential of the Taysan copper-gold-silver project. The addition of magnetite provides for further benefits, and we will study the benefits of in-country beneficiation during the feasibility stage."

Taysan project

A copy of the National Instrument 43-101 report by R. Sowerby, of Geosynthesis Pty. Ltd., entitled, "A Technical Review of Exploration and Resource Estimates of the Taysan Project, Batangas Province, Philippines," in collaboration with Mining Associates of Australia, can viewed under the company's profile on SEDAR.

The project contains a drill-defined copper-gold-porphyry deposit, and comprises two mining exploration permits and three mining exploration permit applications (permits: EP-IVA-005 and EP-IVA-016, and permit applications: EPA-IVA-108, EPA-IVA-111 and EPA-IVA-081) over five contiguous claim blocks covering a combined total area of 11,254 hectares. The project hosts a large and only partly explored copper-gold-porphyry deposit similar to other copper-gold-porphyry deposits previously mined in the Philippines. The project is located in southern Luzon, Philippines, in a well-developed mining province and readily accessible by road located 20 km east of the provincial capital and deepwater commercial port of Batangas City. The company is currently conducting a confirmatory scoping study under the management of AMEC Minproc, which remains on track and on schedule.

Brian Lueck, chairman of the company, is the qualified person who has reviewed the geological data summarized in this news release on behalf of the company.

We seek Safe Harbor.