Crazy Horse Resources Inc.: Pre-Feasibility Study on Taysan Copper-Gold Project Shows Post-Finance After-Tax IRR of 49% and N...

Crazy Horse Resources Inc. (TSX VENTURE:CZH) (the "Company") announces the
completion of a pre-feasibility study, prepared by AMEC Minproc Limited ("AMEC
Minproc"), on its 100%-held Taysan Copper-Gold Project located on Luzon Island
in the Philippines.


Mitch Alland, Chairman and CEO of Crazy Horse Resources commented: 

"We are excited about the attractiveness and the financial robustness of the
Taysan Project with its estimated NPV of US$503 million and IRR of 49%, assuming
a 65:35 debt to equity ratio and a US$3.00/lb copper price. The large Measured
and Indicated Resource of 1.2 Mt of contained copper will provide the basis for
the Stage 1 project (15Mtpa operation for 24 years) which can then be followed
by the Stage 2 expansion to either double the throughput rate or extend the mine
life to up to 40 years. An operation with this long term horizon will be
attractive to the local community in terms of continuing future employment and
to potential buyers or joint venture partners that are looking for a long-term
source of copper concentrate. Now that the pre-feasibility study has been
completed, the Company intends to embark on an aggressive campaign to pursue a
trade sale or joint venture with a view to maximizing the return to
shareholders."


Summary of the Pre-feasibility Study

The PFS has been prepared by the following independent consultants under the
lead of AMEC Minproc of Brisbane, Australia:




----------------------------------------------------------------------------
Consultant                      Areas of Responsibility                     
----------------------------------------------------------------------------
Aboitiz                         Logistics                                   
AMEC Minproc                    Metallurgical test work, Metallurgy, Process
                                and Study Management                        
GAIA South Incorporated         Socio-Environmental Assessment              
GHD Engineering                 Tailings Storage Facility, Infrastructure,  
                                Hydrology, Water Supply, Communications,    
                                Site Buildings and Camp, Power and Ports    
IMC Mining Group Pty Ltd        Mineral Reserves, Mining Studies and        
                                Optimization                                
Mining Associates Pty Ltd       Geology and Resource Estimation             
Resource Development                                                        
 Consultants Ltd.               Geotechnical, Hydrogeology and Pit Stability
----------------------------------------------------------------------------



Mineral Resources

Taysan is a typical porphyry copper-gold project hosted by several
quartz-diorite intrusive bodies at the margin of the large San Juan Diorite
batholith. The Project is hosted by several intrusive bodies with a high grade
core consisting of breccias and quartz-magnetite vein stockworks. Emplacement of
the diorite and ore is controlled by regional, cross cutting faults. Geological
mapping and ground geophysics (magnetics and induced polarization surveys)
indicate that exploration potential exists in the Company's land holdings to
discover new deposits.


The copper mineralization is controlled by fault zones dipping between 30 and 60
degrees that crosscut the intrusive bodies. There is potential to expand
resources at depth along this structural zone.


The Project has been extensively drilled since 1968, with 302 holes for 82,583
meters, of which the Company has drilled 99 drill holes for 36,445 meters
between October 2010 and October 2011 as shown in the table below:




----------------------------------------------------------------------------
              Drilling at Taysan Project between 1968 and 2011              
----------------------------------------------------------------------------
                                  Drill Hole            No. of         Drill
Company                                 Type       Drill Holes        Meters
----------------------------------------------------------------------------
                                    Resource                91        34,709
                          --------------------------------------------------
Crazy Horse                      Exploration                 2           828
                          --------------------------------------------------
                                Geotechnical                 6           908
----------------------------------------------------------------------------
Previous Companies                  Resource               141        36,253
                          --------------------------------------------------
                                 Exploration                62         9,885
----------------------------------------------------------------------------
Total Drilling                                             302        82,583
----------------------------------------------------------------------------



The following table summarizes the Mineral Resource estimate at the 0.1% copper
cut-off grade used, including the estimates for gold, silver and magnetite:




----------------------------------------------------------------------------
     Taysan Mineral Resource Estimate at 0.1% Cu Cut off, February 2012     
----------------------------------------------------------------------------
                                                   Cu    Au    Ag           
                M    Cu    Au    Ag  Magnetite     (M    (M    (M  Magnetite
Resource   tonnes   (%) (g/t) (g/t)        (%)   lbs)   oz)   oz)       (Mt)
----------------------------------------------------------------------------
Measured      156  0.31  0.12   1.2        3.3  1,077  0.61  5.80       5.20
----------------------------------------------------------------------------
Indicated     303  0.23  0.09   0.7        3.2  1,502  0.85  6.54       9.69
----------------------------------------------------------------------------
Inferred      509  0.18  0.08   0.5        2.7  2,065  1.24  7.81      13.59
----------------------------------------------------------------------------



The large Measured and Indicated Mineral Resource of 459 Mt at 0.26% Cu, 0.10
g/t Au, 0.8 g/t Ag and 3.3% magnetite, which contains 1.2 Mt of copper (2.6
billion lbs) provides the basis for the Stage 1 project (15 Mtpa operation for
24 years) that can be followed by the Stage 2 expansion to potentially double
the throughput rate or extend the mine life to up to 40 years.


Mineral Reserves

The Taysan Project will be a conventional open pit operation, using bulk mining
methods involving a drill, blast, load and haul operation. Open pit mining will
use backhoe excavators and rigid frame dump trucks to mine and haul the ore. The
life of mine waste to ore ratio is approximately 1:1.


The cut-off grade optimization studies undertaken by IMC Mining Group Pty Ltd
led to a variable cut-off grade strategy to maximize the project cash flows. The
cut-off grade optimization, which resulted in an improvement in project NPV by
approximately 5%, was achieved by:




--  Optimizing the mine production schedule; 
--  Altering the processing cut-off grade for ore mined during each mining
    stage; and 
--  Stockpiling lower grade material to increase head grade delivered to the
    mill. 



The mining studies were based on a long term copper price of US$3.00/lb and
included gold, silver and magnetite credits. 


The Probable Mineral Reserve estimate by IMC Mining Group Pty Ltd is 353 Mt at
0.27% Cu, 0.11 g/t Au, 0.9 g/t Ag and 3.4% magnetite, and is based on variable
cut-off grades for each stage of mining. The estimate is based on commodity
prices of US$3.00/lb Cu, US$1,000/oz Au, US$26/oz Ag and US$100/t magnetite
concentrate. Details of the Mineral Reserve estimate will be provided in the
NI43-101 report that will be issued within 45 days of this news release.


Nine pit stages were chosen with the purpose of improving the project value by
deferring waste and targeting higher grade and higher margin areas earlier in
the mining schedule while providing regular mine stages with a minimum mining
width of 50 meters. 


High grade starter pits give an average grade (before recovery) of 0.39% Cu,
0.17 g/t Au, 1.5 g/t Ag and 4.2% magnetite for the first five years, compared to
the averages of 0.27% Cu, 0.11 g/t Au, 0.9 g/t Ag and 3.4% magnetite over the
life of the mine.


As illustrated below, Measured and Indicated Mineral Resources virtually fill
the entire 24-year pit shell. However, some of the resources in the overall pit
are in the Inferred category, which is not included in the Mineral Reserve base
and is classified as waste. A minimal drilling program may convert this material
to Indicated Mineral Resources, allowing the resources to be converted to
Mineral Reserves. This potential conversion of waste to Mineral Reserves would
decrease the strip ratio, thereby potentially lowering capital and operating
costs. 


To view the figure associated with this release, please visit the following
link: http://media3.marketwire.com/docs/czh0430fig1.pdf.


At the assumed treatment rate of 15 million tonnes per annum, the expected mine
life of the Project is 24 years and the forecast production is as shown in the
table below: 




----------------------------------------------------------------------------
                                                            Cu            Cu
                                     Payable     Equivalent(i) Equivalent(i)
                 Recovered Metal   Production#         (M lbs)      (tonnes)
------------------------------------------------                            
                 Avg/Year  Total Avg/Year  Total                            
                      LOM    LOM      LOM    LOM                            
----------------------------------------------------------------------------
Copper (M lbs)         79  1,899       76  1,822         1,822       826,356
----------------------------------------------------------------------------
Gold ('000 oz)         35    833       30    720           240       108,798
----------------------------------------------------------------------------
Silver ('000 oz)      233  5,604       93  2,242            19         8,815
----------------------------------------------------------------------------
Magnetite ('000                                                             
 t)                   476 11,416      476 11,416           381       172,612
----------------------------------------------------------------------------
Total Copper Equivalent (LOM)                            2,462     1,116,581
----------------------------------------------------------------------------
#    Payable production is the amount of metal produced net of treatment and
     metal refining deductions.                                             
(i)  Copper equivalent is calculated on the basis of payable production (net
     of deductions) and commodity prices of US$3.00/lb Cu, US$1,000/oz Au,  
     US$26/oz Ag and US$100/t magnetite.                                    
LOM = Life of Mine                                                          



Processing

The proposed plant design is a single train process plant to treat ore to a
maximum head grade of 0.6% copper with an expected LOM copper recovery of 90%
producing copper concentrates with an average grade of 24.5% copper that contain
gold and silver credits. Gold has a LOM recovery of 69% and silver has a LOM
recovery of 55%. Magnetite concentrate is produced as a by-product and has a LOM
recovery rate of 94%.


The Project process flow sheet is assembled from unit processes used commonly
throughout the minerals processing industry. The processing circuit consists of
a primary gyratory crusher discharging to a coarse ore stockpile of
approximately 25,000t live capacity. The grinding circuit consists of a single
semi-autogenous grinding (SAG) mill and ball mill with pebble-to-pebble
crushers. The copper flotation circuit consists of a rougher, cleaner,
cleaner-scavenger and re-cleaner circuit. The magnetite recovery circuit treats
the copper flotation tails stream using rougher and cleaner magnetic separators.
Concentrates are thickened using high rate thickeners prior to filtration in
pressure filters. The tailing streams are combined and thickened in a thickener
prior to being discharged to the tailings storage facility ("TSF"). 


The crushing and comminution flow sheets are conventional in design, based on
both historical testwork and metallurgical testwork performed during the
pre-feasibility phase. In addition, a benchmarking exercise was performed using
data from other similar operations as a design check.


The copper flotation circuit design consists of rougher flotation, regrind and
two stages of cleaning, which is again based on both historical testwork and
metallurgical testwork performed during the prefeasibility phase. Preliminary
flotation tails settling testwork was performed to estimate the size of the
flotation tails thickener. The preliminary data was benchmarked with other
operations of a similar size. 


The remaining unit processes in the flow sheet such as magnetite recovery,
concentrate thickening, filtration, tailings disposal and air and water services
are based on design data from similar plants and are considered by AMEC Minproc
to be suitable for the Taysan Process Plant at a pre-feasibility study level of
accuracy.


Infrastructure

Located on Southern Luzon, the Taysan Project is accessible from Manila by 106
km of expressway followed by 7 km on sealed provincial roads. It is 20 km from
the provincial capital on sealed provincial roads. Close to Batangas, a major
industrial area and port of the Philippines, the Project benefits from existing
infrastructure and from the nearby availability of a skilled workforce. 


The Project is designed as largely self-contained, with mine, mill, maintenance
facilities, administration and fully serviced accommodation camp located in
close proximity to the mine site. 


Existing sealed roads will be used for site access and for concentrate export.
Some upgrading of road surfaces and bridges will be required to be done in
cooperation with the provincial and municipal governments, particularly with
regard to the export road to Batangas Port. Within the mine site, 14.2 km of
roads will be built during the construction phase of the Project, including haul
roads within the pit and from the pit to the TSF. Other access roads suitable
for general mine equipment will also be constructed. Another 16.3 km of haul and
access roads will be built in Year 5 to extend access to the TSF embankment
areas and provide access around the TSF perimeter to allow tailings disposal and
monitoring activities. 


Sufficient water is available within the mine area. The estimated water
requirement for a 15 Mtpa operation is approximately 31,820 m3/day. It is
proposed that 75% of the process water demand will be met through return of
decant water from the TSF and the remaining 25% will be supplied from available
fresh water sources. The TSF will be built immediately to the south of the open
pit in a wide valley that allows for slurry transport and a short pumping
distance for return make-up water to the plant. A water supply dam will be built
to the southwest of the Project site that will supply fresh makeup water for the
plant and will be used to replace the water supply of any communities who are
affected by groundwater drawdown in the areas surrounding the open pit mine. A
capital expenditure allowance has also been made for a bore field to supplement
the water from the water supply dam.


Electric power is available from the local grid, and there is sufficient excess
power produced in Batangas Province to supply the Project's operations. There is
an existing 69kV line and right of way to the Taysan Municipality currently
servicing the local population, and this right of way may potentially be used to
build a second 69kV line. There also exists a 69kV substation at the mine site
and, although this substation is unsuitable for the mine operation, there is
potential to use this facility during construction. The plan is to construct a
69kV power line of 18.6 km length from the Batangas substation to the mine site.



The Company holds an option to purchase a 16 hectare deep water port facility on
a major transport route. The site has existing concrete pads ready for
construction of magnetite concentrate storage buildings. A new copper
concentrate storage shed and load out facility will have to be constructed. The
existing jetty and loading dolphins will be replaced with a more cost effective
facility.


The close proximity of the tailings dam to the open pit source, as does the
availability of waste rock from tailings, reduces capital costs for construction
of the TSF embankments. Two TSF starter embankments will be constructed in
narrow valleys in the headwaters of the Rosario River catchment. The two ponds
will join to form a single pond in subsequent raises. A longer embankment will
be constructed on the catchment divide to the north. The TSF is largely bounded
by natural surfaces to the east and south. At mine closure, the tailings surface
will be stabilized and re-vegetated, potentially into productive cropping areas
such as rice growing. The tailings have a low potential to form acid mine
drainage which will be controlled by sub-aerial deposition. The mine closure
plan envisages a central clean water pond discharging to the pit to be flooded
to form a pit lake on closure.


Environmental Considerations

The mine site is situated in an area of agricultural land with low density
inhabitation owing to the poor agricultural performance of the soil, which is
comprised of tuff (volcanic ash). There is no potential for destruction of
sensitive habitats and no unique or endangered animal species or community
within the project site that might be affected. The Project has been planned to
meet the highest standards of environmental protection, and World Bank standards
have been applied to all planned aspects of environmental protection and social
responsibility.


Financial Analysis

The estimated initial capital costs are US$502 million and, including
value-added taxes (VAT), are estimated at US$521 million. Average operating
costs per pound of copper equivalent(i) are forecast at US$1.68 for the life of
mine and US$1.18 for the first five years of production.


Total gross revenue comprises 74% from copper, 15% from magnetite, 10% from gold
and 1% from silver, based on prices of US$3.00/lb (US$6,614/tonne) for copper,
US$100/tonne for magnetite, US$1,000/oz for gold and US$26/oz for silver.


The Taysan Project is financially attractive and robust with an NPV (after tax
and at a 10% discount rate) of US$503 million and an IRR of 49.2%, both
calculated on leveraged cash flow assuming a 65:35 debt to equity ratio, which
produces adequate debt service coverage to be able to secure project financing.
In addition, the financial analysis assumes a fiscal regime under a Financial or
Technical Assistance Agreement (FTAA) with the government of the Philippines,
which has been applied for in respect of the Project. The Project is currently
operating under an exploration permit. 


The following table summarizes the economics of the Taysan Project at various
metal prices: 




----------------------------------------------------------------------------
                    Taysan Project Economics, April 2012                    
----------------------------------------------------------------------------
Copper Price                             US$/lb   $  2.50  $  3.00  $  4.00 
----------------------------------------------------------------------------
Gold Price                               US$/oz   $   850  $ 1,000  $ 1,400 
----------------------------------------------------------------------------
Silver Price                             US$/oz   $    24  $    26  $    28 
----------------------------------------------------------------------------
Magnetite Concentrate Price           US$/tonne   $    80  $   100  $   110 
----------------------------------------------------------------------------
Discount Rate                                 %        10%      10%      10%
----------------------------------------------------------------------------
Project Pre-tax NPV                        US$M   $   245  $   695  $ 1,506 
----------------------------------------------------------------------------
Project Pre-tax IRR                           %      20.1%    33.5%    53.3%
----------------------------------------------------------------------------
Project Post-tax NPV                       US$M   $   185  $   512  $   978 
----------------------------------------------------------------------------
Project Post-tax IRR                          %      18.6%    30.4%    44.2%
----------------------------------------------------------------------------
Project Post-finance(ii) NPV               US$M   $   175  $   503  $   969 
----------------------------------------------------------------------------
Project Post-finance(ii) IRR                  %      26.6%    49.2%    77.6%
----------------------------------------------------------------------------
(ii) Calculated on net cash flow after taking into account debt financing at
     a debt-to-equity ratio of 65:35.                                       



Qualified Person 

The Mineral Reserve estimate relating to the Taysan Project contained in this
news release was estimated under supervision by Stewart Lewis BE (Mining). Mr.
Lewis is a Chartered Professional member of the Australasian Institute of Mining
and Metallurgy and is a Registered Professional Engineer (Qld). Mr. Lewis has
over 25 years of experience in open pit mine planning and operations. The
Mineral Reserve estimate is based on information reviewed by Mr. Lewis. He is
the CEO and Principal Consultant of IMC Mining Group Pty. Ltd. and has suitable
qualifications and sufficient specific experience in the estimation of mineral
reserves to qualify as a Qualified Person as defined in the CIM Definition
Standards (November 2010). Mr Lewis and IMC Mining Group Pty. Ltd. have each
reviewed this press release and consent to the inclusion in the press release of
the matters based on his information in the form and context in which this
information appears.


Stock Option Repricing and Grant of New Options

Further to the receipt of disinterested shareholder approval at the Company's
recent AGM held on April 4, 2012 and subject to the acceptance of the TSX
Venture Exchange, the Company has agreed to amend the exercise price of
2,947,500 previously issued stock options granted to certain directors,
officers, consultants and employees to C$0.30 per common share. In all other
regards, the terms of these stock options remain the same. 


The Company also announces the grant of new options to certain directors,
officers, employees and consultants to purchase up to 1,490,000 common shares.
Each option is exercisable to acquire one common share of the Company at a price
of C$0.30 per common share until April 30, 2017, in accordance with the terms of
the Company's stock option plan.


(i) Copper equivalent is calculated on the basis of payable production (net of
deductions) and commodity prices of US$3.00/lb Cu, US$1,000/oz Au, US$26/oz Ag
and US$100/t magnetite.




Glossary                                                                    
Ag = silver                                                                 
Au = gold                                                                   
Cu = copper                                                                 
IRR = internal rate of return                                               
km = kilometers                                                             
lb = pound(s)                                                               
LOM = life of mine                                                          
M = million                                                                 
Mtpa = million tonnes per annum                                             
NPV = net present value                                                     
oz = Troy ounce(s)                                                          
t = tonne(s)                                                                
tpa = tonnes per annum                                                      
TSF = tailings storage facility                                             
VAT = value added taxes                                                     



ON BEHALF OF THE BOARD OF CRAZY HORSE RESOURCES INC.

MITCH ALLAND, President and C.E.O.

This news release includes "forward-looking statements" including forecasts,
estimates, expectations and objectives for future operations that are subject to
a number of assumptions, risks and uncertainties, many of which are beyond the
control of the Company. The PFS described in this news release is not a
production forecast by the Company. There remains at present insufficient
certainty in the PFS to reliably estimate future production and economics;
further engineering and geology studies are required. The scope of the PFS is to
deliver an economic assessment of the Project with plus or minus 20% accuracy in
its estimates. A full feasibility study, which provides a higher level of
accuracy in engineering and economic estimates, may be required for the sale or
joint venture of the Project. There are risks related to the assumptions used in
preparation of the PFS, including uncertainties associated with the Company's
reserve estimates and resource deposit information; and uncertainties regarding
mining in general including global supply and demand for base and precious
metals; political and economic risk in the Philippines, metallurgical
uncertainties; environmental laws, regulations and permits relating to mine
reclamation and restoration, climate change, emissions to the air and water and
human exposure to hazardous substances used, released or disposed of by the
Company; uncertainties associated with unanticipated geological conditions
related to mining; and uncertainties associated with the fiscal regime that will
be applicable to future mining operations. Investors are cautioned that any such
statements are not guarantees of future performance and that actual results or
developments may differ materially from those projected in the forward-looking
statements. Such forward-looking information represents management's best
judgment based on information currently available. No forward-looking statement
can be guaranteed and actual future results may vary materially. The Company
does not assume the obligation to update any forward-looking statement, except
as required by applicable law.