Crazy Horse Resources Inc.: Taysan Pre-Feasibility Study Update

Crazy Horse Resources Inc. (TSX VENTURE:CZH)(OTCQX:CRZHF) - 

Highlights



--  New pre-feasibility metallurgical test work shows improved magnetite
    recovery from 51% to 91%. 
--  Magnetite concentrate output to increase from 273,000 tpa (tonnes per
    annum) to 483,000 tpa, improving profitability and enhancing robustness
    and the ability to finance. 
--  After tax project IRR increases from 29.3% to 33.6% and the NPV at 10%
    from US$484 million to US$609 million, based on US$3.00/lb copper,
    US$1,000/oz gold, US$26/oz silver and US$100/tonne magnetite prices. 
--  Pre-feasibility study on Taysan Project is fully funded and on track to
    be completed in March 2012.



Crazy Horse Resources Inc. (the "Company") is pleased to announce that new
pre-feasibility metallurgical test work results received from AMEC Minproc, the
lead consultant for the pre-feasibility study for the Company's Taysan
Copper-Gold Porphyry Project in Batangas Province on Luzon Island in the
Philippines (the "Taysan Project"), show average metallurgical recovery of
magnetite of 91% at magnetite grades of 3.58%, which is the average grade over
the 15-year mine life of the 15 million tpa project. The 91% recovery is a
substantial improvement on the Scoping Study magnetite recovery of 51%, thereby
leading to increased tonnages of magnetite produced and improved project
economics. The Scoping Study is summarized in a NI 43-101 compliant technical
report dated December 16, 2011 and entitled "Revised Preliminary Economic
Assessment for a 15 Million Tonne per Annum Mine" authored by Barton Metals Pty
Ltd. of Australia and filed on SEDAR.


With the increased recovery, the Taysan Project will produce an annual average
of 483,000 tonnes magnetite concentrate compared to the 273,000 tonnes
previously assumed in the Scoping Study. As a result of the higher magnetite
recovery, the after tax IRR increases from 29.3% to 33.6%, and the NPV at a 10%
discount rate, rises from US$484 million to US$609 million, thereby further
improving profitability and enhancing the robustness of and ability to finance
the Taysan Project.


AMEC Minproc have concluded from the recent test-work results that the iron
grade in the magnetite concentrate is unaffected by variation in the magnetite
head grade above 1%, which means that the concentrate grade remains constant for
the expected range of magnetite content of the ore. The results point to a
high-grade 68.37% iron content and a clean concentrate with low deleterious
elements - qualities that will enhance the ability to market the product.


An updated technical report incorporating this new preliminary economic
assessment (PEA) will be filed with the securities commissions within 45 days. A
complete copy of the PEA and the updated technical report, once completed, can
be viewed under the Company's profile at www.SEDAR.com.


The Pre-Feasibility Study 

Virtually all of the work that had been previously completed for the
pre-feasibility study on a 30 Mtpa operation, including the resource estimate,
mining studies and process and infrastructure engineering, is now being used for
the pre-feasibility study of the 15 Mtpa project. In addition, the 49 drill
holes completed, with encouraging assays results announced on December 16, 2011,
will be included in a revised resource estimate. This updated resource estimate
will be used as the basis for the new mineral reserve estimate and mining
studies which will underpin the 15 Mtpa pre-feasibility study. This new resource
estimate will also allow for the conversion of some of the previous Indicated
Resource to Measured status and some of the previous Inferred Resource to
Indicated status. 


In addition, as part of the pre-feasibility study, further detailed pit
optimization studies may result in improved mine life and a further increase in
return on investment. Similarly, as in all pre-feasibility studies, additional
work being undertaken on metallurgy, including comminution, as well an on
infrastructure options for water supply, tailings storage facilities, camp
sites, access roads and power supply, will determine optimum solutions to
minimize capital and operating costs and to provide the maximum return to the
project. The pre-feasibility study is fully funded and scheduled for completion
in March 2012. 


Qualified Person 

The technical information contained in this news release has been reviewed by
Alistair Barton. Mr. Barton is a Qualified Person ("QP") as defined in the
"Canadian Institute of Mining, Metallurgy and Petroleum, CIM standards on
Mineral Resources and Reserves" and NI 43-101. 


For exploration work, Brian Lueck P.Geo, the Director and COO of the Company, is
the appointed QP. 


About the Taysan Copper Gold Project 

The Taysan Copper Gold Project contains a drill defined copper-gold porphyry
deposit, and is comprised of two mining exploration permits and three mining
exploration permit applications (permits: EP-IVA-005 and EP-IVA-016, and permit
applications: EPA-IVI-108, EPA-IVI-111 and EPA-IVA-081) over five contiguous
claim blocks covering a combined total area of 11,254 hectares. The Taysan
Copper Gold 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 Taysan Copper Gold Project is located in southern Luzon,
Philippines in a well-developed mining province and readily accessible by road
located 20km east of the provincial capital and deep-water commercial port of
Batangas City. 




Glossary 
IRR = internal rate of return 
lb = pound(s) 
Mtpa = million tonnes per annum 
NPV = net present value 
oz = ounce(s) 
tpa = tonnes per annum



ON BEHALF OF THE BOARD 

Mitchell Alland, President, CEO and Secretary 

This press 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 Crazy Horse Resources Inc. Statements regarding mineral exploration
operations and objectives are subject to risk, including, but are not limited
to, exploration and geologic risk, inflation and costs of goods and services,
property title issues and regulatory approvals. 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. Specifically, there is no assurance that the results of the
pre-feasibility metallurgical test work will be replicated in actual production
conditions; that the magnetite concentrate output will increase as projected; or
that the corresponding increases in IRR or NPV will be as projected. Crazy Horse
Resources Inc. does not assume the obligation to update any forward-looking
statement, except as required by applicable law.