CZH

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Crazy Horse Resources Inc. (TSX VENTURE:CZH) ("Crazy Horse" or the "Company")
announces: 




1.  clarification of prior disclosure concerning the Taysan Copper/Gold
    Project;
 
2.  an update of the scoping study mineral resource estimate of the Taysan
    Copper/Gold Project with the addition of silver and magnetite and
    completed drill holes to date; and
 
3.  an updated Preliminary Economic Assessment has been completed to reflect
    the updated mineral resource estimate as well as updated fuel and power
    costs. 



Clarification of Prior Disclosure

As a result of a review by the British Columbia Securities Commission ("BCSC"),
Crazy Horse is issuing this news release to clarify certain prior disclosure.


The Company has received preliminary material information providing for updated
resource estimates for the Taysan Project that include silver and magnetite. The
Company has also received preliminary results of an updated economic assessment
of the Taysan Project based in part on the updated resource calculations.
Details of this information is contained under the heading "Updates of Mineral
Resource Estimate and Preliminary Economic Assessment of the Taysan Project" at
the end of this news release. These preliminary results were previously
disclosed on the Company's website under its "Corporate Presentation"; and
readers are cautioned not to rely on the same as the Company has not yet
received the updated technical report supporting such information.


A revised NI 43-101 compliant technical report is being prepared to support the
updated resource estimates, which will also contain a revised Preliminary
Economic Assessment ("PEA") of the Taysan Project that the Company will file on
SEDAR within the next 45 days.


The BCSC also noted several deficiencies with the mineral resource estimate and
PEA on the Taysan Copper/Gold Project prepared by Mining Associates Pty. Ltd.
and AMEC Minproc Limited dated March 11, 2011 and filed by the Company on SEDAR
on April 28, 2011 (the "March Report"). These deficiencies include: 




(i)   the reliance by the authors on disclaimers for the accuracy and
      reliability of information provided to them was too broad and should
      not have been included in the report;
 
(ii)  inconsistent disclosure of the results of the 2010 drill program;
 
(iii) concerns about the quality and accuracy of assay data reported, based
      on the authors' concerns of certain lab results received;
 
(iv)  lack of the authors' independent audit and verification of historical
      data;
 
(v)   estimating and reporting an inferred resource for gold based on a
      linear regression model; and
 
(vi)  the certificates of the authors did not address all sections of the
      report. 



The Company has asked the authors to address each of these items in the
technical report currently being prepared, which will supersede and replace the
March Report, and the authors have advised that the new technical report will
address these issues.


The BCSC also advises that it considers certain information in the Company's
MD&A and on the Company's website to be potentially misleading. Specifically,
statements or estimates of "payable production" are potentially misleading as
they imply a gross metal value and do not take into account all necessary mining
costs and other considerations. Those references on the Company's website and in
any presentation materials are being removed. Any reference to "payable
production" or similar wording in any document previously filed by the Company
on SEDAR or otherwise disseminated should not be relied on due to the concerns
outlined above.


The BCSC also advises that certain information disclosed or linked on the
Company's website contains historical estimates for the Taysan project without
the inclusion of the required disclaimers as prescribed in section 2.4 of NI
43-101. For clarification, the Company states that any historic estimates or
estimates based on historic information: 




(i)   exclude Benguet (1981) and Chase (1993, 1994 and 1995) historic
      resource estimates;
 
(ii)  are non-NI 43-101 compliant;
 
(iii) have not been reviewed by a "Qualified Person" so as to classify the
      same as a current mineral resource estimate;
 
(iv)  such historic resource estimates should not be relied upon; and
 
(v)   such historic resource estimates are superceded by the current
      resource estimate disclosed by the Company in the March Report and as
      will be disclosed in the revised PEA. 



The BCSC also advises that certain disclosure contained in the PEA of the Taysan
Project (as contained in the March Report) fails to include the necessary
cautionary language set forth in section 2.3(3) of NI 43-101. As the PEA is
based on inferred resources, the Company clarifies, in each instance of
disclosure, that (i) the PEA is preliminary in nature, (ii) that 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 (iii) there is no certainty that the PEA
will be realized.


The BCSC also advises that certain disclosure made by the Company containing
technical information on the Taysan Project does not disclose the Qualified
Person responsible for preparing such technical information. Changes have been
made on the Company's website, corporate presentation materials and investor
relations materials to include such references.


On a going-forward basis, the Company will ensure that all technical disclosure
satisfies the requirements of NI 43-101.


Updated Mineral Resource Estimate and Preliminary Economic Assessment of the
Taysan Project


The Company announces an update of the scoping study mineral resource estimate
of the Taysan Copper-Gold Project with the addition of silver and magnetite, and
drill holes completed to date. In addition, an updated PEA has been completed to
reflect the updated mineral resource estimate that is also updated for current
fuel and power costs.


This mineral resource estimate is an update to the minerals resource estimate
described in the March Report that was based on historical drilling.


MA estimated this resource from first principals and re-assigned the categories
resulting in an indicated resource of 411 Mt at an average grade of 0.27%
copper, 0.10 g/t gold, 0.92 g/t silver and 3.3% magnetite for 2,410 M lbs of
contained copper, 1.27 Moz contained gold, 12.19 Moz contained silver and 13.4
Mt of contained magnetite and an additional inferred resource of 542 Mt at an
average grade of 0.18% copper, 0.07 g/t gold, 0.47g/t silver and 2.8% magnetite
for 2,190 M lbs of contained copper, 1.24 Moz contained gold, 8.24 Moz contained
silver and 15.4 Mt contained magnetite. A cut-off grade of 0.1% copper was
applied to for all reported resource blocks.




---------------------------------------------------------------------------
        Taysan August 2011 Resource Estimate - greater than 0.1% Cu        
---------------------------------------------------------------------------
                   Cu    Au    Ag  Magnetite     Cu    Au     Ag  Magnetite
Category    M t     %   g/t   g/t          %  M lbs  M Oz   M Oz        M t
---------------------------------------------------------------------------
Indicated   411  0.27  0.10  0.92        3.3  2,410  1.27  12.19       13.4
---------------------------------------------------------------------------
Inferred    542  0.18  0.07  0.47        2.8  2,190  1.24   8.24       15.4
---------------------------------------------------------------------------



Within the defined copper resource are several associated accessory minerals,
these minerals gold, silver and magnetite (Fe3O4) were not routinely determined
in the historic data. The gold estimate is an improvement on previous regression
based estimates; silver and magnetite have not been estimated previously. All
elements are estimated using ordinary kriging. The company is currently drilling
the gold, silver and magnetite resource to obtain sufficient data allowing the
resource categories to be consistent across all commodities.


This resource estimate is based on historic drill data and the results from a 45
drill hole programme conducted by the Company from October 2010 to June 2011.
The first ten holes drilled by the Company were designed to test the validity of
historic drilling, and confirmed the tenor of the historical drill data to be
correct. The balance of the drilling has also confirmed that copper grades
decrease at depth and that the deposit remains open down dip. This recent
drilling has bolstered confidence in the Taysan Project enabling a current
indicated and inferred copper resource to be quoted.


The grade tonnage curve indicates that the available tonnage is highly sensitive
to cut-off grade between 0.1% and 0.25% Cu. The reported cut-off grade is stated
at 0.1%. As illustrated in the following figure, small variances in cut-off
grade result in large variance in tonnage and strip ratio.


It is the Company's intention to continue drilling at the Taysan Project with a
view to increasing confidence in the mineral resource allowing reserves to be
calculated within the ten-year pit shell as defined in the PEA (described in the
March Report), leading into a Feasibility Study of the Taysan Copper-Gold
Deposit.


To view the "Grade Tonnage Curve for Taysan Inferred Resource" graphic
associated with this press release, please visit the following link:
http://media3.marketwire.com/docs/czh98.jpg


In addition, the PEA, managed by AMEC Minproc Limited of Australia, indicates
that the Taysan Project has a Net Present Value ("NPV") at a 10% discount rate
of US$639M for the base case of US$3/lb Cu, US$1,000/oz Au, $26/oz Ag and
$100/tonne of Magnetite. The internal rate of return ("IRR") is 21.9% for this
base case. These numbers reflect an Mineral Production Sharing Agreement (MPSA)
case and provide for a Philippines Economic Zone Authority (PEZA) certification
of the processing plant.


The Taysan Project remains sensitive to copper prices as shown in the table below.



---------------------------------------------------------------------------
       Taysan Net Present Value - March, 2011              August, 2011    
---------------------------------------------------   ---------------------
                                Low    Base    High     Low    Base    High
---------------------------------------------------   ---------------------
Cu Price           $/lb       $2.50   $3.00   $4.00   $2.50   $3.00   $4.00
---------------------------------------------------   ---------------------
Au Price           $/oz        $850  $1,000  $1,400    $850  $1,000  $1,400
---------------------------------------------------   ---------------------
Ag Price           $/oz         n/a     n/a     n/a     $24     $26     $28
---------------------------------------------------   ---------------------
Magnetite Price    $/tonne      n/a     n/a     n/a     $80    $100    $110
---------------------------------------------------   ---------------------
Discount Rate      %            10%     10%     10%     10%     10%     10%
---------------------------------------------------   ---------------------
Project NPV        $M           $7M   $526M $1,541M     $47    $639  $1,745
---------------------------------------------------   ---------------------
Project IRR        %           9.9%   19.4%   35.6%   10.9%   21.9%   41.0%
---------------------------------------------------------------------------



In addition to silver and magnetite, the PEA was updated with current numbers
for diesel fuel (US$1.00/l versus US$0.81/l in March, 2011) and grid power of
US$0.128/kWh. The PEA allows for grid power during the first four years of
operations whilst the coal power plant is constructed (US$180M versus US$132M in
March, 2011) in order to achieve project start up as scheduled.


The Taysan Project is estimated to produce 3,212 Mlb Cu, 1.02 M oz Au, 4.23M oz
Ag and 11.84 Mt of Magnetite over the twenty-five (25) year mine life, net of
smelter recoveries and deductions. Annual average production for years 1-4 is
estimated at 175 Mlb Cu, 58,300 oz Au, 436,000 oz Ag and 0.53 Mt of Magnetite.


A capital cost estimate of US$864M is lower than originally estimated
(US$1,006M) due to the deferment of the power plant and refinement of the mining
schedule.


The C1 (cash) cost, including low risk grid power, net of by-product credits is
low at US$0.97/lb Cu for years 1-4 and US$1.38/lb Cu over the 25 year mine life.
Unit cost is estimated at US$8.77/t of ore processed and is driven by the low
waste to ore ratio (0.8:1); proximity to port (20km); and low freight costs to
expected market (China, Japan and Korea).


Mineral resources that are not mineral reserves do not have demonstrated
economic viability. The PEA is preliminary in nature, and is based on 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. There is no certainty that the PEA will be realized.


The 18-months combined pre-feasibility and bankable feasibility study is on
schedule.


Johan Raadsma, President of Crazy Horse states, "The compliant resource
statement and recent drilling results clearly show the Taysan ore body has room
for further growth in size and grade. The cash costs have improved from the
internal 2010 assessments (US$0.90 for years 1-7 and US$1.18 LOM) and 25% of the
capital cost can be deferred effectively lowering our previous internal capital
cost estimate. We remain positive about the copper price in light of the
increasing disparity between copper supply and demand."


Qualified Person

The information in this portion of the press release relating to mineral
resource estimates and PEA is based on information compiled under the direction
of Ian Taylor and Brian Lueck. Ian Taylor is a consultant geologist and
Certified Professional (AusIMM(CP)) holding a B.Sc (Hons) with specialist
experience in resource evaluation in porphyry copper projects. Mr Brian Lueck,
P.Geo., is also a director of the Company. Mr. Taylor and Mr. Lueck are both
Qualified Persons ("QP") as defined in the "Canadian Institute of Mining,
Metallurgy and Petroleum, CIM standards on Mineral Resources and Reserves' and
NI 43-101. Both Mr. Taylor and Mr. Lueck have 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 appears.


For exploration work, Brian Lueck, P.Geo., a director of the Company, is the
appointed Qualified Person.


Quality Control and Sample Preparation

The Company has a rigorous quality control program (QCP) inserting a minimum 5%
of standards, blanks and duplicates into the sample stream. The Company employs
independently owned and managed laboratories for all of its assay requirements.
Drilling of the Taysan Project was and continues to be carried out by Quest
Exploration Drilling (Philippines) Inc. using Edson 3000 and LF70 drill rigs and
a triple tube diamond core drilling system. All holes are started in PQ
(150-200m) then continued in HQ. All core is split using a diamond-bladed
drill-core saw and always sampled from the (true) left side of the core. The
remaining half of the core is sealed in plastic bags in a nitrogen atmosphere
and stored in a covered, guarded core shed. Core samples are bagged in new
polyethylene, UV stable plastic bags, sealed with a plastic tie, numbered
outside and have a tag placed inside the bag. All samples are accompanied by
Company personnel from site to the McPhar Laboratory under secure "Chain of
Custody" procedures. Samples are crushed to 85% less than 2mm then 1kg is split
out and pulverised in an LM2 Puck and Bowl Pulveriser to 90% less than 75um.
Gold is assayed by Fire Assay (50g charge) with AAS finish (PM6). Cu, Ag, As,
Pb, Zn, Mo, Al, Ca, Fe, K and S are assayed by 4 Acid Digest (HCl / HNO3 / HClO4
/ HF) ore grade analysis with ICP-AES finish (ICP-3). Sample rejects are
returned from the McPhar Laboratory under secure "Chain of Custody" procedures
by Company staff and also stored in the core shed in heat sealed plastic bags in
a nitrogen atmosphere. McPhar Geoservices (Phil), Inc. is ISO 17025:2005
accredited and is a member of the International Intertek Laboratory Group.


Magnetite content correlates to the magnetic susceptibility of the pulps,
(R2=0.9733). Magnetite% = 0.1639 x MagSus reading + 0.8007 based on 107 Davis
Tube Tests. The regression was applied to all magnetite susceptibility readings
(8239 readings of one kg pulp bags representing 2 metre samples).


About the Taysan Project

The Taysan 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 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
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. 


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


ON BEHALF OF THE BOARD

Johan Raadsma, President, CEO and Secretary

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