December 19, 2011

Crazy Horse Resources Inc.

Completes Updated Resource Report

VANCOUVER, BC - Crazy Horse Resources Inc. (TSX-V:CZH) ("Crazy Horse" or the "Company") announces that further to its news release of November 14, 2011, it has commissioned a revised scoping study on the benefits and economic performance of a 15 Mtpa mine and process operation for its Taysan Copper Gold Project, Philippines (the "Report").

The Report dated December 16, 2011 and entitled "Revised Preliminary Economic Assessment For A 15 Million Tonne Per Annum Mine" was authored by Barton Metals Pty Ltd.

of Australia and presents the results of a revised scoping study for a smaller, more financially robust project.

The scoping study is based on new pit optimizations at a higher copper cutoff grade (0.19% vs 0.10%), as well as a reduced plant size of 15Mtpa (compared to 30 Mtpa).

These changes result in a significant increase in profitability, with the internal rate of return of the Project (IRR) increasing by over a third to 29.3%, from the 21.9% shown in the last Preliminary Economic Assessment ("PEA") based on a 30 Mtpa project.

The net present value (NPV) at US$484 million remains highly attractive:

The Company views the new 15Mtpa throughput configuration as the first stage of the Taysan Project with the second stage, to double capacity and output, dependent on future copper prices.

It is also anticipated that the staged development will allow the Company to fund any future expansion largely with project cash flow and limit dilution to shareholders.

"This new plan to develop the Taysan deposit through a staged operation starting with a 15Mtpa plant maximizes profitability, as evidenced by the 34% increase in the expected IRR and also makes the project financeable," said Mitch Alland, Chairman and CEO of Crazy Horse Resources Inc.

"Taysan is now an exceptional and robust copper project and the pre-feasibility study is now continuing on a much stronger and attractive basis."

New 15 Mtpa Scoping Study

In the new scoping study, IMC Mining Group, the Companys mining consultant, increased the average copper grade of processed material by selecting a smaller and higher-grade pit to mine; thereby reducing the waste required to be mined and improving the Projects cash flows and profitability.

This change decreased the mined copper resource from 750 million tonnes to 250 million tonnes and the mine life from 25 years to 15 years.

The mining fleet equipment is of the same size as that assumed for the 30Mtpa operation, thereby not increasing variable mining costs per tonne.

The average in-situ grades for the life of mine (LOM) and initial five years of the 15Mtpa operation are as follows:

The 30Mtpa PEA assumed two front-end trains of 15Mtpa each.

As a result, considerable process design parameters and criteria remain the same in the new study, although the back end of the plant was reconfigured to suit a 15 Mtpa operation.

The planned payable production of copper, gold, silver and magnetite (net of deductions) is as follows:

Production	Avg/Year LOM	Total LOM	Cu Equivalent* (Mlbs)	Cu Equivalent* (tonnes)
Copper (Mlbs)	89	1,338	1,338	606,979
Gold (000 oz)	27	409	136	61,864
Silver (000 oz)	181	2,717	24	10,681
Magnetite (000 t)	273	4,091	136	61,858
Total Copper Equivalent			1,634	741,382

* Copper equivalents are calculated on the basis of US$3.00/lb Cu and 91% Cu metallurgical recovery, US$1,000/oz.

Au and 60% Au recovery, US$26/oz.

Ag and 63% recovery and US$100/tonne magnetite and 51% magnetite recovery.

The infrastructure requirements, prepared by GHD Australia, are largely based on the work done for the 30Mtpa PEA.

The tailings storage facility option selected provides the optimum size and location to minimize capital and operating costs for a 15Mtpa operation.

Other infrastructure requirements remain the same, including the port, power distribution, telecommunications and access roads.

The water dam, camp, tailings storage facility, haul roads and fuel farm have all been scaled down to suit the lower mine throughput.

The following table summarizes the estimated initial capital expenditure for the 15 Mtpa operation compared to the 30Mtpa PEA:

Operating costs are based on pre-feasibility study work completed for the 30Mtpa operation and have been scaled down in proportion to the reduction in equipment.

Consequently, unit variable costs are similar, with the difference mostly arising from the fixed cost elements, including port and administrative costs.

The most significant operating cost change stems from the use of available grid power compared to the assumption of building a captive coal fired power station at Batangas for the larger 30Mpta operation.

The total average cash operating cost per pound of copper equivalent is US$1.55/lb over the life of the project and averages US$1.28/lb during the first five years of operations, compared to US$1.63/lb and US$1.39, respectively, for the 30Mtpa project.

The NPV and IRR at US$2.50 and US$4.00/lb copper prices, as well as at the US$3.00/lb base case, is as shown in the following comparison table: