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By Nathan Pearson
Tueday December 20th 2011

20 kilometres from the City of Batangas, on the south western segment of the Philippine island of Luzon, Crazy Horse Resources (TSX-V: CZH) is sitting on 11,254 hectares of natural resource rich land. Known as the Taysan project, the Company has completed 31,130 metres of drilling on the 100%-owned copper-gold property and is now approaching the feasibility stage.

Like so many other aspiring exploration companies, Crazy Horses goal is to fast-track the project into development. Initially, the Company completed an updated NI 43-101 technical report (10th Oct, 2011) on its Taysan project that targeted a 30 Mtpa Project, but more recently Crazy Horse completed a scoping study on a 15 Mtpa Project which reduced initial capex by 41% and increased profitability to a post tax IRR of 29.3% - a significant move to fast-track the project. No doubt about it, Crazy Horse is working aggressively to see its dream of production become a reality.

Taysan
Located 100 kilometres south of Manila and only 20 kilometres by road from the commercial port and industrial centre of Batangas, Crazy Horse acquired Taysans 11,254 hectares in November 2010 and initiated a steady flow of drill results and property advancement updates, culminating in 99 holes for 36,494 metres, thus bringing total exploration on the property up to 302 holes for 82,633 metres since 1968.

The latest NI 43-101 technical report, using a cutoff grade of >0.1% copper, identified a resource comprising 411Mt in the Indicated category at 0.27% copper, with contained metal at 2.41 billion lbs, and 542Mt in the Inferred category at 0.18% copper, with 2.19 billion lbs contained metal.

The complete mineral resource is summarized in the following table, including gold, silver and magnetite:

Source: NI43-101 Resource Estimate, August 2011 (Cutoff grade: >0.1% Cu*)

On November 14th 2011, the Company announced the results of a new Preliminary Economic Assessment (PEA) of the Taysan project aimed at lowering initial capital cost of mine development, increasing profitability and possibly fast tracking development. Using the same resource estimate as the October NI43-101 technical report, the study was 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, down from 30Mtpa. These changes resulted in the fulfillment of at least two of the scoping studys three aims; the IRR of the Taysan project has been increased by over a third to 29.3%, up from the 21.9% shown in the last PEA based on a 30Mpta project, and initial capital costs have been reduced from US$869M to US$511M, while the payback period has been reduced from 3.5 years to 2.6 years. All this will help to achieve the third objective of fast track development.

Regarding development, Crazy Horse sees the new 15Mtpa throughput configuration as the first stage of the development of the Taysan project with the second stage, to double capacity and output, dependent on future copper prices.

The new 15Mtpa project configuration increases the average grade mined over the 15-year mine life of the first stage project to 0.32% copper and 0.12g/t gold, and, during the first five years of operation to 0.39% copper and 0.16g/t gold. On average, the anticipated copper recovery is 91% and the final concentrate will be 25-27% copper. Total cash operating costs are relatively low, averaging US$1.55 per lb of copper equivalent for life of mine and US$1.28 per lb in the first five years.

"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, President, CEO and Chairman of the Board of Crazy Horse. "Taysan is now an exceptional and robust copper project and the pre-feasibility study, which is fully funded, is now continuing on a much stronger and attractive basis."

Attractive Package
Aside from the proven technical potential of the Taysan Project, Crazy Horse benefits from the excellent infrastructure of the site, which includes availability of power from the grid, water at the mine site and good roads in the vicinity of the port facility at Batanagas. As a result, the project benefits from a relatively low initial capital expenditure component for infrastructure.

With a skilled workforce available in the Batangas area, Crazy Horse has the backing of local and provincial governments as it works to develop the Taysan project. With the Taysan projects facts, figures and infrastructure as the obvious key investment components, Crazy Horse also prides itself on being driven by responsible mining principles. Commendably, it has established a development initiative for out-of-school youths while simultaneously remaining committed to the preservation and conservation of the environment.

Regarding trading, Crazy Horse currently trades at less than $0.01/lb copper in the ground which proves particularly investor-friendly when compared to recent transactions in the marketplace such as Freeport-McMoRan Copper & Gold Inc. who averaged $0.80/lb copper for Q3 2011.

Management
Considering the high caliber of the Crazy Horse management team, this impeccably assembled operation model should come as no surprise. With decades of experience in exploration, mine development and production in the Philippines, the in depth regional know-how gives the company a serious edge.

Sitting at the helm of the ship is Mitch Alland as President, CEO and Chairman of the Board. With a 23 year career at the World Bank and the International Finance Corporation, Alland is also Executive Chairman and CEO of Copper Development Corporation, which is listed on the AIM market of the London Stock Exchange, and which owns 12% of Crazy Horse. Holding an M.B.A. from Harvard Business School and a B.A. from Harvard College, he has had extensive experience with mining projects worldwide, including having served as director of several mining companies, including director of Comsur, the largest private mining company in Bolivia, and an alternate director of Escondida, the large Chilean copper mining company.

Together with Crazy Horse VP Exploration and director Brian Lueck P.Geo, CFO and director Darryl Cardey and director Paul Reynolds, these men form a formidable team of exploration experts.

All the Right Steps
With a share price of $0.27 as of morning on Tuesday, December 6th, Crazy Horses Taysan project presents as a premium property with excellent location and infrastructure. Crazy Horse has taken all the right steps to advance it to the utmost of its abilities. Guided by a management team experienced in developing and financing mines internationally, the company has established a robust development timeline towards production.

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