Crazy Horse Resources Inc.

Crazy Horse Resources Inc.

May 12, 2011 11:19 ET

Crazy Horse Acquires Port Facility

MANILA, PHILIPPINES--(Marketwire - May 12, 2011) -Crazy Horse Resources Inc. (TSX VENTURE:CZH) (the "Company"), a Philippines based mineral exploration company, announces, further to its news release of February 28, 2011, the execution of a binding Asset Sale & Purchase Agreement with a private Philippines company, to acquire its 15.94 hectare port facility in Batangas, Philippines.

The port is sited on the southern end of Batangas Bay and adjoins the Shell Malampayan onshore gas plant, the premier gas supply point to the Philippines. The facility comprises a 6m x 147m T-pier with two dolphins, licensed foreshore lease, administrative buildings, security fencing and site services, including power and water. Access from the Company's Taysan Copper Gold Project is via a 20 km paved road.

Johan Raadsma, President of Crazy Horse, states, "We are extremely excited about this strategic asset, which is well positioned near a substantial gas supply for our power requirements, with existing port facilities to ship the Taysan copper/gold/silver concentrate as well as magnetite product and ample room for construction and operating logistics."

Terms of the Acquisition

Pursuant to the terms of the Asset Sale and Purchase Agreement, the Company agreed to pay an aggregate of PhP600 Million (approximately US$13,900,000). Of this amount the Company has paid an aggregate of PhP150 Million (approximately US$3,475,000). The balance of the purchase price (PhP 450 Million (approximately US$10,400,000)) is payable on or before October 27, 2012. The Company has the ability to defer this payment April 27, 2013 on the payment of interest at the rate 8% p.a. on the balance of the purchase price.

Taysan Project

A National Instrument 43-101 compliant technical report by of Mining Associates dated effective March 11, 2011 and entitled "Mineral Resource Estimate and Preliminary Economic Assessment Taysan Project" can be viewed under the Company's profile on SEDAR (

The Company's Taysan Project contains a drill defined inferred resource 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-IVA-108, EPA-IVA-111 and EPA-IVA-081) over five contiguous claim blocks covering a combined total area of 11,254 hectares. The 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 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. The Company is currently conducting a confirmatory scoping study under the management of AMEC Minproc Limited, which remains on track and on schedule.

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


Johan Raadsma, 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. Crazy Horse Resources Inc. does not assume the obligation to update any forward-looking statement, except as required by applicable law. There is no guarantee the Company will complete the acquisition of the Batangas port facility on the terms as outlined herein, or at all.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information