Crusader Resources : High-grade Iron intercepts from Posse drilling

Hole ID

Northing

Easting

RL

Final Depth

Dip

Azimuth

PODH-012

7,811,452

637,961

1088

75

-55˚

315

PODH-013

7,811,454

637,959

1088

80

-55˚

225

PODH-014

7,811,494

637,824

1096

52

-60˚

225

PODH-016

7,811,429

637,940

1082

56

-55˚

315

PODH-018

7,811,452

637,961

1088

30

-55˚

315

PODH-021

7,811,405

637,962

1079

20.26

-55˚

295

Hole ID

From (m)

To (m)

Interval (m)

Fe %

SiO2 %

Al2O3 %

P %

Mn %

LOI %

PODH-012 inc.

inc. and

22.00

33.25

46.00

50.00

62.00

37.71

37.71

66.00

58.00

64.00

15.71

4.46

20.00

8.00

2.00

49.93

60.16

56.10

64.22

62.50

8.90

5.23

9.61

4.05

4.65

8.48

4.31

4.76

2.11

3.45

0.11

0.05

0.05

0.04

0.04

3.99

1.19

1.60

0.79

0.54

5.26

2.53

2.96

1.39

2.01

PODH-013 inc.

inc.

18.00

18.00

41.00

42.37

52.54

36.00

19.40

48.15

44.37

61.00

18.00

1.40

7.15

2.00

8.46

53.49

67.23

51.90

68.70

59.08

11.68

3.08

25.14

0.98

11.38

5.38

1.20

0.36

0.46

0.19

0.05

0.02

0.02

0.05

0.01

1.96

0.05

0.14

0.10

0.08

3.20

0.50

0.12

0.06

-0.01

PODH-014

0.00

36.00

36.00

43.56

16.85

8.45

0.04

3.76

6.95

PODH-016 inc.

and and and

and

0.00

18.00

26.00

31.02

36.00

51.00

54.00

21.80

28.30

33.00

44.00

53.00

54.00

3.80

2.30

1.98

8.00

2.00

54.31

62.84

65.97

68.60

60.26

65.95

15.75

4.02

4.65

1.30

12.83

5.97

3.05

2.00

0.67

0.39

0.42

0.17

0.04

0.03

0.02

0.04

0.03

0.02

1.06

1.97

0.48

0.08

0.22

0.04

1.82

1.69

0.58

0.36

0.29

0.07

PODH-018 inc.

and

and

0.00

4.00

16.90

29.67

30.10

7.13

24.84

30.10

30.10

3.13

7.94

0.43

55.17

62.93

66.52

65.89

15.63

3.55

3.79

5.70

2.08

3.19

0.77

0.55

0.05

0.05

0.04

0.05

1.07

0.91

0.08

0.02

1.77

2.30

0.36

0.23

PODH-021

12.90

20.26

7.36

69.01

0.58

0.41

0.06

0.04

0.17

Criteria

JORC Code Explanation

Commentary

Sampling

Techniques

• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

• Aspects of the determination of mineralisation that are Material to the Public

Report.

• In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain

1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire

assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

• Diamond drill sample; the default sample length was 1 metre for all diamond drill holes, core diameter was NQ2. In a few cases the sample length was reduced to the width of the massive hematite zone in order to establish a more detailed understanding of hematite distribution. All samples were assayed for by XRF for SiO2, Al2O3, CaO, MgO, K2O, Na2O, Fe, P, Mn and by calcination for LOI. ½ core was collected for sampling, the core was cut by core saw and the remainder stored in the core tray.

Drilling

techniques

• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).

• Diamond Drilling; drilling was carried out by Geologica Sondagens Ltda. at NQ2 size (5.0 cms diameter) at inclinations of -55 to -60 degrees from surface.

• Downhole surveys were conducted using a REFLEX ACT (Ezi-Shot) instrument. No core orientation was carried out. No triple tube was used in the diamond drilling.

Drill sample

recovery

• Method of recording and assessing core and chip sample recoveries and results assessed.

• Measures taken to maximise sample recovery and ensure representative nature of the samples.

• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

• Diamond drill sample recovery; Sample recovery averaged 85% ; this includes the soft and weathered zones drilled. Diamond drill core sample recovery was calculated as a percentage by measuring the length of the run as compared to the length of the core recovered.

• Minor core loss was experienced principally in zones of sheared friable itabirite (siliceous iron formation) on the margins of the higher grade hematite bodies. Sample bias due to poor sample recovery is therefore not believed to be a material issue .

Logging

• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

• The total length and percentage of the relevant intersections logged.

• Diamond drilling; All diamond drill core was geologically and geotechnically logged by qualified and experienced geologists, high resolution photographs were taken, S.G tests conducted, Structural measurements taken, RQD values calculated and fracture frequency counts and sample recoveries calculated.

• Samples were stored for future granulometry testwork, if required.

Sub-sampling

techniques

and sample preparation

• If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

• For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second- half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

• Diamond drill sample; Core was marked and sawn in half by core saw, the core was sampled by collecting the entire left hand side of the core (half core sampled) from the tray either by hand for fresh rock or with a spatula for highly weathered, friable material. The samples were numbered, sealed off and weighed before dispatch.

• Sample preparation was undertaken by SGS Geosol labratories facility in Belo Horizonte using industry standard methods (Crush - Split - Pulverise) and is considered appropriate for the style of mineralisation intersected in the drill holes. The sample preparation method used is presented in the following section.

• Standard, blank and duplicates (riffle split after coarse crushing) were inserted into the sample stream at the rate of 1:20, 1:20 and 1:40 samples respectively.

Quality of

assay data

and laboratory tests

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

• For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

• Samples were prepared and analysed by SGS Geosol laboratories in Belo Horizonte, as follows:

o Sample Preparation) : Samples are jaw crushed to 70% passing 10 mesh (2 mm), a 250 g riffle split sample is then pulverized to 95% passing 200 mesh (75 μm) in a mild-steel ring-and-puck mill..

o Samples are assayed using an XRF instrument.

• The coarse and pulp sample rejects from the preparation and analytical laboratories will be returned to site at Posse and stored at an on-site facility, allowing for re-assaying in the future if required.

• For purposes of determining accuracy and precision of the assay data, analytical quality control (QA/QC) was completed. The following is the frequency of QA/QC samples submitted

o Standard : 1 every 20 samples in a random position

o Blank : 1 every 20 samples, 1st sample per 25 samples

o Duplicate : 1 every 40 samples in a random position

• Duplicates were generated by riffle splitting coarse crushed sample.

• Analysis of QA/QC results indicates that acceptable levels of accuracy and precision were obtained. No external check laboratory assays have been done nor check analyses / resubmission of the original samples to SGS Geosol laboratories.

Verification

of sampling and assaying

• The verification of significant intersections by either independent or alternative company personnel.

• The use of twinned holes.

• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

• Discuss any adjustment to assay data.

• Significant intercepts were generated by Crusader personnel and verified by Rob Smakman, the qualified person under this release.

• No holes have been twinned.

• The primary analytical data was imported directly from the laboratory assay reports into the

Crusader geological database and the veracity of the data validated by the site geologist.

Location of

data points

• Accuracy and quality of surveys used to locate drill holes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

• Specification of the grid system used.

• Quality and adequacy of topographic control.

• Diamond drill holes; Diamond drill hole collars were surveyed by a Crusader surveyor using a

DGPS with 10cm accuracy.

• The grid system used was in a UTM projection based on SAD 69 datum. No local grids were used.

• Topography is regularly updated by Crusader in house surveyor. 10cm accuracy is standard for the Posse mine site

Data spacing

and

distribution

• Data spacing for reporting of Exploration Results.

• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

• Whether sample compositing has been applied.

• Only diamond drill holes were used to report significant intersections. Sampling was generally whole metres (1-2), however where close geological control could be established, samples were chosen to closely estimate the true width of the hematite veins.

• No Mineral Resource or Ore Reserve calculations are included in this announcement.

• Sample compositing was not carried out. Weighted averaging of the significant intercepts was completed.

Orientation

of data in

relation to geological structure

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• Mineralised massive hematite-bearing structures were targeted and planned to be intersected so that minimal sample bias would occur. All structures were planned to be intersected as perpendicular as possible and to pass through the entire structure. Mineralised structures had relatively sharp contacts and all material was sampled together i.e. the structure and the hangingwall / footwall.

• Where ever possible diamond drill holes were oriented to intersect the intended structure perpendicular to the plunge and dip of the mineralised zone. The mineralised structures are visible from within the current open cut operation. None of the reported significant intersections are a result of intended sample bias. The complex folding of the veins may have resulted in some of the sampling (and significant intercept reporting) to be not true width.

Sample

security

• The measures taken to ensure sample security.

• No sample security issues were ever raised or noted by the company during the transportation of the sample from the project site to the analytical laboratory. All samples were sealed with double cable ties in strong high density plastic bags, two sample ID tags were placed in different location inside the sample bags, all sample bags were clearly marked on the outside with permanent marker pen. All sample bags were checked off the dispatch list before being placed into a heavy duty and highly durable sack for transportation to the analytical laboratory. Upon receipt at the laboratory, samples were checked in and the list of received samples immediately sent back to the site geologist as a security check that all samples were received and all were fully intact and not opened.

Criteria

JORC Code Explanation

Commentary

Mineral

tenement and

land tenure status

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

• Results are from Crusader´s 100% owned Posse mine, tenement no. 834,705/1993. Tenement is located in Minas Gerais state of Brazil. There is a 2% government royalty owed on gross sales to the federal government and a further 1% to the owner of the land on which the project is held.

Exploration

done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• No exploration has been conducted by other parties

Geology

• Deposit type, geological setting and style of mineralisation.

• The Posse mineralisation is an itabirite (hydrothermally upgraded oxide facies banded iron formation) unit within the Cauê Formation of the Paleao Proterozoic Minas Supergroup. Massive hematite bodies within the itabirite result from precipitation of hematite in voids by oxidising fluids.

Drill hole

Information

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

 easting and northing of the drill hole collar

 elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

 dip and azimuth of the hole

 downhole length and interception depth

 hole length.

• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

• See attached Table 1.

• Only assay results for Fe%, SiO2%, Al2O3%, P%, Mn%, LOI% have been included as these are considered the main substances of importance in the mineralisation.

Data

aggregation methods

• In reporting Exploration Results, weighting averaging techniques, maximum and / or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

• The assumptions used for any reporting of metal equivalent values should be clearly stated.

• Significant intercepts were calculated using a 40% Fe lower cut-off, no upper cut, and up to 2 m of consecutive internal dilution. Intercepts within high-grade massive hematite-bearing zones were calculated using a 60% Fe cut-off.

• Intercepts were weight averaged.

• No metal equivalent values considered.

Relationship

between

Mineralisation widths and intercept lengths

• These relationships are particularly important in the reporting of Exploration

Results.

• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

• If it is not known and only the downhole lengths are reported, there should be a clear statement to this effect (e.g. 'downhole length, true width not known').

• As far as practically possible and with the geological interpretation of the time, the drill targets were tested with the aim of intersecting the interpreted mineralised zone as close to the perpendicular as possible. It was not always possible to intersect the mineralised zones at the perpendicular, in some cases the holes may have had an intersection section angle of sixty degrees or less, which will cause an overstatement of the actual intercept width.

• Results are reported as downhole widths, in most cases, true width is not known.

Diagrams

• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• See attached Figure 1.

Balanced

reporting

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• Intercepts were reported using a 40% Fe lower cut-off (considered low grade) and highlights with +60% Fe cut off.

Other

substantive exploration data

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater,geotechnical and rock characteristics; potential deleterious or contaminating substances.

• No additional exploration data is available.

Further work

• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

• Diagrams clearly highlighting the areas of possible extensions,

• Drilling is continuing. Future exploration may target interpreted hematite-rich zones for ongoing mine planning purposes.

Mr. Rob Smakman

Mr. Paul Stephen

Mr. Ian Howarth

Managing Director, Brazil

Executive Director, Australia

Media Relations, Australia

Mobile (Brazil): +55 83 8881 8608

Office (Aus): +61 8 9320 7500

Collins Street Media

Email: rob@crusaderdobrasil.com

Email: paul@crusaderresources.com

Mobile: +61 407 822 319

E: ian@collinsstreetmedia.com.au