Crusader Resources : Juruena’s Dona Maria Prospect: + 90% gold recoveries from first metallurgical tests

Section 1: Leach test ‐ Dona Maria

Sample Name

LT3

LT4

Grind size‐ P80

106 µm

75 µm

Cyanide (NaCN) Consumption (g/t)

1450

1512

Au

Ag

Au

Ag

Leaching

Time

Tail

Recovery

Tail

Recovery

Tail

Recovery

Tail

Recovery

2

28.80%

3.24%

19.04%

2.11%

4

49.28%

10.41%

47.46%

8.88%

6

60.82%

18.17%

61.27%

16.47%

24

86.36%

37.96%

86.31%

37.01%

32

4.70

87.1%

23.9

41.4%

4.50

85.4%

25.8

39.7%

Section 2: Gravity separation with leaching of the Tails ‐ Dona Maria

Sample Name

LT5

LT6

Grind size‐ P80

106 µm

75 µm

Au

Ag

Au

Ag

Gravity Recovery (%)

33.3%

14.5%

31.5%

11.5%

Leaching

Time

Tail

Recovery

Tail

Recovery

Tail

Recovery

Tail

Recovery

2

31.56%

3.91%

33.85%

5.80%

4

44.12%

11.07%

46.17%

12.95%

24

57.03%

36.29%

59.48%

38.39%

32

3.06

58.3%

19.0

39.0%

2.90

60.8%

18.1

40.6%

Global Recovery (%)

90.4%

46.9%

91.0%

47.6%

Criteria JORC Code Explanation Commentary

Sampling Techniques

Drilling 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.

• 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.).

• Reverse circulation (RC) drill samples and half diamond core samples were collected for this metallurgical sample. A sample was composited from results which >1g/t from previous analysis and submitted to the laboratory.

• Only a single sample was collected for analysis. Samples were chosen >1g/t Au and the resulting composite sample submitted

• As per previous announcements (drilling results)

• As per previous announcements (drilling results).

• Crusader completed 73 RC drill‐holes in 2014 and 2015 (7,749.50m) using a nominal 5 ½ inch face sampling hammer. Hole conditions were mostly dry, with sufficient air pressure available to keep water from entering the drill‐hole. Where high water inflows potentially threatened sample integrity, the drill‐hole was abandoned and subsequently re‐drilled with a diamond rig . Drill‐ hole inclinations ranged from ‐55 to ‐67 degrees. In early 2015 Crusader also completed 11 diamond drill‐holes (1,863.81m) of NQ2 diameter with HQ pre‐collars in unconsolidated material.

Criteria JORC Code Explanation Commentary

Drilling Techniques (cont.)

• Down‐hole surveys were completed for the diamond drill‐holes, but the core was not oriented.

• Crusader's resource drill‐hole database includes 90 RC drill‐holes (6,618m) and 70 diamond drill‐ holes (22,497.81m) completed between 2010 and 2013 by Lago Dourado Minerals Ltd ('Lago'). The RC drill‐holes were drilled with a nominal 5 inch face sampling hammer, and the diamond drill‐holes were of NQ2 diameter with HQ pre‐collars. All diamond core was oriented, initially with a spear and subsequently with a Reflex ACT II instrument. Drill‐hole inclinations ranged from

• Crusader's resource drill‐hole database also includes 91 diamond drill‐holes (15,821.89m) completed between 1994 and 1998 by Madison Minerals Ltd ('Madison'). The diamond drill‐ holes were of NQ2 diameter with HQ pre‐collars. Drill‐hole inclinations ranged from ‐45 to ‐62 degrees. Sampling for the metallurgical sample was comprised of Crusader drilling only

‐50 degrees to vertical.

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.

• RC drill sample recoveries were verified by weighing every sample; diamond core recovery by measuring the length of core recovered compared to the drill run. For the whole database (i.e. combined Crusader and Lago drill‐holes) over 90% of measured recoveries are above 80%.

• For both Crusader and Lago drill‐holes, recovery data has been recorded, and field duplicates submitted and analysed. No sample recovery information is available for Madison

• Gold mineralisation does not apparently correlate to zones of low sample recovery; sample bias due to poor sample recovery is therefore not believed to be an 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.

• All Crusader and Lago drill‐holes have been geologically and geotechnically (core) logged in detail, and the data stored in a digital database. Summary logs exist for the Madison holes.

• Logging of diamond drill‐core and RC samples recorded lithology, mineralogy, mineralisation, structure (core only), weathering and colour. Core photographs also exist for all drill‐holes.

• Lithological data exists for all Crusader, Lago and Madison drill‐holes in the database that were utilized in the resource estimation.

Criteria JORC Code Explanation Commentary

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.

• RC samples were collected using a 3‐stage Jones riffle splitter, a high density plastic bag was placed directly over the sample chute on the rifle splitter. The sample size was 3‐4 kilograms and the size of the chips was predominantly 0.4‐0.8 centimetres with a few chips greater than this. The comportment of gold is fine and evenly distributed normally associated with fine disseminated sulphides. Sampling was generally conducted on dry samples.

• Diamond drill‐core was cut in half lengthways on site using a diamond saw; for duplicate samples quarter‐core was used.

• Sample preparation was undertaken by SGS‐Geosol Laboratories ('SGS') in Brazil for Crusader samples and Acme Analytical Laboratories ('Acme') in Brazil for Lago samples. Madison used SGS in Brazil for sample preparation and analysis with check assaying performed at X‐RAL labs in Toronto. All used industry standard methods (dry - crush - split - pulverise) which are considered appropriate for the style of mineralisation intersected in the drill‐holes. The sample preparation method used by SGS‐Geosol laboratories is presented in the following section.

• Standards (certified reference material), blanks and duplicates were inserted into the sample stream at the rate of 1:25, 1:25 and 1:40 samples, respectively for both Crusader and Lago drill‐ holes.

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.

• SGS were used by Crusader for all analyses.

• The samples were assayed for Au by Fire Assay of 50g aliquots followed by Atomic Absorption Spectroscopy (AAS), a technique designed to report total gold.

• No geophysical tools were used to determine any element concentrations.

• N/A

Criteria JORC Code Explanation Commentary

Quality of assay data and laboratory tests (cont.)





• N/A

• N/A

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 for previous releases comprising the significant intersections.

• A number of RC drill‐holes were partially twinned by diamond drill‐holes; the drill‐holes compare well visually, but it. was not possible to compare assay results due to lack of sampling. This has been flagged for ongoing work

• No adjustments or calibrations were made to any assay data used in this estimate.

All drill‐hole data are recorded in Microsoft Excel spreadsheets and then stored in a digital database (Microsoft Access). Only Crusader's database administrator has the capacity to enter or change data. Standardised geological codes and checks have been employed to ensure standardised geological logging and required observations performed. The database is stored on a central server which is backed up weekly. Work procedures exist for all actions concerning data management.

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.

• Collar surveys have been used from the supplied database. Where discrepancies occurred, these coordinates were edited only after checking against hard copy logs and survey field pick‐ups. This process will continue as part of the database enrichment. All drill‐holes have been checked spatially in 3D and all obvious errors addressed.

• The grid system used for all data types, was in a UTM projection, Zone 21 Southern Hemisphere and datum South American 1969. No local grids are used.

• Topographic control in the area is basic. The topographic surface was sourced from digital satellite imagery (Aster). Further surveying work is planned prior to future resource estimation work.

Criteria JORC Code Explanation Commentary

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.

• The drilling carried out is on an approximate 50m x 50m grid, both horizontally and vertically (in the plane of the mineralised structure, which is sub‐vertical).It is anticipated that this density of information will be sufficient for conducting a mineral resource estimate to the standards required by the JORC 2012 mineral resource code.

• Sample compositing was made from both RC and diamond drilling. RC samples from the original RC samples were collected and sent to the Met lab. The diamond drill samples were collected from ¼ drill core and sent to the met lab. All samples were composited together to form a representative sample for analysis.

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 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 all reverse circulation drill holes were oriented to intersect the intended structure perpendicular to the strike and approximately 40 degrees to the dip of the mineralised zone. The mineralised structures are visible from within the artisanal miners' workings which allowed drill holes to be oriented to minimise introducing a sample bias. None of the reported significant intersections are a result of intentional sample bias.

Sample security

• The measures taken to ensure sample security.

• No sample security issues were raised or noted by Crusader during the transportation of the samples from the project site to the preparatory laboratory. All samples were sealed with double cable ties in strong high density plastic bags, two sample ID tags were placed in different locations 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 sacks for transportation to the laboratory. A packing list (confirming the number of sacks for transport) was received from the freight company transporting the sample bags to their destination. Upon receipt at the laboratory, samples were checked in and the list of received samples immediately sent back to the company´s database administrator as a security check that all samples were received and all were fully intact and not opened.

Audits or reviews

• The results of any audits or reviews of sampling techniques and data.

• No external audits were commissioned by Crusader. The sampling techniques and data were reviewed by the Competent Persons as part of the Mineral Resources estimation process and were found to be of industry standard.

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.

• Results are from exploration tenement 866.080/2009, 100% owned by a wholly owned subsidiary of Crusader, Lago Dourado Mineração Ltda. There is an existing 1% net smelter return payable to a previous owner. There is one garimpo mining licences within the tenement package, allowing the garimpeiro to legally work under certain restrictions. The Dona Maria tenement is not subject to any native title interests, no known historical sites, wilderness or national park, but is located within the border zone around a national park. Within this border zone further conditions may be required to gain an operating licence. Cattle grazing and legal timber felling are the two primary industries and land uses for the area.

• 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.

• The tenement is in good standing and there are no material impediments to operating in the area.

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• Garimpeiros first discovered the mineralised areas around Juruena in the 1970's. Garimpeiros have been active in the region since, recovering gold from alluvial, colluvial and some oxidised rock. The area has been explored on and off from the mid 1990's through to the present, with the majority of drilling taking place over the last four to five years. Madison Minerals Ltd first explored and carried out some drilling evaluation of the Juruena core area in 1995/1996. The drill information of Madison would not be useable in a JORC compliant mineral resource estimate, however Crusader considers the information relevant from an exploration perspective and will use these results to guide future exploration work. Lago Dourado Minerals drill tested several anomalies and zones from 2010 to 2013. All work undertaken by Lago Dourado Minerals was performed to a JORC compliant standard and the data generated is considered sufficient to be used for a JORC compliant mineral resource estimate, should further results confirm continuity, grade and geological interpretation in the future.

Criteria JORC Code Explanation Commentary

Geology

• Deposit type, geological setting and style of mineralisation.

• The Juruena mineralisation is considered to have resulted from magmatic activity (intrusions and fluids) which could be sourced from a gold porphyry system or intrusive‐related gold system, whilst still containing characteristics commonly associated with epithermal systems. The mineralisation is hosted by Paleoproterozoic volcanic and granitoid rocks of varying composition. The host rocks are found within the Juruena‐Rondonia block of the Amazon Craton.

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

• down hole 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.

• No new results reported

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 1ppm lower cut‐off, no upper cut, and up to 2m of consecutive dilution.

• No metal equivalent values considered.