Crusader Resources : Update to Strategic Plan

Update to Strategic Plan

Crusader Resources (ASX:CAS) ("Crusader" or the "Company") is pleased to provide an update on its strategy to realise its vision of creating a mid‐tier gold production and exploration Company.

Crusader currently has a portfolio of three highly prospective gold assets in Brazil from early stage through to pre‐ development. Longer term, the Company intends to continue to acquire and develop its pipeline of projects through to production and cash flow with the aim of becoming a 150k-200koz Au per annum gold producer across a number of jurisdictions1. As well as advancing its own projects, Crusader intends to target growth through acquisition of accretive opportunities which:

• o Require recapitalisation and funding

• o Provide opportunities to resolve technical or social issues

• o Are near or in‐production gold assets

• o Have AISC < US$850/oz

Our short term strategy is to:

•  Undertake a dual London AIM listing for the Company in the first two months of 2018

•  Finalise the Bankable Feasibility Study ("BFS") of Crusader's flagship Borborema Gold Project ("Borborema") in H2 2018

•  Submit the Borborema installation licence in Q1 2018 with a decision to mine expected during H2 2018

•  Complete a review of our 100% owned Juruena Gold Project ("Juruena") and initiate a focussed exploration drilling programme aimed at delivering an economic and minable reserve within 18‐24 months

•  Commence an exploration programme over the large and highly prospective early stage Nova Astro Gold Project ("Nova Astro")

AIM Listing Update

The Company, currently listed on the Australian Securities Exchange (ASX), will be applying for a dual listing on the AIM Market of the London Stock Exchange Plc ("AIM") (ASX Announcement 20th November 2017) in the first two months of 2018. This listing is anticipated to enable the Company to attract the funding necessary to advance its projects and a broader range of institutional and retail investors in the UK market with a concomitant increase in liquidity.

A review of the valuation metrics of peer listed companies in the UK and North America reflects valuations considerably in excess of those currently being achieved by Crusader. The AIM listing will ensure that the Company is exposed to a range of sophisticated investors and presents an opportunity to be rerated by the market to more accurately reflect the broader view on the value of Crusader and its underlying projects.

Crusader has successfully appointed the necessary brokers and advisors to complete the planned London listing.

1 Aspirational statement, comprised of the existing 70,000oz/pa production target previously disclosed for Crusader's Borborema Project (which is based solely on Ore Reserves), plus additional prospective acquisition opportunities. For the avoidance of doubt, Crusader notes that such opportunities are prospective only and there is no certainty that such opportunities will eventuate.

Borborema Project ‐ Pre‐Development

The Company's' Borborema Gold Project has a 2012 JORC compliant Mineral Resource and Ore Reserve of 68.6Mt @ 1.10 g/t containing 2.43Moz of gold and an Ore Reserve of 42.4Mt @ 1.18 g/t containing 1.61Moz of gold with a published NPV valuation of US$120m. (Announcement 25 July 2017).

Post the AIM listing, the Company will be finalising a BFS in H1 2018 for a proposed development of a 2Mtpa throughput operating gold mine producing more than 70,000oz/pa of gold with a decision to construct expected during H2 2018. This production target is based solely on Crusader's defined reserves. It is envisaged that the mine will be based on an initial 10 year life of mine development over 800koz of gold of the identified reserve, representing approximately half of the current published reserve. The 2Mtpa approach allows the Company to develop a project without the need to move the existing road or power infrastructure and utilises land already owned by Crusader.

In April 2017, the project was awarded its full Environmental Licence inclusive of an approved Environmental Impact Statement, allowing the Company a clear path to construction. As the BFS progresses, the Company expects to be in a position to submit the installation permit in [Q1] 2018.

The Borborema Project is mineable as an open pit, with initial metallurgical test work returning recoveries of 93%‐96%. The project, which is 100% owned by Crusader, has existing on‐site facilities with excellent infrastructure including a water permit, a sealed highway directly to the project area with230kV power lines adjacent and is near the historic mining town of Currais Novos (~20km) with attendant skilled labour.

Juruena Project ‐ Advanced Exploration

The Juruena Gold Exploration Project, a circa 400km2 area of contiguous tenements, is located in the central Brazilian state of Mato Grosso on the highly prospective Juruena‐Alta Floresta gold belt (estimated to have produced more than 7Moz of gold). The project has a defined high grade (6.3 g/t) JORC resource of 260koz of gold with a number of significant gold intercepts, including 112 g/t over 10m, 35.1 g/t over 12m and 75.1 g/t over 4m.

Due to high prospectivity across several areas of identified mineralisation, the Company intends to initiate a focussed 30,000m exploration drilling programme across the project with the intention of defining an economic reserve within the next 18‐24 months.

Novo Astro Project - Early stage gold exploration

This project is Crusader's second project within the Alta Floresta gold belt, 25km south east of our Juruena project. A 4km wide circular soil anomaly has been identified with rock chip samples returning significant gold indicators, including 13 at over 10 g/t, with the highest being 264 g/t and 101.7 g/t (Announcement 11 September 2013).

Crusader's exploration team will target initial drilling over Nova Astro following a full structural review over the project which is planned for the first half of 2018. Anglo American, a major mining company has recently staked a considerable portion of the Alta Floresta belt and we expect continued interest in this highly prospective district.

The Company will provide the market with regular updates over the following 12 months with regard to its progress on taking the Borborema Project closer to mining and cash flow, and the results of its focussed drilling programmes at its Juruena and Novo Astro exploration projects.

For further information, please contact:

Mr. Paul Stephen Investor Relations

Executive Director

Office (Aus): +61 8 9320 7500

About Crusader

Crusader Resources Limited (ASX:CAS) is a minerals exploration and development company listed on the Australian Securities Exchange. Its major focus is Brazil; a country Crusader believes is vastly underexplored and which offers high potential for the discovery of world class mineral deposits.

Crusader has two key Gold Assets;

Borborema Gold Project

The Borborema Gold Project is in the Seridó area of the Borborema province in north‐eastern Brazil. It is 100% owned by Crusader and consists of three mining leases covering a total area of 29 km2 including freehold title over the main prospect area.

The Borborema Gold Project benefits from a favourable taxation regime, existing on‐site facilities and excellent infrastructure such as buildings, grid power, water, sealed roads and is close to major cities and regional centres. The project's Ore Reserve includes Proven and Probable Ore Reserves of 1.61Moz of mineable gold from 42.4Mt @ 1.18g/t (0.4 & 0.5g/t cut‐offs for oxide & fresh). The measured, indicated and inferred Mineral Resource Estimate of 2.43Moz @ 1.10g/t gold, remains open in all directions.

Juruena Gold Project

The Juruena Gold Project is located in the highly prospective Juruena‐Alta Floresta Gold Belt, which stretches east‐west for >400km and has historically produced more than 7Moz of gold from 40 known gold deposits.

The Juruena Project has been worked extensively by artisanal miners (garimpeiros) since the 1980s, producing ~500koz in that time. Historically there is a database of more than 30,000 meters of drilling and extensive geological data.

Appendix: Reserve and Resource Tables

Table 1: Borborema Gold Project Ore Reserve (JORC 2012 code)

Ore Reserve estimate for the Borborema Gold Project.

Reported at a 0.4 g/t cut‐off for oxide and 0.5g/t cut‐off for fresh material. The cut‐off grades have been based on the latest throughput costs, gold price of US$1210/oz. Note, appropriate rounding has been applied, subtotals may not equal total figures.

Table 2: Borborema Gold Project Mineral Resource (JORC 2012 code)

Mineral Resource estimate for the Borborema Gold Project, reported at various cut‐offs. Parent

Block 25mE x 25mN x 5mRL. Selective Mining Unit 5mE x 6.25mN x 2.5mRL. Note, appropriate rounding has been applied, subtotals may not equal total figures

Table 3: Juruena Gold Project Mineral Resource estimate (JORC 2012)

Note: Appropriate rounding applied. Table includes updated mineral resource estimates for Querosene and Dona Maria, Crentes remains the same as per the 2015 resource estimate. For further information, please see the section below: Summary of Resource Estimate and Reporting Criteria.

Competent Person Statements

Borborema mineral resource estimate

The information in this presentation that relates to the mineral resource estimate for the Borborema Project was first reported in accordance with ASX Listing Rule 5.8 on 24 July 2017. Crusader confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 24 July 2017 and that all material assumptions and technical parameters underpinning the Mineral Resource estimate continue to apply and have not materially changed.

Borborema ore reserve estimate

The information in this presentation that relates to the Ore Reserve estimate for the Borborema Project was first reported in accordance with ASX Listing Rule 5.9 on 24 July 2017. Crusader confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 24 July 2017 and that all material assumptions and technical parameters underpinning the Ore Reserve estimate continue to apply and have not materially changed.

Juruena mineral resource estimate

The information in this presentation that relates to the Mineral Resource estimate for the Juruena Project was first reported in accordance with ASX Listing Rule 5.8 on 22 December 2016. Crusader confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 22 December 2016 and that all material assumptions and technical parameters underpinning the Mineral Resource estimate continue to apply and have not materially changed.

Exploration results

The information in this presentation relating to exploration results for the Borborema Project, Juruena Project and Novo Astro Project is based on and fairly represents information and supporting information compiled by Mr Robert Smakman. Mr Smakman is the former Managing Director of the Company. Mr Smakman is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Smakman has consented to the form and context in which the exploration results and supporting information are presented in this announcement.