Crusader Resources : Updated Juruena Resources Deliver Spectacular Grade Increase

High-grade resources at the Querosene and Dona Maria prospects total 436kt at 14.7 g/t for 206koz of gold, comprising:

• Querosene prospect 220kt at 16.7 g/t for 118koz of gold; and
• Dona Maria prospect 216kt at 12.7 g/t for 88koz of gold

Overall grade increase of 36% for Querosene to 16.7 g/t (from 12.3 g/t)

Updated JORC compliant mineral resource estimates for Querosene and Dona Maria include 100,000t @ 18.3 g/t for 58,300oz in the Indicated category

Both Querosene and Dona Maria are open at depth and along strike

Preliminary Metallurgical testwork for both Querosene and Dona Maria have returned excellent (>90%) recoveries, additional testing is underway

Scoping study work can now continue with optimisation work on the updated resources to consider both open pit and underground development options.

Resource estimate dose not include the new mineralised zone at Tatu and Tatu NE with recently reported intercepts of broad and shallow high-grade mineralisation. Crusader will evaluate potential additional resources from this area in the new year

Brazil-focused gold development company Crusader Resources (ASX:CAS) ("Crusader" or "The Company") is pleased to announce an updated JORC-compliant mineral resource estimate for its wholly-owned Juruena Gold Project has delivered a significant increase in grade at the Querosene and Dona Maria prospects.

Total combined JORC compliant indicated and inferred resources for Querosene, Dona Maria and Crentes are now estimated at 1.28 million tonnes at 6.3 grams per tonne gold for 260,900 ounces. The updated mineral resource estimates for Querosene and Dona Maria include 100,000t @ 18.3 g/t for 58,300oz in the Indicated category.

Crusader's Managing Director Rob Smakman commented: "Drilling in 2016 was focused on increasing our confidence in the resource estimate and we are delighted to have converted a significant portion of the near-surface, high-grade resources at both Querosene and Dona Maria into the indicated category. The significant increase in grade across the deposits was a pleasant surprise and results from the spectacular drilling we reported during 2016. What is also important to note is that there is still significant upside at both Querosene and Dona Maria as they are both open at depth and along strike. We have no doubt that the project has been significantly enhanced by the work completed during 2016 and we look forward to completing the Scoping Study on the project, expected in early 2017."

Crusader's second drilling program at Juruena has successfully increased confidence, contained gold grades and overall ounces at both the Querosene and Dona Maria prospects. A full table of the updated resources is given below.

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.

The Juruena Project (> 400km2 of contiguous tenements, 100% Crusader owned) is located in Central Brazil on the southern fringe of the Amazon basin. Situated on the western end of the prospective Juruena-Alta Floresta Gold Belt (estimated to have produced ~7Moz), Juruena has been worked extensively by artisanal miners (garimpeiros) since the 1980s, producing an estimated 500koz (see Figure 1).

The Querosene prospect is located on the eastern end of the Juruena project area and was the first prospect targeted in the Crusader drilling program due to consistent high-grade drilling results from previous explorers.

The updated mineral resource estimate for the Querosene prospect was completed following successful drilling during 2016, targeting infill and resource extension. A significant portion of the resource main zone was able to be converted into indicated resources, estimated at 31kt @ 28.4 g/t for 28,500oz. Inferred resources at Querosene total 189kt @

Mineralisation is divided into four main zones (see figures 2&3), with the majority of the higher grades and ounces contained in the Main Zone. The Main Zone also contains all of the Indicated resources. Mineralisation at Querosene is open at depth, with several areas on the Main Zone and SE Zone presenting obvious drilling targets which could have immediate and significant impact.

The mineralisation is associated with alteration along narrow shear zones, quartz veins and minor sulphides. Mineralisation intercepts (downhole) normally vary between 1-4m in width, with narrow, non-magnetic dolerite dykes often associated. The interpretation of the mineralisation at Querosene was little changed from the original modelling completed in 2015.

Results for metallurgical testing on samples from the Querosene prospect indicate recoveries of > 90% for both gold and silver using standard leaching (see ASX release 1 July 2015). Results also indicate the gold and silver are free milling and well distributed within the ore. Additional composite samples from the 2016 drilling campaign have recently been submitted for more extensive metallurgical testing.

Dona Maria is located adjacent to the Crentes prospect, approximately 1 kilometre along the Juruena fault zone from Querosene (see Figure 1).

A significant portion of the Dona Maria resource was able to be converted into indicated resources, estimated at 68kt

Mineralisation at Dona Maria appears to 'splay away' from the main Crentes trend (WNW) toward the NNW (see figures 4&5). There is a broad, relatively shallow garimpo working over the mineralised trend and historical intercepts indicate both very high-grade narrower intercepts and broad, moderate grade disseminated intervals.

Drilling in 2016 has allowed a clearer definition of the mineralised zones at Dona Maria, resulting in a significantly different interpretation to the previous estimate completed in 2015. The main difference is the interpretation of multiple sub- parallel zones forming a stacked sequence of ore zones extending along the NNW trend (see figures 4&5). Also interpreted is a single, short cross cutting zone which may represent a fault or cross cutting shear zone. This zone is sub-parallel to the Crentes trend (~60m to the south). This zone includes ~3 % of the overall Dona Maria resource.