Crazy Horse Resources Inc. Updates Resource Calculations, Preliminary Economic Assessment and Provides Clarification of Prior Disclosure

VANCOUVER, Sept. 8, 2011 - Crazy Horse Resources Inc. (TSX VENTURE: CZH) ("Crazy Horse" or the "Company") announces:

1. clarification of prior disclosure concerning the Taysan Copper/Gold Project;

2. an update of the scoping study mineral resource estimate of the Taysan Copper/Gold Project with the addition of silver and magnetite and completed drill holes to date; and

3. an updated Preliminary Economic Assessment has been completed to reflect the updated mineral resource estimate as well as updated fuel and power costs.


Clarification of Prior Disclosure

As a result of a review by the British Columbia Securities Commission ("BCSC"), Crazy Horse is issuing this news release to clarify certain prior disclosure.

The Company has received preliminary material information providing for updated resource estimates for the Taysan Project that include silver and magnetite. The Company has also received preliminary results of an updated economic assessment of the Taysan Project based in part on the updated resource calculations. Details of this information is contained under the heading "Updates of Mineral Resource Estimate and Preliminary Economic Assessment of the Taysan Project" at the end of this news release. These preliminary results were previously disclosed on the Company's website under its "Corporate Presentation"; and readers are cautioned not to rely on the same as the Company has not yet received the updated technical report supporting such information.

A revised NI 43-101 compliant technical report is being prepared to support the updated resource estimates, which will also contain a revised Preliminary Economic Assessment ("PEA") of the Taysan Project that the Company will file on SEDAR within the next 45 days.

The BCSC also noted several deficiencies with the mineral resource estimate and PEA on the Taysan Copper/Gold Project prepared by Mining Associates Pty. Ltd. and AMEC Minproc Limited dated March 11, 2011 and filed by the Company on SEDAR on April 28, 2011 (the "March Report"). These deficiencies include:

(i) the reliance by the authors on disclaimers for the accuracy and reliability of information provided to them was too broad and should not have been included in the report;

(ii) inconsistent disclosure of the results of the 2010 drill program;

(iii) concerns about the quality and accuracy of assay data reported, based on the authors' concerns of certain lab results received;

(iv) lack of the authors' independent audit and verification of historical data;

(v) estimating and reporting an inferred resource for gold based on a linear regression model; and

(vi) the certificates of the authors did not address all sections of the report.

The Company has asked the authors to address each of these items in the technical report currently being prepared, which will supersede and replace the March Report, and the authors have advised that the new technical report will address these issues.

The BCSC also advises that it considers certain information in the Company's MD&A and on the Company's website to be potentially misleading. Specifically, statements or estimates of "payable production" are potentially misleading as they imply a gross metal value and do not take into account all necessary mining costs and other considerations. Those references on the Company's website and in any presentation materials are being removed. Any reference to "payable production" or similar wording in any document previously filed by the Company on SEDAR or otherwise disseminated should not be relied on due to the concerns outlined above.

The BCSC also advises that certain information disclosed or linked on the Company's website contains historical estimates for the Taysan project without the inclusion of the required disclaimers as prescribed in section 2.4 of NI 43-101. For clarification, the Company states that any historic estimates or estimates based on historic information:

(i) exclude Benguet (1981) and Chase (1993, 1994 and 1995) historic resource estimates;

(ii) are non-NI 43-101 compliant;

(iii) have not been reviewed by a "Qualified Person" so as to classify the same as a current mineral resource estimate;

(iv) such historic resource estimates should not be relied upon; and

(v) such historic resource estimates are superceded by the current resource estimate disclosed by the Company in the March Report and as will be disclosed in the revised PEA.

The BCSC also advises that certain disclosure contained in the PEA of the Taysan Project (as contained in the March Report) fails to include the necessary cautionary language set forth in section 2.3(3) of NI 43-101. As the PEA is based on inferred resources, the Company clarifies, in each instance of disclosure, that (i) the PEA is preliminary in nature, (ii) that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and (iii) there is no certainty that the PEA will be realized.

The BCSC also advises that certain disclosure made by the Company containing technical information on the Taysan Project does not disclose the Qualified Person responsible for preparing such technical information. Changes have been made on the Company's website, corporate presentation materials and investor relations materials to include such references.

On a going-forward basis, the Company will ensure that all technical disclosure satisfies the requirements of NI 43-101.

Updated Mineral Resource Estimate and Preliminary Economic Assessment of the Taysan Project

The Company announces an update of the scoping study mineral resource estimate of the Taysan Copper-Gold Project with the addition of silver and magnetite, and drill holes completed to date. In addition, an updated PEA has been completed to reflect the updated mineral resource estimate that is also updated for current fuel and power costs.

This mineral resource estimate is an update to the minerals resource estimate described in the March Report that was based on historical drilling.

MA estimated this resource from first principals and re-assigned the categories resulting in an indicated resource of 411 Mt at an average grade of 0.27% copper, 0.10 g/t gold, 0.92 g/t silver and 3.3% magnetite for 2,410 M lbs of contained copper, 1.27 Moz contained gold, 12.19 Moz contained silver and 13.4 Mt of contained magnetite and an additional inferred resource of 542 Mt at an average grade of 0.18% copper, 0.07 g/t gold, 0.47g/t silver and 2.8% magnetite for 2,190 M lbs of contained copper, 1.24 Moz contained gold, 8.24 Moz contained silver and 15.4 Mt contained magnetite. A cut-off grade of 0.1% copper was applied to for all reported resource blocks.


Taysan August 2011 Resource Estimate - >0.1% Cu

                   Cu     Au     Ag  Magnetite   Cu     Au      Ag   Magnetite
Category    M t     %     g/t    g/t      %    M lbs   M Oz    M Oz     M t
Indicated   411   0.27   0.10   0.92     3.3   2,410   1.27   12.19     13.4
Inferred    542   0.18   0.07   0.47     2.8   2,190   1.24    8.24     15.4

Within the defined copper resource are several associated accessory minerals, these minerals gold, silver and magnetite (Fe3O4) were not routinely determined in the historic data. The gold estimate is an improvement on previous regression based estimates; silver and magnetite have not been estimated previously. All elements are estimated using ordinary kriging. The company is currently drilling the gold, silver and magnetite resource to obtain sufficient data allowing the resource categories to be consistent across all commodities.

This resource estimate is based on historic drill data and the results from a 45 drill hole programme conducted by the Company from October 2010 to June 2011. The first ten holes drilled by the Company were designed to test the validity of historic drilling, and confirmed the tenor of the historical drill data to be correct. The balance of the drilling has also confirmed that copper grades decrease at depth and that the deposit remains open down dip. This recent drilling has bolstered confidence in the Taysan Project enabling a current indicated and inferred copper resource to be quoted.

The grade tonnage curve indicates that the available tonnage is highly sensitive to cut-off grade between 0.1% and 0.25% Cu. The reported cut-off grade is stated at 0.1%. As illustrated in the following figure, small variances in cut-off grade result in large variance in tonnage and strip ratio.

It is the Company's intention to continue drilling at the Taysan Project with a view to increasing confidence in the mineral resource allowing reserves to be calculated within the ten-year pit shell as defined in the PEA (described in the March Report), leading into a Feasibility Study of the Taysan Copper-Gold Deposit.

To view the "Grade Tonnage Curve for Taysan Inferred Resource" graphic associated with this press release, please visit the following link: http://media3.marketwire.com/docs/czh98.jpg

In addition, the PEA, managed by AMEC Minproc Limited of Australia, indicates that the Taysan Project has a Net Present Value ("NPV") at a 10% discount rate of US$639M for the base case of US$3/lb Cu, US$1,000/oz Au, $26/oz Ag and $100/tonne of Magnetite. The internal rate of return ("IRR") is 21.9% for this base case. These numbers reflect an Mineral Production Sharing Agreement (MPSA) case and provide for a Philippines Economic Zone Authority (PEZA) certification of the processing plant.

The Taysan Project remains sensitive to copper prices as shown in the table below.

Taysan Net Present Value – March, 2011 		August, 2011
	Low 	Base 	High 		Low 	Base 	High
Cu Price 	$/lb 	$2.50 	$3.00 	$4.00 		$2.50 	$3.00 	$4.00
Au Price 	$/oz 	$850 	$1,000 	$1,400 		$850 	$1,000 	$1,400
Ag Price 	$/oz 	n/a 	n/a 	n/a 		$24 	$26 	$28
Magnetite Price 	$/tonne 	n/a 	n/a 	n/a 		$80 	$100 	$110
Discount Rate 	% 	10% 	10% 	10% 		10% 	10% 	10%
Project NPV 	$M 	$7M 	$526M 	$1,541M 		$47 	$639 	$1,745
Project IRR 	% 	9.9% 	19.4% 	35.6% 		10.9% 	21.9% 	41.0%

In addition to silver and magnetite, the PEA was updated with current numbers for diesel fuel (US$1.00/l versus US$0.81/l in March, 2011) and grid power of US$0.128/kWh. The PEA allows for grid power during the first four years of operations whilst the coal power plant is constructed (US$180M versus US$132M in March, 2011) in order to achieve project start up as scheduled.

The Taysan Project is estimated to produce 3,212 Mlb Cu, 1.02 M oz Au, 4.23M oz Ag and 11.84 Mt of Magnetite over the twenty-five (25) year mine life, net of smelter recoveries and deductions. Annual average production for years 1-4 is estimated at 175 Mlb Cu, 58,300 oz Au, 436,000 oz Ag and 0.53 Mt of Magnetite.

A capital cost estimate of US$864M is lower than originally estimated (US$1,006M) due to the deferment of the power plant and refinement of the mining schedule.

The C1 (cash) cost, including low risk grid power, net of by-product credits is low at US$0.97/lb Cu for years 1-4 and US$1.38/lb Cu over the 25 year mine life. Unit cost is estimated at US$8.77/t of ore processed and is driven by the low waste to ore ratio (0.8:1); proximity to port (20km); and low freight costs to expected market (China, Japan and Korea).

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA is preliminary in nature, and is based on inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized.

The 18-months combined pre-feasibility and bankable feasibility study is on schedule.

Johan Raadsma, President of Crazy Horse states, "The compliant resource statement and recent drilling results clearly show the Taysan ore body has room for further growth in size and grade. The cash costs have improved from the internal 2010 assessments (US$0.90 for years 1-7 and US$1.18 LOM) and 25% of the capital cost can be deferred effectively lowering our previous internal capital cost estimate. We remain positive about the copper price in light of the increasing disparity between copper supply and demand."


Qualified Person

The information in this portion of the press release relating to mineral resource estimates and PEA is based on information compiled under the direction of Ian Taylor and Brian Lueck. Ian Taylor is a consultant geologist and Certified Professional (AusIMM(CP)) holding a B.Sc (Hons) with specialist experience in resource evaluation in porphyry copper projects. Mr Brian Lueck, P.Geo., is also a director of the Company. Mr. Taylor and Mr. Lueck are both Qualified Persons ("QP") as defined in the "Canadian Institute of Mining, Metallurgy and Petroleum, CIM standards on Mineral Resources and Reserves' and NI 43-101. Both Mr. Taylor and Mr. Lueck have reviewed this press release and consent to the inclusion in the press release of the matters based on his information in the form and context in which this appears.

For exploration work, Brian Lueck, P.Geo., a director of the Company, is the appointed Qualified Person.


Quality Control and Sample Preparation

The Company has a rigorous quality control program (QCP) inserting a minimum 5% of standards, blanks and duplicates into the sample stream. The Company employs independently owned and managed laboratories for all of its assay requirements. Drilling of the Taysan Project was and continues to be carried out by Quest Exploration Drilling (Philippines) Inc. using Edson 3000 and LF70 drill rigs and a triple tube diamond core drilling system. All holes are started in PQ (150-200m) then continued in HQ. All core is split using a diamond-bladed drill-core saw and always sampled from the (true) left side of the core. The remaining half of the core is sealed in plastic bags in a nitrogen atmosphere and stored in a covered, guarded core shed. Core samples are bagged in new polyethylene, UV stable plastic bags, sealed with a plastic tie, numbered outside and have a tag placed inside the bag. All samples are accompanied by Company personnel from site to the McPhar Laboratory under secure "Chain of Custody" procedures. Samples are crushed to 85% <2mm then 1kg is split out and pulverised in an LM2 Puck and Bowl Pulveriser to 90% <75um. Gold is assayed by Fire Assay (50g charge) with AAS finish (PM6). Cu, Ag, As, Pb, Zn, Mo, Al, Ca, Fe, K and S are assayed by 4 Acid Digest (HCl / HNO3 / HClO4 / HF) ore grade analysis with ICP-AES finish (ICP-3). Sample rejects are returned from the McPhar Laboratory under secure "Chain of Custody" procedures by Company staff and also stored in the core shed in heat sealed plastic bags in a nitrogen atmosphere. McPhar Geoservices (Phil), Inc. is ISO 17025:2005 accredited and is a member of the International Intertek Laboratory Group.

Magnetite content correlates to the magnetic susceptibility of the pulps, (R2=0.9733). Magnetite% = 0.1639 x MagSus reading + 0.8007 based on 107 Davis Tube Tests. The regression was applied to all magnetite susceptibility readings (8239 readings of one kg pulp bags representing 2 metre samples).


About the Taysan Project

The Taysan Project contains a drill defined 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-IVI-108, EPA-IVI-111 and EPA-IVA-081) over five contiguous claim blocks covering a combined total area of 11,254 hectares. The Taysan 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 Taysan 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.

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


ON BEHALF OF THE BOARD

Johan Raadsma
President, CEO and Secretary



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