ASX RELEASE 19 April 2016

Crusader Finalises Lithium Agreement with Lepidico

Highlights

Crusader Resources and Lepidico Ltd sign Shareholders Agreement to establish Third Element Metals Pty Ltd. ("Third Element Metals" or the "JV Company")

As per the MOU announced 3 February 2016, the JV Company is to be established for the purposes of:

• exploring for lithium and other minerals on the Manga Lithium Project and any other tenements acquired by the JV Company in Brazil and other agreed jurisdictions ("Territory");

• mining and processing minerals extracted from tenements in the Territory using the L‐Max® technology, to which the JV Company will hold exclusive rights in the Territory; and

• sub‐licensing the L‐Max Technology to third parties for use in the Territory Reconnaissance mapping and sampling program over Manga completed‐ results expected in 2 weeks

Brazil‐focused resource development company Crusader Resources (ASX: CAS) ("Crusader" or "the Company") is pleased to advise the Company has signed a joint‐venture Shareholders Agreement and finalised the terms of associated documentation with Lepidico Ltd ("Lepidico"). The new company, to be known as Third Element Metals, is aiming to become a producer of the third element in the periodic table, namely lithium, with an immediate focus on Brazil.

Under the agreement, which follows on from signing of the Memorandum of Understanding (please refer to ASX announcement dated 3 February 2016), the shareholders have agreed to establish a 50:50 strategic joint venture ("JV Company") to explore for and develop lithium resources in the Territory.

Third Element Metals will have exclusive rights to use the L‐Max® technology, a patented technology to extract lithium from mica ores within the Territory. The company intends to develop and hold a portfolio of lithium projects and or royalty interests from sub‐licencing the technology in addition to deploying it to Crusader's Manga prospect.

Crusader's Executive Director Paul Stephen commented:

"The signing of the Shareholders Agreement is a critical step in formalising our strategic relationship with Lepidico.

"While Crusader's main focus will remain on its gold and iron ore assets, specifically the development of the Juruena Gold project, the Shareholders Agreement cements our partnership with Lepidico, provides the company with exclusive rights to the L‐Max® technology in Brazil and allows the advancement of the Manga Lithium Project through the new company structure.

Crusader is excited to be to working with Lepidico as part of this collaboration and we Iook forward to their support in making Third Element Metals a success."

ASX RELEASE 19 April 2016

Lepidico's Executive Chairman Gary Johnson commented:

"We are very excited at the opportunity that presents itself with Third Element Metals. The ability for Lepidico and Crusader to reach agreement on commercial terms shortly after the finalisation of the MOU is a testament to the strong working relationship which the two companies have already established.

"Lepidico looks forward to receiving its first sample of lithium micas from the Manga Project to conduct initial testwork on developing the L‐Max® process for the Manga Project."

Joint Venture Company

Third Element Metals will be based at Crusader's registered office in Perth, Western Australia, and will conduct business on normal commercial terms and conditions.

The primary assets of the JV Company will be:

1. The Manga Lithium Project

2. All other lithium projects as identified, licensed and/or acquired within the Territory post 3 February 2016; and

3. An exclusive licence of L‐Max® for any new projects in the Territory.

The JV Company will be responsible for all holding costs (including mines department, environment, taxes, rent and work fees) for the Manga and other lithium projects in the Territory.

Work on collecting samples from Manga has already begun with results from a reconnaissance mapping program at Manga due in the next 2 weeks. The historic drill chips from Manga have been found and re‐logging and sampling is underway.

Lepidico and the L‐Max technology

Lepidico is the sole owner and licensor of the L‐Max technology, a metallurgical process that has the potential to commercially extract lithium and other by‐products from unconventional sources at a competitive price.

Under the agreement, Lepidico will also grant licenses of any other technology it develops, which may be applied to the extraction of lithium to Third Element Metals. This includes technology relating to the extraction of lithium from lithium bearing phosphate minerals, such as amblygonite.

Lepidico developed its L‐Max technology for the recovery of lithium from lithium bearing micas including lepidolite and zinnwaldite. The process also produces a range of valuable by‐products including potassium sulfate (SOP), a fertilizer for application in the agricultural sector.

Manga Lithium (Sn In) Project - Goias State, Brazil (100% Crusader)

The Manga Li Project (previously explored for tin and indium) is located in the NE of Goias state, Central Brazil. Crusader first applied for the ground when exploring for tin, indium and gold mineralisation in the region during 2007 and later mapped, soil sampled, rock chipped and drilled 15 reverse circulation holes (for 1,001m. See Figure 1).

Crusader has recently conducted a reconnaissance field trip to the area and collected a number of new rock chips. During this trip, the historic RC drill chips (previously thought lost) were found and re‐logging and sampling of these are underway.

ASX RELEASE 19 April 2016

Drill results for the targeted tin and indium were modest, with better results including:

(Note that lithium was not directly tested in the drilling ‐nor the soil sampling program)

32m @ 670 ppm Sn and 8.4ppm In from 34m in MNRC011 27m @ 577ppm Sn and 8.6ppm In from 55m in MNRC010 2m@ 2,025ppm Sn and 20ppm In from 10m in MNRC012

(Please see the ASX Announcement from 17 September 2008 for a full list of drill results - available on Crusader website.)

The previous rock‐chip program conducted by Crusader was assayed for multi‐elements and includes some significant Li20 results. Li2O grades of up to 1.3% were returned, within a zinnwaldite‐rich greisen zone, proximal to the anomalous tin and indium bearing greisen. The rock chip‐sampling program was undertaken targeting tin and indium and returned results up to 5% tin and 750ppm indium, noting that the tin and indium mineralisation was hosted in a different greisenised zone from the proximal zinnwaldite‐rich and Li‐rich muscovite greisen zones.

Crusader has recently submitted a new batch of rock‐chip samples from Manga after a reconnaissance field program was completed. Results are expected within a couple of weeks and along with the RC drill chips from the 2007 campaign, (which were located during the reconnaissance and are now being re‐logged), will help fast‐track the exploration program at Manga.

Geological technical data reviews1 were undertaken and these described samples of zinnwaldite greisen and a li‐rich muscovite greisen from Manga with results of up to 1.8% Li2O (Manga is also referred to as 'Mangabeiras or Mangabeiras Massif' see Botelho & Moura 1998 and Moura 1993‐ references below). These academic papers also refer to specific analysis of the zinnwaldite and the li‐rich muscovite minerals (referred to as Li‐phengite), with multiple analyses done on different mineral grains (from different rock samples). Results returned between 2.04% and 3.56% Li2O for the zinnwaldite and 1.55% and 2.32% Li2O for the Li‐muscovite.

The literature also compares the geological setting and mineralisation style at Manga to the world‐class Cinovec Sn, W, Li project in the Czech Republic, a project that has been mined for hundreds of years and is now being appraised for its lithium potential by fellow Australian listed explorer, European Metals (ASX:EMH).

Crusader has mapped various greisens in the area over an extensive region and drilling intersected different greisen facies. The soil sampling that was completed in 2007 was analysed with a hand‐held XRF, which did not have the capacity to analyse the lithium content directly. Crusader has however, leveraging the technical experience of Lepidico, been able to use the historic XRF data to better understand the chemistry of the lithium mineralisation (based on Cinovec mineralisation style) and has been able to highlight exploration targets using certain other pathfinder elements, which are often associated with lithium mineralisation.

1 Botelho N. F. & Moura M. A, Granite‐ore deposit relationships in Central Brazil. Journal of South American Earth Sciences, Vol. 11, No 5, pp. 427‐438, 1998

Moura M. A, A Zona greisenizada procipal do Macico estanifero Manga Beira (GO); Geologia, petrologia e ocorrencia de Indio (In). Dissertacao de Mestrado, Universidade de Brasilia, 1993

ASX RELEASE 19 April 2016

Figure 1: Geological map of the Manga zone with rock chips, soil results and drilling.

Figure 2: Crusader geologist sampling the greisen zone at Manga.