ASX RELEASE 4 Oct 2016

Mining Licence Granted and Continued High-Grade Drilling Results at Juruena

Highlights

 Mining licence for Querosene prospect granted

 High-grade gold intercepts from hole MD-12 at Juruena's Dona Maria prospect:

• 8.25m @ 23.71 g/t Au from 86.75m including:

   1m @ 38.84g/t Au from 90m;

   0.5m @ 13.97 g/t Au from 93m;

   0.75m @ 37.5 g/t Au from 93.5m; and

   0.75m @ 142.67 g/t Au from 94.25m

• 1.5m @ 76.69 g/t Au from 78m including:

  • 1m @ 106.51 g/t Au from 78m; and

 0.5m @ 17.05 g/t Au from 79m

 Results continue to demonstrate ability to grow current resource base and increase confidence level to an Indicated Resource

 Samples from Tomate and Mauro prospects dispatched to the lab

Brazil-focused, resource development company Crusader Resources Ltd (ASX: CAS) ("Crusader" or "the Company") is pleased to announce the granting of a Trial Mining Licence for the Querosene prospect along with additional high- grade gold results from the resource-infill and expansion drilling program at the Dona Maria prospect.

The 100% owned Juruena Gold Project in central Brazil, is considered to be the initial development project in a recognised mining district, the Juruena Alta Floresta gold belt (estimated to have produced ~7Moz Au), with potential to host multiple projects of a significantly larger scale. The company's immediate focus at Juruena is on a cluster of targets all located within a district-sized, high-grade soil anomaly approximately 8km long by 4km wide.

Commenting on today's news, Crusader Managing Director Rob Smakman said:

"Obtaining the licence for Querosene is an essential part of the process and demonstrates our team has a strong relationship with the Department of Mines. We will continue to work through the process and look forward to updating shareholders with additional milestones.

"Dona Maria continues to impress, returning great results from both north and south of the exciting central zone- potentially extending it. The latest results, from MD-12 especially, provide further evidence of potential extension to the north of the central zone and should bode well for the updated mineral resource estimate expected in the current quarter."

ASX RELEASE 4 Oct 2016

Querosene Prospect- Mining Licence

The Querosene Trial Mining Licence recently advertised in the national gazette, is a mining licence (called a Guia de Utilização or 'GU' in Brazil) for the Querosene prospect at Juruena. The licence has certain restrictions, including an upper limit of 50,000 tonnes per annum. The GU Licence needs to be paired with a licence from the State Environmental agency (locally SEMA) which has been applied for and is currently being considered by SEMA.

The Querosene prospect is located on the eastern end of the Juruena Project area (see Figure 1) and was the first prospect targeted in the Crusader 2015 and 2016 drilling campaigns, due to consistent high‐grade drilling results from previous explorers.

Results are now complete for the 2016 drilling program, with updated results presented in Table 1 and Figure 2.

Figure 1. Juruena Gold Project with prospect locations

ASX RELEASE 4 Oct 2016

Figure 2: Querosene Prospect Drill Plan View

Dona Maria Prospect

Dona Maria is located adjacent to the Crentes prospect, approximately 1 kilometre along the Juruena fault zone from Querosene. Mineralisation at Dona Maria is perpendicular to the main Crentes trend (WNW) toward the NNW (see Figure 1 above). There is a broad, relatively shallow garimpo working over the mineralised trend and with the new intercepts along with historical drilling, the central zone appears to show a coherent, high-grade core that is open at depth.

ASX RELEASE 4 Oct 2016

A total of 14 holes for 1,787m were completed at Dona Maria in the 2016 campaign. Results released today are summarised in Table 1, presented in Figure 3 and include better results of:

• 8.25m @ 23.71 g/t Au in hole MD-12 from 86.75m including:

   1m @ 38.84g/t Au from 90m;

   0.5m @ 13.97 g/t Au from 93m;

   0.75m @ 37.5 g/t Au from 93.5m; and

   0.75m @ 142.67 g/t Au from 94.25m

• 1.5m @ 76.69 g/t Au in hole MD-12 from 78m including:

  • 1m @ 106.51 g/t Au from 78m; and

     0.5m @ 17.05 g/t Au from 79m

• 3m @ 1.77 g/t Au from 95m from hole MD-13

Figure 3: Dona Maria Prospect Drill Plan View