Borborema

completed

Posse is a small scale operating iron ore mine with a JORC inferred and indicated resource of 36 million tons (MT) at an average grade of 43.5%. The mine is operating at a 360,000 tonnes per annum throughput as directed by a recently granted full operating license. The mine has a small open pit with crushing and screening, no blasting is required. The Company is currently selling only Direct Shipping Ore (DSO) lump product to local furnaces (via 25 ton trucks) with the fines currently being stockpiled on site. The Company is looking at improving its beneficiation process to be able to sell the fines to the domestic market. At full production, the Company is estimating a production of up to 1 million tonnes per annum. The Company also owns the Borborema gold project in northeastern Brazil which consists of three mining leases covering a total area of 29 km². Historically, Borborema produced 250Koz of gold and was explored by various companies including a Brazilian explorer, Caraiba Mineracao, Ltda who explored the site in 2007 and drilled 75 diamond holes. These historic mining activities used heap leaching to extract the gold. Additional drilling by Crusader (~80,000 meters) over the course of two years produced an initial gold resource and Pre Feasibility Study (PFS) containing 27.04 million tonnes at 1.4 g/t with 1.21 million ounces of gold. The Borborema Project benefits from good on-site facilities and infrastructure including buildings, grid power, water and sealed roads. A BFS for the Project is currently being revised. Over the next 12 months, the Company is expecting to focus on the completion of this BFS which will include geotechnical and metallurgical drilling around the site.The closest community to the Posse Project is Posse (325 inhabitants) located approximately 1 km from the site. The Town of Caete (41,000 inhabitants) is located approximately 17 km from the mine. For the case of Borborema, no communities are present in the immediate vicinity of the Project but a number of small communities/households are present in the wider area (the closest community is Conrado is located approximately 2.8 km away). The town of Currais Novos (42,000 inhabitants) is located about 27 km from the Borborema Project. Crusader has expressed and demonstrated its objective to follow good international industry practice (GIIP) in environmental, safety, health and community issues. In this sense, IFC will assist Crusader in developing the necessary documents, programs and processes to address the existing risks and impacts from its existing small scale iron ore mine and the Borborema exploration project with commitments to any future mine development.