Crescent Gold Limited
ASX : CRE
TSX : CRA
FRANKFURT : CRE5

Crescent Gold Limited

November 30, 2009 00:01 ET

Crescent Gold Doubles Its Key WA Gold Resource Inventory in the A$5m Acquisition of Barrick / Carbon Energy Assets

PERTH, WESTERN AUSTRALIA--(Marketwire - Nov. 30, 2009) - Crescent Gold Limited (TSX:CRA)(ASX:CRE)(FRANKFURT:CRE5) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Sale and Purchase Detail

Crescent Gold has doubled its gold inventory and expanded its exploration acreage in the key Laverton province of Western Australia after signing an agreement to acquire assets from Barrick and Carbon Energy for A$5 million.

The transactions will boost Crescent's gold inventory to over 2.1 million ounces of Measured, Indicated and Inferred Resources (Refer Table 1 & 2) as the Company maintains its strategy to take advantage of the region's consolidation opportunities.

The Barrick and Carbon Energy (ASX:CNX) acquisitions include the Laverton Exploration Joint Venture (LEJV) containing the Chatterbox and Beasley Creek gold deposits and a 100% interest in the Lancefield deposit.

Crescent will pay A$1 million in cash to each of Barrick and CNX on signing of the formal sale and purchase agreement. Further payments to both parties totalling A$3 million will be made six months and 12 months after signing of the formal agreement, via a combination of cash and the issue of ordinary shares in Crescent. In addition, if total ounces produced by Crescent from the newly acquired assets exceeds 75,000 ounces, both Barrick and CNX will be paid a further A$1.5 million each through a combination of cash and shares to be negotiated.

The purchase of the combined assets delivers an aggregate of 1.1 million wholly owned ounces (including 510,400 resource ounces contained in shallow oxide deposits) to Crescent. This represents a purchase price of just over A$4.50 per resource ounce. The additional extensive resources in the acquired tenements could provide a number of operational and development synergies to Crescent to deliver ore into the recently signed Ore Purchase Agreement (OPA) with Barrick.

Along with the substantial increase to the existing Crescent gold resource base of 1.0 million ounces, the acquisition expands the Company combined JORC compliant resource base of Crescent to more than 2.1 million ounces. The acquisition also offers substantial exploration upside for resource addition with the amalgamation of numerous contiguous exploration projects and tenements simplifying ownership and management over a number of project areas. A map outlining these tenements is shown in Figure 1.

To view the map and tables accompanying this news release, please click on the following link: http://media3.marketwire.com/docs/cra1130.pdf.

Competent Person Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr I.W. Walker, Director, Carbon Energy Ltd, who is a member of the Australian Institute of Geoscientists and Mr Neal Leggo, Exploration Manager Crescent Gold Ltd, who is also a member of the Australian Institute of Geoscientists. Mr Walker and Mr Leggo have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Walker and Mr Leggo consent to the inclusion in the report of matters based on their information in the form and context in which it appears.

Regards,

Crescent Gold Limited

Roland Hill, CHAIRMAN

Additional information related to the Company is available for review at www.sedar.com or on the Company's website at www.crescentgold.com.

ABN 49 087 360 996

SHARE INFORMATION

ASX Share Price: A$0.225

Issued Shares: 592.0m

Market Cap: A$133.2m

Unlisted options and convertible notes: 36.6m

FULLY DILUTED BASIS

Shares: 628.6m

Contact Information

  • Crescent Gold Limited - Australia
    Roland Hill
    +61 8 6380 7100
    or
    Crescent Gold Limited - Australia
    Jo-Ann Wellstead
    +61 8 6380 7100
    +61 8 6380 7199 (FAX)
    or
    Crescent Gold Limited - Canada
    Renee Brickner
    +1 604 802 6806
    www.crescentgold.com