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

Crescent Gold Limited

March 22, 2006 21:15 ET

Crescent Gold Limited: A$750/oz Gold Puts Purchased, 100,000 ozs

PERTH, AUSTRALIA--(CCNMatthews - March 22, 2006) - Crescent Gold Limited (TSX:CRA)(ASX:CRE)(FWB:CRE5) -

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

Crescent Gold has purchased the right, but not the obligation, to sell 100,000 ozs of gold at A$750/oz in March 2008.

"This is an effective 2 year insurance policy. Crescent Gold retains 100% of the upside on all ounces, but has protected the downside risk for the Laverton Gold Project," Managing Director, Andrew Haythorpe said.

The purchase has been funded with a A$3.75m loan at 7.75% pa from NM Rothschild (Australia), following extensive due diligence by the bank on Crescent Gold's Laverton Gold Project.

"This is a milestone in Crescent Gold's development. It places us in a great position to negotiate favourable project finance and commence gold production. We have the support of Rothschild, a bank renowned for its specialist expertise in funding gold projects, and this further confirms our confidence in the Project," Mr Haythorpe said.

The loan is secured against the put options, but not the Laverton Gold Project. Crescent Gold retains full flexibility in arranging its project finance to restart gold production. Loan repayment is scheduled with equal instalments on 31 July 2007, 31 August 2007 and 30 September 2007.

Regards

Crescent Gold Limited

Andrew Haythorpe, Managing Director

Caution Regarding Forward-Looking Statements

Some of the statements in this news release contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Crescent. Actual events may differ materially from those currently anticipated in such statements.



Share Information
ASX Share Price: A$0.22
Issued Shares: 187.68m
Market Cap: A$42.6m
Options 18c unlisted: 13.02m

Fully Diluted Basis
Shares: 232.43m
Cash upon dilution: A$6.3m
Current Cash(ii): A$12.0m

Enterprise Value
EV: A$30.0m
EV / oz reserve: A$103 /oz
EV / oz resource: A$22 /oz

Resource and Reserves
Resource Meas. & Indic.: 0.697m ozs
Resource Inferred: 0.687m ozs
Reserve Probable: 0.292m ozs
Market Cap/oz Resource: A$31 /oz
Market Cap/oz Reserve: A$146 /oz

(ii) Inc. A$2.4m Environmental Bonds


The TSX does not accept responsibility for the adequacy or accuracy of this release.

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