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

Crescent Gold Limited

October 30, 2006 04:56 ET

Crescent Gold Limited-Quarterly Report 30 September 2006

PERTH, AUSTRALIA--(CCNMatthews - Oct. 30, 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.

Laverton Gold Project (WA)



Probable Ore Reserve estimate 358,000 ounces, up 22%

Indicated Mineral Resource 877,000 ounces, up 47%

89 Reverse Circulation ("RC") holes drilled for 8,786 metres.
Better results include:

- Bells : 11m at 7.1 g/t Au from 155m

- Fish : 7m at 6.4 g/t Au from 65m

- Mary Mac South : 10m at 4.6 g/t Au from 26m

- Castaway : 6m at 4.3 g/t Au from 32m

- Curry Copper : 3m at 4.5% Cu from 98m
: 4.2 g/t Au; and
: 59 g/t Ag


Exploration - NT and China

- Uranium exploration planning in the Northern Territory, Australia commenced. Exploration and target generation underway in China.

Corporate

- Advanced Project Financing of A$25m cash and gold loan

- Agreed to raise additional equity of A$8.75m with Dundee Precious Metals (TSX:DPM)

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

DATE OF REPORT - 30 October, 2006

This discussion and analysis of the results of operations should be read in conjunction with the audited financial statements and accompanying notes for the Company's year ended audited financials ending June 30, 2005, Crescents unaudited half yearly report for the half year ending December 31, 2005 and Crescent's unaudited interim financial statements for the three month period June 30, 2006. This discussion and analysis as of October 30, 2006 provides information on the operations of Crescent for the three months ended September 30, 2006.

The Company's reporting currency is in Australian dollars, unless otherwise stated.

OVERVIEW

The Company's primary operation is Laverton Gold Project located in Western Australia. The project is currently in the pre-production stage of final site planning including construction and refurbishment of mill and camps for impending gold production at Laverton. Future production continues to be dependent on the status of economically recoverable reserves and resources, maintaining title and beneficial interest in the properties and the timely completion of the refurbishment and plant expansion development project.

Overburden removal and ore stockpiling at Laverton is expected to commence in early December, with ore processing commencing shortly thereafter.

In September 2005, the Company entered into an option to acquire a significant ground package in the Northern Territory. This includes 6 exploration licences and 2 licence applications in 3 areas which are believed to have potential for the discovery of economic uranium and base metal deposits. Crescent also continues to explore for precious and base metal projects in China.

Since February 14, 2006, the Company's shares have been listed on the Toronto Stock Exchange (TSX) under the trading symbol "CRA". Prior to February 14, 2006 the company traded, and continues to trade, on the Australian Stock Exchange (ASX) under the trading symbol "CRE" and on the Frankfurt Stock Exchange under the trading symbol "CRE5".

On 13 September 2006, the Company announced that Dundee Precious Metals (DPM) agreed to provide $8.75m in funds to Crescent by way of a placement under the Provisions of the 15% Placement rule (ASX). The agreement was subject to legal due diligence and other requirements being satisfied.

On 18 October 2006, the Company announced the successful closing of the first stage of financing with DPM providing $5.95 million in funds. The second stage, a further 8 million Crescent shares for $2.8 million, is expected to occur on or about November 10, 2006.

On 18 October 2006, the Company announced the completion of A$25 million Project Loan Facility consisting of A$20 million gold loan (25,478 ounces) and A$5 million cash loan.

RESULTS OF OPERATION

During the three months ended June 30, 2006 the Company incurred a net loss of $2,652,000 compared to a net loss of $446,000 for the same period in 2005. The increase in the company's reported net loss is primarily due to an increase of company activity and spending as the company advances towards production at its Laverton Gold Project.

During the three months ended September 30, 2006 the company incurred $2,075,000 in exploration and development costs, an increase of $1,191,000 for the same period in 2005 (September 30, 2005 totals $884,000). This increase can be largely attributed to the rise in activity typical of a company as it nears production stage - detailed engineering, geological, permitting, construction, equipment and structure refurbishment, infill drilling, resource and reserve estimates and technical reporting.

Administration costs increased to $618,000 during the September 30, 2006 quarter up from $497,000 for the same period in 2005. The increase is attributed to the addition of key employees required in preparation for production. In February 2006 the company began trading on the Toronto Stock Exchange. Increased administrative costs also reflect the listing on the TSX and associated costs.

Other costs include; interest for the three months ended September 30, 2006 of $72,000 and; the purchase of fixed assets totaling $22,000.

PROJECT OVERVIEW

The Laverton Gold Project ("LGP"), Western Australia, covers over 1,000 km2 of various mining, exploration and prospecting licenses.

Centered in the historic Laverton gold mining area, where over 28 million ounces of gold has been discovered thus far, Crescent's land lies in close proximity to several well known Projects including Barrick Gold Ltd.'s Wallaby Deposit and Granny Smith Project and AngloGold Ashanti's Sunrise Dam Project.

Owned and managed by Crescent, the LGP hosts over 20 targets, of which Ore Reserve and Resource estimates are completed on nine - Sickle, Fish, Euro, Admiral Hill, West Laverton, Mary Mac South, Grouse, Castaway and Lord Byron.

Current combined resources released by the Company on 06 September 2006, reports a NI 43-101 compliant Indicated Mineral Resource totaling 18.73 million tonnes at 1.5 grams per tonne for 877,000 ounces gold and an Inferred Mineral Resource of 11.4 million tonnes at 1.5 grams per ton gold totaling 550,000 ounces gold.

The LGP contains numerous exploration opportunities including extensions to existing open pit resources, high grade shoots with underground exploration potential and conceptual large scale targets similar to other major deposits in the region.

The current life of mine plan extends over 4 years based on current Probable Ore Reserve of 6.1 mt at 1.8 g/t (358,000 ounces of gold - Sept. 6, 2006 Press Release). The Company continues to focus on increasing reserves at Laverton by targeting open extensions on identified economic targets. A major RC drilling programme is underway during calendar 2006. This aims to convert selected inferred mineral resources into indicated mineral resources to allow additional probable reserve classification, thereby increasing the mine-life.

Based on current Ore Reserves the forecast net cashflow (Operating Profit) has risen to an estimated A$88.9m, using A$850/oz.

DEVELOPMENT

Project Development - Laverton Gold Project

Milling

The refurbishment and expansion has been divided into 2 phases with a total value in the order of $10.8 million. Phase 1 refurbishment to 1 million tonnes per annum through put is underway and is scheduled to be completed during December 2006 and the expansion to 1.5 mtpa in February 2007.

Mining

Preproduction mining is anticipated to commence in December 2006 with ore delivery in January 2007.

Initial mining will commence at the Sickle deposit followed by the Fish, Euro, Admiral Hill and West Laverton deposits.

Testing and the commissioning of the plant will be conducted using available heap leach material (located adjacent to the mill). The project is not mining dependent during the commissioning phase of milling.

Metallurgical

On going testing has confirmed feasibility study assumptions and a simulation study on crushing and milling capacity was conducted by JK Tech Pty Ltd. This confirmed 1.5 mtpa crushing and mill throughput capacities using the existing crushing circuit and ball mill, combined with the additional 700 kilowatt second ball mill in series at a material work index of 10.6.

The recently purchased second ball mill has a capacity of 1200 kilowatt, which exceeds the design requirements and in turn will allow greater flexibility when dealing with harder ore types.

Permitting

Government permitting approval has been gained for mining at the Sickle deposit. Other deposits are on going and are advancing on schedule. Barnicoat permitting (for the expansion only) was granted in the 3rd week of October 2006.

Community Relations

Current relations are good, with the general community eagerly anticipating Crescent Gold Limited commencing operations in Laverton.

Mineral Resource and Ore Reserve updated:

- Probable Ore Reserve estimates have increased to 6.2mt at 1.8 g/t for a new total of 358,000 ounces, a 22% increase on contained ounces previously estimated.

- The Indicated Mineral Resource estimate of 18.7mt at 1.5 g/t for 877,000 ounces is 47% higher than the contained ounces previously estimated. Inferred Resources now stand at 550,000 ounces.

EXPLORATION

The Company completed 89 Reverse Circulation ("RC") holes for an advance of 8,786 metres at Bells, Fish, Mary Mac South, Castaway, Lord Byron, Admiral Hill (Curry Copper), and Scotland Yet.

Better Intersections received during the September quarter include:



- Bells : 11m at 7.1 g/t Au from 155m
- Fish : 7m at 6.4 g/t Au from 65m
- Mary Mac South : 10m at 4.6 g/t Au from 26m
- Castaway : 6m at 4.3 g/t Au from 32m
- Curry Copper : 3m at 4.5% Cu, 4.2 g/t Au and 59 g/t Ag from 98m


The following details the activities carried out in more detail.

BELLS

Background

Well located with excellent infrastructure, Bells sits 4.5 km's south of the Laverton Gold Plant and lies a mere 600 metres from an existing haul road. Only 2km west of the Company's flagship Sickle deposit, Bells is well situated both logistically and geologically. Hosted along the 13.5km long Barnicoat shear structure, Crescent has shifted its exploration focus to areas containing the potential for high grade gold discoveries within well situated areas for future mining. Exploration results at Bells support the success of the Company's shift in exploration focus.

Activity

For the quarter ended September, a total of 29 RC holes were drilled for an advance of 3,894 metres. The drilling focused on the southern end where high grades have been encountered.

Intersections received at Bell's include:



--------------------------------------------------------------------------
Mineralised Intercept
Grade Depth Depth
Interval Au From To
(m) (g/t) (m) (m) Azimuth Dip North East Hole Id
--------------------------------------------------------------------------
2 4.4 39 41 270 -60 6829069 450970 BERC001
5 4.4 25 30 270 -60 6829019 450967 BERC004
7 4.0 65 72 270 -60 6829019 451007 BERC005
3 4.5 7 10 270 -60 6828971 450964 BERC007
2 2.2 55 57 270 -60 6828971 451004 BERC008
2 2.5 39 41 270 -60 6828928 450972 BERC009
4 6.9 15 19 270 -60 6828928 451012 BERC010
6 5.1 83 89
1 3.5 38 39 270 -60 6828928 451032 BERC011
3 1.5 106 109
3 3.5 113 116
11 7.1 155 166 270 -60 6828928 451072 BERC013
5.0 3.3 192 197 270 -60 6828928 451097 BERC019
4.0 4.4 164 168 270 -60 6828900 451072 BERC020


Drilling Results

Mineralisation is hosted in a steeply dipping quartz sulphide lode and displays similar characteristics to the Ida H deposit. Similarities between the two mineralisation types suggests Bells may also exhibit such notable gold values as that found at Ida H where mining was mostly carried out in the early 1900s. Underground workings at Ida H extend up to 500m vertical metres and 180 koz were produced at a head grade of 22.8 g/t Au.

The company believes the potential for further Ida H style mineralisation along the Barnicoat structure is highly promising.

Further drilling is planned during the next quarter in addition to extending the gravity survey.

To view the attached map, please click on the following link: http://www.ccnmatthews.com/docs/cra1.jpg

FISH

Background

Fish deposit is approximately 95 km south east of the Laverton Gold Plant.

Activity

For the three months ended September 30, 2006, a total of 7 RC holes for an advance of 800 metres were completed. Intersections received include:



--------------------------------------------------------------------------
Mineralised Intercept
Grade Depth Depth
Interval Au From To
(m) (g/t) (m) (m) Azimuth Dip North East Hole Id
--------------------------------------------------------------------------
3 4.6 15 18 270 -60 6781110 511426 FHRC029
3 5.2 78 81 270 -60 6781110 511478 FHRC030
3 2.8 64 67 270 -60 6781150 511489 FHRC031
1 2.9 54 55 270 -60 6781250 511476 FHRC032
3 2.6 26 29 270 -60 6780990 511365 FHRC033
7 6.3 65 72 270 -60 6780930 511358 FHRC034
3 6.7 78 81
7 3.4 142 149 270 -60 6781089 511499 FHRC035


Drilling Results

The programme was only part completed with an additional 12 holes planned to follow-up on testing area's at the base of the planned pit design.

To view the attached map, please click on the following link: http://www.ccnmatthews.com/docs/cra2.jpg

MARY MAC SOUTH

Background

Mary Mac South is located only 8 kms west of the Laverton Gold Plant and lies along strike between Craiggiemore and Mary Mac deposits on the West Laverton Trend, which is considered prospective to host high grade deposits within Banded Iron Formations.

Activity for the Quarter

During the three months ended September 30, 2006, the Company completed 3 RC holes for an advance of 372 metres at the end of quarter. The planned RC programme has continued into December quarter in which results will be announced as assays are still pending for the 3 RC holes.

To view the attached map, please click on the following link: http://www.ccnmatthews.com/docs/cra3.jpg

CASTAWAY

Background

The Castaway deposit is located 9 km's north of the Laverton Gold Plant. It lies on a parallel structure to the north west of Admiral Hill and possibly represents the northern extension of the 25 km long Central Laverton Shear Zone.

Activity

For the quarter ended June 30, 2006, a total of 4 RC holes were drilled for an advance of 354 metres. The drilling focused on extensions of the newly discovered zone at the northern end and updating the mineral resource of the deposit. Intersections received include:



--------------------------------------------------------------------------
Mineralised Intercept
Grade Depth Depth
Interval Au From To
(m) (g/t) (m) (m) Azimuth Dip North East Hole Id
--------------------------------------------------------------------------
3 1.8 9 12 246 -60 6843426 447635 CARC044
6 4.3 32 38
2 3.0 29 31 246 -60 6843352 447667 CARC046
1 2.4 34 35
3 4.6 42 45
1 2.2 70 71
2 2.3 27 29 246 -60 6843333 447676 CARC047
6 1.9 38 44


Drilling Results

Further drilling is planned.

To view the attached map, please click on the following link: http://www.ccnmatthews.com/docs/cra4.jpg

LORD BYRON

Background

Lord Byron is located 10 km's southwest of the company's Fish deposit (which has an Ore Reserve estimate of 430,000t at 4.0 g/t for 55,000 ounces), approximately 95 km south east of the Laverton Gold Plant.

Activity

For the three months ended September 30, 2006, a total of 13 RC holes for an advance of 1,770 metres were completed at the Lord Byron deposit. Better Intersections include:



--------------------------------------------------------------------------
Mineralised Intercept
Grade Depth Depth
Interval Au From To
(m) (g/t) (m) (m) Azimuth Dip North East Hole Id
--------------------------------------------------------------------------
9 1.57 63 72 270 -60 6777396 504306 LBRC041
2 3.27 82 84
5 2.06 68 73 270 -60 6777627 504155 LBRC043
3 4.46 102 105 270 -60 6777627 504193 LBRC044
3 1.60 117 120
4 1.76 99 103 270 -60 6777735 504107 LBRC045
3 1.52 128 131 270 -60 6777735 504129 LBRC046
2 1.51 80 82 270 -60 6777897 503979 LBRC047
7 1.35 95 102
5 1.78 116 117 270 -60 6777858 504019 LBRC048
4 1.76 51 55 270 -55 6777554 504283 LBRC058
6 1.40 37 43 270 -60 6777557 504226 LBRC059
4 1.80 48 52


ADMIRAL HILL - CURRY COPPER MINERALISATION

Background

Curry Copper lies below the Admiral Hill deposit (Ore Reserve estimate of 1,963,000t at 1.1 g/t for 71,000 ounces) and is located only 9 km's north of the Laverton Gold Plant.

Activity

For the quarter ended September 30, 2006, a total of 7 RC holes were drilled for an advance of 996 metres. The drilling focused on evaluating the copper rich zone.

Better Intersections include:



--------------------------------------------------------------------------
Mineralised Intercept
Inter- Cu Copper Gold Silver Depth
val (Eq) Cu Au Ag From To
(m) (%) (%)(g/t) (g/t) (m) (m) Azimuth Dip North East Hole Id
--------------------------------------------------------------------------
1 1.3 1.0 1.2 1.5 60 61 247 -60 6842566 448649 CURC001
41 0.8 0.6 0.7 5.9 67 108
3 5.6 4.5 4.2 59.9 98 101 Includes
1 14.9 11.5 12.6 154.0 99 100 Includes
6 - - 6.5 - 76 82 247 -60 6842589 448639 CURC002
7 0.6 0.5 0.5 2.1 89 96
9 0.4 0.3 0.3 3.0 76 85 247 -60 6842688 448636 CURC003
No Significant Intersection 247 -60 6842862 448529 CURC004
No Significant Intersection 247 -60 6842872 448553 CURC005
25 0.5 0.5 0.1 0.6 45 70 247 -60 6842917 448418 CURC006
3 1.8 1.8 0.1 0.1 47 50
1 - - 3.2 - 98 99 247 -60 6842926 448459 CURC007


Drilling Results

Assay results grading up to 11.5% copper, 12.6 g/t gold and 154 g/t silver were received. These results validate a previous result of 7% copper and highlight the potential for high grade mineralisation at Laverton. The result came from a drill hole testing the 6km long copper - gold soil anomaly adjacent to Admiral Hill.

Previous drilling on a section of the anomaly has delineated a strike length of 1,500m to a depth of 300m and remains open within 100% owned Crescent leases. It lies within a mineralised zone (up to 62m with visible chalcopyrite) and is situated on 100% owned tenements at Laverton.

The Cu-Au-Ag zone lies directly below the oxide gold deposit which is part of the company's Laverton Gold Project mine schedule.

Based on these results the company will carry out a Gravity and IP survey over the 6km long zone in November (refer Figure 1).

To view the attached map, please click on the following link: http://www.ccnmatthews.com/docs/cra5.jpg

SCOTLAND YET

Background

Scotland Yet is located less than 1 km east of the Laverton Gold Plant. Drilling focused on testing the northern strike length of the known mineralisation.

Activity

During the Quarter, 7 RC holes, for an advance of 510 metres were completed. No significant results were received.

METALLURGICAL TESTWORK

Better than expected gold recoveries were received from 25kg bulk samples at Mary Mac South (6.85g/t), Grouse (3.19g/t) and Castaway (2.98g/t). The following table displays the favourable comparison between the Calculated Head Assay and RC composite grade.



------------------------------------------------------------
Calculated(i) RC(i) Comparison
Deposit Head Assay (g/t) Grade (g/t) (%)
------------------------------------------------------------
Castaway 2.98 3.0 99%
Grouse 3.19 2.5 128%
Mary Mac 6.85 3.2 214%
------------------------------------------------------------
(i) RC Grade is the down-hole length weighted interval grade
for the composite sample, a full listing of the composite
samples is detailed in Table 1.


The following table details the recent bottle roll leach testwork conducted on 25kg composite RC samples, which closely reflects gold recovery rates from a combined gravity circuit and CIP plant.



------------------------------------------------------------
Calculated(i) Gravity Gold Total Recovery
Deposit Head Assay (g/t) Recovery (%) 24hrs (%)
------------------------------------------------------------
Castaway 2.98 32.16 91.4
Grouse 3.19 39.12 94.3
Mary Mac 6.85 65.19 96.4
------------------------------------------------------------
(i) Calculated Head Assay is the reconciled results from the
bottle roll testwork.


Very high gold recoveries were recorded from the broadly based composite bulk samples. In the case of Mary Mac South, 65% of the total gold recovered was gravity recoverable gold.

The discrepancy between assayed composite grade and the calculated head assay is encouraging and most likely due to coarse nuggetty gold.

To view Figure 1 - Laverton Tenements please click on the following link: http://www.ccnmatthews.com/docs/cra6.jpg

ORE RESERVES

During the quarter Probable Ore Reserve estimates were increased to 6.2mt at 1.8 g/t for a new total of 358,000 ounces, a 22% increase on contained ounces previously estimated (December 2005 4.4mt at 2.1 g/t for 292,000 oz).

The following table details the Company's Ore Reserves as defined by NI 43-101 as announced 06 September 2006.



----------------------------------------------------------------
Probable Total
Gold Tonnes Grade Tonnes Grade
Resources (kt) (g/t) (kt) (g/t) Ounces
----------------------------------------------------------------
Sickle 2,213 2.0 2,213 2.0 134,000
Euro 431 1.6 431 1.6 23,000
Admiral Hill 1,963 1.1 1,963 1.1 71,000
West Laverton 515 1.7 515 1.7 28,000
Fish 385 4.1 385 4.1 51,000
Mary Mac South 138 1.7 138 1.7 8,000
Grouse 107 1.7 107 1.7 6,000
Castaway 148 2.3 148 2.3 11,000
Lord Byron 293 1.8 293 1.8 17,000
----------------------------------------------------------------
----------------------------------------------------------------
Total Ore Reserves 6,193 1.8 6,193 1.8 358,000
----------------------------------------------------------------
----------------------------------------------------------------

Gold grades are rounded to 1 decimal figure. Abbreviations used:
Kt equals 1,000 tonnes, g/t equals grams per tonne

Definitions;
Ore reserves - Reserves are classified as Proven and Probable,
greater than 0.8g/t cut off.
Reserve ounces - Net of mine dilution and ore loss

Assumptions:
A$850/oz spot price,
State Royalty applied at 2.5% and Native Title Royalty of A$1.60/oz.
1.5mtpa mill expanded case


MINERAL RESOURCE STATEMENT

As announced 06 September 2006, the Indicated Mineral Resource at Laverton totalled 18.7 million tonnes at 1.5 g/t Au containing 0.877m ozs of gold and an Inferred Mineral Resource of 11.4 million tonnes at 1.5 g/t Au containing 0.539m ozs, detailed as follows;



-----------------------------------------------------------------------
Indicated Inferred
Tonnes Grade Tonnes Grade
Project (kt) (g/t) Ounces (kt) (g/t) Ounces
-----------------------------------------------------------------------
Sickle 6,543 1.7 362,000 2,421 1.3 104,000
Fish 500 4.1 67,000 160 3.7 19,000
West Laverton 1,010 1.9 62,000 450 1.9 27,000
Euro 646 1.7 35,000 53 1.5 3,000
Mary Mac South 455 1.9 28,000 136 2.1 9,000
Armstrong 4,831 0.8 124,000 1,638 1.4 74,000
Castaway 340 2.1 23,000 45 1.7 2,000
Grouse 523 1.7 29,000 27 1.3 1,000
West Laverton Group 712 2.9 66,000
Central Laverton
Group 444 2.0 28,000 2,720 1.4 119,000
Burtville Group 210 2.1 14,000 1,060 1.7 58,000
Jasper Hill Group 3,190 1.0 105,000 1,980 0.9 57,000
-----------------------------------------------------------------------
TOTAL RESOURCES 18,692 1.5 877,000 11,402 1.5 539,000
-----------------------------------------------------------------------
Low Grade
Stockpiles 1,217 0.7 28,000


ADDITIONAL NOTES FOR TABLE

- Figures contained within Table have been rounded. Gold grades are rounded to 1 decimal figure; both estimated tonnes and contained ounces are rounded to nearest 1000.

- Abbreviations used: Kt equals 1000 tonnes, g/t equals grams per tonne,

- West Laverton Group includes resources for West Laverton, Mary Mac, Mary Mac South and Craiggiemore.

- Central Laverton Group includes resources for Castaway, Pieces of Eight, She's Right West, She's Right East, Scotland Yet, Grouse, Jacks, Bogle, Bogle South, Bells, Ida H and Low Grade Stockpiles.

- South Laverton Group includes resources for Black Label and Lily Pond Well.

- Jasper Hill Group includes resources for Lord Byron.

- Burtville Group includes resources for Burtville and Karridale deposits.

- The Karridale deposit is hosted within tenements that are subject to the Merolia Joint Venture Agreement ("MJV"), in which the company holds 75.5% interest in the MJV.

- The following mineral resource locations are contiguous with existing open cut pits West Laverton, Mary Mac, Mary Mac South, Craiggeimore, She's Right West, She's Right East, Scotland Yet and Ida H.

URANIUM

Crescent Gold has the option to acquire six granted exploration licences (EL24834, EL24837, EL24847, EL24866, EL24867 and EL24898) and two exploration licence applications in the Northern Territory, covering 4903.8 km2 of ground considered prospective for uranium and other commodities.

To view the attached map, please click on the following link: http://www.ccnmatthews.com/docs/cra7.jpg

CHINA

The Company commenced field work in China late in the June Quarter, with visits to several prospects of interest.

The Company has established a joint venture company which has received approval from the Foreign Trade and Economic Co-operation Bureau. It has been granted a business licence by the Administration Bureau of Industry and Commerce, Xinjiang Uyghur Autonomous Region in North Western China and the transfer of exploration licenses are awaited.

PLANNED DECEMBER 2006 QUARTER ACTIVITY

Laverton Gold Project

- Commencement of commissioning Laverton Gold Project.

- Double the drilling commitment from 1 rig to 2 rigs.

- Mobilisation and establishment of Mining Contractor

- Securing operational management team.

- Development drilling of identified inferred resources and newly identified mineralisation at Mary Mac South, Castaway, Ida H, Black Label, Fish, Scotland Yet and Bells

- Update Ore Reserves

Exploration

Laverton

- Regional exploration of the Laverton District.

- PIMA/multi-element analysis and alteration mapping will start on the Central Laverton Shear Zone (approx 12.5 x 25 kms) and the Sickle Corridor (extending 25km - Sickle and Admiral Hill).

- Exploration work focusing on locating large new targets.

Uranium NT

- Geophysical surveys are being planned. They will be scheduled as soon as a suitable contractor crew becomes available.

CRITCAL ACCOUNTING ESTIMATES

As of September 30, 2006 the Company evaluated and retains its standing as a Designated Foreign Issuer (National Instrument 71-102). This evaluation was performed by the Managing Director with the assistance of other Company personnel to the extent necessary and appropriate. As a result the Company continues to disclose and report its financial statements in accordance with the Australian Corporations Regulations 2001 and Accounting Standards AASB 134 "Interim Financial Reporting" and AASB 1 "First-time Adoption of Australian Equivalents to International Financial Reporting Standards".

A detailed description of the Company's accounting policies is disclosed in the Auditors' Independence Declaration, the Corporate Governance Statement and Significant Accounting Policies of the Company's Annual Report 2005 for the year ended June 30, 2005 and Half Yearly report dated December 31, 2005.

On 18 October 2006 the Company announced the completion of a financing where 17 million shares of the Company were issued to a Canadian entity. As of 18 October 2006 the Company evaluated and changed its standing to Foreign Issuer (National Instrument ("NI") 71-102).

The Company is reviewing its reporting requirements as a Foreign Issuer and as required in NI 71-102, the Company continues to disclose and report its financial statements in accordance with the Australian Corporations Regulations 2001 and Accounting Standards AASB 134 "Interim Financial Reporting" and AASB 1 "First-time Adoption of Australian Equivalents to International Financial Reporting Standards" and will do so for the remaining financial year. The company will re-evaluate its standing as a Foreign Issuer at that time.

Exploration and evaluation costs are capitalized where tenure is held. Where tenure is not held, these costs are expensed. Development costs are capitalized and amortized throughout the estimated life of the mine once production commences.

All direct costs related to the acquisition of mineral tenements and prospects are capitalized.

CHANGES IN ACCOUNTING POLICIES

As of July 1, 2005 the Company has made changes to its accounting policies in order to comply with Australian Equivalents to International Financial Reporting Standards ('AIFRS').

A detailed description of the requirements of AIFRS and its impact on the Company's accounting policies is disclosed in Section 26 of the Company's audited financial statements for the year ended June 30, 2006.

DERIVIATIVE INSTRUMENTS

On March 23, 2006 the Company announced the right, but not the obligation, to sell 100,000 ounces of gold at $750/oz until March 2008. The purchase was funded with a $3.75m loan at 7.75% pa from Investec (formerly Rothschild).

On 18 October 2006, the Company announced that it had;

- adjusted the floor price on the Company's right to sell 100,000 ounces of gold at $750/oz to 90,000 oz at $850/oz.
- Finalised the A$25 million project finance comprising A$20 million gold loan (25,478 ounces) and A$5 million cash loan.

- Sold forward 100,000 oz at $860/oz, less than 30% of current Laverton reserves of 358,000 ounces.

- Purchased an oil price cap at US$71.55 for US$635,000. This protects the company's operating costs from an oil price spike over the next 2 years.

TRANSACTIONS WITH RELATED PARTIES

Nil

PAYMENTS TO DIRECTORS

Executive Directors of the Company combined received payments totaling $102,000 and Non-Executive Directors combined received $2,000 for the three months ended September 30, 2006.

12th July - Dave Keough joined the Board

SUMMARY OF QUARTERLY RESULTS

The table below sets out the quarterly results for the past six quarters:



2006 2005 2004
---- ---- ----
Sep-30 Jun-30 Mar-31 Dec-31 Sep-30 Jun-30 Mar-31 Dec-31
------ ------ ------ ------ ------ ------ ------ ------
$A '000 $A '000 $A '000 $A '000 $A '000 $A '000 $A '000 $A '000
Income
from
Securities
and Conver-
tible Notes - 2,253 402 9,895 1,500 209 3,628 -
Other
Income 135 150 159 90 60 65 55 43
Exploration
and
Develop-
ment (2,075) (1,542) (1,185) (847) (884) (897) (732) (927)
Adminis-
tration (618) (535) (642) (345) (497) (420) (401) (337)
Other
Operating
Expenses (72) (160) (128) (1) (45) (90) (44) (11)
Other
Investing
Expenses (22) (86) (388) (22) (580) (11) (31) (9)
--------------------------------------------------------------------------
Net
Increase
(Decrease)(2,652) 80 (1,782) 8,770 (446) (1,144) 2,475 (1,241)
--------------------------------------------------------------------------
Net Gain
(Loss)
per
Share A$ (0.0119) 0.0004 (0.009) 0.047 (0.003) (0.008) 0.022 (0.012)


The majority of exploration costs were incurred in the most recent three quarters as the company prepares for and nears production. Other income includes interest from cash assets and receipts from product sales and related debtors.

LIQUIDITY & CAPITAL RESOURCES

The Company's cash on hand and funds on deposit for the quarter ended September 30, 2006 was $8,484,000, an decrease of $2,652,000 since the three months ended June 30, 2006. The decrease is attributed to the company having not issued any shares relating to a financing or exercise of options or warrants during this period.

The Company's principal source of cash during the three months ended September 30, 2006 was $135,000 from interest compared to $49,000 for the same period last year.

The company has not commenced mining operations and as of yet has no other internal source of cash.

In the three months ended September 30, 2006 the company used net cash of $2.075 million in exploration and development activities with spending focusing on its Laverton Gold Project as the Company nears production.

COMMITMENTS AND CONTRACTUAL OBLIGATIONS

On 18 October 2006, the Company announced the completion of a $25 million Project Loan Facility to fund the development of its Laverton gold project. The Company repaid the $3.75 million loan used to purchase 100,000 ounces of Gold Put Options with Rothschild.

The loan is comprised of a $20 million gold loan (25,478 ounces) and $5 million cash loan.

The following contracts have been entered into:

Construction and refurbishment agreement- BEMEX Corporation Pty Ltd

Camp Construction - AUSCO Building Systems

Contract mining, drill and blast and road haulage - MINEPOWER

Processing Operating Agreement- BEMEX Corporation Pty Ltd

Catering and Camp - Topic Caterers

The agreements will allow Crescent Gold to move through the construction and refurbishment phases and subsequently into operational phase.

OFF-BALANCE SHEET ARRANGEMENTS

None

OUTSTANDING SHARE DATA

On the 4th August, the company issued 1.00m shares pursuant to the conversion of 1.0m Convertible Notes.

On the 18th September, the company issued 3.15m shares pursuant to the conversion of 3.15m Convertible Notes.

On 18 October 2006, the Company issued 17 million shares to Dundee Precious Metals Inc. ("DPM") in accordance with the 14 September 2006 announcement regarding an $8.75 million financing with DPM. This is to be completed in two stages. The first 17,000,000 shares were issued at $0.35/share and the second, a further 8,000,000 shares at $0.35. The second is expected to occur on or about November 10, 2006.

Currently the company has 239,180,712 shares outstanding.

FORWARD-LOOKING STATEMENT

This discussion and analysis contains certain forward-looking statements. These include statements about our expectations, beliefs, intentions or strategies for the future, and are indicated by words such as "budget", "anticipate", "intent", "believe", "estimate", "forecast", "expect", and similar words. While all forward-looking statements reflect our current views with respect to future events, they are subject to certain risks and uncertainties. Actual results may differ materially from those projected in these statements for a number of factors, including those which are described in the Corporation's periodic filings with securities regulatory authorities. We base our forward-looking statements on information currently available to us and we do not assume any obligation to update or revise them, except in accordance with applicable securities laws, Readers should not place undue reliance on forward-looking statements.

1. All gold analysis undertaken by 50 gram Fire Assay at independent commercial laboratory Genalysis Laboratory Services Pty Ltd in Perth and Kalgoorlie and UltraTrace Pty Ltd in Perth, Australia.

2. RC samples collected over 1 metre intervals using a industry standard 3 tier riffle splitter. Diamond core was sampled over 1m by collecting whole core, sample was crushed then rotary split at Ammtec Pty Ltd.

3. Minimum intersection width 2 metres with internal waste of no more than 2 metres

4. Downhole lengths reported as true width is unknown.

5. Azimuths are referenced to local grid.

6. No top cut has been applied.

7. Intersection grade rounded to 1 decimal figure.

Quality Assurance and Quality Control (QAQC):

Gold intersections reported have been verified by the company's QAQC protocols, which include routinely inserted standards and replicate field splits. All samples from drill holes are prepared by Genalysis and Ultra Trace and pulverised to 90% passing 75 microns then analysed for gold using Fire Assay methods.

"The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Andrew Spinks, who is a Member of The Australasian Institute of Mining and Metallurgy included in a list promulgates by the ASX from time to time. Andrew Spinks is employed by Crescent Gold Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is 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" and a "Qualified Person" under Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects. Andrew Spinks consents to the inclusion in the report of the matters based on his information in the form and context in which it appears."

In accordance with the requirements of Canadian National Instrument 43-101 further information on the geology and mineralising setting can be found within the "Independent Technical Report on the Mineral Asset of Laverton Gold Project" which is available on SEDAR (www.sedar.com) or the company's website www.crescentgold.com.

Further information on Crescent Gold Limited and technical reports on the Laverton Gold Project and all aspects of the Company's activities can be found on the company's website www.crescentgold.com.

Regards

Crescent Gold Limited

Andrew Haythorpe, Managing Director



Rule 5.3
Appendix 5B

Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity
Crescent Gold Limited

ABN Quarter ended ("current quarter")
49 087 360 996 30 September 2006

Consolidated statement of cash flows

Cash flows related to Current quarter Year to date
operating activities $A'000 (3 months) $A'000
------------------------------------
1.1 Receipts from product sales and
related debtors - -
1.2 Payments for (a) exploration and
evaluation (1,348) (1,348)
(b) development (727) (727)
(c) production - -
(d) administration (618) (618)
1.3 Dividends received - -
1.4 Interest and other items of a
similar nature received 135 135
1.5 Interest and other costs of
finance paid (72) (72)
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -
------------------------------------
Net Operating Cash Flows (2,630) (2,630)
--------------------------------------------------------------------------
Cash flows related to investing activities
1.8 Payment for
purchases of: (a) prospects - -
(b) equity investments - -
(c) other fixed assets (22) (22)
1.9 Proceeds from
sale of: (a) prospects - -
(b) equity investments - -
(c) other fixed assets - -
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material) - -
------------------------------------
Net investing cash flows (22) (22)
------------------------------------
1.13 Total operating and investing
cash flows (carried forward) (2,652) (2,652)
--------------------------------------------------------------------------
1.13 Total operating and investing
cash flows (brought forward) (2,652) (2,652)
--------------------------------------------------------------------------

Cash flows related to financing activities
1.14 Proceeds from issues of shares, options,
etc. - -
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other (provide details if material) - -
------------------------------------
Net financing cash flows - -
--------------------------------------------------------------------------
Net increase (decrease) in cash held (2,652) (2,652)
1.20 Cash at beginning of quarter/
year to date 11,136 11,136
1.21 Exchange rate adjustments to item 1.20 - -
------------------------------------
1.22 Cash at end of quarter 8,484 8,484
--------------------------------------------------------------------------

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related
entities

-----------------------
Current quarter $A'000
-----------------------
1.23 Aggregate amount of payments to the parties
included in item 1.2
Executive Director 102
Non-Executive Directors 2
-----------------------
1.24 Aggregate amount of loans to the parties
included in item 1.10 Nil
--------------------------------------------------------------------------

1.25 Explanation necessary for an understanding of the transactions

Not applicable
Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a
material effect on consolidated assets and liabilities but did
not involve cash flows

Not applicable.

2.2 Details of outlays made by other entities to establish or
increase their share in projects in which the reporting entity has
an interest

Not applicable.

Financing facilities available
Add notes as necessary for an understanding of the position.

--------------------------------------------
Amount available $A'000 Amount used $A'000
3.1 Loan facilities - -
--------------------------------------------
3.2 Credit standby arrangements Nil Nil
--------------------------------------------------------------------------

Estimated cash outflows for next quarter
-----------------------
$A'000
-----------------------
4.1 Exploration and evaluation 2,000
-----------------------
4.2 Development 10,000
--------------------------------------------------------------------------
Total 12,000
--------------------------------------------------------------------------

Reconciliation of cash

Reconciliation of cash at the end
of the quarter (as shown in the
consolidated statement of cash
flows) to the related items in --------------------------------
the accounts is as follows. Current quarter Previous quarter
$A'000 $A'000
--------------------------------------------------------------------------
5.1 Cash on hand and at bank 1,882 6,704
--------------------------------
5.2 Deposits at call - -
--------------------------------
5.3 Bank overdraft - -
--------------------------------
5.4 Other - Funds covering various bonds
and Gold Put Options 6,602 4,432
--------------------------------------------------------------------------
Total: cash at end of quarter (item 1.22) 8,484 11,136
--------------------------------------------------------------------------

Changes in interests in mining tenements

-------------------------------------------
Interest
Nature of at Interest
Tenement interest beginning at end
reference (note (2)) of quarter of quarter
-------------------------------------------
6.1 Interests in mining
tenements relinquished,
reduced or lapsed Nil
-------------------------------------------
6.2 Interests in mining
tenements acquired or
increased L38/0108 Miscell-
aneous
Licence
(Application) Nil 100%
-------------------------------------------

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion
rights together with prices and dates.

--------------------------------------------------------------------------
Amount
Issue price paid up per
per security security
Total Number (see note 3) (see note 3)
Number quoted (cents) (cents)
--------------------------------------------------------------------------
7.1 Preference (i) securities
(description) Nil
------------------------------------------------
7.2 Changes during quarter
(a) Increases through issues
(b) Decreases through returns
of capital, buy-backs,
redemptions Nil
------------------------------------------------
7.3 (+) Ordinary
securities 222,180,712 222,180,712 Fully paid Fully paid
7.4 Changes during quarter
(a) Increases through
issues (b) Decreases
through returns of
capital, buy-backs 4,150,000 4,150,000
------------------------------------------------
7.5 (+) Convertible debt
securities
(description) 4,150,000 Nil 20 cents 20 cents
------------------------------------------------
7.6 Changes during quarter
(a) Increases through
issues Nil Nil
(b) Decreases
through securities
matured, converted 4,150,000 Nil 20 cents
------------------------------------------------
7.7 Options (description
and conversion
factor) 26,850,000 - Exercise Expiry date
price See See
following following
page page
------------------------------------------------
7.8 Issued during quarter - -
------------------------------------------------
7.9 Exercised during quarter - -
------------------------------------------------
7.10 Expired during quarter - -
------------------------------------------------
7.11 Debentures
(totals only) Nil
-----------
7.12 Unsecured notes
(totals only) Nil
-----------


ITEM 7.7 DETAILS OF OPTIONS ON ISSUE

------------------------------------------------------------------------
Exercise
Options ASX Code Total Number Number Quoted price $ Expiry date
------------------------------------------------------------------------
CREAM (OPT) 10,000,000 0.20 02/08/2008
------------------------------------------------------------------------
CREAA 10,000,000 0.15 31/03/2007
------------------------------------------------------------------------
CREAB 1,000,000 0.15 31/12/2007
------------------------------------------------------------------------
CREAC 5,850,000 0.30 30/11/2007
------------------------------------------------------------------------
26,850,000 -
------------------------------------------------------------------------


Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

2 This statement does give a true and fair view of the matters disclosed.

Date: 30th October 2006.

Carol New, Director/Company Secretary



SHARE INFORMATION

ASX Share Price: A$0.28
Issued Shares: 239.2m
Market Cap: A$67.0m
Options unlisted: 26.9m

FULLY DILUTED BASIS

Shares: 266.0m
Cash on dilution: A$5.4m
Current Cash (ii) : A$12.8m

ENTERPRISE VALUE

EV: A$54.2m
EV / oz reserve: A$151/oz
EV / oz resource: A$38/oz

RESOURCES

Measured: 0.07m ozs
0.9mt
2.5g/t
Indicated: 0.88m ozs
18.7mt
1.5g/t
Inferred: 0.54m ozs
11.4mt
1.5g/t
Market Cap/oz: A$45/oz

RESERVES

Probable: 0.36m ozs
6.2mt
1.8g/t
Market Cap/oz: A$187/oz

ABN 49 087 360 996

(ii) Inc. A$2.4m Enviro' Bonds



Contact Information