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

Crescent Gold Limited

April 30, 2007 11:22 ET

Crescent Gold Limited: Quarterly Report-31 March 2007

PERTH, AUSTRALIA--(CCNMatthews - April 30, 2007) -

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

HIGHLIGHTS FOR THE QUARTER ENDED 31 MARCH 2007

- Significant drill results at West Laverton 10m at 7.7 g/t and 9m at 7.0 g/t

- Commissioning of the Laverton Gold Plant

- Ore reserves increased to 400k ounces of gold

- Capital raising $5M in Convertible Notes

- First Gold Pour - Crescent becomes a producer

- Crescent + Deutsche Strategic Alliance $122 Placement

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



ASX Code: CRE TSX Code: CRA FFT Code: CRE5

SHARE INFORMATION

ASX Share Price: A$0.37
Issued Shares: 259.2m
Market Cap: A$95.9m
Options unlisted: 56.7m

FULLY DILUTED BASIS

Shares: 315.9m
Cash on dilution: A$12.7m

RESOURCES

Indicated: 0.95m ozs
20.1mt
1.5g/t
Inferred: 0.48m ozs
10.4mt
1.4g/t

RESERVES

Probable: 0.40m ozs
7.6mt
1.7g/t

RESOURCE

Market Cap/oz: A$67/oz

RESERVE

Market Cap/oz: A$240/oz


DATE OF REPORT - 30 April 2007

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, 2006 and Crescent's unaudited interim financial statements for 30 September 2006 and 31 December 2006. This discussion and analysis as of 30 April 2007 provides information on the operations of Crescent for the three months ended 31 March 2007.

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

OVERVIEW

The Company's primary operation is the Laverton Gold Project located 250km north east of Kalgoorlie in Western Australia. The project is currently in the early production and commissioning stage including commissioning and expansion of the mill for impending gold production at Laverton. Mine site preparation and subsequent mining has commenced and camp expansion and refurbishment is complete. Ongoing production continues to be dependent on the status of economically recoverable reserves and resources, maintaining title and beneficial interest in the properties and the successful achievement of ramp up and full scale gold production.

On 1 February 2007 the Company announced significant drill intercepts at the Craiggiemore deposit along the West Laverton Trend ("WLT"). This confirms the presence of a high grade mineralisation with better intercepts including 10m at 7.7 g/t and 9m at 7.0g/t.

On 21 February 2007 the Company announced that it had commenced commissioning on low grade stockpiles at Laverton Gold Project.

The Company further advised that it had increased the Probable Ore Reserve to a total contained gold of 400,000 ounces.

Also announced on 21 February 2007 was a capital raising via convertible notes to various institutional investors for A$5M in Convertible Notes.

On 22 February 2007 the Company announced further drilling results at the Craiggiemore deposit with the most significant intercepts being 3m at 10.5 g/t.

On 21 March 2007 the Company announced the successful pouring of its first gold bar thus joining the ranks as a gold producer. The commencement of ore mining at Sickle was also announced.

On 26 March 2007 the Company announced a proposed strategic alliance with Deutsche Bank AG (acting through its London branch) ("DB") thereby providing opportunities of future growth and development.

Also on 26 March 2007 the Company announced the pouring of its second gold bar from the Laverton Gold Project.

RESULTS OF OPERATION

During the three months ended 31 March 2007 the Company incurred a net cash outflow of $5,500,000 compared to a net cash inflow of $1,782,000 for the same period in 2005. The increase in the company's reported net cash outflows is primarily due to an increased activity and spending as the company advanced towards production at its Laverton Gold Project.

During the three months ended 31 March 2007 the Company incurred $10,879,000 in exploration and development costs, compared to $1,185,000 for the same period in 2006. 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 were $753,000 during the quarter ended 31 March 2007, up from $642,000 for the same period in 2006. 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 and has subsequently opened an office in Vancouver, British Columbia, Canada. Increased administrative costs also reflect the listing on the TSX and associated costs.

Other operating costs for the three months ended 31 March 2007 of $648,000 and other investing expenses totaling $1,073,000.

SUMMARY OF OVERALL PERFORMANCE

CORPORATE

Capital Raising - Convertible Notes $5M

During the quarter the Company successfully negotiated terms for $5M in Convertible Notes. Key terms include 9% pa interest with a maturity date of 1(st) March 2010 (three years), conversion price of $0.40 and 1 free attaching option for two shares in the company issued on conversion of the notes prior to June 30 2007. The following parties subscribed:



Amount Notes
New City Investment Managers $2,000,000 5,000,000
Linq Resources Fund $2,000,000 5,000,000
Nefco Nominees Pty Ltd $ 500,000 1,250,000
Nortrust Nominees Ltd $ 500,000 1,250,000


The funds raised will be used to carry out exploration activities on the Company's tenements in South Australia and Northern Territory, Laverton Gold Project completion and working capital.

On 23 April 2007 the Company announced that all conditions precedent had been met and the notes had been issued.

CRESCENT GOLD LIMITED AND DEUTSCHE BANK IN A STRATEGIC ALLIANCE

Private Placement $122m Deutsche Bank

On 26 March 2007 the Company announced that a Letter Agreement had been signed with Deutsche Bank for a placement of 315,789,474 shares to raise A$120 million at $0.38 per share subject to shareholder approval and various regulatory hurdles to achieve the desired placement.

On 13 April 2007 a Subscription Agreement was signed to replace the letter agreement and to detail out the requirements of both parties related to the completion of the transaction. The Subscription Agreement varied the placement to 321,710,526 shares at $A0.38 to raise approximately $A122 million.

Following the Placement, Deutsche Bank will have a relevant interest in the Company of 55.38% of the Company's total issued share capital.

The proceeds of the Placement will be used to advance exploration and development activities on the Company's Laverton Gold Project and to accelerate broader growth strategies. The transaction will enable the Company to benefit from Deutsche Bank's global platform and access capital and further growth opportunities.

Crescent Gold Limited

Crescent Gold Limited is an emerging gold producer with significant gold reserves and tenement holding (in excess of 1,000 sq km) in the world class gold district of Laverton - Western Australia, in addition to interests in South Australia and the Northern Territory.

The Company's primary operation is the Laverton Gold Project located 250km north east of Kalgoorlie in Western Australia. The Project is in the early production stage and the expansion is nearly complete.

The Company's strategy has been to transform itself from an explorer into a producer and to further increase mine life.

The Board of Directors believe that the Crescent + Deutsche strategic alliance will enable the Company to 1) expand existing projects, 2) pursue new opportunities both locally and internationally, 3) increase its overall scope.

To view the Transaction Structure, some of the Key benefits identified for Crescent and Strategy to create Shareholder Value please click the following link: http://www.ccnmatthews.com/docs/Transaction%20Structure.pdf

PROJECT OVERVIEW

The Laverton Gold Project ("LGP"), Western Australia, extends over 1,000 km(2) 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 close to several well known Projects including Barrick Gold Ltd.'s Wallaby 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 21 February 2007, reports a NI 43-101 compliant Indicated Mineral Resource totaling 20.1 million tonnes at 1.5 grams per tonne for 953,000 ounces gold and an Inferred Mineral Resource of 10.4 million tonnes at 1.4 grams per ton gold totaling 479,000 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 beyond 4 years based on current Probable Ore Reserve of 7.6 mt at 1.7 g/t (400,000 ounces of gold) - Feb 21, 2007 Press Release). The Company continues to focus on increasing reserves at Laverton by targeting open extensions on identified economic targets. Ongoing drilling aims to continue converting selected inferred mineral resources into indicated mineral resources to allow additional probable reserve classification, thereby increasing the mine-life. Identification of high grade gold occurrences is also expected to have a positive affect on project resources.

DEVELOPMENT - LAVERTON GOLD PROJECT

Plant Refurbishment & Construction

On 21 March 2007 the Company announced it had poured its first gold bar from the Laverton Gold Project. The Laverton Gold plant has been refurbished and is operational with remedial work on going.

The second hand Ball Mill repair was completed successfully and installation of the new leach tanks neared completion.

The 2nd Ball Mill is scheduled to be installed by the 2nd week in May. The leach tanks should be complete by the first week of May with the electrical & services being finished by the 3rd week of May. The upgraded tails pumps, leach feed pumps, tails screen, gravity circuit & cyclone bank have all been included in the above schedule.

A mobile crusher was hired from Mineral Crushing Services and was installed and operational on 20 March.

The mobile crusher from Malaysia is now awaiting clearance from Fremantle wharf.

Project Management

On 1 January 2007 the Engineering, Procurement and Construction Management ("EPCM") contract with BeMex was substantially varied.

OPERATIONS

Mining

Drilling and blasting commenced in February. Bunding and drainage in preparation for mining was put in place and lay down and waste dump areas were established.

Mining commenced with 1 excavator and 3 trucks operational on 8 March 2007. The initial benches of Sickle phase 1 are principally lateritic material.

A total of 261,846 BCM's of material was moved during the month of March. With a total of 34,006 tonnes of ore hauled by road trains to the plant. Reconciled Mill Head Grade was 1.7 grams per tonne for the month of March.

Processing

On 21 February the Company announced that it had commenced commissioning. Initial feed was obtained from ex Heap Leach pads adjacent to the mill at a feed grade of 0.8 -1.0 g/t. The power station, fuel distribution and tailings storage facilities were also completed and commissioned during February.

Commissioning of the plant addressed the feed chutes design, mill discharge pumps, tails pumps and the elution circuit.

The first gold pour occurred on 19 March 2007 (announced 21 March 2007) and a total gold poured for the month of March was 953 oz compared to a forecast of 754 oz.

Total milled tonnes for the month of March were 35,316 tonnes at a feed grade of 1.67 grams per tonne compared to a forecast of 38,356 tonnes at 0.63 grams per tonne.

Crushing and milling of Sickle ore commenced on 22 March.

Other

The new camp approached full capacity with construction personnel and the mobilization of operating crews on site.

The Stores office was partly completed whilst other minor works continued in the camp.

The final Department of Environment inspection occurred and the operating licence for the Laverton Plant approved.

EXPLORATION

LAVERTON GOLD PROJECT

The Company has completed 81 Reverse Circulation ("RC") holes for an advance of 9,739 metres at Craiggiemore, She's Right East, Keora Well and Carouso.

Better Intersections received during the March quarter include:



10m @ 7.7 g/t from 75m (includes 2m at 23.7 g/t from 75m)
9m @ 7.0 g/t from 87m (includes 2m at 14.5 g/t from 92m)
4m @ 6.7 g/t from 56m (includes 2m at 10.6 g/t from 56m)
6m @ 6.4 g/t from 56m (includes 2m at 13.9 g/t from 57m)
10m @ 3.8 g/t from 94m (includes 3m at 9.5 g/t from 100m)
9m @ 5.0 g/t from 86m (includes 3m at 10.5 g/t from 87m)
11m @ 3.2 g/t from 124m (includes 2m at 9.7 g/t from 132m)


A full listing of results is detailed in the following table (down-hole lengths reported - true widths will be determined).

First pass regional targeting utilising all datasets (geological interpretation, pit and outcrop mapping, improved geophysical data, 3D Model etc) has been completed with several new targets generated and historical prospects highlighted. Drilling commenced on these during the quarter.

The company updated its NI 43-101 compliant Ore Reserve and Mineral Resource Statement (21 February 2007). This resulted in the Ore Reserves increasing to 400,000 ounces of gold.

The following details the activities carried out during the quarter ending 31 March 2007.

WEST LAVERTON TREND - CRAIGGIEMORE

Background

The area is located 11 km south-west of the Laverton Gold Plant and just 200m from an existing haul road. The company holds 100% of the 4km strike length of favourable Banded Iron Formation ("BIF") sequence within the West Laverton Trend. Previous intersections from the area (refer Figure 1 and 2) to be used in future resource estimations include; 11m @ 45.4 g/t from 25m (includes 2m at 240.0 g/t from 31m) and 26m @ 17.8 g/t from 62m (includes 9m at 26.0 g/t from 92m).

Activity for the Quarter

During the three months ended March 31 2007, the Company completed 73 RC holes for 8,761 metres at Craggiemore by the end of quarter.

Geological Interpretation and Exploration Potential

Mineralisation is located within a Banded Iron Formation ("BIF"). Gold mineralisation at Craiggiemore is strata bound within a BIF unit that has undergone significant deformational and structural thickening. The BIF strikes north and dips steeply east and lies between ultramafic rocks to the west and basalts to the east.

The geology along strike appears similar to the Craiggiemore deposit, and no mining has taken place in this area. Mineralisation south of Craiggiemore occurs within two sub-parallel lodes.



Table - RC Drill Results for Craiggiemore Project
---------------------------------------------------------------------------
Mineralised Intercept

Interval Grade Au Depth Depth Azimuth Dip North East Hole Id
From To
(m) (g/t) (m) (m)
---------------------------------------------------------------------------

4 6.7 56 60 285 -60 6829385 440413 CMRC001
2 10.6 56 58 Includes
1 6.2 65 66

9 7.0 87 96 285 -60 6829587 440462 CMRC002A
2 14.5 92 94 Includes

4 1.3 22 26 285 -60 6829330 440368 CMRC004

1 1.3 43 44 285 -60 6829327 440391 CMRC005
2 1.4 61 63

3 2.6 54 57 285 -60 6829240 440380 CMRC008

8 3.2 80 88 285 -60 6829235 440400 CMRC009

2 4.7 28 30 285 -60 6829263 440379 CMRC010
5 4.7 54 59

8 4.0 69 77 285 -60 6829258 440398 CMRC011

6 6.4 56 62 285 -60 6829556 440442 CMRC013
2 13.9 57 58 Includes

1 4.6 54 55 285 -60 6829613 440344 CMRC014

10 3.8 94 104 285 -60 6829764 440473 CMRC018
3 9.5 100 103 Includes

3 3.9 45 48 285 -60 6829389 440398 CMRC019

5 2.4 79 84 285 -60 6829381 440427 CMRC020

10 7.7 75 85 285 -60 6829533 440436 CMRC021
2 23.9 75 77 Includes
1 18.2 82 83 Includes

2 8.4 111 113 285 -60 6829527 440460 CMRC022

11 3.2 124 135 285 -60 6829523 440475 CMRC023
2 9.7 132 134 Includes

1 5.5 116 117 285 -60 6829549 440469 CMRC027

12 3.2 85 97 285 -60 6829599 440468 CMRC028
2 7.4 86 88 Includes
9 5.0 86 95 285 -60 6829612 440474 CMRC029
3 10.5 87 90 Includes
2 3.1 102 104

2 2.02 110 112 285 -60 440462 6829576 CMRC031

2 5.36 73 75 285 -60 440447 6829576 CMRC032

9 2.69 102 111 285 -60 440460 6829563 CMRC033

9 5.01 85 94 285 -60 440454 6829553 CMRC034

6 3.67 69 75 285 -60 440456 6829602 CMRC035

9 1.71 119 128 285 -60 440480 6829596 CMRC036

4 4.91 131 135

2 3.60 39 41 285 -60 440389 6829302 CMRC037

2 1.77 66 68

2 1.80 39 41 285 -60 440385 6829197 CMRC039

7 1.58 50 57

2 2.83 64 66 285 -60 440418 6829404 CMRC057

3 1.94 100 103 285 -60 440423 6829423 CMRC058

3 1.17 21 24 285 -60 440428 6829443 CMRC059

7 1.72 73 80 285 -60

2 2.29 0 2 285 -60 440467 6829665 CMRC064

3 3.24 0 3 285 -60 440458 6829688 CMRC065

4 1.99 72 76

4 3.76 79 83 285 -60 440453 6829749 CMRC071

3 2.49 95 98 285 -60 440410 6829256 CMRC079

Further work is planned at Craiggiemore.


KEORA WELL & CAROUSO

Keora Well and Carouso, north of the Laverton Gold plant, are interpreted to be possible structural traps due to the truncation of a fold nose and north trending mafic package by the NW trending Barnicoat Shear. Both prospects were developed from the regional targeting review conducted during the quarter.

Reverse circulation drilling totalling 5 holes for 642m was drilled with no significant intercepts returned.

SHE'S RIGHT EAST

She's Right East is interpreted to be the continuation of the NW trending Grouse structure. Historical drilling at She's Right East had intersected shallow mineralisation and was considered sufficient to follow up. RC drilling of 3 holes for 336m was completed during the quarter. Hole SRRC239 returned an intersection of 3m@11.2g/t from 75m in a highly weathered sediment/felsic volcanic.

More drilling is planned to follow up this encouraging result.

To view Figure 1. West Laverton Trend, please click the following link: http://www.ccnmatthews.com/docs/fig1cre.pdf

GEOPHYSICAL SURVEYS

IP Survey

The IP survey at Admiral Hill has been interpreted by SGC and outlines several moderately chargeable corridors.

Gravity Survey

Gravity surveys completed during the last quarter are still being interpreted by SGC though preliminary results have been used for regional targeting resulting in several prospects.

REGIONAL EXPLORATION - LAVERTON 2007

Planning for regional exploration programs began during the quarter and an AC rig has been booked for May/June to test the Eastern tenements. This drilling will improve the geological understanding and collect samples for the ongoing 'foot printing' study using PIMA (Portable Infrared Mineral Analyser).

Results for the first pass PIMA and multi-element geochemistry program have been received and are being interpreted.

To see Figure 2, Laverton Tenements - 1,167 km2, please click the following link: http://www.ccnmatthews.com/docs/fig2cre.pdf

ORE RESERVES

Total Ore Reserves were increased to 400,000 ounces of gold. In-situ Ore Reserves (excluding stockpiles) at Laverton totals 6.4mt at 1.8 g/t for 374,000 ounces of gold.

The following table details the Company's Ore Reserves statement.



-------------------------------------
Probable Ore Reserve
PROJECT Tonnes Grade Ounces
(kt) (g/t) (oz)
-------------------------------------
Sickle 2,213 2.0 143,000

Fish 385 4.1 51,000

West Laverton 653 1.7 36,000

Others 3,173 1.4 144,000

TOTAL 6,424 1.8 374,000


Low Grade 1,160 0.7 26,000


Notes for Table:

- Gold grades are rounded to 1 decimal figure; both estimated tonnes and contained ounces are rounded to nearest 1000.

- West Laverton includes West Laverton and Mary Mac South deposits.

- Others include Euro, Admiral hill, Grouse, Castaway, Lord Byron, Burtville and Bells deposits.

- Low Grade is historical surface stockpiled ore.

Definitions;

- Ore reserves - Reserves are classified as Probable.

- Reserve ounces - Net of mine dilution and ore loss.

Pit designs based on:

- A$850/oz spot price,

- State Royalty applied at 2.5% and Native Title Royalty of A$1.60/oz.

- 1.5mtpa mill capacity.

MINERAL RESOURCE STATEMENT

During the quarter the Mineral Resource statement was updated. Indicated Mineral Resource at Laverton totals 20.1 million tonnes at 1.5 g/t Au containing 0.95m ozs of gold and an Inferred Mineral Resource of 10.4 million tonnes at 1.4 g/t Au containing 0.48m ozs, detailed as follows;



---------------------------------------------------------------------------
Project Indicated Inferred
Tonnes Grade Ounces Tonnes Grade Ounces
(kt) (g/t) (kt) (g/t)
---------------------------------------------------------------------------
Sickle 6,543 1.7 362,000 2,421 1.3 104,000

Fish 500 4.2 68,000 160 3.7 19,000

West Laverton 2,111 1.8 124,000 1,351 2.4 105,000

Others 10,938 1.1 399,000 6,512 1.2 251,000

---------------------------------------------------------------------------
TOTAL RESOURCES 20,092 1.5 953,000 10,444 1.4 479,000
---------------------------------------------------------------------------

Low Grade
Stockpiles 1,217 0.7 28,000



Conversion of Inferred Mineral Resource to Indicated Mineral Resources has resulted in 75koz being reclassified during the March quarter.

Notes for Table:

Figures contained within Table 1 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 includes resources for Mary Mac, West Laverton, Euro, Mary Mac South and Craiggiemore

- Others includes resources for Admiral Hill, Castaway, Grouse, Scotland Yet, Pieces of Eight, She's Right West, She's Right East, Scotland Yet, Jacks, Bogle, Bogle South, Bells, Ida H, Black Label, Lily Pond Well, Lord Byron, Burtville and Karridale

The following mineral resource locations are contiguous with existing open cuts West Laverton, Craiggiemore, She's Right West, She's Right East, Scotland Yet and Ida H.

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.

EXPLORATION - URANIUM - IO/COPPER/GOLD/URANIUM

On ground exploration continued in earnest during the March Quarter throughout Crescent's interests in the NT and SA. Geophysical programs were completed on the Torrens South Project within the Gawler Craton JV in South Australia, and under Heads of Agreement in the Tennant Creek and Rum Jungle Projects in the Northern Territory (Figure 3). These programs aim to provide the technical input on which to base drill targeting. Drilling is expected to commence during the June quarter.

To view Figure 3, Location of Crescent Gold Projects, please click the following link: http://www.ccnmatthews.com/docs/fig3cre.pdf

EXPLORATION - IO/COPPER/GOLD/URANIUM

Gawler Craton Joint Venture (GCJV) - SAU/CRE, South Australia.

Crescent, through its wholly owned subsidiary, Uranium West Pty Ltd, is farming into Southern Gold's IOCGU (Iron Oxide-Copper-Gold-Uranium) projects in South Australia. Under the Terms of the JV, Crescent can earn 25% by spending A$1m by 31/12/2007 and 50% total by spending a further A$3m by 31/12/2008.

The JV agreement covers 4 tenements encompassing some 2,500 square kilometres on the Stuart Shelf province of the Gawler Craton in South Australia. These tenements are located within the mineralised corridor which hosts the world's largest copper, gold and uranium deposit (IOCGU) at Olympic Dam and close to the recent copper-gold discoveries at Prominent Hill and Carrapateena (Figure 4).

To see Figure 4, Location of Gawler Craton JV Projects, please click the following link: http://www.ccnmatthews.com/docs/fig4cre.pdf

Torrens South Project

The Torrens South Project consists of two tenements covering approximately 1,500 square kilometres and is positioned adjacent to and along strike from the new IOCGU discoveries by Monax at Punt Hill (Figure 5). This Project currently forms the focus of JV activity.

During the quarter detailed infill gravity programs were conducted throughout several previously identified high priority target areas of the Torrens South tenements. A total of 3,900 gravity stations at 250m spacing were completed. Geophysical interpretation of this data has identified a number of IOCGU gravity targets, several of which are some 10 kilometres SE along strike from the Punt Hill discoveries and on the same gravity structures currently being drilled by Monax on its adjacent tenement.

Future Programs

A target prioritisation exercise has been completed for Torrens South and discussions are currently underway with drilling contractors to enable drill testing as soon as rigs are available.

Follow up gravity surveys are also being planned for the Oak Dam Project.

To see Figure 5, Torrens South: Targets and Gravity Image, please click the following link: http://www.ccnmatthews.com/docs/fig5cre.pdf

EXPLORATION - URANIUM NORTHERN TERRITORY

To see Figure 6, Crescent Gold Uranium Projects in the Northern Territory, please click the following link: http://www.ccnmatthews.com/docs/fig6cre.pdf

Crescent Gold Limited / Rum Jungle Uranium Pty Ltd - Heads of Agreement, NT Uranium

Crescent Gold through its wholly owned subsidiary, Uranium West PL, has entered into a Joint Venture Heads of Agreement with Rum Jungle Uranium Pty Ltd on two of its project areas, Rum Jungle and Tennant Creek, in the Northern Territory (Figure 6). Rum Jungle Uranium PL has the right to earn a 25% stake by spending $200,000 before the end of 2007 and a total of 50% by spending a further $400,000 by the end of 2008.

During the quarter a fixed wing aeromagnetic/radiomagnetic survey was completed by UTS over both the Rum Jungle and Tennant Creek tenements. A total of 1336 line kilometres were surveyed at various line spacings. The survey was designed to detail selected areas within both Projects that are highly prospective for possible uranium mineralization.

Tennant Creek Project

At Tennant Creek the aerial survey was conducted at 150m line spacings with the aim of improving overall definition and ground control, leading to drill targeting. The work covered most of EL24834 and focussed on a very strong uranium anomaly on the southern boundary of EL24835. The survey was only recently completed and data processing and interpretation is underway. Initial inspection of the data however has confirmed the strength of the anomalies on the uranium channel in both exploration licenses.

Rum Jungle Project

The Rum Jungle aerial survey was conducted at 100m line spacings over EL24898 and EL24866, and has produced early encouraging data. The latter tenement is located only a few hundred meters north to north east of the Mt Fitch North uranium deposit, currently being explored by Compass Resources. The survey has clearly marked the intrusive Zamu dolerite striking north-south through the centre of the tenement with numerous discreet uranium anomalies paralleling the eastern license margin. Again processing and detailed interpretation is underway.

Future Programs

Ground reconnaissance and geological mapping is planned for both project areas to define the various anomalies once interpretations from the aerial survey have been finalised. A drilling contractor has been confirmed for the end of June to conduct work through the dry season.

Crescent Gold / Southern Gold - Heads of Agreement, NT Uranium

Southern Gold, through a heads of agreement with Crescent, via Uranium West Pty Ltd, has the right to joint venture two uranium exploration projects in the Rum Jungle (EL24867) and Westmoreland (EL 24837) regions of the Northern Territory (Figure 4). Under the Terms of the HOA, Southern Gold can earn 50% of the project by spending $600,000 by 30/6/2008.

Southern Gold will focus on assessment of this tenure including the detailed aerial survey (aeromagnetics/radiomagnetics) conducted late in 2006 in the Calvert Hill project.

Crescent Gold wholly owned Uranium West Pty Ltd 100% Tenure

Crescent will retain 100% interest in its Calvert Hills South tenement (EL24847) and application (ELA24846) which overly two notable bulls-eye type magnetic anomalies with the potential to host IOCGU targets (Figure 4). Assessment of the detailed aerial survey conducted in 2006 is ongoing, with follow up geological assessment in the form of field reconnaissance and sampling, followed by drill testing planned for this dry season.

Summary of JV's in the Northern Territory and South Australia



Project Exploration License Partners Area
km(2)

Rum Jungle EL 24867 SAU/CRE 10

Calvert Hills EL 24837 SAU/CRE 819

Rum Jungle EL 24866 Rum Jungle/CRE 12
EL 24898 Rum Jungle/CRE 5

Tennant Creek EL 24835 Rum Jungle/CRE 999
EL 24834 Rum Jungle/CRE 36

Calvert Hills ELA 24846 CRE 100% 1,506
EL 24847 CRE 100% 1,336

Gawler Craton EL 3513 (Torrens South) CRE/SAU 860
EL 3515 (Harris Crossing) CRE/SAU 634
EL 3603 (Oak Dam) CRE/SAU 174
ELA 324/06 (South Vivian) CRE/SAU 861

Alford ELA 2006/669 CRE 100% 795


CHINA

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. The transfer of exploration licenses are pending.

MARCH 2007 QUARTER ACTIVITY SUMMARY

Exploration

Laverton Gold Project

- A major RC drilling programme is underway.

- Further resource conversion planned at West Laverton.

- Reconnaissance RAB/AC drilling to improve the geological understanding and collect samples for the ongoing 'foot printing' study.

Uranium NT

- Ground reconnaissance and geological mapping to define the various anomalies, once interpretations from the 2006/2007 aerial surveys have been finalised.

- A drilling contractor has been confirmed for the end of June to conduct work through the dry season.

South Australia - Uranium / IOCGU Exploration.

- A target prioritisation exercise has been completed and discussions are currently underway with drilling contractors to enable drill testing as soon as rigs are available.

- Exploration Planning for the other tenements.

CRITCAL ACCOUNTING ESTIMATES

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. The effect of this transaction was to take the Company past the 10% threshold for a designated foreign issuer pursuant to National Instrument 71-102. The Company will continue to be considered a designated foreign issuer until the commencement of the next financial year (1 July 2007).

The Company continues to review 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.

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 for the year ended 30 June 2006 and Half Yearly Report dated 31 December 2006.


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 the Company's audited financial statements for the year ended 30 June 2006.

DERIVIATIVE INSTRUMENTS

On 23 March 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 (Gold Puts).

- Finalised the A$25 million project finance comprising A$20 million gold loan (25,478 ounces at A$785/oz) and A$5 million cash loan.

- Sold forward 100,000 oz at $860/oz, less than 30% of Laverton reserves at the time.

- 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.

- Repaid the A$3.75m loan to Investec (Rothschild).

- 6600 oz of put options at $850 per oz were exercised during the quarter.

TRANSACTIONS WITH RELATED PARTIES

Nil

DIRECTORS & DIRECTOR PAYMENTS

Executive Directors of the Company combined received payments totaling $97,000 and Non-Executive Directors combined received $17,000 for the three months ended 31 March 2007.

The Company is now served by a Board of Independent Directors, to which the Managing Director and Chief Financial Officer report.

- Andrew Haythorpe - Managing Director

- Julian Tambyrajah - Chief Financial Officer & Company Secretary

- Roland Hill - Acting Chairman Non Executive Director

- Robert 'Tookie' Angus - Non Executive Director

- Dave Keough - Non Executive Director

- Geoff Stanley - Non Executive Director

SUMMARY OF QUARTERLY RESULTS

The table below sets out the quarterly cash flows for the past eight quarters:



2006 2005
---- ----
31 Mar 31 Dec 30 Sep 30 Jun Mar-31 Dec-31 Sep-30 Jun-30
------- ------- ------- ------- ------- ------- ------- -------
$A '000 $A '000 $A '000 $A '000 $A '000 $A '000 $A '000 $A '000
Income from
Securities
and
Convertible
Notes 6,341 9,351 - 2,253 402 9,895 1,500 209
Other
Income 216 349 135 150 159 90 60 65
Exploration
and
Develop-
ment (10,879) (12,223) (2,075) (1,542) (1,185) (847) (884) (897)
Administ-
ration (753) (651) (618) (535) (642) (345) (497) (420)
Other
Operating
Expenses 648 (1,642) (72) (160) (128) (1) (45) (90)
Other
Investing
Expenses (1,073) (17,927) (22) (86) (388) (22) (580) (11)
---------------------------------------------------------------------------
Net Increase
(Decr-
ease) (5,500) 13,111 (2,652) 80 (1,782) 8,770 (446) (1,144)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Net Gain
(Loss) per
Share A$ (0.021) 0.053 (0.012) 0.0004 (0.009) 0.047 (0.003) (0.008)


The majority of costs incurred in the 31 March 2007 quarter relate to the refurbishment and expansion of the Laverton Plant. 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 31 March 2007 was $11,720,000, an decrease of $5,500,000 since the three months ended 31 December 2006. The decrease in cash is attributed to the company making large payments for the refurbishment and expansion of the Laverton Gold Plant.

The Company's principal source of cash during the three months ended 31 March 2007 2006 was from the issue of shares, convertible notes and debt facility draw downs. In the three months ended 31 March 2007 the company received other income of $216,000 from interest compared to $159,000 for the same period last year.

The Company commenced mining operations on the 20 March 2007 and at by the end of the quarter had not reported any gold sales. During the quarter the Company therefore had no other internal source of cash.

In the three months ended 31 March 2007 the Company used net cash of $10,879,000 exploration and development activities with spending focusing on its Laverton Gold Project as the Company commenced production on the refurbished plant whilst completing the expansion simultaneously.

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 A$25 million project finance comprises A$20 million gold loan (25,478 ounces borrowed at A$785/oz) and A$5 million cash loan.

Proceeds of the loan were used, in the first instance, to provide insurance against market risks for the project, namely gold price (revenue risk) and oil price (cost risk).

The floor price (puts) was raised to A$850/oz on 90,000 oz, protecting $76.5m of revenue (previously A$750/oz on 100,000 oz for A$75m) at a cost of A$4m.

Pursuant to the financing arrangement with Investec the Company sold forward 100,000 oz at $860/oz, protecting a further A$86m of revenue.

An oil price cap at US$71.55 per barrel was purchased for US$635,000. This protects the operating costs of the Project (approximately 20%) from an oil price spike over the next 2 years.

The Company has 182,650 oz of production protected (approximately A$156m in revenue) out of total reserves of 400,000 oz. The delivery commitment is 100,000 oz, less than 30% of total reserves. All other production can be sold at spot prices or delivered against Put Options at $850/oz.

The Company has the following major contract to refurbish, expand and operate the Laverton Gold Project:

- 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 from the construction and refurbishment phases and now into operational phase.

OFF-BALANCE SHEET ARRANGEMENTS

None

OUTSTANDING SHARE DATA

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 was completed in two stages. The first 17,000,000 shares were issued at $0.35/share.

On 7 December 2006 the Company announced a further 8,000,000 shares were issued at $0.35/share to DPM meeting all requirements of the $8.75 million financing.

On 6 December 2006 a further 14,000,000 Unlisted Director options and 4,000,000 Unlisted finance Options were issued at $0.40/share. The expiration of the Unlisted Director Options is on or before 31 December 2007 and the expiration of the Unlisted finance Options is 27 September 2009.

On 23 March 2007 the Company announced the completion of 12,500,000 Convertible Notes at $0.40 conversion with 1 free attaching option (6,250,000) for every 2 shares if the notes are converted before 30 June 2007 (see Capital raising at Page 3).

At 31 March 2007 the Company had 259,180,712 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 SGS Australia Pty Ltd in Leonora,
Western 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.

Regards

Crescent Gold Limited



Andrew Haythorpe Julian Tambyrajah
Managing Director CFO & Company Secretary


"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.

For further information please contact Hayley Patton on +61 8 9322 5833 in Australia or Renee Brickner in Canada +1.604.687.0072, fax +1.604.687.4770.



Appendix 5B
Mining exploration entity quarterly report
--------------------------------------------------------------------------
--------------------------------------------------------------------------

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 31 March 2007
------------------------------- --------------------------------------

Consolidated statement of cash flows
---------- ----------
Current Year to
quarter date
Cash flows related to operating activities $A'000 (9 months)
$A'000
---------- ----------
1.1 Receipts from product sales and
related debtors 202 202
1.2 Payments for:
(a) exploration and evaluation (687) (4,094)
(b) development (4,491) (7,979)
(c) production - -
(d) administration (753) (2.022)
1.3 Dividends received - -
1.4 Interest and other items of a similar
nature received 216 700
1.5 Interest and other costs of finance paid 648 (1,066)
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -
---------- ----------

Net Operating Cash Flows (4,865) (14,259)
-------------------------------------------------------------------------

Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects - -
(b) option contracts - -
(c) other fixed assets (5,701) (13,126)
1.9 Proceeds from sale of:
(a) prospects - -
(b) option contracts - -
(c) other fixed assets - -
1.10 Loans to other entities - (4)
1.11 Loans repaid by other entities - -
1.12 Other - payment for purchase of option
contracts (661) (7,107)
- proceeds for sale of option
contracts 2,291 2,291
- Term deposit funds now available
for use (10) 4,423
------------------------

Net investing cash flows (4,081) (13,523)
------------------------
1.13 Total operating and investing cash flows
(carried forward) (8,946) (27,782)
-------------------------------------------------------------------------
1.13 Total operating and investing cash flows
(brought forward) (8,946) (27,782)
-------------------------------------------------------------------------

Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 1,341 10,692
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings 5,000 30,015
1.17 Repayment of borrowings (2,866) (7,900)
1.18 Dividends paid - -
1.19 Other - repayment of lease liabilities (29) (66)
------------------------
Net financing cash flows 3,446 32,741
-------------------------------------------------------------------------

Net increase (decrease) in cash held (5,500) 4,959

1.20 Cash at beginning of quarter/year to date 17,220 6,761
1.21 Exchange rate adjustments to item 1.20 - -
------------------------

1.22 Cash at end of quarter 11,720 11,720
-------------------------------------------------------------------------

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 93
Non-Executive Directors 17
----------
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 Amount
available used
$A'000 $A'000
------------------------
3.1 Loan facilities - 30,000
------------------------

3.2 Credit standby arrangements Nil Nil
-------------------------------------------------------------------------

Estimated cash outflows for next quarter
------------------------
$A'000
------------------------
4.1 Exploration and evaluation 605

------------------------

4.2 Development 5,093

-------------------------------------------------------------------------

Total 5,698
-------------------------------------------------------------------------

Reconciliation of cash

Reconciliation of cash at the end of the ------------------------
quarter (as shown in the consolidated Current Previous
statement of cash flows) to the related quarter quarter
items in the accounts is as follows. $A'000 $A'000
-------------------------------------------------------------------------

5.1 Cash on hand and at bank 11,720 17,220
------------------------

5.2 Deposits at call - -
------------------------

5.3 Bank overdraft - -
------------------------

5.4 Other -- Funds covering various bonds
and Gold - -
Put Options
-------------------------------------------------------------------------
Total: cash at end of quarter (item 1.22) 11,720 17,220
-------------------------------------------------------------------------

Changes in interests in mining tenements

------------------------------------------------------------
Interest Interest
at at
beginning end
Tenement Nature of interest of of
reference (note (2)) quarter quarter
------------------------------------------------------------
6.1 Interests E39/1104 Laverton - Irwin Hills 100% Nil
in
mining
tenements
relinquished,
reduced or
lapsed
------------------------------------------------------------
6.2 Interests EL24837 Northern Territory - Nil 100%
in mining EL24847 Northern Territory - Calvert Hills Nil 100%
tenements EL24867 Northern Territory - Rum Jungle Nil 100%
acquired E38/1864 Laverton - Sickle North Nil 100%
or E38/1866 Laverton - South Laverton North Nil 100%
increased E38/1869 Laverton - Black Swan 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.

-------------------------------------------------------
Total Number Issue Amount
number quoted price per paid up per
security security
(see note 3) (see note 3)
(cents) (cents)
---------------------------------------------------------------------------
7.1 Preference
(+)securities Nil
(description)
-------------------------------------------------------
7.2 Changes during
quarter
(a) Increases Nil
through issues
(b) Decreases
through returns of
capital, buy-
backs,
redemptions
---------------------------------------------------------------------------
7.3 (+)Ordinary
securities 259,180,712 259,180,712 Fully paid Fully paid
-------------------------------------------------------
7.4 Changes during
quarter
(a) Increases 12,000,000 12,000,000
through issues
(b) Decreases Nil Nil
through returns of
capital, buy-backs
---------------------------------------------------------------------------
7.5 (+)Convertible
debt securities 12,500,000 Nil 40 cents 40 cents
(description)
-------------------------------------------------------
7.6 Changes during
quarter
(a) Increases 12,500,000 Nil 40 cents 40 cents
through issues
(b) Decreases Nil Nil
through securities
matured,
converted
---------------------------------------------------------------------------
7.7 Options Exercise price Expiry date
(description 34,200,000 - See following See following
and conversion page page
factor)
-------------------------------------------------------
7.8 Issued during 1,450,000 - 1.2m at 0.25m at
quarter 40 cents 35 cents
-------------------------------------------------------
7.9 Exercised 12,000,000 - 11m at 11m at
during 15 cents 15 cents
quarter 1m at 1m at
30 cents 30 cents
-------------------------------------------------------
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

-------------------------------------------------------------------
Total Number Number Quoted Exercise price Expiry date
$
-------------------------------------------------------------------
4,000,000 0.40 27/09/2009
-------------------------------------------------------------------
14,000,000 0.40 31/12/2007
-------------------------------------------------------------------
10,000,000 0.20 02/08/2008
-------------------------------------------------------------------
3,000,000 0.30 30/11/2008
-------------------------------------------------------------------
1,200,000 0.40 30/11/2008
-------------------------------------------------------------------
250,000 0.35 30/11/2008
-------------------------------------------------------------------
1,750,000 0.30 30/11/2007
-------------------------------------------------------------------
34,200,000 -
-------------------------------------------------------------------

(+) See chapter 19 for defined terms.

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.

Sign here: -------------------------- Date: 30 April 2007
(Company Secretary)

Print name: Julian Tambyrajah

Contact Information

  • Crescent Gold Limited
    Andrew Haythorpe
    Managing Director
    +61 8 9322 5833
    or
    Crescent Gold Limited
    Julian Tambyrajah
    CFO & Company Secretary
    +61 8 9322 5833
    +61 8 9322 5866 (FAX)
    Email: info@crescentgold.com
    Website: www.crescentgold.com