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

Crescent Gold Limited

July 07, 2008 04:16 ET

Crescent Gold Limited: Strategic Operational Review

PERTH, WESTERN AUSTRALIA--(Marketwire - July 7, 2008) -

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

The Board of Crescent Gold (TSX:CRA)(ASX:CRE)(FRANKFURT:CRE5) has resolved to take the immediate steps to temporarily suspend mining and milling operations at the company's Laverton Gold Project (LGP) to remedy on-going design and operational inefficiencies of the plant. The decision is a result of management recommendation following an extensive operational review and assessment of the crushing and milling circuit.

Consequently, there will be an immediate reduction in the required workforce. The Board regrets the need for this reduction, however it remains the most feasible alternative to best realise the value of the current in-ground resources. This reduction will affect both Crescent personnel and contract support. An adjustment to the carrying value of the operations is expected in the June year end accounts.

The Laverton Gold Project was commissioned in March 2007 as a 1.0mtpa mill and had continued to progress towards nameplate capacity of 1.5mtpa following completion of the mill upgrade in August 2007. As the Company had continually informed the market, there have been a number of difficulties encountered in the ability of the plant to reach targeted throughput. Whilst experiencing some very encouraging monthly production results, the project was unsuccessful in achieving the original Bankable Feasibility Study production estimates on a consistent basis, despite recent retrofitting of alternative crushing equipment and mill modifications.

A technical review team has been assembled, including internal personnel and external industry experts, to implement a 6 month remedial action plan for the processing plant. This group will also be reviewing various courses of action including further delineation of known resources, alternative mine scheduling scenarios and additional optimization of the plant configuration to enhance project economics.

Crescent management and the Board of Directors have a strong commitment to Laverton and remain confident of the LGP's viability and anticipate a resumption of mining and processing activities in the first quarter of 2009.

Crescent is in an enviable position with substantial cash reserves and is continuing to evaluate both regional consolidation opportunities and growth alternatives.

Crescent is continuing with its current aggressive exploration program with $6.0m budgeted for the Laverton region for the next 12 months.

Regards

Crescent Gold Limited

Mark Tory, CFO & Company Secretary



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

SHARE INFORMATION

ASX Share Price: A$0.195
Issued Shares: 590.7m
Market Cap: A$115.2m
Options unlisted: 29.7m

FULLY DILUTED BASIS

Shares: 620.3m

RESOURCES

Indicated: 0.97m ozs
21.3mt
1.5g/t

Inferred: 0.49m ozs
10.5mt
1.4g/t

RESERVES
Probable: 0.40m ozs
7.6mt
1.7g/t

RESOURCE
Market Cap/oz: A$79/oz
EV / oz: A$41/oz

RESERVE
Market Cap/oz: A$292/oz
EV / oz: A$150/oz

ABN 49 087 360 996


Contact Information