Crew Gold Corporation
TSX : CRU
OSLO STOCK EXCHANGE : CRU

Crew Gold Corporation

May 15, 2009 22:01 ET

Crew Gold Corporation: Financial Results for the Quarter Ended March 31, 2009

LONDON, UNITED KINGDOM--(Marketwire - May 15, 2009) - Crew Gold Corporation ("Crew" or "the Company") (TSX:CRU) (OSLO:CRU) -

The Company will hold a conference call on May 20, 2009 to discuss these results. The details of this conference call will be released shortly.

HIGHLIGHTS

- Overview

-- Quarterly group gold production of 62,847 ounces ("oz") compared to 61,579 oz in Q1 2008

-- Quarterly group gold sold of 76,408 oz at an average realised price of $895/oz (Q1 2008 - 60,660 oz sold at an average realised price of $913/oz)

- Financial Results

-- EBITDA of $13.4 million (quarter ended March 31, 2008 - negative $3.0 million)

-- Net loss of $11.9 million for the quarter ended March 31, 2009 (quarter ended March 31, 2008 - net loss of $37.9 million) with EBITDA of $13.4 million being offset by amortisation charges of $16.4 million, interest and finance charges of $6.9 million and non cash foreign exchange losses of $2.5 million

- LEFA

-- Quarterly gold production of 44,606 oz, due to reduced SAG mill capacity (Q1 2008 - 45,043 oz)

-- Environmental bond agreed with the Government of Guinea with an unbudgeted $5 million to be paid in May and June, to be followed by further analysis to reconfirm the estimated amounts of reclamation costs and the annual review process;

-- Government of Guinea is undertaking a review of refining and bullion shipment processes concurrent with the restarting of bullion shipments

- Maco

-- Quarterly gold production decreased 25% to 3,758 oz from 5,030 oz in Q1 2008 due to a flash flood in the region which impacted the mine in January 2009

-- Continuing to explore strategic alternatives with potential partners

-- Resources updated and restated resulting in sustainable production being assessed at 700tpd

- Nalunaq Gold Mine ("Nalunaq") and Nugget Pond Processing Facility ("Nugget Pond")

-- Q1 gold production of 14,483 oz, an increase of 26% from 11,506 oz in Q1 2008 due to higher grade of material processed. Mine was placed on care and maintenance effective February 28, 2009

-- Exploring opportunities to dispose of or otherwise utilise both properties; agreement to sell Nalunaq being structured

- Exploration

-- No further exploration work planned at Glover Island, Canada

-- Wa project sold for shares maintaining an indirect participation

- Corporate

-- Reverse stock split implemented in February 2009, shares consolidated on an 8 for 1 basis (all share amounts in the MD&A adjusted for the effect of this change)

- Outlook

-- SAG Mill 2 trunnion will be reinstalled by the end of May 2009, allowing production to increase from June 2009

-- Improve process plant reliability, improve efficiencies and reduce costs at LEFA

-- Finalise sale or continue care and maintenance program at Nalunaq. Complete milling of Nalunaq ore and enter into toll milling agreement and/or sale for Nugget Pond

-- Continue to explore strategic opportunities for Maco

-- Continued reduction of corporate costs

-- Continue to work with the Government of Guinea on various issues. For example, industrial relations difficulties being resolved proactively to attempt to minimize disruptions as the workers and unions confirm various issues with the new Government, review of import duties to be completed.

For full results, please click the following link to see attached pdf file: http://media3.marketwire.com/docs/515cru.pdf

William LeClair, Interim CEO

Safe Harbour Statement

Certain statements contained herein that are not statements of historical fact, may constitute forward-looking statements and are made pursuant to applicable and relevant national legislation (including the Safe-Harbour provisions of the United States Private Securities Litigation Reform Act of 1995) in countries where Crew is conducting business and/or investor relations. Forward-looking statements, include, but are not limited to those with respect to (1) the price of gold, (2) the estimation of mineral reserves and resources, (3) the realization of mineral reserves estimates, (4) the timing and amount of estimated future success of exploration activities, (5) the timing and amount of production estimates, (6) targeted production cash costs and forecasted cash reserves, (7) Crews hedging practices, (8) currency fluctuations, (9) requirements for additional capital, (10) government regulation of mining operations, (11) environmental risk, (12) title disputes or claims limitations on insurance coverage, (13) the timing and possible outcome of pending litigation, (14) the timing and terms of Crews proposed rights offering (15) expected cost reductions, and (16) the expected future capacity and success of the LEFA mine and its expansion potential. Often, but not always, forward-looking statements can be identified by the use of words such as plans, expects, does not expect, is expected, targets, budget, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or equivalents or variation, including negative variation, of such words and phrases, or state that certain actions, events or results, may, could, would, might or will be taken, occur or be achieved.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, (1) the actual results of current exploration activities, (2) conclusions of economic evaluations, (3) changes in project parameters as plans continue to be refined, (4) possible variations in grade and ore densities or recovery rates, (5) failure of plant, equipment or processes to operate as anticipated, (6) accidents, labour disputes and other risks of the mining industry, (7) delays in obtaining government approvals or financing or in completion of development or construction activities, and (8) risks and uncertainties existing in world capital markets generally. Although Crew has attempted to identify important factors that could cause actual events or results to differ from those described in forward-looking statements contained herein, there can be no assurance that the forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements.

The material factors and assumptions used to develop forward-looking statements which may be incorrect, include, but are not limited to, (1) there being no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, damage to equipment or otherwise, (2) continued development, operation and production at LEFA and Maco consistent with our current expectations, (3) foreign exchange rates among the currencies the Crew does business in being approximately consistent with current levels, (4) certain price assumptions for gold, (5) prices for electricity, fuel oil and other key supplies remaining consistent with current levels, (6) production forecasts meeting expectations, (7) the accuracy of our current mineral reserve and mineral resource estimates, and (8) materials and labour costs increasing on a basis consistent with Crews expectations.

Except as may be required by applicable law or stock exchange regulation, the Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.

Cautionary Note to US investors The United States Securities and Exchange Commission permits US mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this document, such as measured, indicated, and inferred resources, which the SEC guidelines strictly prohibit US registered companies from including in their filings with the SEC. US Investors are urged to consider closely the disclosure from the SECs website at http://www.sec.gov/edgar.shtml.

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