Crew Gold Corporation
PINK SHEETS : CRUGF
FRANKFURT : KNC
TSX : CRU
OSLO STOCK EXCHANGE : CRU

Crew Gold Corporation

March 26, 2009 11:15 ET

Crew Gold Corporation: Financial Results for the Quarter and Year Ended December 31, 2008

LONDON, UNITED KINGDOM--(Marketwire - March 26, 2009) - Crew Gold Corporation ("Crew" or "the Company") (TSX:CRU) (OSLO:CRU) (FRANKFURT:KNC) (PINK SHEETS:CRUGF)

For the complete documents, please see the attached files. These documents can also be obtained, read and downloaded on the Company's website www.crewgold.com.

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) Crew's 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) expected cost reductions, and (15) 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 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 Crew's 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 SEC's website at http://www.sec.gov/edgar.shtml.

NON-GAAP MEASURES

"EBITDA" is a non-GAAP measure of performance that describes earnings before interest, taxes, depletion and depreciation, impairment charges, stock compensation charges, impairment charges and non-cash foreign exchange movements.

"Cash cost" is a non-GAAP measure calculated in accordance with the Gold Institute Production Cost Standard and includes site costs for all mining (excluding deferred stripping costs), processing and administration, royalties and production taxes, but exclusive of depletion, depreciation, reclamation, financing costs, capital costs, and exploration costs. Cash cost is presented as we believe it represents an industry standard of comparison.

"Cash cost per ounce" is a non-GAAP measure derived from the cash cost of ounces produced as a measure of total ounces produced.

"Sales price per ounce" is a non-GAAP measure derived by dividing the total cash amounts received on gold sales by the number of ounces sold in the period.

EBITDA, cash cost per ounce and sales price per ounce are not terms defined under Canadian generally accepted accounting principles, nor do they have a standard, agreed upon meaning. As such, EBITDA, cash cost per ounce and sales price per ounce may not be directly comparable to EBITDA, cash cost per ounce and sales price per ounce reported by other similar issuers.



CREW GOLD CORPORATION
Consolidated Balance Sheets
(Expressed in thousands of United States dollars)
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As at, As at,
December 31, December 31,
2008 2007

ASSETS

CURRENT
Cash and cash equivalents 17,168 20,061
Restricted cash 246 31
Accounts receivable 20,609 33,635
Prepaid expenses and deposits 4,863 2,613
Inventories and stockpiled ore 64,912 40,842
Investment in Intex Resources ASA - 16,851
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107,798 114,033
MINING INTERESTS 316,788 372,979
PROPERTY, PLANT AND EQUIPMENT 207,924 258,467
GOODWILL - 104,592
OTHER MINERAL PROPERTY INTERESTS - 871
OTHER ASSETS 844 1,855
RESTRICTED CASH 3,244 6,014
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636,598 858,811
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LIABILITIES

CURRENT
Accounts payable and accrued liabilities 63,929 74,383
Short term portion of other long-term debt 24,151 -
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88,080 74,383

RECLAMATION AND CLOSURE COST OBLIGATIONS 6,263 3,180
6% CONVERTIBLE BONDS 178,548 225,918
OTHER LONG-TERM DEBT 105,464 140,477
FUTURE INCOME TAXES 51,807 72,805
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430,162 516,763
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SHAREHOLDERS' EQUITY

Share capital 645,415 571,701
Equity component of convertible bonds 15,607 15,607
Contributed surplus 11,573 11,524
Accumulated other comprehensive income 538 6,412
Deficit (466,697) (263,196)
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206,436 342,048
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636,598 858,811
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CREW GOLD CORPORATION
Consolidated Statements of Loss and Deficit
(Expressed in thousands of United States dollars, except per share amounts)
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Year ended
December 31, December 31,
2008 2007

MINERAL SALES 224,646 106,148
DIRECT COSTS OF MINERAL SALES (182,392) (153,920)
MINE SITE ADMINISTRATION COSTS (39,249) (38,895)
DEPLETION AND DEPRECIATION (46,748) (32,198)
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(43,743) (118,865)
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EXPENSES
Administration, office and general (17,822) (16,461)
Exploration costs expensed and written off (3,447) (137)
Professional fees (1,764) (1,122)
Stock compensation expense (97) (7,249)
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(23,130) (24,969)
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OTHER (EXPENSES) INCOME
Gain on disposal of investment in Intex
Resources ASA 2,587 72,231
Equity loss from investment in Intex Resources ASA - (404)
Gain on disposals of other investments - 505
Realized loss on future / forward obligation
contracts (537) (7,574)
Unrealized loss on forward obligation contract - (358)
Impairment charges
Mineral property, plant and equipment (90,249) -
Goodwill (104,592) -
Interest - Convertible bonds and other
long-term loans (27,743) (26,824)
Other finance charges - Convertible bonds and
other long-term loans (5,423) (5,552)
Foreign exchange gain (loss) 66,549 (38,874)
Other income and expenses 2,510 1,088
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(156,898) (5,762)
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LOSS BEFORE RECOVERY OF INCOME TAXES
AND NON-CONTROLLING INTEREST (223,771) (149,596)
RECOVERY OF INCOME TAXES 20,270 26,234
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LOSS BEFORE NON-CONTROLLING INTEREST (203,501) (123,362)
NON-CONTROLLING INTEREST - 462
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NET LOSS (203,501) (122,900)
DEFICIT, BEGINNING OF YEAR (263,196) (140,296)
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DEFICIT, END OF YEAR (466,697) (263,196)
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LOSS PER SHARE - BASIC $ (3.21) $ (2.26)
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LOSS PER SHARE - DILUTED $ (3.21) $ (2.26)
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WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
- BASIC 63,330,994 54,268,443
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WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
- DILUTED 63,330,994 54,268,443
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CREW GOLD CORPORATION
Consolidated Statements of Cash Flows
(Expressed in thousands of United States dollars)
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Year ended
December 31, December 31,
2008 2007

OPERATING ACTIVITIES
Net loss $ (203,501) $ (122,900)
Add (deduct) items not affecting cash:
Depletion and depreciation 46,748 32,198
Other finance charges - amortisation and
accretion 5,423 5,552
Exploration costs expensed and written off 2,225 -
Gain on disposal of investment in Intex
Resources ASA (2,587) (72,231)
Equity loss from investment in Intex
Resources ASA - 404
Gain on disposals of other investments - (505)
Impairment charges
Mineral property, plant and equipment 90,249 -
Goodwill 104,592 -
Unrealized loss on forward / future
obligation contracts - 358
Unrealized foreign exchange (gain) loss (73,111) 41,295
Recovery of income taxes (20,270) (26,234)
Stock compensation expense 97 7,249
Non-controlling interest - (462)
Change in non-cash operating working capital
items (14,460) (13,322)
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(64,595) (148,598)
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FINANCING ACTIVITIES
Gross proceeds from common shares issued 78,170 68,237
Costs of issuance of common shares (4,504) (4,642)
Repayment of other long-term obligations (3,808) -
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69,858 63,595
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INVESTING ACTIVITIES
Proceeds on disposal of investment in Intex
Resources ASA 13,564 27,517
Proceeds on disposal of other investments - 1,338
Acquisition of minority interest in Nalunaq Gold Mine - (2,614)
Expenditures on LEFA mineral property, plant and
equipment (25,685) (38,610)
Proceeds on disposal of (expenditures on) of Maco
mineral property, plant and equipment 3,215 (10,200)
Expenditures on Nalunaq mineral property, plant and
equipment (1,509) (2,457)
Proceeds on disposal of (expenditures on) Nugget
Pond property and equipment 47 (2,264)
Expenditures on other mineral property interests (1,354) (550)
Decrease in security deposits 1,343 616
Decrease (increase) in long-term restricted cash
balances 2,770 (1,375)
(Increase) decrease in restricted cash (215) 271
(Increase) decrease in other assets (332) 963
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(8,156) (27,365)
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EFFECT OF FOREIGN EXCHANGE TRANSLATION
ON CASH AND CASH EQUIVALENTS - 492
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NET CASH OUTFLOW (2,893) (111,876)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 20,061 131,937
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CASH AND CASH EQUIVALENTS, END OF YEAR $ 17,168 $ 20,061
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