Crew Gold Corporation
FRANKFURT : KNC
TSX : CRU
OSLO STOCK EXCHANGE : CRU
OTC Bulletin Board : CRUGF

Crew Gold Corporation

March 21, 2006 08:57 ET

Crew Gold Corporation: New Issuance of Bonds

LONDON, UNITED KINGDOM--(CCNMatthews - March 21, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES

Crew Gold Corporation (TSX:CRU) (OSE:CRU) (FWB:KNC) (OTCBB:CRUGF) announces that it has received subscriptions for a new issue of secured bonds in the aggregate principal amount of approximately USD 80 million, comprised of a USD tranche of USD 50 million and a NOK tranche of NOK 200 million. These bonds are expected to be issued on or about March 31, 2006. Under the term sheet the loan can be increased to a total of USD 100 million.

The proceeds of the bond will be used to replace Crew's previously announced existing project financing of the Lefa Gold Mine (Guinea) and to finance its Apex Gold Mine project. The Company also intends, based on recent new regional exploration data, to increase the regional exploration work at both Lefa and Apex.

"The bonds provide an attractive alternative to the existing project facility for the Lefa Gold Mine," said Jan Vestrum, President and Chief Executive Officer of Crew. "The bonds have terms that are more favourable for Crew than the more onerous project facility and, as a result, will provide Crew more flexibility going forward both in terms of production and sales. Crew's production at present is un-hedged and the replacing of the project loan by the new bond allows the company to stay un-hedged if so desired. The development of the Lefa Gold Mine appears to be on schedule, and commissioning of the 7 million ton a year plant is expected to take place in December 2006.

The USD tranche of the bonds will have a floating interest of 3 month LIBOR + 5.0% per annum, whereas the NOK tranche will have a floating interest of 3 month NIBOR + 5.0% per annum. The bonds will have a 5 year term, and Crew may redeem the bonds (wholly or in part) at the third anniversary of the issuance at a price of 105.0% and at the fourth anniversary of issuance at a price of 102.5%. The bonds will be secured by a pledge over all the shares of Crew's wholly owned subsidiary Guinor Gold Corporation. Crew will undertake not to raise any new debt which results in the company's total debt to EBITDA ratio exceeding 3.0, nor raise any new debt in Guinor Gold Corporation. In addition, Crew will also agree not to make any dividend payments or other distributions to its shareholders that would constitute more than, on a consolidated basis, 50% of Crew's net profit after taxes for the previous financial year (other than in respect of a divesting of non-gold assets of Crew into a separate entity listed on a stock exchange). The issue of the bonds is conditional upon approval by Crew's existing convertible bondholders of the additional borrowings by Crew. Further tranches of up to an additional USD 20 million may be issued pursuant to the loan agreement for the bonds.

Pareto Securities ASA has been appointed as arranger of the bond issue.


Jan A. Vestrum

President & CEO


THIS IS NOT AN OFFER TO SELL, OR THE SOLICITATION OF AN OFFER TO BUY, ANY SECURITIES. THE DISTRIBUTION OF THIS PRESS RELEASE AND THE OFFER AND SALE OF THE SECURITIES IN CERTAIN JURISDICTIONS MAY BE RESTRICTED BY LAW. ANY PERSONS READING THIS PRESS RELEASE SHOULD INFORM THEMSELVES OF AND OBSERVE ANY SUCH RESTRICTIONS.

THIS IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. NO SECURITIES HAVE BEEN REGISTERED UNDER THE U.S SECURITIES ACT TO BE OFFERED FOR SALE IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED FOR SALE IN THE UNITED STATES ABSENT REGISTRATION UNDER THE U.S. SECURITIES ACT OR AN EXEMPTION FROM REGISTRATION. ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS.

Safe Harbour Statement

Certain statements contained herein, as well as oral statements that may be made by the company or by officers, directors or employees of the company acting on the company's behalf, 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 the expected issue date of the bonds. 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, the price of gold, fluctuations in financial markets and investor interest in the proposed private placement. Although Crew has attempted to identify important factors that could cause actual actions, events or cause actions events or results not to be anticipated, estimated or intended, there can be no assurance that forward looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. 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.

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