Crew Gold Corporation

Crew Gold Corporation

August 24, 2005 08:30 ET

Crew Gold Sells Interest in Hwini Butre for USD $5 million

LONDON, UNITED KINGDOM--(CCNMatthews - Aug. 24, 2005) - Crew Gold Corporation ("Crew") (TSX:CRU) (OSE:CRU) (FWB:KNC) (PINK SHEETS:CRUGF):

Based on Crew Gold Corporation (CRU-TSX) receiving a notice from St Jude indicating its desire to increase its interest in Hwini Butre to 65%, pursuant to the call option stipulated in the original agreement between the parties dated February 1995, Crew has offered, and St Jude has agreed, to acquire Crew's remaining 25% interest in the concession effective immediately. The total consideration to be paid for these transactions is USD $5 Million which shall be paid in equivalent number of St. Jude shares. As a result St. Jude will issue 2,995,000 common shares to Crew. These shares will be subject to a four month statutory hold period, after which time one third of these shares will be subject to a hold period spanning an additional 12 months.

The sale of HBM is a part of the company strategy to focus the company's human and financial resources on projects in, or close to production with a target of substantially increasing the company's gold production over the next 1 to 3 years.

Jan A. Vestrum

President & CEO

This news release contains certain "Forward-Looking Statements". All statements, other than statements of historical fact, included in this release, and/or statements made by company officers or directors at any given time, as well as Crew's future plans are such forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Crew does not undertake any obligation to update forward-looking statements should conditions or management's estimates or opinions change.

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