Crew Gold"s initial phase of the 500 tonnes/day plant has been substantially completed and the Masara mine has started continuous operation. The first gold pour at the new plant has taken place.

Plant recoveries are in accordance with expectations at 90.2% for gold and 71.1% for silver. Both the ore sampling and actual silver production from the plant have shown better recovered silver ratios than historical reported production numbers. Historical numbers have shown a ratio of 2-3 ounces of silver for each ounce of gold and a recovery of around 2 ounces silver per ounce gold. The first gold pour gave ratios around 4 oz silver to 1 oz gold recovered.

Commissioning and initial full production at the 500- tonnes/day plant will continue to treat lower-grade development ore from the Bonanza/Maligaya and Maria Inez vein systems with gold grades of ±4 grams per tonne expected while higher-grade stopes are developed. The expected average grade at full production is 6-6.5 grams/tonne gold. The phase II plant, to treat an additional 2400 tonnes/day, is under construction with a target start-up date of the end of the second quarter.

The Masara operation in the Philippines is forecast to produce around 100,000-120,000 ounces this year, increasing to more than 180,000 ounces in 2008 at full production capacity and with full availability of higher-grade underground stoping. Drilling and underground sampling continue to support the company's view that these corporate targets can be met. www.crewgold.com

News sourced from International Mining Project News - www.im-mining.com