Operational Review

Gold Production
The Company completed the acquisition of Guinor on December 14, 2005 and accordingly, the results of Guinor from that date to the year-end are included in the Crew financial statements for the year ended June 30, 2006.

Production for the quarter ended
June 30, 2006	Nalunaq		Lefa		Total
Tonnes mined	33,223		224,249		257,472
Tonnes shipped / placed (1)	42,386		216,248		258,634
Gold produced (ounces) (2)	-		11,103	oz	11,103	oz
Gold sold (ounces) (2)	-		9,129	oz	9,129	oz
Sale price per ounce (3)	-		$618		$618
Cash cost per ounce (3)	-		$393		$393

Production for the year ended
June 30, 2006	Nalunaq		Lefa		Total
Tonnes mined	123,763		317,257		441,020
Tonnes shipped / placed (1)	145,419		459,152		604,571
Gold produced (ounces)(4)	74,731	oz	20,428	oz	95,159	oz
Gold sold (ounces)	57,960	oz	20,646	oz	78,606	oz
Sale price per ounce (3)	$515		$576		$531
Cash cost per ounce (3)	$426		$449		$431

(1)	Tonnes placed refers to the placement of ore onto leach pads at Lefa.
(2)	Nalunaq includes 42,836 tonnes shipped prior to year end and not recognised as sold in the period due to the ice delay. Therefore the gold produced and sold in the quarter are reported as nil. These amounts will be reported in the next quarter.
(3)	Sales price and cash cost per ounce are “Non-GAAP” measures which are more specifically described in the section “Non-GAAP measures” on the final page of this Management’s Discussion and Analysis of Financial Condition and Results of Operations.
(4)	Includes the gold extracted from the ore mined in fiscal 2006 but shipped in July 2006

Calculation of cash cost
(Amounts in $’000 except where noted)	Quarter ended		Year ended
	June 30, 2006		June 30, 2006
Direct mineral costs (1)	4,303		28,050
Milling Costs	-		4,188
Ore-in-transit	-		11,447
Ore on stockpile period movement	60		(2,673)
Cash cost	4,363		41,012
Gold produced (ounces)	11,103	oz	95,159	oz
Cash cost per ounce	$393		$431

(1) The Nalunaq direct costs have been adjusted for the costs deferred due to the delayed shipment.

Nalunaq Gold Mine: Results from Mining
The Nalunaq resource is a narrow vein deposit consisting of several high-grade “bands” typically carrying grades of around 30 g/t or higher. Between the high-grade bands, grades can vary between 10 g/t and 20 g/t. In practice this means that the grades achieved on an ongoing basis can vary considerably.

During the fourth quarter of fiscal 2006, $0.6 million (2005: $0.8 million) was spent on further development of the mine and the total expenditure for the year was $2.4 million (2005: $3.2 million). The focus of this work was ramp development required to connect the South and Upper Block Areas to the existing Target Block and drilling associated with the expansion of the overall resource base.

Ore production for the fourth quarter was 33,223 tonnes, an average of approximately 365 tonnes a day, and for the year was 123,763 tonnes representing an average of 339 tonnes per day. This in line with expectations given the higher level of development undertaken on the mine’s infrastructure in the period and the increased focus on achieving higher quantities of higher grade ore. The daily production target when the new equipment is utilized is expected to be in excess of 500 tpd.

Owing to prevailing ice conditions, at the end of the fourth quarter of fiscal 2006, along the southwest coast of Greenland, access to the fjord entrance leading to the mine harbour was not navigable. Consequently the arrival of the ore ship MV Baffin was delayed by 11 days. 42,386 tonnes of ore were shipped for processing on this shipment. Loading was completed on 28th June 2006 and the ship had clear passage to Aviles in Spain where the ore is offloaded. The ore was offloaded in Aviles in early July at which point title to the ore passed to Rio Narcea. As a result of this delay, the June shipment is required to be recognized as a sale in the next financial year even though the ore was produced in the year.

For the 2006 year’s production at Nalunaq, 145,419 tonnes (2005: 111,741 tonnes) of ore have been shipped for processing and gross gold production totals 74,731 ounces (2005: 55,975 ounces) which represents a head grade of 19.0 grammes per tonne (2005: 15.9 grammes per tonne). This represents an improvement in head grade of 19.5%. After tailings and efficiency fees, 57,960 ounces of gold were sold in the year with a gross value of $29.9 million. This compares to 52,866 ounces of gold sold in the prior year with a gross value of $23.0 million. After accounting for annual processing costs of $4.1 million (2005: $4.5 million), net sales of $25.8 million (2005: $18.5 million) have been realised for the year under review.

Management is pleased with the increased tonnage of ore produced in the year and the higher grade of gold achieved. Management believes these improvements were achieved through improved mining techniques which reduced mining dilution. Management also believes that the addition of newer more reliable mining vehicles and equipment to ensure a sustainable balance between mine development and stage production will further improve productivity within the mine and production rates in the forthcoming year.

Lefa Gold Mine: Results from Mining
During the fiscal year, management decided to continue the Lefa heap leach operation, in spite of higher costs, as it was necessary to retain key plant personnel until they can be transferred to the new CIP plant. The quantity of ore processed could have been increased during the year however it was decided to process only enough ore to generate cash to cover operating costs. The balance of the ore was stockpiled for processing through the higher recovery CIP process.

Ore mined from the Lero pit in the period since the acquisition of Guinor totalled 317,257 tonnes at a grade of 2.88 g/t, containing 29,426 ounces. This was supplemented with 115,262 tonnes at a grade of 0.94 g/t, containing 3,498 ounces moved from the lowgrade stockpiles to provide additional material for the heap leach operation.

Ore processed in the period since acquisition was 459,152 tonnes at a heap grade of 2.17 g/t, containing 31,985 ounces of gold. Gold recovered in the period since acquisition from the heap leach operation was 20,428 ounces. This was below expectation and the shortfall arose primarily from plant shutdowns following a gearbox failure and damage to the apron feeder as well as fuel shortages. Gold recoveries from the low-grade ore from the stockpiles were also lower than expected and both mining and plant throughput were adversely affected by low equipment availabilities.

Gold sold in the period since acquisition was 20,646 ounces. Total revenue from gold sales amounted to US$11.9m and the average price realized was US$576 per oz.

Average cash cost per ounce from the heap leach operation for the period since acquisition was $449 per oz. Average costs were high due to the low production and a high proportion of production costs being fixed however this was expected. Gold production increased significantly towards the end of the period, when higher grade material from the Lero pit was processed. This is expected to continue to December 2006 when the heap leach operation is decommissioned and replaced by the new CIP Plant. Management believes this will result in improved results from the operation being recorded in Q1 of calendar year 2007.

Gold production from the heap leach operation in calendar year 2006 is expected to be approximately 52,000 ounces at an average cash cost of approximately US$400/oz. Management will continue to review production plans to ensure that existing operations are self-sustaining whilst preserving as much of the high grade mine reserves as possible for processing through the more profitable CIP Plant expansion project.

Barberton Mines Limited
Barberton’s results for the year under review were in line with the previous year; decreases in gold sales were compensated by increased gold prices. In order to focus on its development and managed projects, the Company chose to dispose of its interest in Barberton.

Following year end, Crew agreed to divest of its interest to Metorex Limited (“Metorex”), one of its partners in Barberton and a company listed on the JSE, in return for Metorex shares valued at ZAR 84 million (US$11.8 million), representing a significant increase over both the cost and carrying value of the investment. The profit on sale will be recognised in the financial statements in the first quarter of fiscal 2007.