Management’s Discussion and Analysis of Financial Condition and Results of Operations

For the year ended December 31, 2007 (Expressed in United States dollars)

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2007 our main source of liquidity was consolidated cash of $20.1 million (December 31, 2006: $131.9 million including Intex cash of $80.2 million which is no longer consolidated). Of the cash held, $12.8 million was held in Norwegian kroner, $3.2 million was held in Philippine pesos, $2.0 million was held in US dollars, $1.1 million was held in Canadian dollars, $0.9 million was held in Danish kroner, and the balance of $0.1 million comprised British pounds sterling, and South African rand.

At December 31, 2007 our consolidated working capital comprising cash, restricted cash, accounts receivable, prepayments and inventories, less accounts payable was $22.0 million (December 31, 2006: $122.5 million including Intex working capital of $80.2 million which is no longer consolidated).

On September 21, 2007, the Company concluded a private placement of 41,922,487 common shares at NOK9.00 per share (approximately US$1.62 per share) for aggregate net proceeds of $63.3 million after issue expenses of $4.7 million.

On April 12, 2007, the Company sold 12 million shares in Intex at NOK18.50 per share for aggregate net proceeds of $36.8 million. On June 26, 2007, the Company sold 8.1 million shares in Intex at NOK17.80 for aggregate net proceeds of $23.8 million. Also, on June 26, 2007, the Company sold a further 4.5 million shares for NOK17.80 per Intex share, with an obligation to repurchase them on or before December 28, 2007 at NOK18.47 per share. The net proceeds from this sale were $13.4 million.

Of these net proceeds, $5.2 million was retained on deposit by the broker to cover future margin calls under the repurchase obligation. This forward obligation was closed out and replaced with a new forward obligation on December 21, 2007. The Company recorded a loss on the original forward obligation of $7.6 million, which was settled in cash. The new forward obligation is to repurchase the 4.5 million shares prior to March 21, 2008. The Company revalued the replacement repurchase obligation on a mark-to-market basis at December 31, 2007 and recorded an unrealized loss of $0.4 million.

On November 1, 2007, the Company sold 15 million shares in Intex at NOK12.00 for aggregate net proceeds of $33.2 million. Following this transaction, Crew Gold Corporation held 14.9 million shares (16.3%) of Intex including 4.5 million shares subject to the repurchase obligation.

In February 2008, the Company sold all of its remaining interest in Intex Resources ASA totalling 10.4 million shares and closed out the forward obligation for aggregate net proceeds of $14.1 million.

We have not entered into gold or other hedging contracts during the year or since year end. Consideration will be given to hedging in the future and will depend on production rates and anticipated gold prices and exchange rates.

The Company has continued to incur start-up costs for the LEFA project since December 31, 2007 and has capital commitments amounting to approximately $4.9 million as at December 31, 2007 (see below). In addition, the Company is expecting to incur an additional $10.1 million in capital costs during 2008 to complete the rectification and commissioning of the LEFA project in Guinea and to complete the development of the Maco processing plant in the Philippines. If the LEFA plant rectification program and final commissioning of the plant are delayed beyond the Company's planned completion date, the Company will be required to defer certain capital programs and possibly to seek funding from outside sources. While the Company has been successful in raising its required funding from outside sources in the past, it cannot be certain that any such funding would be available in the future, or that funds would be available on terms acceptable to Management.