Crew Development: Southern African Mining Operations Profitable; Rationalization of the Ownership Structure Underway

Business Wire, Sept 21, 1998

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 21, 1998--Crew Development (TSE:CRU.) (VSE:CRU.) (FRANKFURT:KNC.F)

Chibuluma South Bankable Feasibility Study Confirms

Technical and Economic Viability

Metorex, the operating arm of Crew in Southern Africa, and all their mining operations, remain profitable despite the depressed mineral prices.

Rationalization of the broad ownership structure of the various mining operations has now commenced, as referred to below. Management believes that such a consolidation of ownership interests will enable the Company to attain its growth objectives in the most effective manner.

CHIBULUMA

As previously announced, the Chibuluma West mine has been returned to profitability, despite the low current copper prices. Initial losses were principally attributable to the significant development backlog at the date of acquisition, Oct. 1, 1997, which has now been overcome. As a result, operating costs have been rationalized and current production levels are approaching budget of 800 tons of copper per month.

The Feasibility Study for the Chibuluma South ore body, which is projected to produce 16,500 tons of copper per annum, was recently completed and confirms the project's technical and economic viability, in line with previous estimates. Discussions with project financiers are underway for the timely development of this project.

CONSOLIDATED MURCHISON

In spite of a 30 year low in the price of antimony, together with depressed gold prices, Consolidated Murchison earned a small profit in the third quarter ended June 30, 1998. The mine has now achieved a break-even position for the last nine months of operations, primarily as a result of aggressive marketing and tight cost control.

During the quarter, the Company formalized fixed monthly offtake contracts, for its antimony concentrate production, with major customers. Furthermore, since July 1, 1997, the date Metorex took over management of the mine, operating costs per ton milled have been reduced by 22 percent.

In addition, the company has recently completed a review of its highly prospective mineral rights holdings, in order to determine how best to maximize their value. It is likely that certain of the holdings will be explored by the company and the remainder will be farmed out to third parties.

COAL OPERATIONS

Effective July 1, 1998, the coal operations were rationalized by merging the two operating companies, and by converting royalty and third party loans payable into equity positions. This rationalization will allow the utilization of significant tax losses brought forward in one of the companies. As a result, Metorex's entitlement to cashflow has been enhanced, and the ability to make further acquisitions is improved.

NEW PROJECTS

The Company continues to evaluate investments of merit in Southern Africa and throughout the world. As a result of the current market conditions in the mining sector, the Company believes that significant opportunities will become available over the next 12 months for aggressive and profitable growth.

John M. Darch, President

Note to Editors: This News Release was prepared by the Board of Directors on behalf of Crew Development Corp. which is solely responsible for its contents.