Crew Development: Net Income of $1.3 Million Announced for Six Months.

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 3, 1999--CREW DEVELOPMENT(TSE:CRU.) (FRANKFURT:KNC) The Company is pleased to announce that, despite the persistently depressed commodity prices, it earned a net income of $1,332,683 ($0.05 per share) for the six months ended December 31, 1998, compared with a net loss of $(525,068) ($(0.02) per share) for the six months ended November 30, 1997. Furthermore, at December 31, 1998, Crew had, on a consolidated basis, a cash position of $8.2 million (November 30, 1997- $3.1 million) and total assets of $41.3 million (November 30, 1997- $34.1 million).

The principal reason for the improvement in operating results, and the increase in the cash position and in total assets, was the acquisition by Metorex of an 89 percent interest in O'okiep Copper Company ("O'okiep"). Effective July 1, 1998, Metorex (the operating arm of Crew in Southern Africa) acquired an 81.47 percent interest in O'okiep, which was subsequently increased to 89 percent during December 1998, at a total cost of R30.8 million (C$7.9 million).

During the second quarter, O'okiep received R82.5 million cash consideration on the sale of its 27.5 percent interest in Gamsberg Zinc Corporation, Crew's share of which amounted to approximately C$10.6 million, thereby increasing the consolidated cash position.

An analysis of the net income for the six months ended December 31, 1998, as compared with 1997, follows:

                         December 1998    November 1997
                     (6 months)$'000's  (6 months)$'000's

Head Office
 Interest and other
     icome (loss)        $    (3)             $   85
 Expenses                   (670)               (762)
                         --------             -------
                            (673)               (677)
Southern African
  operations, after tax
  and minority interest    1,646                 452
Foreign exchange gain
  (loss)                     360                (300)
                         --------             -------

Net income (loss) for fiscal period
                          $1,333              $ (525)

The southern African operations contributed net income of $1,646,000 (1997- $452,000) for the six months. O'okiep contributed $1,068,000 (1997- $nil) to net income for the period, despite current copper prices. Chibuluma also contributed $445,402 (1997 - loss of $(91,471)) to net income for the period, primarily as a result of the successful resolution of a grade issue with ZCCM, which concentrates and smelts the Chibuluma ore on a toll basis. As a result, Chibuluma received cash compensation of approximately US$800,000 (C$1,200,000) during the period, which was recorded as income. Crew's share of this compensation amounted to approximately C$480,000.

During the six months ended December 31, 1998, Crew earned unrealized foreign exchange gains of $360,000 (1997- loss of $(300,000)), which resulted from the translation of US dollar denominated loans to Chibuluma and the investment in Metorex.

Over the past two years, Crew has been able to achieve significant, profitable growth, primarily through acquisitions in Southern Africa. Group sales from eight diversified mining operations of gold, copper, zinc, antimony and coal, have tripled to R600 million (C$150 million). Despite prolonged weak metal prices, effective mine management and reduced operational costs have ensured that these operations continue to operate profitably.

With their solid treasuries and positive cash flows, these companies are well positioned to evaluate and respond to the many diverse opportunities presented to the group and further acquisitions may be anticipated.

John M. Darch, President and C.E.O.

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