Crew Development Announces African Operations Report 67% Increase In Profitability.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 3, 2000

(TSE:CRU.)

The company is pleased to announce that its 41%-owned African operations have reported a 67% increase in net profits, to R30.7 million (C$7.4 million) for the six months ended December 31, 1999, compared with R18.4 million (C$4.4 million) for the six months ended June 30, 1999.

Gross revenues increased to R312 million (C$75 million) for the six months ended December 31, 1999, compared with R257 million (C$62 million) for the six months ended June 30, 1999, reflecting improved commodity prices towards the end of the period and increased production levels.

As a result of these very positive results, an interim dividend of R 8.4 million (C$2.0 million) has been declared, payable February 18, 2000. Crew's share of this dividend will amount to approximately C$820,000.

OVERVIEW

The restructured African operations, of which Crew is the largest shareholder, were listed on both the Johannesburg and London Stock Exchanges on December 6, 1999, as Metorex Limited.

Effective July 1, 1999, Metorex owns 100% of its operations, other than the strategically important shareholdings held in Chibuluma (15% by Zambian Consolidated Copper Mines Limited) and Vergenoeg (30% by our Spanish partner, Minersa). This provides Metorex with a diversified portfolio in the base metal and industrial minerals market in which commodities have recently shown pricing improvements and a return to more realistic levels.

The above results are stated in accordance with South African accounting practice, and therefore do not reflect a charge for depreciation. The results for the six months ended June 30, 1999 are stated on a pro-forma basis, as if the restructuring of the operations had occurred January 1, 1999.

PRODUCTION RESULTS

The proto 31 December 1999 were very satisfactory with most group companies achieving increased production over the previous period thereby enabling them to take added advantage of the mineral price upturn experienced in the last quarter of the calendar year.

The Chibuluma and O'okiep mines performed well. The Chibuluma development backlog has been overcome and a revised mining programme has been implemented at O'okiep. Copper production from both operations was higher than in the preceding period.

The Maranda mine continued to produce a satisfactory performance.

The increased gold price made a positive contribution to the Consolidated Murchison performance but the improvement in the antimony price has been slower than expected. The Beta Shaft re-opening and equipping is continuing satisfactorily which will contribute to increased production, revenues and reduced unit costs in the future.

In consultation with Minersa, the fluorspar qualities at the Vergenoeg mine have been improved substantially with arsenic and phosphorus impurities now acceptable to most international markets. Plant recoveries have improved to 65% and, on completion of additional metallurgical modifications in the milling, flotation and WHIMS circuits, further improvements in recovery are anticipated. Sales of fluorspar are ahead of budget with the acquisition of two new customers.

The demand for and pricing of coal were poor during the six months to December 1999, but signs of an upturn in international steam coal prices have recently emerged which, combined with the new plant and increased output from the Lakeside West reserve, should improve profits from the coal division.

FUTURE PROSPECTS

The recent acquisition of the Perkoa deposit in Burkina Faso, from Billiton Plc, represents a milestone in the growth of Metorex. The Perkoa deposit is one of the five largest VMS orebodies in the world, and the zinc grade of approximately 19.6% is in the top quartile. Perkoa is remarkably similar to the Maranda deposit with the reserve being ten times the size of Maranda's original reserve. Current planning envisages a re-engineering of the project feasibility to conform to Metorex's standards, the agreement of a mining convention with the Burkina Faso Government, and discussions with aid agencies. The successful conclusion of these activities will be followed by financing arrangements, leading to the commencement of the project as soon as is practically possible.

The Chibuluma South feasibility study and financing arrangements are nearing completion and an announcement in this regard is envisaged in the near future. This would be the first new mine to be commissioned in Zambia in 30 years.

The Vergenoeg plant improvements are largely complete and full production from the modified plant is anticipated during the forthcoming six month period. The Lakeside West plant was completed in early December, which will give both increased coal production and improved quality.

Results for the six months ending June 30, 2000 are expected to show further improvement, should the recent commodity price improvements be sustained.

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.