Crew Development Corp.: Independent Consultants Confirm Potential of South Meager Geothermal Resource to Support an Initial 100 MW Power Plant.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--May 3, 2001

Opportunity To Maximize Value Through Floatation Of Asset And

Dividend To Crew Shareholders

Crew (OTCBB:CRWVF) (TSE:CRU.) (OSE:CRU.) (Frankfurt:KNC.) is pleased to announce receipt of their independent consultant's positive assessment of the potential viability of the South Meager Geothermal Project ("South Meager") becoming Canada's first geothermal resource to provide commercial production of electricity.

With the ongoing significant changes in the electricity market in the Pacific Northwest and energy crisis in California, the opportunity to develop South Meager is very timely. Crew is now proceeding with a strategy to advance the project to the next stage of development, by publicly listing South Meager and raising further development monies directly at the project level. In addition, Crew intends to provide an early return to the shareholders of Crew, by way of an immediate dividend payment of approximately 5% of the shares of the listed energy company.

Highlights of Independent Consultant's Report

An analysis of all data and relevant information on the project has been completed by GeothermEx, recognized as leading specialists in evaluation of geothermal resources worldwide, and their conclusions are summarized as follows:

-- The reservoir defined to date (average temperature of 220 degrees C to 240
degrees C) establishes the resource as a 'high temperature' field and a major
geothermal site, with 100 MW or more of potential development capacity.

-- The potentially recoverable heat energy from the field is estimated to be
equivalent to at least 110 MW of electrical power capacity for a 30 year
project life, with the most likely being at least 192 MW.

-- Sufficient energy reserves exist for a minimum power plant capacity of 100
MW (net), if two conditions are satisfied:

1. commercial well productivity can be demonstrated by

drilling and testing one or more confirmation wells; and

2. an adequate number of drilling sites can be identified in

the rugged terrain of this field.

GeothermEx believes that both of the above conditions are likely to be satisfied, and have recommended a confirmation drilling program of a shallow well (less than 1,000 m) and a deep well (over 2,000 m) at an estimated cost of US$3-4 million.

GeothermEx has estimated the Net Present Value of the projected after tax cash flows at approximately US$ 124 million, using a discount rate of 8% per annum, on the basis of the following key parameters and subject to proving commercial viability:

1. 100 MW (net) power plant, developed in two 55 MW (gross)

stages, to come on line in 2004 and 2006 respectively;

2. Total development costs of approximately US$300 million;

3. Debt to equity ratio of 80 / 20;

4. Power price contract US$69 per MWh.

In conclusion, GeothermEx regards South Meager to be as attractive as any other geothermal resource presently available in North America.

North American Power Crisis - Development Opportunity

The energy crisis reflected by record electricity prices paid in California, for spot and long term power contracts, combined with blackouts, have dominated the press as the power markets continue to be volatile. In March 2001, the California Department of Water Resources reported the assembly of a portfolio of 10 year power contracts at an average price of US$ 69 per MWh, and published figures projecting potentially a 100% increase in demand over the next decade, without adequate long term power contracts in place. In B.C., Canada, it is understood that the public utility B.C. Hydro, which reportedly earned approximately $ 1 billion in electricity sales to California last year, may experience production difficulties as a result of abnormally low snowpack levels to replenish the two rivers which provide at least 80% of their current energy production. In April 2000, B.C. Hydro published an updated Integrated Electricity Plan in which it stated new sources of power will be required between 2005 and 2007 to meet anticipated demand of customers, of which 10% will be "green" resources estimated at 15 MW per annum.

Crew Strategy

In order to best take advantage of the current opportunities afforded by the ongoing power crisis in North America, and as geothermal energy is not considered to be part of Crew's core business, Crew has initiated the following plan of action to adopt the recommendations of GeothermEx:

-- An independent public listing, followed by funding and the

securing of a major partner to take the project to

development, is considered to be the optimal course of action

for Crew shareholders.

-- Pursuant to an Agreement dated May 2, 2001, Crew has agreed to

transfer its 100% interest in South Meager to South Crofty

Holdings Ltd. ("South Crofty"), a company trading on the CDNX

stock exchange in Canada. This transfer will occur at an

agreed price of C$11,685,427, being the actual expenditures

incurred on the geothermal property during 1995/96, and will

be satisfied by the issue of shares of South Crofty.

-- Concurrently, Crew has agreed to acquire the existing control

block of South Crofty for cash at a cost of approximately

C$1.2 million, and to conduct a private placement of C$2.0

million, to provide South Crofty with initial working capital.

-- Following the closing of the South Meager - South Crofty

transactions, it is Crew's intention, subject to regulatory

compliance, to declare a dividend to its shareholders of one

share of South Crofty for every 20 shares held of Crew. A news

release will be issued when the dividend is declared.

-- The above transactions are subject to approval of the

independent shareholders of South Crofty, at a shareholders'

meeting to be held within approximately 60 - 90 days. If the

transactions receive the necessary shareholder approval, Crew

would own approximately 85% of the shares of South Crofty,

Crew shareholders would own approximately 5% directly, and the

existing shareholders of South Crofty (approximately 2,000)

would own the remaining 10%. This would result in South Crofty

having a total of approximately 10,000 shareholders.

-- Subsequently, Crew will seek to raise approximately US$6 to 8

million, directly into South Crofty, in order to finance the

development program proposed by GeothermEx. Crew has already

received expressions of interest to provide funding for the

project development.

-- Thereafter, should the development plan be successful, Crew

intends to introduce a major partner directly into the

project, to advance the project to full development.

-- South Crofty has negligible assets and no liabilities, and no

operations have been conducted by the company since January

1998. In October 1999, Hipposonic Music Studios (owned 100% by

the son of John Darch, Chairman and CEO of Crew) acquired

control of South Crofty, with the intention of creating a

publicly traded music business. This did not materialize, and

the company remained inactive. Control of South Crofty is now

available to Crew. The trading range of South Crofty shares

during the last 2 years has been C$0.15 - C$0.45, with an

average of $0.17/share.

-- All of the above transactions will be completed concurrently

at a price of C$0.12/share, being the maximum discount to the

market price of South Crofty shares, as permitted by the

regulatory bodies. Following these transactions, no officers,

directors, or insiders of Crew or South Crofty, or their

relatives, will own shares of South Crofty.

This method of publicly floating South Meager, by way of a reverse takeover of a listed company, is a common practice in North America, and has been adopted by Crew for the following key reasons:

-- achieves a timely listing of South Meager, within

approximately 90 days, in order to best take advantage of the

current opportunities presented by the North American power

crisis;

-- the independent public listing will immediately allow the

value of Crew's interest in the project to be assessed by the

market, which should then be reflected in the share price of

Crew.

As a result of the above, within a period of approximately 90 days, Crew anticipates having publicly listed the geothermal project, dividended approximately 5% of the shares of the new energy company (to be renamed North Pacific Geopower Corp.) directly to shareholders of Crew, and then raised US$6 to 8 million in order to fund the proposed development program, in a manner in which enables Crew to retain ongoing control of the project.

Corporate Overview

Crew is a mid-tier diversified international mining company, based in Vancouver, Canada. The company controls five quality development projects and owns, through Metorex, eight operating mines. Crew is active in Africa, Canada, Greenland, Norway and the Philippines and has a demonstrated ability to discover new grassroots projects, advance projects to the development stage, and operate mines efficiently. The company is profitable, and is well positioned for further growth. The primary listing for Crew shares is the Toronto Stock Exchange (TSE), and since January 2000 the company has been listed on the Oslo Stock Exchange (OSE). The company is also listed in Germany and in the U.S.

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

Geothermal Energy

Geothermal energy is heat derived from the earth. It is the thermal energy contained in the rock and fluid (that fills the fractures within the rock) in the earth's crust.

Geothermal resources come in five forms: hydrothermal fluids, hot dry rock, geopressured brines, magma, and ambient ground heat. Of these five, only hydrothermal fluid resources have been developed commercially for power generation.

Power is generated by converting the hydrothermal fluids into steam which powers conventional turbines. This process is the same as burning coal to make steam, however the geothermal sources avoid the additional costs of mining and transporting the coal.

The market for more environmentally friendly energy in the U.S. is growing as companies comply with ever more restrictive regulations on greenhouse gas emissions produced by other energy sources.

Highlights of Geothermal Electricity

Worldwide

Twenty-one countries generate 8,000 MW of electricity from geothermal resources. There is nearly 80,000 MW of electrical power that could be brought on-line in foreign countries in the next two or three decades using geothermal resources.

North America

Geothermal energy is the United States' second largest grid-connected renewable electricity source, after hydropower and the cost of generating power from geothermal resources has decreased about 25% over the past two decades. Geothermal power can be generated from modular units ranging in size from a few hundred kilowatts to more than 100 MW.

More than 2700 megawatts (MW) of electric power capacity produced in the United States from geothermal energy, which is enough to provide electricity to 3.5 million homes. The potential electricity production of geothermal resources is substantially higher. The Geysers geothermal field in northern California has been generating electric power for about 40 years. Environmental Issues

Electricity produced from geothermal energy in the United States saves emissions to the atmosphere of 22 million tons of carbon dioxide, 200 thousand tons of sulfur dioxide, 80 thousand tons of nitrogen oxides, and 110 thousand tons of particulate matter every year, compared with production of the same amount of electricity from an average U.S. coal-fired plant.

Sources: U.S. Dept of Energy website and industry sources

Qualifications of GeothermEx Inc.

GeothermEx is a US corporation, in business since 1973, specializing exclusively in providing consulting, operational and training services in the exploration, development, assessment and valuation of geothermal energy. We are the largest and longest-established such organization in the Western Hemisphere. The staff consists of specialists in geosciences (geology, geochemistry, geophysics, hydrology); engineering (drilling, well testing, reservoir, production, power plant, chemical), computer science and economic analysis. All technical staff members have advanced degrees and lengthy geothermal experience (average 15 years), with several members having more than 25 years in the geothermal industry. GeothermEx's clients include:

-- major oil and mineral companies requiring assistance in

exploration, drilling and field development;

-- electrical utilities requiring independent resource

evaluation;

-- financial organizations requiring advice on loan, acquisition

and grant programs; and

-- agencies of government, land owners, legal counselors, and

engineering companies requiring specialized technical

assistance.

GeothermEx has been associated with more than 750 projects for some 180 clients in 44 countries. The company has been involved in the development of The Geysers geothermal field in California and in all the other producing geothermal fields in the United States, including those in the Imperial Valley, the Basin and Range, Hawaii, Alaska and the Cascade Range. GeothermEx has carried out detailed geothermal exploration, drilling, field development and/or assessment projects for government agencies or private companies in Canada, Costa Rica, Nicaragua, Indonesia, Papua New Guinea, Guatemala, Portugal (the Azores), Iran, Mexico, the Philippines, El Salvador, Honduras, Peru, Macedonia, Argentina, Italy, Japan and Taiwan. We have also carried out geothermal reconnaissance and evaluation projects in Viet Nam, Boliva, China, Panama, St. Lucia, Kenya, Ethiopia, Mozambique, Yemen, Turkey, India, Thailand, Djibouti, Uganda, Hungary, Samoa, Jordan, Madagascar, and Fiji for the United Nations or World Bank.

GeothermEx has conducted technology transfer or training projects in many countries, including Bolivia, Brazil, China, Costa Rica, Greece, Japan, Nicaragua, New Zealand and The Philippines.

GeothermEx has conducted due diligence and verified resource adequacy for financial institutions in nearly all geothermal projects in the United States and abroad financed by bank loans or bonds. This has enabled the development of more than 6,000 MW of geothermal power, the total financed to date being nearly US $7,000,000,000.

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