Crew Development Corporation: Test Mining Confirms Extensive Visible Gold At The Nalunaq Project.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--July 6, 2000

Crew Development Corporation ("Crew") (TSE:CRU.)(FRANKFURT:KNC) is pleased to announce that test mining at the high grade (32 grams/tonne) gold deposit at Nalunaq, which will be the first gold mine in Greenland, is on schedule and producing excellent results.

Visible gold has been identified in each of the three new raises and the extension of the existing adit (400m(plus)) continues in the gold bearing structure. The joint venture, in which Crew is earning a 67% interest, has committed C$7 million (DKK40 million) to an extensive development program designed to enable the company to complete the final feasibility study, secure project funding and to be in production by the first quarter of 2002.

Underground operations involve drilling and blasting in three parallel adits and two raises simultaneously. Ultimately, three adits of about 300 meters length and 8-10 raises connecting the adits at 80-meter intervals will be completed. More than 300 tonnes of mineralized material is transported daily from the underground operations in the mountain to the crushing plant on the valley floor.

Every blast round is carefully collected and delivered separately to the plant where it is crushed, screened, and run through the sampling tower in order to provide sample material for accurate estimation of the contained gold. In addition, geologists collect more than 50 channel samples per day. These samples are cut with a diamond saw in the adits and raises as the miners expose the vein. Strathcona Mineral Services is supervising the grade-verification program and operates the statistical sampling facility.

In total 20,000 tonnes of material is planned to be mined this summer in an operation that involves more than 50 people. This summer's test-mining program will last until the middle of September and a production decision is anticipated during the first quarter of 2001.

"Nalunaq is an extremely attractive gold deposit because of its outstanding expansion potential, location in a country that appreciates mining, its great logistics, and low capital cost required", said John M. Darch, CEO of Crew.

Project Overview

Crew is the operator and is earning a 67% interest in the Nalunaq Gold Deposit, which is located 6 km from an ice-free, deep-water fjord, 40 km from existing port facilities in Nanortalik. A positive pre-feasibility study by MRDI (H.A. Simons) was completed in March 1999. The study estimated an NPV of US$39.8 million and an IRR of 51% for a 500-tpd operation with cash costs of $160/oz. The calculated 27.3 g/t mill feed (after mining losses and dilution) suggests a payback of 1.8 years on the US$20 million capital investment. Indicated and inferred resources of 425,000 oz with an average grade of 32 g/t are contained within a limited section of the geological resource of 1.8 million ounces, which has significant potential for further expansion.

The Nalunaq Main Vein is an outcropping gold-bearing structure, mapped and sampled for a length of over 2,000-m with relatively continuous exposure and consistent mineralization. The deposit was discovered in 1993 and constitutes the first find of visible in situ gold in Greenland. Several extremely high-grade intersections with more than 800 g/t gold over 1 m were obtained in the surface sampling program in 1999. Channel samples of up to 5,000 g/t have been obtained in the adit. Several additional gold mineralised outcroppings have been found in the 365 square kilometre concession. Crew has a dominant position in a new gold district in Southern Greenland with all known gold signatures claimed in the area.

Crew is a mid-tier diversified international mining company, based in Vancouver, Canada. The company controls six quality development projects and holds a 41% controlling interest in seven profitable mines. Crew is active in Norway, Greenland, the Philippines and Africa. Crew has a demonstrated ability to discover new grassroots projects, advance projects to the development stage, and operate mines efficiently. The company is debt free and is well positioned for further growth. The primary listing for the Crew shares is the Toronto Stock Exchange and since January 2000 has been listed on the Oslo Stock Exchange. The company is also listed in Germany and in the U.S.

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.