Crew Development Corporation: Test Mining Program Successfully Completed at Nalunaq.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 23, 2000

Crew Develop (TSE:CRU.) (OSLO STOCK EXCHANGE:CRU) (FRANKFURT:KNC) Crew Development Corporation ("Crew") is pleased to announce that this summer's test-mining program at the high-grade gold deposit at Nalunaq, Greenland, has been successfully completed. The development program was designed to enable the company to make a production decision by the end of the first quarter of 2001, which remains our objective. As a result of the encouraging developments this summer, the program was extended into October, at an additional investment of C$2 million, resulting in a total program cost of C$9 million.

The test-mining program included more than 1,800 meters of underground workings and produced some 23,000 tonnes of crushed ore, which has been carefully sampled under the guidance of Strathcona Mineral Services. The company is pleased to report that all of the three adits and 15 raises were developed within the mineralized structure. In addition, each of the three adits run more than 400 meters along strike and remain in the mineralized structure. The verified 400-meter strike length should support a 500 tonne per day mining operation, producing an estimated 148,000 ounces of gold annually, as proposed in the 1999 prefeasibility study.

Upon the conclusion of the extensive work program, Crew has now earned a 67% interest in the project. Strathcona Mineral Services has been supervising the grade-verification program and has controlled the statistical sampling facility, the results of which are expected during the first quarter of 2001.

"This summers work program clearly demonstrated that Nalunaq can be an important revenue earner for Crew in the future. Our geologists now have a very good understanding of the narrow-vein high grade system at Nalunaq, which will improve our ability to expand the resources there, and in the region in general", said John M. Darch, CEO of Crew.

Project Overview

The Nalunaq Gold Deposit is located 6 km from an ice-free, deep-water fjord, and 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 a cash cost of US$160 per ounce. The calculated 27.3 g/t mill feed (after mining losses and dilution) suggests a payback of less than two 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 deposit was discovered in 1993 and constitutes the first find of visible in situ gold in Greenland. The 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. Several extremely high-grade intersections with more than 800 g/t of 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 1,000-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.

The Nalunaq joint venture recently signed a Mandate Letter appointing Bayerische Hypo-und Vereinsbank AG (HypoVereinsbank) as Advisor and Arranger for the debt financing of the Nalunaq project. The construction costs for the underground mine and processing facilities, which the company intends to 100% debt finance, are estimated at approximately US$20 million.

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 and 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 Crew shares is the Toronto Stock Exchange (TSE) and since January 2000 it has been listed on the Oslo Stock Exchange (OSE). The company is also listed in Germany and in the US.

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.