Management’s Discussion and Analysis of Financial Condition and Results of Operations

For the year ended December 31, 2007 (Expressed in United States dollars)

OPERATIONS

LEFA

Crew acquired Guinor Gold Corporation, the 85% owner and operator of the LEFA Corridor Gold project in Guinea in December 2005. In June 2006, Crew acquired the remaining 15% interest in the LEFA project, which was previously owned by the Government of Guinea. Prior to Crew's involvement, LEFA operated for over 11 years as a modest heap leach operation and produced approximately 800,000 oz gold.

Plant and Infrastructure

Following the acquisition of the CIP plant and its relocation from Indonesia to Guinea and its assembly there, in May 2007 it became evident that the operation of the leach and absorption tank agitators was below expectation, resulting in sand settling in the tanks. This was most prevalent when fresh ore was being processed. As a result of the need to replace the agitators, a decision to upgrade the processing capacity was made and Management believes that the resulting configuration will enable the leach and absorption circuit to operate above the nameplate estimate of approximately 18,000 tonnes per day. The commissioning phase was extended to cover the design, ordering and installation of new agitators, gearboxes, apron feeders and pumping capacity. These modifications have resulted in a reduction in gold production for 2007 from prior estimates and additional capital expenditures of approximately $10 million. Management believes that an annualized production rate of approximately 350,000 to 400,000 oz should be achieved at the present reserve grade, and 400,000 to 450,000 oz when higher-grade material is mined from satellite pits.

The upgrade and rectification project has progressed on schedule. All components have been delivered to site and installation is approximately 90% complete as of the date of this MD&A. Major improvements include an increase in recoveries from 88% to approximately 94% in the first two months of 2008.

Both SAG mills 1 and 2 were relined during Q4 2007. In preparation for the capacity upgrade of the CIP plant, a design review report has been undertaken by engineering consultants who have confirmed that the revised design capacity of the plant can be achieved with the planned modification and rectification works that are currently in progress.

Another important component of the rectification and expansion program is the preparation of the site for operation during the wet seasons. These include mine dewatering and river diversions, plant spillage control and storm water drainage, road drainage and, most importantly, a joint government-sponsored plan to upgrade the main road into site to allow logistical support during 2008’s and future wet seasons.

The power plant electrical-generation system has been fully commissioned. It is currently running on diesel oil and is being converted to operate with heavy fuel oil (HFO). Two out of eight generators were commissioned during October and November. Commissioning of the HFO treatment and conditioning plant is in progress. The rebuilding and conversion of the remaining generators to HFO will occur progressively. The conversion and re-builds are being managed by the original equipment manufacturers, Wartsilä. Specialist contract technicians are at site assisting with the final conversion works and substantial completion is expected prior to the onset of the next wet season. The change to HFO power generation is expected to reduce cash operating costs by an estimated 15 to 20 USD per ounce. Additionally, the storage capacity of 3.5 million liters of HFO, which has already been delivered to site, will provide an additional buffer against possible disruption to supply in the wet season. The bulk of diesel storage will then be required only for the open pit mining fleet mobile equipment.

The rectification and expansion project is expected to be completed during Q2, 2008 and has a cost estimate of approximately $10 million. Commissioning of the plant is expected to be complete in Q2 2008. The plant will be declared commercially operational when daily throughput rates of ±16,000 tonnes of ore are achieved on a sustainable basis. Following this, revenues and operating costs will be recorded in the earnings statement. During the remainder of 2008, plant throughput is expected to be progressively increased.

Reserves and Resources

In October 2007, we announced a mid-year review of ore reserves, effective September 1, 2007. Proven and probable reserves increased by 490,000 oz (14%), from 3.38 million oz to 3.87 million oz. These include a new proven reserve of 0.21 million oz and a new probable reserve of 0.02 million oz at Firifirini (formerly Siguirini prospect) and an increase determined through a design review of the main open pits within the LEFA Corridor.

Of further significance, the Firifirini deposit continues to be open to both the east and west ends and drilling has also identified a parallel structure north of the current resource area. Drilling results following the last resource and reserve updates have been encouraging. Further work will focus on expanding the Firifirini resource as well as continuing the evaluation of the northern and nearby structures.

Maco

The Masara Mine in the Philippines was renamed Maco Mine in late 2007 to recognize the entire municipality where the mining occurs rather than one particular village near the mine.

Operations

The Maco Mine is still considered to be in the development phase while technical studies are completed and underground development is put in place to explore the orebody and upgrade the geological resources in preparation for stoping. In the process, this development has opened large tracts of orebody in preparation for stoping so that the development stays well ahead of the planned stoping and planned production rates can be sustained.

The experience gained in 2006 and 2007 has led to a better understanding of the orebody and has identified issues including ground conditions, gas and water management that were originally not foreseen.

A study to review the stoping methods indicated that, under ideal conditions, the maximum production peaks at 1,900 t/d when multiple vein systems are being mined simultaneously. A production rate of 1,000 t/d to 1,500 t/d is considered achievable, taking into account the level of confidence in resources and physical mining conditions. The expansion of the mill in phases to be able to process a constant throughput of 700 t/d in 2008 is underway.

The approach for 2008 is to develop the infrastructure and ore drives in the vein systems where we have the highest level of confidence in the resource. This will allow us to convert as much as possible of the ore resource from inferred to indicated and measured status. At the same time, we are consolidating all of the existing geological and sampling data on these vein systems to identify which ore drives should be advanced outside the current plan as exploration drives and also to ensure that the current development follows the payable splits in the veins.

Plant and Infrastructure

During 2007 the 500 t/d pilot plant operated on development ore while the technical review of the mill expansion and mine plan continued. The plant has shown that it can operate at rates of up to 700 t/d, but not on a sustainable basis. The mill expansion is to be phased in with the mine expansion, with the first phase to provide the capability to sustain 700 t/d that is scheduled from underground toward the end of 2008.

Flotation studies were originally started to reduce the amount of cyanacides in the ore including copper, lead and zinc. Tests however have shown that saleable concentrates of these base metals can be obtained that could potentially double the value of the ore. Indications are that the additional flotation costs are essentially offset by the reduction in cyanide cost. This study will be expanded further during 2008 with emphasis on differential flotation.

The design of the expansion of the tailings management facility was completed during Q3 2007 and the expanded tailings facility is being constructed in two phases to reduce the immediate impact on cash flow. The first phase of the facility will allow for production into 2009 with the timing of the second phase dependent upon the tailings consumed in the mine backfilling process.

Staff training continues to be a major focus with transfer of professional Philippine staff between Crew operations to expand their experience and provide properly trained staff in a difficult labour market. An expatriate Training Manager has been appointed and nationally accredited training programs have commenced on the mine with emphasis on training of trainers.

A new General Manager was recruited and started during Q3 2007. Mr. Fernando (Ferdie) Agustin was previously employed by Philex Mining Corporation, the largest Philippine-owned mining company in the country, and has over 20 years of mine-site operations and management experience. Ferdie has taken on the role of Vice President Operations and Resident Manager and is stationed at the mine site. In addition, a new Corporate Administrative Manager was recruited. Mr. Deo Contreras Jr also comes from Philex and has over 40 years of experience in the industry. Deo is based in Manila and has the role of Executive Vice President and General Counsel. As the President of Apex Mining Company announced his retirement in Q3 2007, Deo also began performing the duties of the President. He was subsequently appointed CEO and President of Apex Mining Company on January 14, 2008.

These appointments have instilled a new enthusiasm and a higher degree of responsibility in the work force and major advances have been made in streamlining the organizational structure with both cost reductions and improved productivity.

The Company has, for some time, been evaluating the copper-gold porphyry potential of the Maco property. After having been approached by a number of companies we have now commenced discussions with a limited number of major international mining companies relating to exploration and possible development of the copper-gold porphyry resources existing on the concession.

Exploration and underground development

Drilling to define the vein extensions on strike and at depth from old workings continued through the quarter, with 17,409 metres of diamond drilling being completed for the year ended December 31, 2007 bringing the total drilled to 43,369 metres since the program began.

We released an update of mineral resources for our Maco Mine in the Philippines, in February 2007. The total resource inventory for Maco included an estimated 304,000 oz of indicated resources (1.46 million tonnes at 6.5 g/t Au), representing a 15% increase from the previous estimate. Inferred resources increased significantly by over 60% to 1.85 million oz (9.60 million tonnes @ 6.0 g/t Au) compared with the previous estimate of 1.15 million oz (5.74 million tonnes @ 6.3 g/t Au). Resource extension and conversion drilling has continued throughout 2007 with similar results to those obtained in 2006 and the Company is confident it will continue the substantial resource expansion achieved last year.

The Company is planning to commence drilling and associated work to confirm and expand the historical copper porphyry resource (historical reserve) of approximately 80 million tonnes with 0.4% copper and 0.4 g/t gold on the property. The region is known for its considerable copper porphyry deposits.

In the mid 1970s, the property had a limited open pit copper operation based on the Theresa and Kurayao porphyry deposits. An internal feasibility study based on a mineable resource (neither JORC nor NI 43-101 compliant) at the time indicated approximately 80 million tonnes at 0.4% Cu and 0.4 g/t Au. A recent review of geological data indicates potential for the smaller porphyry stocks to merge at depth. Owing to the topography and limited access in the area, a potential combined copper porphyry and gold operation within the same area may cause logistical challenges and is now being assessed. As a part of this assessment, we are considering a regional exploration program to establish a better basis for future development programs. This regional exploration program may be undertaken in joint venture with a large international mining company.

Nalunaq and Nugget Pond

Operations

The Nalunaq Gold Mine commenced operations in 2004. The mine's focus has been to improve production performance and grade. The Nalunaq resource is a narrow vein deposit consisting of several high-grade "bands" typically carrying grades of approximately 30 g/t or higher. Between the high-grade bands, grades can vary between 10 g/t and 20 g/t. In practice this means that the grades achieved on an ongoing basis can vary considerably, but remain comparatively high.

Nalunaq Mine performance has continued to improve, with the average daily production for the year ending December 31, 2007 being 403 tonnes per planned production day and production for the December quarter 2007 averaging 450 tonnes per planned production day.

In late 2006, we acquired the Nugget Pond facility in Newfoundland to process ore produced from Nalunaq in Greenland. Refurbishment and recommissioning of the plant was completed in February 2007. The first gold was poured in March 2007, approximately four months ahead of initial plans. Ore is currently shipped to South Brook and trucked to Nugget Pond. Performance of the Nugget Pond facility has exceeded expectations, enabling a planned upgrade to be deferred.

Reserves and Resources

Updated reserve and resource estimates for the year will be completed and presented in Q2 2008. Drill results will be published on the basis of concluded programs or sections.

Acquisition of minority interest in Nalunaq Gold Mine

On November 1, 2007 we announced the acquisition of the remaining 17.5 % of Nalunaq Gold Mine from Nuna Minerals A/S ("Nuna") bringing our total ownership to 100%. Including the acquisition of the loans made by Nuna of CAD$2.5 million, total cash consideration was CAD$5.0 million. In addition, Nuna will be entitled to a 1.5% net smelter royalty on production in excess of 992,000 cumulative oz from the date of the opening of the mine. Approximately 230,400 oz have been produced to date.