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

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

OUTLOOK

Our main focus during 2007 has been the rectification and upgrade of the LEFA plant. In spite of adverse weather and other challenges at the plant during the year, the rectification and upgrade program proceeded according to schedule and production is increasing. As previously advised, during the first half of 2008 there will be some interruptions to production to allow components of the rectification program to be completed. Management expects that the production rates will continue to improve throughout 2008. The plant is expected to reach 75 % (approximately 16,000 t/d) of its new design capacity during Q2 2008, at which time the plant will be deemed to be in commercial production. Towards the end of 2008, as plant reliability issues are progressively corrected, the throughput is expected to approach 90% of design capacity (approximately 20,000 t/d).

The LEFA mine and its expansion potential will continue to be the main contributor to Group production in the years to come, particularly as the capacity ramp up is completed and higher grade satellite deposits such as Firifirini are brought into production. The near mine and regional exploration programs will remain focused on the delineation of reserve, primarily to further increase the capacity at the LEFA plant and potentially to justify the building of new mine and plant operations elsewhere within the LEFA concession in the medium term.

The Company is focusing on two key strategic issues to achieve the overall longer term production plan, and to be able to mitigate the continued cost pressure on our sector. These two issues are:

After 10 of the 12 new agitators were installed there were efficiency improvements in the LEFA plant through significantly higher recoveries. Recoveries in the first two months of 2008 have increased from 88% to approximately 94%. Upon achieving sustained increased throughput, the conversion to heavy fuel oil and other planned cost efficiencies, the Company will be in a much better cost position at LEFA, countering the general industry cost pressures.

The technical review of the mill expansion and mine plan at the Maco operation is expected to yield cost savings in capital and efficiencies in the plant. Even though only limited work has been undertaken on the copper-gold porphyry resources located on the concession so far, more focus will be given to evaluate what seems to be very significant copper porphyry potential. A number of international companies have approached Crew to develop an exploration joint venture. These opportunities are being considered. The focus at Maco will continue to be on the technical review of the plant expansion and mine plan.

Our Nalunaq operation continues to improve, with average daily ore production during 2007 being the highest achieved since the commencement of operations. As the mine produces from an inferred resource some variation in grade is experienced from month to month. With the acquisition of the remaining minority interest, Crew is in a better position to achieve its longer-term strategic goals. We expect Nalunaq to generate stable production in the years to come.

Nugget Pond continues to operate efficiently with throughput and recoveries exceeding initial expectations. Previously planned improvements to increase throughput at the mill have been deferred. In addition, the construction of a planned offloading facility for Nugget Pond at Snooks Arm was deferred as a larger, shared community facility is being considered. This reduced expected 2007 capital expenditures by approximately $7 million.

Crew’s annualized production rate for Q3 and Q4 2007 has been approximately 200,000 oz. With the completion of the LEFA rectification and expansion project delivering rapid production growth, and LEFA’s significant exploration potential and continued encouraging drill results, the Company is well positioned to show significant and sustained increases in production in the longer term. Our decision to increase the production capacity at LEFA, taken in May 2007, and our focus on grade improvement was driven to a great extent by the cost pressure seen by the mining industry. Our industry continues to be faced with escalating costs and we see these cost pressures continuing. We have taken conscientious, deliberate and pro-active action to address cost control and believe our actions will add value to our shareholders’ investment. The upgrade and rectification program is expected to be finalized during the first half of 2008. While a quarter-on-quarter production increase is expected, month-to-month production variations should be expected, particularly during the wet season at LEFA.

It is Management’s view that the outlook for the Company not only remains positive, but has strengthened during the year, based on the present status of the Company’s projects, continued increases in reserves and resources, and the strong gold price. Increases in the price of gold will most likely also cause higher general costs to the industry offsetting some of the favourable impact of the gold price increases, but do improve margins significantly for Crew and the industry in general. Management’s projected margins for the LEFA project have increased considerably, based on the present gold price since Crew purchased LEFA. Since the decision to upgrade and rectify the plant was made in May 2007, the gold price has increased by more than US$300 per ounce. The deferred revenues from the postponed production in 2007 will to some extent be recouped in 2008, assuming the higher gold price is sustained. Mining production at LEFA for the last five to six months has been well ahead of schedule, recoveries from the limited tonnage processed through the plant have improved significantly and are above expectations, and exploration continues to be encouraging. With the anticipated completion and commissioning of the rectification and the expansion project at LEFA in Q2 2008, it is Management’s view that the outlook for the Company is very encouraging.

Our Maco pilot plant has been operating well and above budget during the first few months of 2008. The review of the mill expansion and mine plan is being finalized. The Nalunaq/Nugget Pond operation is improving and is now a stable producer. We have had systematic and disciplined growth over past quarters in both production and resource and reserve growth and expect to see continued growth quarter by quarter over the near term.

We believe that the quality of the Company’s projects and the strategic decisions taken by Management and the Board will create shareholder value over time.