PMC sets the record straight – What really happened at Crew Gold’s LEFA mine in Guinea

PMC sets the record straight – What really happened at Crew Gold’s LEFA mine in Guinea

In response to the Crew Gold Corporation (CRU.T) (“Crew”) notice date 26th September 2008 announcing that its operating subsidiary at the LEFA gold mine in Guinea has taken over the works being performed under its third party mining contractor, PMC International (“PMC”) states that the situation has been misrepresented and we would like to set the record straight.

On September 20, 2008, the directors and officers of Crew Gold authorized the illegal seizure of equipment, materials, facilities, documentation and cash owned by PMC and its sub subcontractors at the LEFA mine site in Guinea. The Crew operating subsidiary arrived in the early hours of the morning accompanied with armed military and security forces to forcibly detain then remove PMC management from site. Crew then attempted to hire away our key expat and local managers.

PMC International was operating as a third party mining contractor at Crew’s LEFA project since 2006. According to Crew, and as witnessed by their own press releases, we were ahead of schedule. Crew had been encountering difficulties with their processing plant at LEFA and we were aware that they were losing money and as a result PMC had been lenient and patient with respect to enforcing payment for outstanding invoices since 2006.PMC was shocked and stunned by the illegal actions of Crew which can only be interpreted as an act of desperation.

Crew has suggested that they took over the works because of their concern for the maintenance of the mining fleet. This was a deliberate misrepresentation. It was also a poorly conceived and ill advised excuse crafted by Crew in an attempt to avoid payment of over 10 million dollars in legitimate outstanding invoices due at the time of the illegal seizure, and to take control of our assets and people.

A court order for the return of goods, equipment and cash has already been obtained in Guinea, but Crew through their operating subsidiary has, in contempt of this court order, denied our people access to the site.

PMC has attempted to deal with Crew to resolve this situation in the UK with Crew’s senior management in a peaceful manner however we continue to receive no material results. Furthermore, we have been advised by management of Crew Gold that they are in desperate need of a cash injection and that the company is on the verge of financial collapse. In the opinion of PMC, this is clearly the real motivation behind the illegal seizure.

PMC has been left with no option but to take swift and aggressive steps to recover its assets from Crew and to commence legal proceedings against Crew its officers, directors and advisors for legitimate claims and damages suffered in excess of US$60,000,000.00 together with punitive damages for the unjustified and unscrupulous methods employed in the seizure. PMC has also reported this matter to the authorities and is investigating the potential for criminal action against the directors and senior officers for illegally seizing our equipment and cash and for converting it to their own use with full knowledge that they had no right to it.

For more information about the situation, please contact Cameron Clarke at (telephone +61 42 39 79 559).

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