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SUBIACO, WESTERN AUSTRALIA--(Marketwire - March 14, 2011) - Crescent Gold Limited (TSX:CRA)(ASX:CRE)(FRANKFURT:CRE5) -



NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES .




Operations Update: Crescent is pleased to advise that haulage operations recommenced last week from the Laverton area pits down to the Granny Smith Mill. Stockpiles are building up well for Crescent's next campaign through Granny Smith which commences in early April. Mining operations are continuing as per the Company's announcement made on 4 March 2011. Mining is currently underway in the Craiggiemore and Grouse open pits.


Rehabilitation work on the Fish haul road will commence shortly to enable the Company to restart mining at Fish, which is expected to provide higher grade feed later in calendar year 2011.


The Company has now completed its revision of production scheduling and budgets for the next 12 months, which are expected to be approved by the Board shortly. Accordingly these forecasts should continue to be considered preliminary in nature. The impact of the rains is expected to reduce forecast production for the full year to December 2011 to between 80,000 and 90,000 ounces (down from a range of 105,000 to 115,000 ounces). An anticipated reduction in costs and increasing grade profile should result in positive cash flow through this period.


The progressive re-establishment of multiple ore sources and increased mining flexibility should see production rates progressively increase over the course of the year. Production estimates for the badly rain affected first quarter are in the order of 15koz (as announced on March 4th, 2011), followed by successive quarterly production of achieving better than 22koz, 20koz and 28koz during the second, third and fourth quarters respectively.



Cash Flow and Balance Sheet: The rain events during the last two quarter's have affected Crescent's cash flow and cost base as revenues have been below expectations and costs have been modestly elevated as a result of dealing with these unprecedented events.


The December quarter's production fell approximately 8koz short of expectations (see announcements dated November 23rd, 2010 and January 31st, 2011) and expected first quarter production of 15koz, is approximately 12koz below forecast. At the prevailing gold prices this production shortfall resulted in over $28m of lost revenue. This revenue shortfall, combined with a normal buildup in working capital and reduction in the Company's creditor balance saw the Company with a cash balance of $19.5m (unaudited) at the beginning of March, 2011. The subsequent repayment of the outstanding $10m of the $15m Indago debt facility (see announcement dated March 10th, 2011) further reduced cash resources.


Crescent is in the process of negotiating a new financing facility to enable the Company to replace the recently repaid debt facility. Several groups have offered short term financing to ensure sufficient working capital and negotiations are also underway with several groups regarding longer term more flexible financing facilities. The Company's operation requires it to mine and haul ore for a full quarter, while only processing and receiving gold payments for 50 days. Accordingly, the buildup in working capital can be as much as $15m during any given quarter, and Crescent was part way through this buildup when rains halted operations. The next processing campaign is due to commence in early April. The Company's preliminary budgets suggest that a short term facility of $5m will be more than adequate to cover any required working capital buildup during this half year and unrestricted cash balances (exclusive of debt drawdown) are expected to exceed $20m in 12 month's time using the current gold price.


Given the change in the Company's financial circumstances the board is considering various options for funding the development of the Summit underground project, which was originally slated to be largely funded from the process of the recent rights issue. Similarly, funding for deep exploration will be considered in light of the forecast improving cash flow of the Company.



ABOUT CRESCENT GOLD



Crescent Gold is a top 10 listed Australian gold producer and explorer. Based in Western Australia, current annual production of 80,000-90,000 (revised) ounces is being sourced from the Laverton Gold Project (LGP).


Crescent maintains a dominant land position of over 1,200km2 of highly prospective tenements in a world recognised and well endowed mineralised geological domain. With 30Mt of Mineral Resources which contain over 2.1Moz of gold, and an Ore Reserve position of 445,000 ounces, Crescent has a plan to carry on building its presence in the Laverton district, continue exploration and development to grow its reserve/resource base, and further leverage its production base to grow reserves, production, cash flow and earnings.



FORWARD LOOKING STATEMENT



This discussion and analysis contains certain forward-looking statements. These include statements about our expectations, beliefs, intentions or strategies for the future, and are indicated by words such as "budget", "anticipate", "intent", "believe", "estimate", "forecast", "expect", and similar words. While all forward-looking statements reflect our current views with respect to future events, they are subject to certain risks and uncertainties. Actual results may differ materially from those projected in these statements for a number of factors, including those which are described in the Corporation's periodic filings with securities regulatory authorities. We base our forward-looking statements on information currently available to us and we do not assume any obligation to update or revise them, except in accordance with applicable securities laws, readers should not place undue reliance on forward-looking statements.



In accordance with the requirements of Canadian National Instrument 43-101 further information on the geology and mineralising setting can be found within the "Independent Technical Report on the Laverton Gold Project Western Australia" which is available on SEDAR (>www.crescentgold.com