Joint Venture Agreement

GLOVER ISLAND

In October 2006 New Island exercised its option to acquire the Nugget Pond gold mill and property on the Baie Verte Peninsula from Richmont Mines Inc. It then sold the mill to Crew Gold Corporation. As part of the overall agreement, Crew Gold entered into a joint venture agreement with New Island whereby it has committed to expend $5,000,000 on the Glover Island property over a five year period to earn a 60% interest in the property.

Crew Gold has failed to meet its commitments and the property has been returned to New Island. As a result, the company holds a 100% interest in the property and is seeking credible joint venture partners.