Released this afternoonCROESUS DEVELOPS PLAN FOR FUTURE SURVIVAL...

Released this afternoon

CROESUS DEVELOPS PLAN FOR FUTURE SURVIVAL The Board of Croesus Mining NL (ASX: CRS) today advised that the company will immediately implement a short term mining, production and exploration plan to return the Norseman gold business to a sound operational and financial footing. A longer term production forecast will also be prepared in due course which will provide the basis for longer term financial planning. The Board also advised that, after meeting with the Company’s major hedging counter-party and secured creditor, Macquarie Bank Limited (“Macquarie”) Macquarie has, based on the information provided to it to date, given its in principle support for Croesus to finalise and implement a comprehensive new operating and financial plan for the continuation of Croesus’ Norseman gold operations. Trading in Croesus shares was suspended on 16 March 2006 pending completion of a detailed review of all financial and operational aspects of the business, an independent solvency review and consultation and liaison with major stakeholders including creditors, directors, senior management, employees, consultants and suppliers. Support of these and other stakeholders (eg the State Government and Dundas Shire) is imperative to give Croesus time to achieve its goals. Chairman Michael Kiernan said the review concluded that poor decisions over several years had left the Company in a very difficult financial and operational position with the key issue being insufficient ore sources to maintain its processing plant at full capacity and high costs. As a result, current production levels are insufficient to meet Croesus’ full hedging commitments. He said the Board has the in principle support of Macquarie to implement key production strategies, efficiencies and cost savings required to increase production and reduce cash operating costs which had been identified by underground mining consultant, Barry Cahill. It is envisaged that Cahill, in a senior operational position, will lead a team of experienced mining engineers to spearhead this program, which will be overseen by Kiernan as Executive Chairman, Allan Quadrio, who is to be appointed as the Company’s Managing Director, and non-executive director David Macoboy, who was previously Finance Director of Consolidated Minerals. All three played key roles in the reconstruction of Consolidated Minerals. Further details of the new operations plan will be provided shortly, however proposed components include: • introduction of significant operational productivity and efficiency gains in order to maximise monthly gold production; • deferment of certain short-term financial obligations to enable the operation to become cash positive; • significant operating and corporate cost reductions at Norseman and Kalgoorlie; and • identification of additional reserves and development of a third ore source in addition to the Bullen and Harlequin mines. Kiernan said the new management team would quickly focus on short and medium-term strategies to return the Norseman gold business to a sound operational and financial footing as the first step towards rebuilding Croesus from the ground up. -ENDS-