Crystallex International Corporation

COMPANY DATA | INTRODUCTION | PROJECTS IN HAND | MANAGEMENT | NEWS UPDATE
CHINESE

COMPANY DATA

INTRODUCTION

Crystallex International Corporation is an international gold mining company that is engaged in exploration, development and mining for gold, with its primary focus in Venezuela and Uruguay. Crystallex is currently building on the strength of its strategic acquisitions over the past several years, which now include its recently executed mining operation contract for the Las Cristinas properties in Venezuela. The Company is focused on building both its mining infrastructure and human resources to position it as an emerging intermediate gold producer.

In September 2002, Crystallex signed a mining operation contract for the Las Cristinas gold properties in Venezuela and has taken possession of those properties. An initial report by Mine Development Associates states that, "the Las Cristinas project contains a significant gold/copper deposit with potential to increase in size." In February 2003, Crystallex awarded SNC-Lavalin Engineers & Constructors Inc. ("SNCL") the mandate to undertake a Feasibility Study for the development, construction and operation of a mining and processing facility. The mandate of SNCL contemplates an initial 20,000 tonnes per day operation capable of processing oxide and sulphide ores from Las Cristinas.

PROJECTS IN HAND

(1) Tomi Gold Mine

El Callao, Venezuela
Crystallex acquired the Tomi concession in June 2000 for US$20 million, and the assumption of US$13 million in existing long-term debt. Located in the El Callao region of Venezuela's Bolivar State, the mine's current reserves are located in three contiguous pits: McKenzie, Charlie Richards and Milagrito. After acquiring Tomi and the Revemin Mill in August of 2000, Crystallex's technical personnel recognized the potential for high-grade mineralization along the down plunge extension of the Charlie Richards deposit. To test this hypothesis, the Company embarked on a 4,468 metre NQ diamond drill program, which encountered high grade minearlization to a maximum vertical depth of 300 metres and indicated that the mineralization is still open down plunge. Mine Development Associates ("MDA") of Reno, Nevada, was subsequently retained to provide Crystallex with resource and reserve estimates and a preliminary cash flow of the Charlie Richards reserves. Using a gold price of US$265 per ounce, MDA concluded that the Charlie Richards project can produce 171,000 tonnes of open pit material grading 6.20 g/t Au at a 1.74 g/t Au cutoff and 129,787 tonnes of underground ore averaging 15.36 g/t Au at a 5.0 g/t Au cutoff (Reserves at Tomi underground are classified as probable). The average cash cost of production was estimated at US$104 per ounce for the open pit and US$82 per ounce for the underground, based on owner operated costs.

(2) La Victoria (Lo Increible Project)

Lo Increible, Venezuela
The Lo Increible is a gold property located adjacent to Crystallex's Revemin Mill. Crystallex acquired control of the project in early 2001 through a takeover bid for the shares of El Callao Mining Corp. and the purchase of certain assets from its principal shareholder. La Victoria is one of a string of deposits on the Lo Increible concessions. In February 1999, ECM released the results of a pre-feasibility study completed by Bema. A geological resource of 24.1 million tonnes grading 3.3 g/t gold, containing 2.6 million ounces of gold at a 1.0 g/t cutoff was outlined from 302 holes (46,377 metres of drilling) incorporated in the report. In April 2001, Crystallex began a trial open pit mining operation at La Victoria with the aim of verifying the geologic model and the metallurgical recovery of this deposit. Between April and the end of August, 2001 140,364 tonnes were processed through the Company's Revemin Mill yielding 14,021 ounces of gold at an average recovery of 87.3%. By the end of August the recoveries had started to climb into the 90% level as the challenges were addressed systematically. Based on the favorable results of the trial mining operations, a decision was made to begin an extensive diamond drill program for resource and reserves definition.

(3) Albino Mine

The Albino mine was the Company's first operating open pit mine from which it produced gold from 1994 through 1998. On August 31, 2001, MDA completed a resource and reserve estimate of the Albino deposit. The study was commissioned primarily to assess the economics of starting up an underground mine at that locality and trucking the ore to the Revemin Mill. MDA's work concluded that the Albino deposit contains Measured and Indicated resources of 3,268,000 tonnes grading 4.02 g/t Au at a cutoff grade of 0.5 g/t Au including a high-grade core area with Measured and Indicated resources of 301,000 tonnes grading 15.70 g/t Au (8.0 g/t Au cutoff). Within this resource, there are 183,900 tonnes grading 14.58 g/t Au which were converted to Proven and Probable diluted reserves using a cutoff grade of 8 grams per tonne. Based on mining, processing, transportation and support costs totaling US$53.68/tonne, operating costs for the Albino ore amount to US$129 per ounce. MDA's study concluded that it considers Albino to be a small, but good quality project. The mineralized zone is well defined by drilling and supported by previous mining.

(4) Las Cristinas Project

The Las Cristinas gold properties in Kilometre 88 have been reported to contain one of the largest undeveloped gold projects in Latin America and the world. Crystallex acquired the rights to the Las Cristinas 4 & 6 concessions through the purchase of Inversora Mael, the entity that has been the registered titleholder since 1986. In 1991, 1996 and 1997, the Supreme Court of Venezuela confirmed the validity of the transfer of the concessions to Inversora Mael. Despite a decision from the Supreme Court in June 1998 denying Crystallex legal standing to pursue its rights, more recent rulings by bodies of the Supreme Court of Venezuela in 2000 supported Crystallex's legal standing to pursue its rights in relation to these concessions. In November 2000, Crystallex presented its plans for the development of Las Cristinas to the Energy & Mines Commission of the Venezuelan National Assembly.

In September 2002, the CVG announced the selection of Crystallex to partner and develop the Las Cristinas concessions 4, 5, 6 & 7. As a result of the decision, concession rights, title, mining rights, and possession of the property will be brought together in one partnership, for the first time in the history of Las Cristinas.

Crystallex stands prepared to expand investment and production to the benefit of all the people in the region and Bolivar State. Crystallex is currently reviewing all drill data and previous studies and has begun to finalize development plans for the properties.

MANAGEMENT

Crystallex International Corporation has a strong management team with experience in different areas. The management team includes:

Todd Bruce, President and CEO
Mr. Bruce brings to Crystallex extensive experience in the gold mining industry having most recently served from February, 1996 through January 24, 2003 as President and Chief Operating Officer of IAMGOLD Corporation, a TSX and AMEX listed company whose principal assets, the major Sadiola gold mine and the Yatela gold mine commenced commercial production in 1997 and 2001, respectively. Mr. Bruce played a leadership role in the growth and financing of IAMGOLD, in the implementation of the IAMGOLD's innovative Gold Money policy, and in the merger of Repadre and IAMGOLD in January of 2003.

Dr. Ken Thomas, Chief Operating Officer
Dr. Thomas directs the Company's mining operations in Venezuela and Uruguay. Dr. Thomas's mining and metallurgical skills have been recognized with a number of industry awards including the Selwyn G. Blaylock Medal, for his many achievements in the mining industry internationally and the Mill Man of the Year award from the Canadian Institute of Mining, Metallurgy and Petroleum. Dr. Thomas served for many years as a senior officer at Barrick Gold Corporation. From 1990 - 1995, he was Barrick's Senior Vice President, Metallurgy & Construction, and from 1995 until his departure from Barrick in 2001, he served as Senior Vice President, Technical Services. In April of 2001, Dr. Thomas joined Hatch and served as Global Managing Director, Mining and Mineral Processing.

Borden D. Rosiak, Chief Financial Officer
Mr. Rosiak has recently joined Crystallex. He has served in senior financial positions with major companies since 1981. Prior to joining the Crystallex team, he was Chief Financial Officer of Dorset Partners, a private investment firm. From 1994 until 1999, he was with Newcourt Credit Group, a CDN$25 billion global financial services company and served as their Chief Financial Officer.

Daniel R. Ross, Executive Vice President, Corporate Counsel
Formerly a Managing Partner with one of Canada's largest law firms, McCarthy Tetrault, Mr. Ross brings a wealth of experience in corporate, business and administrative law. Over the past three years he has been instrumental in the negotiation and completion of all Crystallex's mining acquisitions.

Dr. Sadek El-Alfy, Vice President of Operations
Dr. El-Alfy has held top operational positions with some of the largest mining companies in the industry. A 27-year mining veteran, Dr. El-Alfy was formerly Vice President of Operations for Royal Oak Mines. Prior to that, he was General Manager of Mining for The Iron Ore Company of Canada at a time when it ran the world's largest mining operation. Since joining Crystallex, Dr. El-Alfy has been responsible for many of the production efficiencies implemented at the San Gregorio mine and is in charge of structuring plans for Las Cristinas as well as other Venezuelan projects.

Dr. Luca M. Riccio, Ph.D., P.Geo., Vice President of Exploration
Dr. Riccio joined the KRY management team in December 1996. A geologist with 27 years experience in the mining industry, Dr. Riccio has held key executive positions with Anaconda Copper and has been a consultant to BP Minerals, Homestake and other mining companies. Dr. Riccio was responsible for discovering the Albino mine and evaluating the Company's other mineral property acquisitions. Closely involved with the Las Cristinas project since 1997. Dr. Riccio will head the Crystallex team developing its plans for exploration and delineating the total gold resource on the properties.

Robert Crombie, Vice President of Finance
Mr. Crombie has also recently joined the Crystallex management team. He has more than a decade of mining-related financial experience. From 1999 until 2001, he managed the Canadian mining finance initiatives of Dresdner Bank in Toronto, and was primarily involved with the origination and structuring of corporate and project-debt facilities.

A. Richard Marshall, Vice President of Corporate Development
Mr. Marshall joined KRY in July of 1996, prior to which he held positions at a number of investment banking firms, including Cohig & Associates and J.W. Charles/CSG. Immediately prior to joining KRY he was a vice president in charge of investor relations.

Board of Directors
Crystallex International Corporation's Board members include:

Robert A. Fung, Chairman
Marc J. Oppenheimer, Vice Chairman
C. William Longden, Director
David I. Matheson, Director
Harry J. Near, Director
Michael Brown, Director
Armando F. Zullo, Director

NEWS UPDATE

On August 17, 2004, Crystallex International Corporation announced improved economics and a revised Capital Budget and Control Schedule for its Las Cristinas Project. The review included analysis of owner-operated mining versus contract mining for saprolite ores, and re-assessment of initial project design as it relates to optimizing future expansion from 20,000 tonne per day ("tpd") to 40,000 tpd. The review resulted in a decrease in estimated average operating costs, a moderate increase in the capital cost estimate and an increase in the project's IRR.

On August 12, 2004, Crystallex International Corporation reported financial results of the Company for the second quarter ending June 30, 2004. All dollar figures are in US dollar unless otherwise indicated.

Highlights

· Raised net proceeds of $82.2 million in a common share financing, ensuring that the development of the Las Cristinas project remains on schedule.
· Submitted the Environmental Impact Study to the Corporacion Venezolana de Guayana and the Ministry of the Environment and Natural Resources in April initiating the final permitting phase for Las Cristinas.
· Completed an 18 hole (7,100 metre) infill drill program at Las Cristinas. Updated resource and reserve estimates are expected in October 2004.
· Detailed engineering and environmental work for Las Cristinas continued under the Engineering Procurement and Construction Management contract with SNC Lavalin Engineers & Constructors. Evaluation of equipment bids and contracts is underway.
· Gold sales contracts were reduced by 82,000 ounces during the second quarter. Committed gold sales were 234,475 ounces at the end of the second quarter.
· One June 18, 2004 Crystallex was added to the S&P/TSX Composite Index, the S&P/TSX Capped Materials Index and the S&P/TSX Capped Gold Index.
· In a press release dated August 04, 2004 Crystallex confirmed the "Land Occupation Permit" for Las Cristinas, the prerequisite permit to secure the final "Permit to Impact Renewable Natural Resources" which will complete the permitting process and is expected this fall.

On August 04, 2004, Crystallex International Corporation advised that the Land Occupation Permit has been confirmed for the Las Cristinas gold properties. The Land Occupation Permit authorizes the use of the Las Cristinas properties for the purpose of mining, and is a critical element of final permitting for the project. Crystallex and the Corporacion Venezolana de Guayana are fully engaged in the permitting process, following the guidelines prescribed by the Ministry of the Environment and Natural Resources, to obtain the final permit, i.e. the "Permit to Impact Renewable Natural Resources", during the fall of 2004, when full scale construction would commence.

On June 16, 2004, Crystallex International Corporation announced that Standard & Poor's Canadian Index Operations has advised that it will be adding the corporation to S&P/TSX Composite Index, the S&P/TSX SmallCap Index, the S&P/TSX Capped Materials Index and the S&P/TSX Capped Gold Index with effect from the close of business on June 18, 2004.

On May 14, 2004, Crystallex International Corporation reported the financial results of the Company for the first quarter ending March 31, 2004. All dollar figures are in US Dollars unless otherwise indicated.

Highlights:

· Las Cristinas 20,000 tonne per day feasibility study approved by the Corporacion Venezolana de Guayana, (CVG) on March 8.
· SNC-Lavalin Engineers & Constructors Inc., (SNCL) commenced EPCM work for Las Cristinas.
· SNCL completed a feasibility study for a 40,000 tonne per day (tpd) operation at Las Cristinas.
· Johan van't Hof appointed as an independent member of the Board of Directors of Crystallex and as Chairman of the Audit Committee.
· Reduced gold hedges by 33,550 ounces, or approximately 10% since year-end 2003.
· Net loss for the quarter of $6.7 million.
· Subsequent to quarter end, closed a common share financing for new proceeds of $82.2 million.
· On April 15, the Las Cristinas Environmental Impact Study (EIS) was submitted to the CVG and The Ministry of the Environment and Natural Resources.

On May 03, 2004, Crystallex International Corporation demonstrated the limited cost sensitivity of the base case 20,000 tonne per day ("tpd") Las Cristinas project to steel price increase and announced the results of a Full Feasibility Study completed by SNC - Lavalin Engineers & Constructors on a 40,000 tpd project at Las Cristinas.

Crystallex International Corporation
On April 23, 2004, Crystallex International Corporation reported the year-end results for 2003. All dollar figures are in Canadian Dollars unless otherwise indicated.

2003 highlights:
· Positive Feasibility Study for the Las Cristinas gold project completed by SNC - Lavalin Engineers and Constructors Inc. (SNCL).
· Strengthened senior management with the hiring of Todd Bruce as President and Chief Executive Officer and Ken Thomas as Chief Operating Officer. Closed the Vancouver office and consolidated the Company's management and administrative operations at its new Toronto head office.
· Received bids by year-end for Engineering, Procurement and Construction Management (EPCM) services for the development of Las Cristinas.
· Reserves at December 31, 2003 of 10.6 million ounces of gold, including 10.2 million ounces at Las Cristinas.
· Common share and special warrant financings in August and September 2003 raised gross proceeds of US$38.2 million. Cash at December 31, 2003 of $33.9 million.
· Policy to become hedge free. Reduced gold contracts in 2003 by 25%, or 122,000 ounces. In 2004, plan to buy back additional contracts in an amount at least equivalent to gold production for the year.
· Sold the San Gregorio mining interests and related assets in Uruguay.
· Net loss for the year of $82.1 million, or ($0.70) per share, inclusive of a non-hedge derivative loss of $21.7 million, or ($0.18) per share and a non-cash write-down of mineral properties of $23.0 million, or ($0.20) per share.

On April 19, 2004, Crystallex International Corporation announced that exploration programs which include 13,500 metres of diamond drilling are currently under way at its Las Cristinas and La Victoria properties, both located in Bolivar State, Venezuela. The Las Cristinas program includes a first phase of infill drilling (4,000 metes in 10 holes) aimed at converting inferred resources to indicated resources within the outline of the pit designed for a gold price of US$325 per ounce. A second phase of drilling (1,800 metes in 6 holes) will evaluate large panels of inferred resource below the existing US$325 pit outline. Any changes to reserves resulting from the infill drilling programs are expected to be published by the end of the third quarter of 2004.

On April 13, 2004, Crystallex International Corporation announced that BNP Paribas ("BNPP") has been appointed to provide advisory services to Crystallex in connection with the agreement of project financing for the development of the Las Cristinas Project in Bolivar State, Venezuela.

In April 2003, Crystallex engaged the Deutsche Bank Project Finance team, under the supervision of Mr. Jeffrey Stufsky, as project finance advisor for its 100 percent controlled Las Cristinas Project. Mr. Stufsky recently jointed BNPP as Managing Director, Project Finance & Utilities - Mining. The Las Cristinas project finance mandate has now been transferred to and accepted by BNPP. During the transition, Mr. Stufsky and his team remained actively involved in the advisory role.

On March 25, 2004, Crystallex International Corporation announced that following a competitive bidding process, it has awarded to SNC-Lavalin Engineers & Constructors Inc. ("SLE&C") the Engineering Procurement Construction Management ("EPCM") contract for its 100% controlled Las Cristinas gold project in Bolivar State, Venezuela. SLE&C has been extensively involved in the Las Cristinas project since early in the year 2003 and completed a full feasibility study for a 20,000 tonne per day operating using conventional mining and gold processing technology. The SLE&C feasibility study was presented to the Corporacion Venezolana de Guayana ("CVG") in September of 2003 and was formally approved by the CVG on March 8 of this year. Crystallex expects to pay SLE&C approximately CDN$27.75 million for its services under the EPCM contract.

On March 19, 2004, Crystallex International Corporation announced that Johan Van't Hof, President of Tonbridge Corporation, a Toronto based infrastructure fund manager has joined the Board of Directors of the Company. Mr. Van't Hof is the former COO and remains a director of Carter Group, Inc., a North American electronics auto parts manufacturer. Mr. Van't Hof, a chartered accountant, has been appointed Chairman of Crystallex's Audit Committee. David Matheson stepped down as Chairman and a member of the Audit Committee since he is no longer an independent director as his law firm now acts as legal counsel to Crystallex.

On March 08, 2004, Crystallex International Corporation announced the approval by the Corporacion Venezolana de Guayana of Crystallex's full Feasibility Study for the development of the Las Cristinas mining properties in Bolivar State, Venezuela. On September 17, 2002, Crystallex entered into a mining operation agreement with the CVG which granted to Crystallex the exclusive right to fully develop and exploit the significant gold reserves and resources at Las Cristinas. Mine Development Associates of Reno, Nevada, estimated in the Feasibility Study that proven and probable reserves amounted to approximately 10.2 million ounces (246 million tonnes at 1.29 g/t) based on measured and indicated resources of some 15.3 million ounces (439 million tones at 1.09 g/t) inclusive of the 10.2 million ounces of reserves, while inferred resources were estimated at approximately 6.1 million ounces (208 million tonnes @ 0.91 g/t).

On February 05, 2004, Crystallex International Corporation announced the addition of three key personnel to its operations and project development staff: Ron Colquhoun, as Vice-President, Technical Services, Brendan (Barney) Burke, as Corporate Manager, Projects, and John Binns, as Corporate Manager, Environmental. All three joined Crystallex at the beginning of 2004 and are focusing their expertise on the development of Crystallex's Las Cristinas project in Bolivar State, Venezuela as well as the operation and development of all of the Company's Venezuelan mining properties.

On November 25, 2003, Crystallex International Corp. announced its third quarter 2003 results and an update to Las Cristinas development plans. The Company should receive by the middle of next year all the mining and environmental permits needed to develop its large Las Cristinas gold deposit in Venezuela.

On October 27, 2003, Crystallex International Corporation announced that it has successfully closed the previously reported transaction with Uruguayan Mineral Explorations Inc. for the sale of Crystallex's Uruguayan mining operations.

On October 09, 2003, Crystallex International Corporation announced that it has agreed to sell to Uruguay Mineral Explorations Inc. all of the shares of all companies holding Crystallex's ownership interests in the San Gregorio mining operations in Uruguay. "Since our acquisition of the Uruguay properties in 1998 they have been the Company's primary gold producer and most consistent cash flow generator," said Todd Bruce, President and CEO of Crystallex. "However with our energy and resources focused now on our properties in Venezuela, and in particular the development of Las Cristinas, San Gregorio is no longer strategic to the growth of Crystallex."

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