Bolivariana republic of Venezuela National Assembly

Permanent commission of Economic Development

REPORT OF THE CONDUCTED MEETING DAY 04 OF OCTOBER OF 2007

To The 10:00 A.M. IN THE ASSEMBLY HALL OF THE PERMANENT COMMISSION OF ECONOMIC DEVELOPMENT ON THE MINING CASE THE CRISTINAS. IN The MEETING THEY WERE PRESENT The PRESIDENT OF The PERMANENT COMMISSION OF ECONOMIC DEVELOPMENT, DEPUTY RICARDO GUTIÉRREZ, WHO COORDINATED IT, DOCTOR LAURA WALLS, DIRECTOR OF CONCESSION Of the MINISTRY Of The POPULAR POWER OF MINING BASIC INDUSTRIES And. THE LAWYER SERGIO RODRIGUEZ. DIRECTOR OF PLANNING Of the MINISTRY Of The POPULAR POWER Of the ATMOSPHERE And RENEWABLE The NATURAL RESOURCES, The GEOLOGIST JORGE VELASCO, MANAGER OF GEOLOGY OF The VENEZUELAN CORPORATION OF GUAVANA, And The ENGINEERS LUIS FELIPE COTTIN. EXECUTIVE PRESIDENT OF COMPANY CRYSTALLEX - VENEZUELA, THE LAWYER SERGIO ALCALA. MANAGER OF ATMOSPHERE, And JESUS FERNANDEZ, DIRECTOR OF CORPORATIVE SUBJECTS.

"2006, To Ñ Or BICENTENNIAL Of the OATH Of the GENERALISSIMO MIRANDA FRANCISCO And PARTICIPACI Either N PROTAG Or NICA And Of The POPULAR POWER"

Av. University. Corner of Pajaritos. Edif. Jos é Sea í to Vargas, floor 6

Telephones: 409.78.45/409.70.89

Bolivariana republic of Venezuela National Assembly

Permanent commission of Economic Development

ANTECEDENTS

During the months of January to August of the year the 2003 Permanent Commission of Economic Development made an exhaustive investigation of the legal, technical and socioeconomic aspects of the Mining Project the Cristinas, located in 88 kilometer Sector the Claritas of the Sifontes Municipality of the State Bolivar, property of the Venezuelan State.

The investigation included the rescission of the contract by pair to him of the Venezuelan State to the companies To please Tames and to MINCA between the 15 of 1999 July and the definitive completion of the contract the 16 of November of year 2001; the assumption of the Venezuelan Corporation of concessionary Guayaría as of the mining sector the Cristinas for the development of the project and thirdly included the detailed knowledge of the contract subscribed between the C. V. G., like concessionaire, and the Crystallex company the International like operator to develop to the Mining Project Cristinas 4, 5, 6 and 7.

In relation to the first aspect, the Commission stated that when terminating the contract To please Tames and MINCA the Venezuelan State acted fit to right in defense of the interests of the country and corrected an irregularity maintained of breach on the part of these companies during years. In when depositing the concession of the Cristinas into the hands of the C. V. G., it is considered guessed right, because one is the more important auriferous deposit of the country and whose concessionaire is a company of the State. The other subject was the analysis of the agreement subscribed between the C. V. G., like concessionaire, and the Crystallex company the International, like operator of the mining project the Cristinas. This contract signed the 17 of September of year 2002, and in him the operator is authorized to carry out all the investments and works necessary to reactivate and to execute the Mining Project Cristinas 4, 5, 6, and 7, also to construct the plant would operate and to process the material of gold for their commercialization and sale. In addition one remembered transfer the mine and its facilities to the C. V. G. at the end of the contract, according to the established thing in the Law of Mines. It also emphasizes the initial payment of fifteen (15) million dollars on the part of the operator to the C. V. G. in the 5 following working days to the granting of the contract, as well as corresponding by concept of exemptions and the taxes State treasury, in accordance with the respective laws. Aside from these typical aspects in this contract class, it deserves particular reference a series of special advantages of socioeconomic character directed to benefit the communities from the Sifontes Municipality, organization of location of the mining sector. In the agreement the Crystallex company is committed to the accomplishment of a series of social and economic programs for the generation of uses, construction of houses in the community, programs of technical training to the personnel, fortification of the centers of the premises, program of scholarships and pasantías to students, and design and execution on watch white and black waters in the community. It is important to emphasize that the inclusion of

"2006, To Ñ Or BICENTENNIAL Of the OATH Of the GENERALISSIMO MIRANDA FRANCISCO And PARTICIPACI Either N PROTAG Or NICA And Of The POPULAR POWER"

Av. University. Corner of Pajaritos. Edif. Jos é Sea í to Vargas, floor 6

Telephones: 409.78.45/409.70.89

Bolivariana republic of Venezuela National Assembly

Permanent commission of Economic Development

these aspects of socioeconomic characterdirected to benefit the surrounding communities, constitute a precedent of communal participation that doubtlessly is worth the trouble to review. Also he is opportune to indicate that in the pursuit made by this Permanent Commission in the later years to the subscription of the contract between the C. V. G. and Crystallex we have been able to verify with the communities and the popular representatives of the municipality that has been an exact fulfillment of established in the agreement on the part of the C. V. G. and Crystallex.

DEVELOPMENT OF THE MEETING

The President of the Permanent Commission of Economic Development, Deputy Ricardo Gutiérrez, once installed the Commission, gives beginning to the meeting and in his intervention he fundamentally talks about three aspects: in the first place, it inspects a brief troop of the pursuit that in the course of the years has made the Commission of Economic Development to the case, because the communities and the popular representation of the Sifontes Municipality have gone to this one to request the mediation and participation of the same one before the competent organisms to grant the permisología in order that it becomes effective. It showed his satisfaction publicly when the MIBAM in the first months of this year granted the license with which east Ministry of the approval at the beginning of the development of the project, and requested to the MARNR to do the own thing. The Gutiérrez DIP informed into the conversations maintained with the highest authorities of the Ministry of the Atmosphere, from which it was obtained that legal impediment for the granting of the permisología on the part of the MARNR does not exist. Thus, then, which the meeting of a technical representation of all the organisms involved in the case looks for to clear any doubt on the subject, like also reaffirming that all the ends have been covered so that the required permisología is settled. Concluded the intervention of the Gutiérrez DIP, it continued the meeting with the interventions of the participant technicians in the same one.

Ing. Luis Felipe Cottin, representative of the operating company, made mention to the contractual, legal and technical fulfillment whereupon she has acted represented his, she mentioned that from the company/signature of the agreement, in September of 2002, they have briefed and corrected all the requirements that have been done to him to the company, reason by which does not understand the reason for the delay in the granting of permisoíogía to be able to begin with the constructions; it added that the company has an important load in list, maintenance and expenses of socioeconomic character, and that is affected by the delay. It indicated that the negative effects of the cyanide are discarded, because of preline-of-sight way an investment of 5,300 million bolivars in a plant became that avoids the degradation and the damage to people. Finally it indicated that the company always has

"2006, To Ñ Or BICENTENNIAL Of the OATH Of the GENERALISSIMO MIRANDA FRANCISCO And PARTICIPACI Either N PROTAG Or NICA And Of The POPULAR POWER"

Av. University. Corner of Pajaritos. Edif. Jos é Sea í to Vargas, floor 6

Telephones: 409.78.45/409.70.89

Bolivariana republic of Venezuela National Assembly

Permanent commission of Economic Development

acted according to the lineamientos of the State, and it only hopes that the permission is granted to initiate the development as soon as possible.

The Dra. Laura Walls, representative of the MIBAM, did not raise any obstacle so that the permisología is granted, every time the Ministry that it represents already emitted the respective license so that the development of the project begins. It made emphasis in the importance that has the participation of the Communal Councils, particularly with respect to the special sales.

Ing. Jorge Velasco, representative of the C. V. G., referred that the Corporation has the feasibility study. Naturally, like concessionaire, he hopes that the permission is granted to them more soon possible. He indicated that they jointly make an important social work with Crystallex towards the mining and ocal cooperativistas, and consider the entailment with the Communal Councils important.

Ing. Sergio Rodriguez, Director of Planning of the MARNR, talked about in general to environmental aspects. He also agreed with respect to the participation of the Communal Councils in the projects to be developed.

In a second interchange of ideas, the participants of the meeting agreed in studying a proposal on the basis of the endogenous development of the region, with an integral vision that counts on the popular participation taking as it bases the Communal Councils. This proposal must contemplate the sustainable development and have a noticeable social participation.

CONCLUSIONS

In agreement with the expressed thing by the participants of this meeting, the following conclusions are obtained:

the 1 concessionaire, Venezuelan Corporation of Guayana (C. V. G), and the operating company, Crystallex International, has satisfied so much the feasibility study as the other demanded legal and technical requirements so that the corresponding permisología is granted them, on the part of the Ministry of the Atmosphere, for the beginning of the construction and development of the Project the Cristinas.

2 - The delay in the granting of the permisología affects to the operating company due to the important load that it has in expenses of personnel, maintenance and erogaciones of socioeconomic character. Also it delays for the community great part of benefits stipulated in the agreement in the matter of use, house, education, etc.

3. - The Presidency of the Commission reiterates the exhortation to authorities MARNR so that the respective license is granted, allowing therefore to the beginning mining development.

"2006, To Ñ Or BICENTENNIAL Of the OATH Of the GENERALISSIMO MIRANDA FRANCISCO And PARTICIPACI Either N PROTAG Or NICA And Of The POPULAR POWER"

Av. University. Corner of Pajaritos. Edif. Jos é Sea í to Vargas, floor 6

Telephones: 409.78.45/409.70.89

Bolivariana republic of Venezuela National Assembly

Permanent commission of Economic Development

4 - The elaboration of an integral proposal on the basis of the endogenous development of the region considers that contemplates to the integration of the communal advice and the sustainable development of the zone for all those projects in study.

Caracas, 16 of October of 2007