As you may know, there was a financing of C$32.4 million (10,125,000 units of 1 share @ C$3.20 plus one-half of one 18-month warrant (call option) priced at C$4.25 following closing. Speculation abounds as to whether it was Goldcorp that took the whole issue. Crystallex has only reported that the issue was institutional, and "over-subscribed".

Let's review the Robt McEwen discussion:

RESOURCE INVESTOR: There have been strong rumours on the street that the $30 million financing Crystallex International [AMEX:KRY; TSX:KRY] did last summer was financed by Goldcorp. Crystallex holds a mine operating agreement for Las Cristinas, a 17-million-plus ounce resource, but has been delayed in receiving a final government permit to develop it. Bob Bishop, the editor of Goldminingstockreport.com has said in his publication that Ian Telfer is the only person in the gold business that would have written such a check. Crystallex has not revealed who the large investor is publicly. What have you heard, what can you share with us and, if it turns out to be true, what are your thoughts about a Goldcorp investment in Venezuela under Hugo Chavez?

ROB McEWEN: Well if it were true the risk profile on Goldcorp goes up considerably. It would mesh quite neatly with your question earlier about an infatuation with reserves without regard for geopolitical safety or cost of acquisition.

One day that deposit will be developed. Whether or not it will be developed by the person that claims to own it now or someone else with a government change we'll just have to see. It's a big resource, it looks cheap, but whenever you see something that's really cheap you have to ask yourself why.

RESOURCE INVESTOR: Venezuela didn't seem to scare Goldfields [NYSE:GFI], a South African company, who bought Bolivar Gold for $381 million to obtain the Choco 10 property and it hasn't seemed to affect Hecla [NYSE:HL], a U.S. company, which operates in Bolivar State in Venezuela. According to Todd Bruce, the CEO of Crystallex, the perceived political risk in Venezuela is largely a function of western media bias against the Hugo Chavez brand of Cuban-style socialism. Don't gold companies have to go where the gold is and find ways to operate under different political regimes?

ROB McEWEN: Don't gold companies have to make money for their shareholders?

After I saw this posted on the McEwen website, I asked a McEwen executive for an explanation, and here is the reply:

"I first heard about it through a CIBC report earlier this year. I know KRY situation very well and was once a large shareholder in their company. We kept hearing the rumour among the analyst on Bay St. I cannot confirm it but there seems to be enough evidence to suggest that is could be very likely be true; Knowing that Ian Telfer likes ounces and isn't afraid to venture into less politically stable areas I will not be surprised."

Then I asked a Crystallex executive for a response, and here is the reply:

"The "Investor" that participated in the Feb private placement was not disclosed. The investor purchased shares amounting to just under 4.99% of the total Crystallex shares outstanding and received a warrant to purchase another +/- 5%. The warrant was structured so that it does not vest to the investor (ie, become exercisable) until 45 days after the final MARN Permit is awarded for Las Cristinas. Under the Regulatory Guidelines the investor is not in a discloseable/reporting position until the warrants vest; There has been much speculation as to who the investor is but until the warrant vests and they file a report, there's nothing further I can report."

Although this was a personal request, there is nothing here that ought not be disclosed.

I replied back that "where there is smoke;" So, yes, I believe that Goldcorp has made this investment, and I concern myself only that Crystallex shareholders are fully protected from a too-early take-over bid from Goldcorp.

There is no way of knowing in advance of the plans of any suitor, nonetheless Goldcorp, which holds its cards exceedingly close to the vest, as they should, so the way to play this is to (i) assume it is Goldcorp that has made the investment, (ii) assume Goldcorp intends to make the take-over offer after Crystallex receives the MARN Permit (ie, environmental approval from Bolivar State), (iii) buy a call option on Goldcorp.

You see, with the MARN Permit in hand, Crystallex shareholders could expect a take-over bid from any one of several other miners, like IAMGOLD or Barrick for instance, and Goldcorp, even if they were to lose the prize, would gain hugely from their shareholding and warrant position.

Crystallex could, in all likelihood, become the next Inco and Falconbridge, where shareholders of those Canadian miners became the beneficiaries of a bidding war from industry giants seeking ounces (or pounds as the case may be).

Make no mistake about it, Crystallex' Las Cristinas deposit is a world-class one, and it will be mined, and Venezuela will use that situation to political advantage to show Wall Street that foreign capital is welcome there " albeit under conditions that are not as favourable as say Nevada, which doesn't permit tanks and soldiers to play the game.

Independent traders, however, ought to understand that the risks of trading assets in Venezuela are not too different than trading shares of Fannie Mae and Freddie Mac. There is a risk in everything. It's just that there is a very high risk premium attached to foreign situations because of U.S. politics.

As I see it, however, the difference between perception and reality is the place that traders make most money. So, I am not scared off by the current politics involving Venezuela and the U.S. But I understand, and accept, that many of you are.

As I wrote earlier today, I expect that should Ecuador's Correa win the first round of their national election, he will be joined by Venezuela's Chavez in more bad-mouthing of the U.S., and this will knock down the share price of Crystallex even more. To me, that's the time to buy more.

Capital markets are full of surprises, but if you think it through you will likely come to the conclusion I did many years ago, which is that storytellers have set up the audience for surprise. Like a detective story or a Hitchcock thriller, it's up to the audience to figure out what's really happening, and to play the game.

I think you'll find that the risks are not as much as you perceive and the rewards are much greater.

To play the game, just understand that the players with the biggest stakes have the best info, but they have to move those big positions in and out of markets, hopefully without us watching. Volume usually is an indicator. Sometimes the securities rules and regulations, such as the disclosures related to private placements, cover up the big moves.

That's why you and I need to talk. The more we do, the more we learn, and the more able we are to manage our risk. Opportunities are a dime a dozen; risk management, however, is the bottom line to portfolio success.

ADDENDUM

The financing details I gave were for the one Crystallex did in August, but it was the one that was done in February that apply here:

February 20, 2006

Crystallex International Corporation
For Immediate Release

TORONTO, ONTARIO, February 20, 2006 " Crystallex International Corporation (the "Corporation") (TSX: KRY) (AMEX: KRY) announced today that, subject to receipt of all necessary regulatory and stock exchange approvals, it has agreed to amend the terms of the non-transferable common share purchase warrants issued to a non-insider of the Corporation on February 1, 2006 (the "Warrants") in connection with the completion of a non-brokered private placement of 10,799,000 units (the "Units") at a purchase price of US$2.90 per Unit. Pursuant to applicable policies of the Toronto Stock Exchange the amendment to the Warrants will become effective as of March 6, 2006. The purpose of the amendment to the Warrants is to reflect the original investment intent of the purchaser of the Units.

Pursuant to the amendment to the Warrants, the holder will be entitled on the Exercisable Date (as defined below) to purchase an aggregate of 12,250,000 common shares in the capital of the Corporation at a purchase price of US$4.25 per share. Prior to the amendment, the holder would have been entitled to acquire an aggregate of 16,330,000 common shares in the capital of the Corporation at a purchase price of US$4.50 per share on the Exercisable Date.

The Warrants are exercisable for a period of 18 months commencing on the date (the "Exercisable Date") which is the later of: (i) April 4, 2006; and (ii) 45 days following the receipt of the Permit for the Corporation's Las Cristinas Project in Venezuela. The Warrants will become immediately exercisable by the holder in certain events including the announcement of any transaction which would result in a change in control of the Corporation or the Corporation's interest in the Las Cristinas Project.

As a result of the amendment to the terms of the Warrants, the purchaser of the Units will beneficially own or have the right to acquire on the Exercisable Date (including the 10,799,000 common shares previously acquired on the purchase of the Units) up to an aggregate of 23,049,000 common shares of the Corporation representing approximately 9.9% of the issued and outstanding common shares. The Corporation has been advised by the purchaser of the Units that it does not have any present intention of acquiring ownership or control over any additional securities of the Corporation.

The Corporation plans to use the net proceeds from the exercise of the Warrants to develop the Las Cristinas Project, to repay a portion of existing indebtedness and for general corporate purposes.

The securities discussed in this release have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

I'm rushing to get to a meeting or I would correct this error properly.