Dear Mr. Marshall:

I am hoping you can clarify a couple of points for me.

1. Can Crystallex file for arbitration with the ICSID at this time?
2. If yes, does filing for arbitration effect the company’s position with the bond holders? If so, how?
3. If arbitration is filed, can there still be negotiations with VZ while the ICSID case is in process.
4. Are there Law Offices that would take this case to the ICSID and wait for their fees from any settlement?
5. What happens to the company’s MOC if during the arbitration process, they run out of money and assets.
6. Unless it is because of the bond holders or money, what other reason(s) could the there be not to file arbitration now.

I appreciate any information that you can safely share.

Hello Mr.

The Company advised the Venezuelan Government of a Dispute regarding the Las Cristinas Project in November of 2008 (the Dispute Letter was the first step required to file an International Arbitration Claim [“IA”] under the Canada/Venezuela FIPA). As discussed at the June 2009 Shareholder Meeting, the Venezuelan Government expressed a desire to find an amicable solution to the Dispute without an IA Process.

To date the Venezuelan Government has confirmed in meetings and writings to Crystallex that the Las Cristinas Mine Operating Contract remains in full force and that Crystallex has been compliant with the terms and covenants of the Contract.

Crystallex is engaged in a process that it believes could bring a prudent and more timely resolution/solution to the Las Cristinas Dispute than an IA Claim and Hearing. The Company has prepared for an IA Claim with the guidance of Freshfields LLP and McMillan LLP and should it change its current expectation for a more timely and prudent resolution/solution, the Company can file an IA Claim at the ICSID in Washington D.C. in a timely manner.

Regards,

Richard Marshall