I'm trying to understand the very basics of the deal- profit-wise.

KRY now gets 33% of whatever it had before.

But, as I understand it, Ven gets at least 51% of the total profits of LC.

So am I right in assuming KRY will get approx 16% of the total profits? Venezuela does not have a 51% interest. Under the terms of the MOC, the Venezuelan Government receives a straight 3% royalty on gold production and the CVG receives a 1 to 3% reoyalty on gold production (depending on gold price. The partnership and project will be responsible for taxation in Venezuela which runs as high as 34% on profits. The Company has a significant NOL that it expects could offset taxation and profits for Crystallex for some time.

Also, what is the estimate of the cost per ounce to get the gold to market? The last engineering studies projected total cash costs initially around US$250/oz and under US$300 for the LOM. It is anticipated that a larger scale operation should favorable reduce the operating costs.

What is the expected KRY profit per ounce once the gold is sold? The capital costs will be advanced fully by CRRC/CREC and Crystallex sill be responsible to repay is portion once commercial production has begun. Crystallex will be able to offset moneys with certain expenses already incurred into the project which should be finalized in the final agreements. The repayment schedule should be favorable where our portion of the costs are paid over a number of years so that significant cashflows form the projects (after loan repayment) should flow through to the corporation from the get go

(I am aware that money advance to KRY will be paid off with these future profits)

Also, is it true that with the new Ven law all the gold must be sold in Ven at prices dictated by Ven? The current Law requires 70% of all gold production to be sold in Venezuela. Gold is sold in country at the global market process. During the operation of Albino, Tomi and La Victoria between 90 -100 of the production was sold in country to the BCV or local buyers etc. the key is to have an export license and a currency exchange license which we believe could be obtained by the partnership.

Also, if you get the permit would you expect it before or after the deal is approved with the Chinese? The Closing of the transaction required the issuance of the Permit.

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Cividale