Welcome to the Crystallex HUB on AGORACOM

Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Message: My perspective

Some of my concerns now diminished, but the SP says it all. The deal is not that great and there is still way too much uncertainty too convince buyers to jump in.

1) As I suspected, we are not getting properly credited for our past investment and I guestimate this has hurt us to the tune of about a buck a share. Given that CREG is loaded with cash, I don't see why they didn't reimburse us properly.

Q8: Will Crystallex receive any credit for the past investments in Las Cristinas

(e.g. engineering studies expenses, MOC expenses, CSR Project

construction expense, Equipment expenses)?

A: The sunk costs incurred by Crystallex will be contributed in exchange for

a perpetual one-third carried interest in the partnership. Equipment held

in storage by Crystallex is being contributed to the Strategic Partnership.

The value of the equipment will be appraised and will be credited to

reduce Crystallex’s indebtedness to CREC/CRRC.

2) It is impossible to forecast cash flow or profit without knowing what will happen with the gold sale law.

Q3: How does the Company see the Currency Exchange controls and gold

sales restrictions within Venezuela impacting gold sales and cash flows

of the partnership and Crystallex?

A: Crystallex and CREC/CRRC are currently in discussion with the

Venezuelan Government regarding a variety of issues surrounding mine

construction and production commencement of the Las Cristinas project.

There are a number of economic items under discussion which involve

current foreign exchange and gold sales laws.

It's great that they are discussing the issues but KRY's future absolutely depends on a favorable modification of the law.

One concern I still have is that China's real need is for oil and other industrially significant resources. They don't need gold or money. They could build and operate the mine at a loss, leaving most of the gold in VZ, and get paid off on the side with other resources leaving KRY and its shareholders SOL.

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