Can you clarify what is the latest date that Crystallex would be able to file for arbitration? The date that I believe was on a company announcement is April 13, 2011. Would Crystallex actually wait until that date or would it file prior to that date? I understand that filing for arbitration would only happen if in fact the permit (or JV) was not issued by such date. Also, if arbitration is the path that Crystallex has to take, does the company have the resources to see the arbitration through on it's own or will there be other financing needed? Thanking you for your response in advance.

Answer:

Under the terms of the Canada/Venezuela BIT, an investor would have a period of 3 years to file an International Arbitration Claim from the date of the event that created the dispute and/or claim. In November 2008, the Company informed the Venezuelan Government in a dispute letter that it believed it had a claim for compensation and damages based on a letter written in April 2008 by a Director General in the Ministry of Environment denying a request for the permit. The Letter was written in April 2008 and a claim would need to be filed prior to the 3 year anniversary of said letter. There may be some latitude in the exact date being either the date of the latter, the date of receipt in Caracas or the date of receipt by the Board. The Venezuelan Government and Chinese are aware of the April 2011 timeline until which Crystallex has the option to file a claim for damages and compensation from the Venezuelan Government if the matter is not resolved. The Company and proposed partner CREC/CRRC continue to work to advance the proposed JV and resolve the Las Cristinas dispute and advance the project.

Initial work on a possible claim and filing was done in 2008/2009. As I understand it costs for a filing aren’t substantial but as a case progresses and if significant expert testimony is required as one gets deeper into the case and hearings costs can escalate. The Company will address legal costs for IA if/as they arise.

The Company and Chinese are continuing efforts to advance the proposed partnership and Las Cristinas Project. I’d expect both Crystallex and CREC/CRRC to be in Venezuela in January seeking Venezuelan government approvals and permits required in order to advance the partnership and project.

Hopefully a path will finally be evident in the first quarter and hopefully the Venezuelans will follow through and clear the way for the partnership and project.

Best regards,

Andrea Boltz

Crystallex International Corporation