Crystallex Reports Q2, 2010 Financial Results

TORONTO, ONTARIO--(Marketwire - Aug. 13, 2010) - Crystallex International Corporation (TSX:KRY)(NYSE Amex:KRY) today reported its financial results for the quarter ended June 30, 2010. The Company prepares its consolidated financial statements in U.S. dollars and in accordance with Canadian Generally Accepted Accounting Principles. The consolidated financial statements along with management's discussion and analysis will be available for viewing on the Crystallex International Corporation website at www.crystallex.com. The Documents have been filed with SEDAR (www.sedar.com).

Overview

Crystallex is a Canadian-based company which has been granted the Mine Operating Contract (the "MOC") to develop and operate the Las Cristinas gold properties ("Las Cristinas Project" or "Las Cristinas") located in Bolivar State, Venezuela. Its common shares are traded on both the Toronto Stock Exchange (symbol: KRY) and the NYSE Amex Exchange (symbol: KRY).

• The Company's principal asset is its interest in the Las Cristinas gold project located in Bolivar State, Venezuela. The Company's interest in the Las Cristinas concessions is derived from the MOC with the Corporacion Venezolana de Guayana (the "CVG") which grants Crystallex exclusive rights to develop and mine the gold deposits on the Las Cristinas property.
• The Company has not received a response from the Minister of Environment and Natural Resources ("MinAmb") to its June 16, 2008 appeal of the Director General of the Administrative Office of Permits at MinAmb denying its request for the Authorization to Affect Natural resources (the "Permit") for the Las Cristinas Project.
• The Company remains compliant with the MOC in order to continue to pursue the Permit and the development of Las Cristinas and to protect the option of proceeding to international arbitration. The Company retains control of the Las Cristinas property site. All community infrastructure projects as required under the MOC have been completed.
• Despite continued efforts to secure the Permit and pursue transactions in respect of the Las Cristinas Project, the Company recorded a $3.6 million non-cash writedown in the first quarter of 2010 and a $4.1 million non-cash write down in the second quarter of 2010 (accumulated non-cash write down of $304.7 million) to the carrying value of the Company's interest in Las Cristinas as required under Canadian GAAP based on certain impairment indicators including, but not limited to, the permitting delays. The non-cash impairment charge has been taken to comply with accounting requirements and is thus without prejudice to the legal qualification that the Venezuelan measures may be given under Venezuelan or international law.
• The Company has signed a binding agreement with China Railway Resources Group Co. Ltd. ("CRRC") to create a strategic partnership to develop Las Cristinas. The process to complete that partnership is underway and will include the signing of a definitive agreement, a request by Crystallex for its shareholders to approve the transaction followed by closing a short time later. It is now anticipated that the shareholder process and closing of the strategic partnership agreement will take place in the 4th quarter of 2010.
• The Company will consider its options under International Financial Reporting Standards ("IFRS"), when adopted in 2011, to reverse the impairment charge and restore the carrying value of the Company's interest in Las Cristinas to its original amount, if receipt of the Permit or other circumstances warrants a reversal of this impairment charge at a future date under IFRS. Meanwhile the Company continues to maintain compliance with its obligations under the MOC while pursuing the development of Las Cristinas through the formation of a joint venture partnership with CRRC.

• Cash at June 30, 2010 was $32.1 million.

• Losses from continuing operations were $12.8 million ($(0.04) per share) and $21.9 million ($(0.07) per share) for the three months and six months ended June 30, 2010, respectively.
• Losses from discontinued operations at El Callao were $0.4 million and $0.7 million for the three months and six months ended June 30, 2010, respectively.
• Losses from operations were $13.2 million ($(0.04) per share) and $22.6 million ($(0.08) per share) for the three months and six months ended June 30, 2010, respectively.

• On December 16, 2009, the Ontario Superior Court dismissed all of the claims by certain holders (the "Noteholders") of the Company's 9.375% aggregate principal amount of $100 million notes (the "Notes") against Crystallex and ordered the Noteholders to pay Crystallex costs. In detailed reasons the court held that Crystallex acted reasonably and in accordance with its obligations to the Noteholders. The Noteholders appealed this decision which was heard in late April 2010. In May 2010, the Court of Appeal for Ontario dismissed the Noteholders' appeal and the Noteholders paid costs of $0.8 million. The Noteholders also signed a release against the Company and its directors.
• The Company and certain officers and/or directors have been named as defendants in a proposed class action lawsuit commenced in the United States District Court of the Southern District of New York. Crystallex believes that the complaint is without merit and will vigorously defend itself against this action. Crystallex has filed a motion to dismiss the class action complaint. The motion to dismiss remains pending before the court.

Going Concern Disclosure on the 2009 Audited Annual Financial Statements

Crystallex also announced that the auditors' report received from its independent public accounting firm on its audited financial statements for the fiscal year ended December 31, 2009 (the "Annual Financial Statements") contained a going concern explanatory note. Crystallex's Annual Financial Statements were included in Crystallex's Annual Report on Form 40-F filed with the Securities and Exchange Commission on April 1, 2010.

This announcement is required by Section 610(b) of the NYSE AMEX Company Guide, which requires a listed company that receives an audit opinion that contains a going concern qualification to make a public announcement of such. This announcement does not represent any change or amendment to Crystallex's Annual Financial Statements or to its Annual Report on Form 40-F for the fiscal year ended December 31, 2009.