VANCOUVER, British Columbia - Crystallex International Corporation (Amex: KRY; Toronto) today announced revenue and earnings for the three and nine months ended September 30, 1998.

Gold sales for the quarter declined from the year earlier because of the suspension of mining activities at the Albino 1 concession where final engineering studies are nearing completion for an underground mining operation. The Company incurred one time costs in the amount of approximately

C$1.3 million related to this suspension. For the third quarter ended September 30, 1998, gold sales were C$212,878, compared to C$808,176, reported in the third quarter of 1997. Cost of sales also declined to C$1,728,005. This, combined with a significant reduction in general expenses, reduced the net loss in the quarter to C$1,939,985, or C$.05 per share, compared with a net loss of C$3,284,579, or C$.11 per share in the comparable quarter of 1997. At September 30, 1998 cash and cash equivalents stood at C$16,292,596, compared with C$21,646,048 at the end of the prior year's third quarter.

For the nine months period, gold sales were C$1,766,521, down from the C$3,149,878 for the same period in 1997. Cost of sales was C$5,234,407, for the nine months, resulting in a net loss of C$6,139,889, or C$.17 per share. In the comparable period of 1997, the net loss was C$5,791,456 or C$.21 per share.

Crystallex President and Chief Executive Officer, Marc J. Oppenheimer, commented that the Company's activities in the third quarter, while temporarily reducing revenue, enabled Crystallex to make the transition from an emerging gold producer to a junior producer.

"Suspending operations at the Albino 1 site in anticipation of obtaining deep rock mining rights allowed the Company to start the transition from an open-pit low-grade operation to an underground high-grade operation. The underground operation includes the development of a decline ramp which will access the high grade deposit known as La Conductora. Also in the plans is the conversion of the mill facility from a saprolite facility to a hard rock facility," Oppenheimer said. "In November, 1998 the Venezuelan Ministry of Energy and Mines issued deep rock mining rights to Crystallex, clearing the way for development of the new facility. We anticipate mining could begin approximately twelve months after completion of our final engineering reviews and start of construction."

"Crystallex will benefit more immediately from our acquisition of the San Gregorio Mine in Uruguay, which was completed after the end of the third quarter. The acquisition which includes an operating mine and 150,000 hectares of mineral properties will significantly increase our gold production even as we enter the development phase for the Albino deep rock mine. The San Gregorio mine produces gold at an annualized rate of 70,000 ounces. With indicated resources in January 1998 of 680,000 ounces, including 420,000 ounces of mineable reserves, the mine is expected to continue producing at its current level during the next five years, with a positive cash flow from mining operations."

"Crystallex is also focusing more attention on its other projects, Carabobo, at Kilometre 88 and Santa Elena, in the El Dorado region of Venezuela. We believe, based on previous drilling and trenching on Santa Elena 7 and 8, that these concessions possess a great deal of potential and we will be concentrating on moving these projects forward in the near future," Oppenheimer said.

On June 11, 1998 the Venezuelan Supreme Court ruled that Crystallex's Venezuelan unit, Inversora Mael, does not have status to assert ownership rights over the contested Cristinas 4 and 6 concessions, and refused to proceed on an application to require the Ministry of Energy and Mines to recognize fully Mael's title ownership of these concessions. However the Supreme Court did not overrule its prior decisions in 1991, 1996 and 1997, confirming the validity of the transfer of the concessions to Mael. After review by Crystallex and its legal counsel of this most recent decision and prior contradictory decisions by the same court, the Crystallex Board of Directors has determined not to write off its investment.

"We continue to evaluate our course of action regarding the Cristinas 4 and 6 concessions," Oppenheimer said. "The June 11 decision has not altered the Company's plans to grow through development of its current concessions and acquisition of additional high potential mineral properties. The Albino 1 and San Gregorio concessions are examples of our determination and ability to achieve our objectives and respond to opportunities."

Financial results for the three and nine months periods are reported in the following table.

Note: