VANCOUVER - Crystallex International Corp. (Amex: KRY) (Toronto: KRY.) today announced revenue and earnings for the three and six months ended June 30, 1998.

Gold sales revenues for the second quarter declined to $888,167 from the year earlier $1,747,747, impacted by the year-over-year decline in the price of gold, and lower production at the Company's Albino property in Venezuela. Production during the period was largely affected by routine maintenance which began in February and continued into the second quarter. At June 30, the Company's balance sheet recorded cash and equivalents of approximately $20 million, compared with $7.6 million the year earlier. (All figures expressed in Canadian dollars.)

Less the cost of gold sales, Crystallex reported negative operating revenue of $(1,017,013) for the 1998 second quarter, compared with a positive $129,470 in the comparable 1997 period. The Company's cost of gold sales totaled $1,905,180 for the three months ended June 30, compared with the year earlier $1,618,277.

Crystallex's net loss for the three months ended June 30, 1998 was $(1,805,538), compared with a loss of $(1,270,254) for the comparable period the year earlier. On a per share basis, the loss for the quarter was $(0.05), the same as the $(0.05) reported in the prior year. For the second quarter of 1998, the Company's general expenses were $1,619,014, up from the prior year's $1,440,111.

For the first six months of 1998, gold sales revenues were $1,553,643, compared with $2,341,702 the year earlier. Crystallex's net loss for the first six months of 1998 was $(4,199,904), $(0.12)per share. In the prior year's first half, comparable figures were $(2,506,877) and $(0.10).

Current year's results in the second quarter also reflected a foreign exchange gain of $578,585 compared with a loss of $(8,875) the prior year. In the 1998 second quarter, the Company reported interest income of $250,062. In the year earlier period, the Company recorded interest income of $49,262. For the three months ended June 30, 1998 average shares outstanding were 35,103,431. The comparable figure for the June 30, 1997 quarter was 25,273,017.

The Company's balance sheet reflected an increase in the asset value of the Company's investment in its subsidiary Inversora Mael, to take account of the capitalization of expenses. The Crystallex Board of Directors has determined that, as outside counsel continues to study options regarding Mael, no further adjustment to the current $18.6 million total asset value of Inversora Mael is appropriate at this time.

REVIEW OF OPERATIONS

Gold production at Albino stood at 60 kilos in the quarter, roughly equivalent with the 56 kilos produced in the year's first quarter. Both quarters were impacted by the routine overhaul of power generation equipment.

A major focus of second quarter activity at Albino was the construction of a ramp designed to provide access to the underground portal that will be developed when approvals for deep rock mining are finalized. The Company has submitted all requested documentation to the Ministry of Energy and Mines and awaits that final approval.

In anticipation of receiving the ancillary permits relating to the vein rights, the Company is finalizing its engineering design, and transition plans to maximize the efficient processing of deep rock ore. The construction phase is estimated to require approximately nine to twelve months during which time the processing of saprolitic ore at Albino will be suspended.

The Company also continued its extensive environmental work at Albino during the quarter, with hundreds of trees planted in the reforestation project area. This work received a high approval rating from the Ministry of the Environment during a recent site inspection.

OTHER DEVELOPMENTS

Following the close of the quarter, Crystallex announced that it has been designated as the preferred buyer to acquire the San Gregorio assets of Rea Gold -- an operating gold mine in the Rivera Crystalline Island of Northern Uruguay. Closing on that transaction is anticipated in September.

Commenting on the second quarter activity, Crystallex President and CEO Marc J. Oppenheimer said, "Crystallex's results for the quarter demonstrate the realities associated with being an international mine operator -- the influence of the world commodity price of gold, and the operational issues that are part of our industry. We continue to move ahead with engineering and planning the construction work that will ensure the efficient future operation of Albino as a deep rock mine, and look forward to concluding our transaction for San Gregorio."

Unaudited financial results for the three and six months are reported in the following tables.

Note:

This news release may contain certain "forward-looking statements" within the meaning of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Crystallex, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" and elsewhere in documents filed from time to time with The Toronto Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.