Operating revenue for the quarter was up significantly from the year earlier due to gold sales resulting from the Company's acquisition of the San Gregorio Mine in Uruguay. For the Company's fourth quarter ended December 31, 1998, operating revenue was C$6,802,227, compared to C$1,352,871, reported in the fourth quarter of 1997. Operating expense was C$4,296,984 compared to C$2,628,301 for the comparable 1997 period resulting in an operating profit in the fourth quarter of C$2,505,243 before general expenses and other items. The increase in revenue was primarily responsible for reducing the Company's net loss in the quarter to C$1,075,715, or C$0.03 per share, compared with a net loss of C$3,734,208 or C$0.13 per share in the comparable quarter 1997.

For the year, operating revenue was C$8,568,979, a 90 percent increase over the C$4,502,749 reported for 1997. Operating expense was C$9,531,391 for the full year, 1998, compared to C$7,142,263 for 1997. Increased expenses incurred during the year, primarily related to the Cristinas 4 & 6 concessions, were somewhat offset by the higher operating revenue and interest income and favorable foreign currency translations, resulting in a net loss of C$7,215,604, or C$0.20 per share. This is an improvement over 1997 in which the Company reported a net loss of C$9,525,664 or C$0.34 cents per share.

On June 11, 1998 the Venezuelan Supreme Court ruled that Crystallex's Venezuelan unit, Inversora Mael, did not have status to assert ownership rights over the contested Cristinas 4 and 6 concessions, refusing 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 Board of Directors has determined not to write off its investment.

As a result of the acquisition of San Gregorio, Crystallex maintains a gold hedging program and in the fourth quarter the average price received per ounce of gold sold was approximately $ 301 as compared to the quarter average spot price of approximately $ 294 per ounce. The fair value of the Company's hedge position at December 31,1998 was C$4,199,614 above the carrying value of $ Nil on the Company's books. At year end, Crystallex's hedge program consisted of forward sales contracts totaling 213,750 ounces of gold over the next four years with a price floor ranging from US $310 to US $317 per ounce.

Crystallex President and Chief Executive Officer, Marc J. Oppenheimer, commented that the Company's strategy of developing its existing concessions and acquiring producing or near production properties was brought into play during 1998.

"Our activities during the year, have transitioned Crystallex principally from an exploration company to a junior producer of gold. Our acquisition of San Gregorio did more than improve our bottom line; it validated our acquisition strategy and proved that we can leverage our combined years of management experience and the financial expertise extant in our Board of Directors to grow your Company even in the face of a sagging gold market."

The Company also cut a great deal of costs out of the mining operation at San Gregorio by introducing new efficiencies that increased the amount of gold produced while reducing the workforce. During 1998, this effectively reduced the total cost per ounce of gold produced from $245 to below $210. In addition, an upgrade to the mill will result in a 10 percent higher throughput in 1999.

"San Gregorio generates a positive operating cash flow and is currently producing at an annual rate of approximately 75,000 ounces. Our objective is to continue development of existing properties and acquire additional producing or near producing properties that will increase our annual production to 150,000 ounces in the year 2000 and advance the Company toward a new goal of 250,000 ounces," Mr. Oppenheimer said.

Crystallex International Corporation is a gold mining and exploration company. The Company's strategy for growth is to develop its portfolio of properties in South America as well as to diversify geographically by investing in producing or near-production projects and by exploring properties of merit in other areas of the world.

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

On Behalf of the Board:

Marc J. Oppenheimer, President & CEO

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.

CONSOLIDATED BALANCE SHEETS
(Expressed in Canadian dollars)
(Unaudited - Prepared by Management)

CONSOLIDATED STATEMENT OF OPERATIONS
(Expressed in Canadian dollars)
(Unaudited - Prepared by Management)