Mill expansion and diamond drilling indicates additional mine life potential

VANCOUVER - CRYSTALLEX INTERNATIONAL CORPORATION (KRY on T.S.E. and Amex) is continuing to reap the benefits of its production improvements at the San Gregorio Mine in Uruguay. Gold production for the third quarter, ended September 30, 1999 was over 19,000 ounces, a more than 11 percent increase over third quarter production in 1998. For the first nine months of 1999, gold production was up nearly 10 percent from 54,000 ounces to over 59,000 ounces.

During the 3rd quarter, the mill operation underwent a planned five-day shutdown while additional production improvements were made to both sag and ball mills. Although this reduced gold production slightly compared to the first two quarters of the year, subsequent production results toward the end of September indicate that a 6-8 percent increase in tonnage through the mill and plant is sustainable.

Crystallex President and CEO, Marc J. Oppenheimer, commented that the improvements in the mine and mill efficiencies that Crystallex initiated last year have had the desired effect of significantly lowering the cost of production. "We're very pleased with the results achieved to date," Oppenheimer said. "We have identified several other areas where we can make improvements to boost throughput and gold production even further and we are in the process of making them."

One of these improvements is a mill expansion project designed to increase mill throughput from the current level of 3,000 tonnes per day to 4,000 tonnes per day. The incremental tonnage increase should allow the Company to profitably process additional resources of "low-grade" material available on the property. This expansion is expected to yield an additional 10,000 ounces of gold per year at an estimated cost of under $200 per ounce.

A diamond drill program to test the down-dip extension of the San Gregorio shear zone was commenced during the quarter. Drilling encountered wide mineralized zones up to 50 metres beneath the proposed final open pit, indicating, based on preliminary in house calculations, that additional material can be mined profitably at San Gregorio. Best intersections included 44 metres (32 m true width) of 2.56 g/t Au, and 20 metres (true width) of 2.54 g/t Au. Crystallex has contracted with Mineral Development Associates to include the new drilling in the mine's block model and to examine the feasibility of including these resources in San Gregorio's reserves by the end of the year, thus again extending the mine life. Encouraged by these results, Crystallex has expanded the drill program to test the down dip extensions of the San Gregorio shear across the length of the deposit. Also, metallurgical tests are being conducted on low-grade material at the mine and adjoining properties and a study will be conducted to detemine whether it can be processed through a stand-alone heap-leach operation or if the mill production should be further increased to process this additional material.

On the regional exploration front, the Company is systematically exploring within the Rivera Crystalline Island. In September, a new mineralized zone hosted by a sulphide-bearing iron formation and quartz veins was discovered. Grab samples from this discovery area assayed up to 10 g/t Au in BIF and 25 g/t Au in quartz veins. A follow-up program of soil sampling and shallow trenching is now under way at this location.

"These successes come at a time when it appears that gold prices have finally begun to improve," Oppenheimer said. "Our results over the past year, since we acquired the San Gregorio mine and particularly in the past two quarters, have shown that we can do well in a depressed gold market. We believe applying our strategies in an improved market environment should be very rewarding for Crystallex and its shareholders."

For the first six months of 1999 the Company reported operating revenue of C$18,848,984, and net income of C$3,536,272 or C$0.10 per share. The Company's third quarter financial results are expected to be released in mid to late November.

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.

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.