VANCOUVER, BC - CRYSTALLEX INTERNATIONAL CORPORATION (KRY on TSE and Amex) today reported that revenue for the first quarter ended March 31, 2001 increased 87 percent to C$14.9 million, from C$7.9 million for the 2000 first quarter. Operating income doubled to C$3.5 million from C$1.7 million. Net earnings were C$0.42 million or C$0.01 per fully diluted share, compared with C$1.2 million or C$0.02 per fully diluted share in 2000.

"This is Crystallex's ninth consecutive profitable quarter, a very significant achievement," said Marc J. Oppenheimer, President and CEO. "Our dramatically increased revenue and operating income is the result of the faithful execution of our strategy to create shareholder value through multiple growth engines."

Total gold production in first quarter 2001 was 25,882 ounces, a 44 percent increase over the 18,006 ounces produced during last year's first quarter. Cash costs were approximately $236 per ounce. Cash flow from operating activities in the first quarter was approximately C$2.1 million (C$0.04 per share) compared to C$3.1 million (C$0.07 per share in 2000).

During the quarter, the Company commenced preparations for open pit operations at La Victoria, one of six open pittable deposits within the Lo Increible project. This, along with the scaling down of open pit operations at the Tomi property, accounted for increasing operating expenses in first quarter 2001 to C$11.4 million compared with C$6.2 million in the comparable 2000 period. Upgrades to the Revemin mill and lower grade material being milled at the Company's San Gregorio operation also contributed to the increased costs. For the quarter, the average grade processed at the San Gregorio mine was 2.03 grams per tonne, while that from the Tomi mine was 3.43 grams per tonne. The increase in operating expenses was somewhat offset by a reduction in cost per tonne mined at San Gregorio and significant savings in mill consumables. Although operating costs and general expenses were reduced as a percentage of revenue, lower interest income and significantly higher foreign currency translations had a negative impact on net income.

Tonnes mined at the Company's San Gregorio mine during the first quarter 2001 increased by 20 percent primarily because of an enhanced stripping program supported by greater mine fleet availability. This reduced the cost per tonne of ore mined to C$2.68 from last year's first quarter cost of C$2.78. Due to several improvements in the sag mill circuit, tonnes milled increased by 6.3 percent. During the 2001 first quarter, the Company completed its take-over of the El Callao Gold Mining properties in Venezuela and in April, began operations at its La Victoria open pit. La Victoria ore, which is also being processed through the Crystallex Revemin mill, has increased the tonnes processed per day from the 1150 tpd average in the first quarter 2001, to a current level of 1500 tpd. The La Victoria deposit contains probable reserves of 3 million tonnes grading 3.03 grams per tonne gold, based on a cutoff grade of 1.0 g/t Au and a gold price of $325 per ounce. At the same cutoff grade, the La Victoria deposit also contains indicated resources of 5.1 million tonnes at 3.15 g/t Au and inferred resources of 8.6 million tonnes at 3.2 g/t Au. (The reserve estimates were prepared in 1999 by Bema's Engineering Staff, a qualified staff employed by Bema Gold, Vancouver and the resource estimates were updated in 2000 by Susan Meister, Vice President Geological Modeling, a qualified person employed by MRDI of San Mateo, California). The Company is commencing a 10,000-metre diamond-drill program focused on converting the resources at La Victoria into reserves. This will be followed up by the expansion of the Revemin mill to increase its throughput capacity from 1,500 tpd to 3,000 tpd. When La Victoria reaches full production in the third quarter of this year, the Company expects the average cost of gold production from La Victoria and San Gregorio combined to drop back into the US$200 to US$210 per ounce range. Once the Revemin mill expansion to 3000 tpd is completed in 2002, the Company anticipates that its production costs will fall below US$200 per ounce.

"Our strategy of developing multiple assets is delivering tangible benefits to the Company and our shareholders," Mr. Oppenheimer said. "We mined gold from the San Gregorio and Tomi mines during the quarter and made preparations to commence underground mining at Albino 1 later this year. At the same time, we began preparing the Tomi mine for underground mining operations."

"While doing these things, we continued to increase the efficiency of the San Gregorio mine and mill, and began expansion of our Revemin mill. And we accomplished these tasks while maintaining our rigid programs for the protection of the environment in Uruguay and Venezuela.

Mr. Oppenheimer also stressed that Crystallex continues to pursue confirmation from the Venezuelan authorities of the Company's ownership rights to the Cristinas 4 & 6 concessions, which contains one of the largest gold deposits in South America.

"As our revenues continue to build and as our balance sheet grows even stronger, we will explore other opportunities to further develop and improve our existing operations and to acquire high potential gold mining properties which will increase the value of Crystallex for its shareholders," he added.

About Crystallex:
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 months period 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)
 

 
Contact: A Richard Marshall, VP at (201) 541-6650 ext. 26 or Andrea Boltz at (604) 683-0672.
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