La Victoria's Probable Reserves and Indicated Resources Increased

VANCOUVER, BC - CRYSTALLEX INTERNATIONAL CORPORATION (KRY on TSE and Amex) today reported that its revenue for the first quarter ended March 31, 2002 was C$11.3 million, compared to C$14.9 million for the 2001 first quarter.  Operating income was C$129,779 compared to C$3.5 million.  The Company had a net loss of $1.2 million or C$0.01 per share in the 2002 first quarter, compared with net income in first quarter 2001 of C$424,965 or C$0.01 per fully diluted share. Total gold production in first quarter 2002 was 23,877 ounces, compared to 25,882 ounces produced during the previous year's first quarter.

Gold production at the Company's San Gregorio operation in Uruguay was slightly higher and costs were somewhat lower than those of last year's first quarter.  However, a delay in obtaining a blasting permit for the La Victoria mine resulted in lower production and substantially higher operating costs from its Venezuelan operations.  During the eight week permitting process, the Company also continued the La Victoria stripping program, which contributed to higher expenses.  This activity, along with the fixed costs of the Venezuelan operations versus reduced tonnage from La Victoria increased the Company's combined operating costs to US$270 per ounce compared with US$236 per ounce in first quarter 2001.  The blasting permit was received at the end of March, and drilling and blasting operations resumed in April.

First Quarter 2002 Highlights

• Revenue: C$11.3 million
• Gold production: 23,877 ounces
• Cash cost to produce: US$270 per ounce
• Average price per ounce realized: US$297 per ounce
• Increased the probable reserves and indicated resources at La Victoria as a result of the 2001 drilling
• Completed general arrangement drawings for the expansion of the Revemin mill to 1,800 tonnes per day
• Advanced the decline at Tomi an additional 80 metres, reinforced the portal and established mine services
• Hired a project manager for the Albino 1 underground operation and prepared for development of the decline
• Advanced discussions with the Venezuelan government aimed at favorably resolving Cristinas 4 & 6 issues
• Doubled cash position compared with first quarter 2001, and increased shareholders' equity to C$146 million

Crystallex's President and Chief Executive Officer, Marc J. Oppenheimer, said that Crystallex focused on internal development of its operations during the first quarter.  "The work we did during the quarter has given us a good start on the year," Mr. Oppenheimer said.  "Our drilling programs have allowed us to increase the La Victoria probable reserves and indicated resources.  In addition, we are slightly ahead of schedule with the Charlie Richards underground operation, and we have advanced our preparations for the underground mine at Albino 1".

"Due to the phased expansion of the Revemin mill we will have sufficient capacity to handle the increased tonnage from these mines as the new sources come on line.   Further, by using this one strategically positioned mill to process material from several sources within the three Venezuelan gold districts, we can employ economies of scale to reduce costs," said Mr. Oppenheimer    

Uruguay

San Gregorio: The Company processed 16,445 ounces of gold at its San Gregorio operation during the 2002 first quarter, nearly the same as the 16,439 ounces processed in first quarter 2001. The slight increase was due to a 1.5 percent increase in gold recovery to nearly 93 percent, and higher plant availability.  Total operating cost per ounce was 2.9 percent lower, from US$237.67 down to US$230.73. The operating cost per tonne milled in the first quarter 2002, was also reduced to US$13.91, versus the US$14.19 per tonne milled during the prior year's first quarter.

Venezuela

La Victoria: In February 2002, Crystallex's technical personnel incorporated 2,894 metres of drilling data obtained in late 2001 to form a new reserve and resource model for La Victoria.  As a result, the indicated resources of the La Victoria orebody, reported at a cut-off grade of 1.0 gram per tonne, increased from 4.95 million tonnes grading 3.14 grams per tonne to 5.48 million tonnes grading 3.14 grams per tonne. The probable reserves, estimated using a gold price of US$300 per ounce and using a cut-off grade of 1.2 grams per tonne, increased from 2.84 million tonnes grading 3.0 grams per tonne to 4.3 million tonnes grading 3.0 grams per tonne. (The estimates, of mineral reserves and mineral resources, were verified by Dr.Luca Riccio, P.Geo, a qualified person for purposes of National Instrument 43-101, who is employed by Crystallex as Vice President of Exploration).

During the first quarter 2002, the operating cost per ounce in the Company's Venezuelan operations rose 38.6 percent on a year over year basis to US$356.71 from US$257.35, due to a delay in obtaining a blasting permit for the La Victoria Open Pit.  This is the first time in the El Callao region that such blasting had been required and although the permitting procedure went smoothly, some additional time was needed to assuage the concerns of the local residents. While the Company had temporarily and deliberately suspended blasting, it continued the stripping program at La Victoria, which accounts for US$70 per ounce of the increase in operating cost. The balance of the cost increase is due to the reduction of ounces of gold produced versus the fixed costs of the Venezuelan operations. The blasting permit was received at the end of March and drilling and blasting operations commenced early in April.

Tomi: While the Victoria mining operations were suspended temporarily, replacement ores were processed from the Milagrito deposit on the Tomi concession. That deposit contains medium-grade, colluvial material.

The decline for the Tomi underground operation at the Charlie Richards deposit was advanced another eighty meters during the quarter. Work completed during the first quarter also included the portal reinforcement with wire mesh, establishment of mine services (air, water, power and ventilation), and site access improvements. Access to the first underground ores from Tomi is scheduled for the beginning of the third quarter 2002. The ore will be processed through the Company's Revemin mill.

Albino 1: A project manager has been hired and is on-site at the Albino underground mine project. Preparations are being made to contract out the development of the Albino underground mine access decline. Portal construction is anticipated to begin within three months as the pit dewatering exposes the planned access level. 

Revemin mill: Gold production in the first quarter 2002 decreased 16 percent to 7,432 ounces due to reduced availability of ore from La Victoria. Operating costs per tonne milled during the 2002 first quarter were $30.68 versus $26.28 in first quarter 2001. Planning for the mill expansion continued and sourcing of equipment for Phase I was completed during the first quarter. General Arrangement drawings have been completed for this phase, which will expand the mill to 1,800 tonnes per day. Phase I is an interim expansion, which will be followed in 2003 by the final expansion to 3,000 tonnes per day.

Cristinas 4 & 6: The Company believes it continues to make progress with the Venezuelan government toward the resolution of the issues regarding the Cristinas concessions in Venezuela and is optimistic about the outcome.

Hedging: In order to protect the Company against declining gold prices, the Company has used gold forward sales and a combination of gold puts purchased and gold calls sold to hedge production. The gold program implemented pursuant to the loan arrangements with the banking syndicate provides downside protection for a portion of Crystallex's planned production. This gold hedging program was entered into pursuant to the Company's obligations with its banks while still providing the Company with significant leverage to future gold price increases. The Company believes that the commodity price has an upward bias to it and that firming should continue to be a factor.  Accordingly, the Company will continue to maintain a flexible position with regard to enjoying the upside of the gold price movement, while protecting its balance sheet during periods of depressed prices.  As of March 31, 2002, the Company had sold forward approximately 300,000 ounces of gold or 28% of reserves, deliverable over the next 5 years at prices in excess of US$300.  Given the Company's view that the commodity price has based, coupled with the low interest rate environment, the Company will be decreasing its trading book as a percentage of reserves.  This percentage reduction will occur by the Company delivering production into these trading positions as well as by the Company increasing its reserve base.

About Crystallex
Crystallex International Corporation is an emerging intermediate gold mining company. The Company owns or controls a number of strategic properties in South America. Crystallex'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

For Further Information:
Contact:  A Richard Marshall, VP at  (201) 541-6650 or Andrea Boltz at (604) 683-0672
To receive previous Company releases:  (800) 758-5804  ext.114620
Visit us on the Internet:  http://www.crystallex.com

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 this release and does not accept responsibility for the adequacy or accuracy of this news release.
 
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