VANCOUVER, BC - CRYSTALLEX INTERNATIONAL CORPORATION (KRY on TSX and Amex) today reported that its revenue for the second quarter ended June 30, 2002 was C$12.0 million, compared to C$13.7 million for the 2001 second quarter.  The Company reported a loss of C$3.2 million or C$0.04 per fully diluted share in the 2002 second quarter compared to income of C$464,814 or C$0.01 in the prior year’s second quarter.  Total gold production in the second quarter 2002 was 23,532 ounces, compared to 27,358 ounces produced during the previous year's second quarter.  Second quarter 2002 gold production included 16,841 ounces from San Gregorio and 6,691 ounces from the Revemin mill.

The Company maintained gold production at its San Gregorio operation in Uruguay at the same level of last year’s second quarter and experienced a five percent reduction in operating costs due to higher mill throughput, lower manpower levels and improved mill availability.  However, pioneering operations to level the floor of the La Victoria open pit in Venezuela, resulted in lower-grade feed material to the Revemin mill.  Although the mill processed thirteen percent more material than in the first quarter, the lower grade and the reduced recovery rate resulted in less ounces being recovered.  This resulted in a combined cost per ounce of US$264,
which is still lower than the 2002 first quarter’s cost of US$270, but higher than the 2001second quarter’s US$237.

Second Quarter Highlights

• Revenue - C$12,016,372
• Net loss - C$(3,224,756) or C$(0.04) per fully diluted share
• Operating Cash Flow - C$(0.06) per share
• Gold production - 23,532 ounces
• Cash Cost to produce - US$264 per ounce
• Average price per ounce realized - US$327 per ounce
• Larger production drill acquired for La Victoria in late June
• New 3,000 TPD jaw crusher to be installed at Revemin in September
• Tomi underground mine reaches 146 metre elevation and is collared at 174 metre elevation
• First development ore extracted from Tomi underground grading 5 to 7 grams per tonne.
• First phase of Revemin mill expansion scheduled for completion in November
• Albino 1 underground mine infrastructure nearing completion
• Discussions with the Venezuelan government aimed at favorably resolving Cristinas 4 & 6 issues continued.

For the first six months ended June 30, 2002, revenue was C$23,319,319.  The Company had a net loss of C$4,404,159 or C$0.05 per fully diluted share.   This compares to first half 2001 revenue of C$28,598,365, and net earnings of C$889,779 or C$0.01 per fully diluted share. During the six-month period, the Company produced 47,409 ounces of gold compared to 53,240 ounces in 2001.  Of the 53,240 ounces of gold in 2002, 33,286 ounces (approximately 63%) was from Uruguay and 14,123 ounces (approximately 37%) was from the Revemin Mill in Venezuela. Crystallex's President and Chief Executive Officer, Marc J. Oppenheimer, said that during the second quarter, the Company made very good progress in fine tuning its operations.  “We are putting the final touches on our “pioneering” activities at La Victoria, after which we anticipate increased tonnage and higher-grade material. We expect to begin accessing the high-grade main orebody at the Tomi underground mine in October and later this year we will commence pre-production mining activities at Albino.  In addition, the first phase of the Revemin mill expansion is scheduled for completion in November.  By the fourth quarter of this year we expect to be processing, from several sources, more high-grade material at increased recovery rates and a commensurate reduction of operating costs.” 

“We are further encouraged by the fact that these activities are being completed at a time of strengthening gold prices,” Mr. Oppenheimer added. 

Uruguay

San Gregorio: The Company recovered 16,841 ounces of gold at its San Gregorio operation during the 2002 second quarter, nearly the same as the 16,903 ounces processed in second quarter 2001. Gold recovery increased to 92 percent and tonnes milled, with one less mill operating day, increased two percent to 3,224 tonnes per day.   Total operating costs at the San Gregorio operation were lower due a 25 percent reduction in consumables and a decrease in manpower.  This resulted in a seven-percent lower operating cost per tonne milled for the second quarter 2002 versus that of 2001.

Venezuela

La Victoria: During the second quarter, “pioneering” activities in the hard rock portions of the La Victoria open pit effectively reduced the amount and grade of feed material that could be processed at the Revemin mill. A portion of the ore contained high levels of oxygen consuming materials that lowered the recovery rate to 76 percent from the previous quarter’s 90 percent.  Steps are currently being taken to address this issue and return recovery rates to previous levels. 

Tomi: The decline at the Tomi underground mine has been collared at 174 meters and development ore has already been extracted and processed at the Revemin mill.  This ore graded at between five grams per tonne and seven grams per tonne.  An additional 1,000 tonne stockpile is currently on hand to be used as feed for the Revemin mill.  The Company expects to reach the main orebody in October with mining of ore anticipated in the 14 grams per tonne range commencing in November, 2002.

Material grading eight grams per tonne also was mined from a small pocket in the Milagrito deposit of the Tomi open pit mine.  This deposit has not been explored yet for underground potential.

Albino 1: The Company is continuing to build the infrastructure for the underground operation at Albino 1 and plans to commence pre-production mining activities in the 2002 fourth quarter.

Revemin mill: In the second quarter 2002, the Revemin mill processed 98,871 tonnes, a thirteen-percent increase over the first quarter 2002.  However, the reduction in grade and recovery rate resulting from the switch from saprolitic material to hard rock and from the “pioneering” activities at La Victoria, lowered mill performance.  As a result gold production was 6,691 ounces in the second quarter 2002 compared with 7,432 ounces in the first quarter.

The first phase of the mill expansion that will raise throughput to 1,800 tonnes per day is scheduled for completion by November, 2002.  A new 3,000 TPD 38”x 48” jaw crusher will be installed by the end of the third quarter along with larger capacity screens, agitators and pumps.  Additional grinding capacity will be achieved with the addition of a second ball mill, which will be installed in early fourth quarter.

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 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 project financing 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. Given the Company’s view that the commodity price has based, coupled with the low interest rate environment, Crystallex reduced gold forward sales contracts from the high point in   first quarter of approximately 312,000 ounces to approximately 281,000 ounces as of the end of the second quarter. The Company will continue such reductions by delivering production into its positions. Additionally, as a percentage of reserves and resources, the forward sales percentage will decrease as the Company continues to increase its reserve/resource base.

About Crystallex:
Crystallex International Corporation is an emerging intermediate gold mining company operating as well as developing new mines in Venezuela and Uruguay.
Crystallex’s strategy for growth is to develop its portfolio of producing properties as well as to diversify geographically by investing in producing or near-production
projects and by exploring properties of merit in other areas.

Financial results for the three and six months periods 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.

To view 2002 Q2 tables, click here.