TORONTO, ONTARIO - Crystallex International Corporation (TSX, AMEX: KRY) today announced that the filing of amended and restated financial statements had been completed in Canada and was in process in the United States.

The restatement results in changes to previously reported losses for the years ended 2000, 2001 and 2002, and the loss reported for the quarter ended March 31, 2003 relating to the Company’s accounting treatment of its gold forward contracts and written call options which are both considered to be derivative financial instruments.   The restatement gives effect to changes in the timing and recognition of premium income and mark to market adjustments relating to gold forward contracts and written call options under Canadian and US GAAP.  

The adjustments do not impact the cash position of the Company, its mining operations or its underlying asset base, but relate solely to changes to previously reported losses due to the timing of recognition of income/loss associated with derivative activity and mark to market adjustment of gold forward contracts and written call options. The Company is continuing with its preparations to develop the Las Cristinas mining project, and expects that its feasibility study presently being prepared by SNC-Lavalin Engineers and Consultants will be completed this summer and submitted to the Corporacion Venezolana de Guayana (“CVG,”) in accordance with the requirements of its mining operation contract, by mid September, 2003.

The issues of the timing and the recognition of income arising from further review of written call options by the Company’s auditors after the filing of the year end and quarterly financial statements had prompted the Company to report an intended restatement. 

For its 2000 and 2001 fiscal years, Crystallex initially recognized premium income on certain call options at the time the call options were written. Instead, the Company should have set up on its balance sheet a deferred credit in respect of derivative instruments equal to the amount of premium income received and recorded adjustments to such deferred credit on a mark to market basis over the respective terms of the written call options. Over the full term of the transactions, the total contribution from these transactions will be the same under the new accounting treatment as under the accounting treatment that had been used historically. In addition, although the Company had previously restated its Canadian GAAP financial statements to reflect certain written call options on a mark to market basis, it was determined subsequent to filing of such statements that additional written call options for the fiscal years 2000 and 2001 should receive similar accounting treatment. The difference in the timing of revenue recognition and the recognition for accounting purposes of the additional written call options has necessitated an adjustment to previously recorded income and deferred credits, and the mark to market adjustments with respect to the additional written call options have resulted in adjustments to gains and losses in respect of derivative instruments with offsetting adjustments to deferred credits.

In addition, the financial statements for 2000, 2001 and 2002 and for the quarter ended March 31, 2003 were restated to reflect the Company’s gold forward contracts on a mark to market basis. The gold forward contracts were put in place as part of the Company’s ongoing borrowing arrangements related to its mining properties and mining operations. When the Company initially adopted the US accounting standard SFAS 133: Accounting for Derivative Instruments and Hedging Activities on January 1, 2001, it applied the “normal purchases and normal sales” exemption which, subject to the satisfaction of certain eligibility criteria, allowed the Company to account for gold forward contracts off balance sheet, by way of a note to the financial statements, until the contract was settled. Further analysis of the Company’s hedging activities and interpretation of SFAS 133 indicated that the Company did not satisfy all of the eligibility criteria for this accounting treatment. As a result, the Company is required for its US GAAP financial statements to reflect its gold forward contracts on a mark to market basis.

There is some discretion under Canadian GAAP to treat gold forward contracts on other than a mark to market basis.  The Company determined, after analysis of this complex accounting issue, that the most appropriate treatment under Canadian GAAP would be the adoption of derivative treatment for both gold forward contracts and written call options. This change in accounting treatment will result in quarterly adjustment of profit and loss related to outstanding gold forward contracts and written call options being marked to market based upon the prevailing price of gold. This treatment is expected to result in significant fluctuation in profit and loss for accounting purposes. It recognizes current developments in accounting practice related to derivative instruments and evolving industry practice.  As noted above, the adjustments are non-cash and do not impact income from the mining operations of the Company.

A summary of the accounting adjustments reflected in the audited financial statements as filed is as follows:

• Fiscal Year 2000: Net loss of $0.4 million has been restated to a net income of $4.6 million.
• Fiscal Year 2001: Net loss of $36.7 million has been restated to a net loss of $42.6 million.
• Fiscal Year 2002: Net loss of $39.8 million has been restated to a net loss of $56.5 million.
• Quarter ended March 31, 2003: Net loss of $0.029 million has been restated to a net income of $6.7 million.

The adjustments underlying the restatement relate only to the accounting treatment of the Company’s gold forward contracts and written call options. Details of the adjustments are provided in the Company’s restated audited financial statements and the 2003 first quarter statements and the notes thereto which have been filed by the Company on SEDAR in Canada, and explanation is provided in revised Management Discussion and Analysis of the statements which has also been filed on SEDAR. Similar filings are in process on EDGAR in the United States.

The Company reported to the British Columbia Securities Commission and the Toronto Stock Exchange the possibility of restatement immediately upon becoming aware that the restatement might be material and prior to any quantification of required adjustments. The British Columbia Securities Commission issued an order on July 8, 2003 to cease trading in the Company's securities pending the filing of the restated financial statements.  The Ontario Securities Commission, the Alberta Securities Commission and the Quebec Securities Commission have issued similar orders.  The Toronto Stock Exchange and the American Stock Exchange have halted trading in the Company's common shares pending filing of these restated financial statements.  With the filing of its restated financial statements, the Company’s best information from regulatory authorities is that trading will resume on the TSX and AMEX at the opening of market on July 31, 2003. The Toronto Stock Exchange has extended until August 6 its previously announced review of the Company.

About Crystallex: Crystallex International Corporation is a Canadian based gold producer with operations and exploration properties in Venezuela and Uruguay.  Crystallex shares are traded on the TSX and AMEX Exchanges.  Crystallex is focused on strategic growth in South America.  The Company's major asset is the Las Cristinas property in Venezuela.  The Mining Contract gives Crystallex 100 percent control of the reserves and resources of this project.  Crystallex is currently working on the final feasibility study to support its development plans for Las Cristinas.

For Further Information:
Investor Relations Contact: A. Richard Marshall, VP at (800) 738-1577
Visit us on the Internet:  http://www.crystallex.com
Email us at: info@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 new release.