As reported, effective October 1, 2003, Crystallex sold its Uruguayan interests, including the San Gregorio mining operations to Uruguayan Mineral Explorations Inc, (UME).

Under the terms of the agreement, UME paid Crystallex US$2 million in two equal installments, with the first installment six months after closing and the second installment twelve months after closing. Formal closing was completed on October 27, 2003. Crystallex also received a transfer of certain exploration drilling equipment, with an estimated value of US$600,000. In addition, UME paid approximately US$2.8 million to fund the closing out of all remaining San Gregorio gold forward sales commitments, (approximately 37,600 ounces), and through the Uruguayan companies purchased, assumed certain environmental, remediation, severance and closure costs which would have been incurred by Crystallex had it proceeded with the planned closure of its Uruguayan mining operations.

The sale was completed through the transfer of the shares of the Company’s Uruguayan subsidiary companies which owned the mining assets. The Company recorded a non-cash $2.0 million loss as a result of this transaction.