Crystallex Conducts Annual Shareholders' Meeting /

Shareholders Approve All Resolutions Delineated in Proxy Circular Vancouver, B.C. (PROTEXT) - Crystallex InternationalCorporation (Amex: KRY; Toronto) held its annual shareholder'smeeting today at 8:30 a.m., PDT in Vancouver. Shareholders re-elected Robert A. Fung, Marc J. Oppenheimer,Robert A. Nihon, Dr. Enrique Tejera Paris, Daniel R. Ross,Mitchell Klein, Harry J. Near and Armando F. Zullo to the Boardof Directors, and re-appointed Davidson & Company as auditors ofthe Company. Shareholders approved all of the resolutions laid before themeeting including, the approval of employee options, theextension of a call write agreement originally adopted in 1997,the restructuring of the payment arrangement in relation toCrystallex's Inversora Mael unit, and, authorized the Board topursue further legal proceedings in respect to the Cristinas 4and 6 concessions, if they consider it advisable. A decision onthe legal proceedings is expected in the next few weeks. Chairman of the Board, Mr. Robert A. Fung welcomedshareholders and introduced Crystallex's President and ChiefExecutive Officer, Mr. Marc J. Oppenheimer. Mr. Oppenheimer gave shareholders an overview of the Company'sactivities during 1998 and an update on the 1999 first quarter.Reiterating the Company's overall strategy of growing the Companythrough medium-sized gold mining projects that representpotentially profitable opportunities, Oppenheimer pointed to theacquisition of the San Gregorio Mine as an excellent example ofthe strategy at work. He said that because of productivityimprovements initiated by the Company even before the acquisitionwas complete, gold production had increased 17 percent, to over20,000 ounces and cash cost per ounce had been reduced 32percent, to below US $200 by the end of the first quarter of1999, as compared with the first quarter of 1998. He sightedimproved blasting as one example of how the San Gregorio miningoperation had been made more efficient. Oppenheimer said that the improved revenue in 1998 (the secondhighest in Company history) and the excellent first quarter 1999,which generated earnings of nearly CDN $1.5 million, were due tothe efficient operation at San Gregorio and to the higher pricefor gold afforded by the Company's hedging program. Hedgingenabled the Company to obtain approximately US $300 per ounce infourth quarter 1998 and first quarter 1999, despite the averagespot market prices of US $294 and US $287 per ounce in therespective quarters. Oppenheimer said that although a great deal of effort had beenconcentrated on improving the Company's results over the past 15months, Crystallex was also engaged in a variety of activitiesthat should yield benefits in the longer term. He sighteddrilling programs at San Gregorio to identify additional reservesto extend the mine's life; exploration in the Rivera CrystallineIsland; a joint venture with SouthernEra to explore for diamondsin Uruguay; and an engineering review in preparation for anunderground mine at Albino 1 in Venezuela, among otheractivities. He mentioned that the underground development atAlbino 1 could begin later this year, possibly with theassistance of a joint venture partner. In regard to the Cristinas 4 & 6 concessions, Oppenheimer toldshareholders that the Board had thoroughly reviewed thebackground of the concessions and received advice from the legalteam, and the Board's decision not to write off the investment inInversora Mael (the registered owner of Cristinas 4 & 6) stillstands. He said the Board considered the issue in the context ofseveral facts: 1. Crystallex, in good faith, acquired Inversora Mael, acompany

that remains the registered owner of the Cristinas 4 and 6

concessions. 2. This ownership claim has been supported by three separate

decisions of the Venezuelan Supreme Court and the June 1998

decision did not overrule these previous Supreme Court

decisions. 3. The Supreme Court's June 1998 decision was procedural innature

and did not address the main issues involving rights to

Cristinas. Those issues remain to be decided in aVenezuelan

court. 4. The June 1998 decision included a dissenting opinion, which

stated that the majority opinion contradicted the essenceof

the three previous decisions made by the same SupremeCourt. 5. Litigation regarding this issue may take a long time and

although there are significant risks and uncertaintiesinvolved

in any such litigation, the value of the Cristinasconcessions

to Crystallex shareholders would be significant if theoutcome

were favorable. "In the Company's view, it has several legal remedies open toit that, if advanced successfully, could lead to the enforcementof its rights over the concessions," Oppenheimer said. Acknowledging that the Company enjoyed a much higher stockprice before its acquisition of Mael than after the June 1998Court decision, Oppenheimer said, "We believe inaccurate publicperception regarding the effect of this decision on our corebusiness has kept the full value of Crystallex from beingrecognized by investors, even though the Company is stronger andmore geographically diverse than ever before." The Company plansto address this perception by taking its story directly to theinvestment community and the media. "We want the market to knowthat the Cristinas issue is important because of the magnitude ofits potential, but it is not the driver of our strategy,"Oppenheimer said. Summing up, Oppenheimer said that the Company plans toincrease gold production at San Gregorio, to around 80,000 ouncesfor 1999, and through acquisitions and internal development tonearly double annualized production in the year 2000 and movetoward a new goal of 250,000 ounces of annualized production. "We will move ahead with our drilling programs to increase ourreserves at San Gregorio and extend the life of the mine. We willcontinue with work at Albino and begin exploration at our otherVenezuelan concessions once confirmation of our title rights isreceived. And if the Board decides to proceed with litigationregarding Cristinas, we will work tirelessly to effect afavorable outcome for Crystallex and its shareholders,"Oppenheimer said. To receive previous Company releases: (800) 758-5804 ext.114620. Visit the Company on the Internet: http://www.crystallex.com . Note: This news release may contain certain "forward-lookingstatements" within the meaning of the United States SecuritiesExchange Act of 1934, as amended. All statements, other than,statements of historical fact, included in this release,including, without limitation, statements regarding potentialmineralization and reserves, exploration results, and futureplans and objectives of Crystallex, are forward-lookingstatements that involve various risks and uncertainties. Therecan be no assurance that such statements will prove to beaccurate, and actual results and future events could differmaterially from those anticipated in such statements. Importantfactors that could cause actual results to differ materially fromthe Company's expectations are disclosed under the heading "RiskFactors" and elsewhere in documents filed from time to time withThe Toronto Stock Exchange, the United States Securities andExchange Commission and other regulatory authorities. The Toronto Stock Exchange has not reviewed this release anddoes not accept responsibility for the adequacy or accuracy ofthis news release. ots Original Text Service: CrystallexInternational Corporation Internet: http://www.newsaktuell.deContact: A. Richard Marshall, VP, 800-738-1577, or Andrea Boltz,604-683-0672, both of Crystallex International CorporationCompany News On-Call: http://www.prnewswire.com/comp/114620.htmlor fax, 800-758-5804, ext. 114620 Web site:http://www.crystallex.com

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