With recent news of the Venezuelan government taking back control of Las Cristinas Mine, the primary gold deposit Crystallex International (KRY) owned the rights to, the company reported continued operating losses and the closure of several mines. Shares were up $.01 in intraday trading.

Liquidity and Capital Resources

• Cash and cash equivalents at September 30, 2008 were $44.6 million.
• Assuming expenditures at approximately the reduced rate following cost reductions in the first three quarters of 2008, the Company forecasts that it will have cash to fund its operations until the fourth quarter of 2009 (see “Liquidity and Capital Resources”).

At the end of September 2008, the Company ceased mining at the Tomi and La Victoria mines due to the handover of the Revemin mill to Minerven, a Venezuelan State-owned company, which was effective October 1, 2008. Subsequent to October 1, 2008, the entire mill operating employees at Revemin and some of the mining employees accepted offers of employment with Minerven. The Company paid Minerven compensation for all severance costs relating to those employees who were assumed by Minerven and is in the process of terminating most of the remaining mining employees. The Company is also in discussions with Minerven regarding the return of the Tomi and La Victoria properties to the State and finalizing mine closure obligations.

Financial Performance

• Loss from continuing operations was $25.3 million ($0.09 per share) including $2.9 million of unrealized foreign exchange loss for the nine months ended September 30, 2008. Loss from continuing operations was $1.6 million ($0.01 per share) including $5.8 million of unrealized foreign exchange gain for the three months ended September 30, 2008.
• Loss from discontinued operations at El Callao was $3.5 million and $6.0 million for nine months and three months ended September 30, 2008, respectively.
• Expenditures were $17.0 million and $4.3 million on Las Cristinas for the nine months and three months ended September 30, 2008, respectively.

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