KRY Crystallex International Corp. Common Stock

Crystallex Announces Notice of Arbitration Relating to La Victoria Property TORONTO, Dec. 8 /PRNewswire-FirstCall/ -- Crystallex International Corporation (AMEX:KRY) Toronto announced today that it has received a notice of arbitration from Corporacion Vengroup, S.A. ("Vengroup") pursuant to a shareholders agreement relating to Osmin Holdings Inc., ("Osmin") a corporation owned 51% by a Crystallex subsidiary and 49% by Vengroup. Osmin holds the Lo Increible property, which includes the La Victoria mine, in Bolivar State, Venezuela. Crystallex suspended operations at La Victoria in the third quarter of 2003 to investigate the feasibility of processing refractory ore found at La Victoria at the Revemin mill. Under the notice of arbitration, Vengroup is seeking an award that is predicated upon notional rather than actual quantities and grades of ore mined and processed and gold recovered from La Victoria and that, as at October 31, 2004, would reduce the indebtedness of Osmin to the Crystallex subsidiary by approximately US$15.7 million (to approximately US$18.9 million) and entitle Vengroup to a cash payment of approximately US$7.8 million. Crystallex strongly disputes the claim advanced by Vengroup in the notice of arbitration and, in the arbitration proceedings, will assert the terms and conditions of written agreements between the parties and will further assert actual, rather than notional, quantities and grades of ore mined and processed and gold recovered from La Victoria. The arbitration proceedings are at a preliminary stage. Crystallex reduced the carrying value of its investment in the La Victoria property to nil during the 2003 fiscal year. About Crystallex Crystallex International Corporation is a Canadian based gold producer with significant operations and exploration properties in Venezuela. The Company's principal asset is the Las Cristinas property in Bolivar State that is currently under development and which is expected to commence commercial gold production in the first half of 2006 at an initial annualized rate of some 300,000 ounces at the initial planned production rate of 20,000 tonnes of ore per day. Other key assets include the Tomi Mine, the La Victoria Mine and the Revemin Mill. Crystallex shares trade on the TSX (symbol: KRY) and AMEX (symbol: KRY) Exchanges. NOTE: This release contains certain forward-looking statements and information regarding Crystallex's financial position, business strategy and plans and objectives of its management for future operations that derive from management's beliefs and assumptions based on information currently available. The statements and information are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this release, the words "anticipate," "believe," "intend," "estimate," "expect," "will," "could," "may" and similar expressions intend to identify forward- looking statements, but the fact that any of these words does not appear does not mean that the statement is not forward-looking. Forward-looking statements, which appear in this release, describe, among other things, risks and uncertainties, and reflect management's current views with respect to future events. Actual results could differ materially from those contemplated by the forward-looking 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, including but not limited to its annual information form ("AIF") and its annual report on Form 20-F, filed from time to time with the Canadian provincial securities regulators, the United States Securities and Exchange Commission ("SEC"), and other regulatory authorities. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, whether financial or otherwise, may vary materially from those described on this release. This paragraph expressly qualifies all subsequent written and oral forward-looking statements attributable to Crystallex or persons acting on its behalf as disclosed in this release or elsewhere. The Toronto Stock Exchange has not reviewed this release and does not accept responsibility for the adequacy or accuracy of this news release. DATASOURCE: Crystallex International Corporation CONTACT: Richard Marshall, VP of Crystallex International Corporation, +1-800-738-1577, or Web site: http://www.crystallex.com/

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