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Gold/Mining/Energy : Crystallex (KRY) -- Ignore unavailable to you. Want to Upgrade?

To: E. Charters who wrote (9988)	8/4/1999 9:58:00 AM
From: alan holman	Read Replies (1) \| Respond to of 10836

Crystallex Launches Legal Actions to Enforce Ownership Rights at Las Cristinas VANCOUVER, British Columbia, Aug. 4 /CNW/ -- Crystallex International Corporation (Amex: KRY; Toronto) today announced that it has launched legal proceedings in Venezuela to enforce the company's ownership rights in relation to the Cristinas 4 and 6 concessions at Venezuela's Kilometer 88. The two separate proceedings are intended to resolve the continuing uncertainty over the ownership of the concessions, which are located at one of the richest undeveloped gold reserves in the world. The first proceeding seeks to nullify the joint venture agreement previously entered into between Corporacion Venezolana de Guayana ("CVG") and MINCA, a Venezuelan joint venture in which Placer Dome has been a participant. In essence, this action challenges the original legal basis on which CVG purported to confer contractual rights to exploit the Concessions commercially. Crystallex has also brought a motion to join in the lawsuit originally commenced by the Solicitor General of Venezuela to challenge Presidential Decree 1409 and the ability of CVG to grant mining contracts in reliance on it. The second proceeding seeks to nullify the effect of the settlement agreement entered into in 1991 with respect to a lawsuit between Inversora Mael, C.A. ("Mael"), the Republic of Venezuela, CVG and Ramon Torres. Crystallex believes the legal proceedings, if successful, could lead to the enforcement of its rights over the concessions. "Litigation regarding this issue may take a long time," said Marc J. Oppenheimer, Crystallex's president and CEO. "Although there are risks and uncertainties involved in any such litigation, the value of the Cristinas concessions to Crystallex shareholders would be significant if the outcome were favorable." In June 1999, the company's shareholders approved any action deemed advisable by Crystallex's Board of Directors to enforce, protect or enhance the company's ownership rights in relation to the concessions. Crystallex has taken steps to assert its ownership interest in the Cristinas concessions since acquiring the rights in 1997, and launched an action in April 1997 seeking a ruling requiring MEM to fully recognize its ownership of the concessions. In June 1998, the Political Administrative Chamber of Venezuela's Supreme Court ruled on procedural grounds that Mael did not have the status to assert ownership rights and refused to proceed with the lawsuit. Because the 1998 decision was procedural, the court did not decide the fundamental ownership issues. Indeed, a dissenting opinion in the case stated the 1998 decision conflicts with earlier decisions of the Supreme Court. Crystallex agrees the June decision conflicts with earlier Supreme Court decisions and further asserts the June decision does not overrule prior and equally valid rulings of the same Venezuelan Supreme Court. Mael remains the registered owner of the Concessions. "Crystallex looks forward to the opportunity to finally resolve the continuing uncertainty over the ownership of the Concessions," said Oppenheimer. "Once the ownership issue is cleared up we can all turn our efforts to the development of Las Cristinas in the best interests of everyone, particularly the people of Venezuela." To receive previous Company releases: (800) 758-5804 ext.114620 Visit the Company on the Internet: 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 news release. -30- For further information: A Richard Marshall, VP, 201-541-6650, ext. 26, or Andrea Boltz 604-683-0672, both of Crystallex International Corporation /Company News On-Call: prnewswire.com or fax, 800-758-5804, ext. 114620 /Web site: crystallex.com