To: Andrew who wrote (1459 ) 4/2/2001 3:35:39 PM From: Al Collard Respond to of 11802 Bema Gold Corporation BGO Mon 2 Apr 2001 News Release El Callao Mining reported to its shareholders on Feb. 27, 2001, that Crystallex International Corporation had completed its takeover bid for the shares of ECM and the acquisition from Bema Gold Corporation of certain assets related to ECM. Bema was previously ECM's largest shareholder. One of the principal assets purchased by Crystallex from Bema was Bema's shareholder loan to ECM. That loan is now owed to Crystallex. The loan was due and payable on March 31, 2001. As at such date, the total amount owing to Crystallex by ECM, including accrued interest, was approximately $16-million (U.S.). ECM was unable to repay the loan on March 31 and, accordingly, has defaulted under the loan agreement with Crystallex. As a result, Crystallex has given notice to ECM that its has elected to exercise its rights under the loan agreement to treat the entire loan as an interest-bearing demand loan. Crystallex now has no further obligation to make advances to ECM. The loan continues to be secured by a charge on the principal assets of ECM. Crystallex now has the ability upon demand, to realize on its security for the loan and thereby take control of ECM's interest in the Lo Increible property. As a result of this loan and Crystallex's majority ownership of ECM, ECM expects that substantially all of the cash flow from its operations and properties will flow to Crystallex. ECM understands that Crystallex intends to proceed with its previously announced drilling program at Lo Increible, with the goal of putting the property into full production. Crystallex is the largest shareholder of ECM, owning approximately 80 per cent of the outstanding common shares of ECM, and now manages the affairs of ECM. (c) Copyright 2001 Canjex Publishing Ltd. stockwatch.com