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

To: Fulvio Castelli who wrote (7436)	3/25/1998 11:13:00 AM
From: Fulvio Castelli	Read Replies (2) \| Respond to of 10836

Crystallex today took out a full page add in the Financial Post as well as other leading financial newspapers. In a letter to shareholders, this is what they wrote: *Your board of directors is actively working to protect your investment in Crystallex.* Your board of directors takes very seriously the recent volatility in Crystallex's share price. We want to use this occasion to communicate directly to you how we are addressing this situation and reiterate our position as clearly as possible, given the concentrated disinformation campaign launched against us. *Crystallex through Inversora Mael owns the title to the Las Cristinas 4 and 6 concessions.* The Supreme Court of Venezuela has already ruled on the validity of the transfer of title for Las Cristinas 4 and 6 to Inversora Mael and it was duly published bu order of the Court in the Official Gazette of the Republic of Venezuela on May 15, 1997, (issue number 5146 extraordinary). Crystallex is actively taking all necessary steps before the Venezuelan Supreme Court in order to ultimately obtain possession of Las Cristinas 4 and 6. *Crystallex's position is well founded and we firmly believe that this position will prevail.* The acquisition of the Santa Elena 7 and 8, Carabobo, and San Miguel concessions were executed in full compliance with Venezuelan law and Crystallex's disclosures are accurate. We have categorically refuted the charges about Crystallex that have been repeated in published reports. Our financial reporting and past communications with you have fully disclosed items such as the structure of the acquisition entity through which your company acquired Inversora Mael and, the legal situation regarding the Santa Elena 7 and 8, Carabobo and San Miguel concessions. We reiterate, more than ever, that Crystallex enjoys a good working relationship with Venezuela and its government. We are currently the only Km88 concession, which is in industrial production and which, is in the process of expansion in an environmentally conscious manner. With regard to the statements made by Mr. Rafael Rodriguez Acosta in Miami, we have been particularly gratified to quote the comments reported last week by Reuters for the Chairman of the Energy and Mining Committee of the Chamber of Deputies of the Congress of Venezuela, of which Mr. Acosta is but one member. The Chairman said "The general opinion in Congress is that we consider it an economic and legal dispute between two firms which is now in the Supreme Court and we respect the independence of the judiciary. (Rafael Rodriguez) Acosta is not representing the government nor the Energy and Mining Committee." We share the Chairman's view of the independence of the Venezuelan judiciary. *There is an active campaign in the marketplace to undermine the Company's credibility* There is a campaign orchestrated by individuals who have a direct financial interest in the decline of our share price. Compelling evidence is the short interest list published recently in the Wall Street Journal. The holders of that substantial short interest have a powerful financial incentive to circulate negative opinions and commentary -- regardless of its accuracy. Such activity by "short sellers" is nor unusual in the mining sector. The policy of your Board is to continue to focus the time and resources of management on running our business -- and not getting caught in a trap that one respected mining analyst has called "dueling press releases". This we believe is the soundest long-term approach to such a "short selling attack". We have retained as legal counsel Cleary, Gottlieb, Steen and Hamilton to pursue all appropriate legal action against those making false and misleading statements regarding your Company in an effort to manipulate the share price. While short sellers can force short-term volatility in our stock price, it is your Board's firm belief that our rights will prevail. The Company's fundamentals remain strong and we look forward to continuing to build this Company. The Board believes that it is critical that you as shareholders are aware of these facts. We will continue, as the events unfold, to keep you informed. The Board of Directors Crystallex International Corporation