Crystallex International

Crystallex announced late on Sunday they had received a letter from the state company Corporacion Venezolana de Guayana (CVG) announced that "unilaterally stopped" the contract to operate the gold mine.

. Two years ago, the Venezuelan government announced its intention to take control of the country's gold resources and operate at least two gold mines in Russia Rusoro, including Las Cristinas.

. Reservations for this award, according to government figures, would amount to 32.5 million ounces.

Crystallex expects to commence the operation of the mine in 2010.

CVG's letter was accompanied by a decision dated February 3, citing as reasons to stop the project "the lack of activity and progress in Las Cristinas for more than a year," and "reasons of convenience and comfort ".

However, Crystallex claims to have complied fully with its obligations arising from contract operation and have developed the project to the extent that the "first shovel hit" could have given the necessary permission from the Venezuelan Ministry of Environment and Natural Resources.

The Canadian company also claims to have fulfilled all the conditions to receive such approval in June 2007 and have obtained confirmation of the CVG. No obstante, el mencionado ministerio venezolano le negó la autorización en abril de 2008. However, the ministry said Venezuelan refused permission in April 2008.

The CVG confirmed again in August 2010 that the operating agreement was valid, but approval was not granted, Crystallex said.

Canadian society is studying the situation and considers "all necessary steps to protect the investment of its shareholders," including recourse to international arbitration, as indicated in a notice of dispute referred to the Venezuelan government in November 2008.