Certainly the conduct of the Bureaucracies regarding the timely advancing the larger mineral deposits in Bolivar State has been frustrating.



With respect to Las Cristinas, to have a request to pay a Construction Guarantee Bond and Environmental Disturbance Tax in order to have a Permit issued, fully comply with that request (June 2007) and then wait for an extended period of time only to be told that they would like additional modifications (June 2008) in order to issue the permit makes one wonder. In August 2008 Crystallex submitted a report with modifications that the Ministry confirmed met their guidelines and requirements. To this point no one has expressed to us in any meetings or conversations any problems or further steps needed in order for the MinAmb to issue the Permit.



It appears other projects (e.g. Brisas, Agapov Kaolin Project) have been meandering through the bureaucracies for several years as well in pursuit of their Permits.



We are in frequent communication with Government Officials and hope that they will formally clear up the uncertainties and allow the project to proceed. Timing rests with them. Under the Canada Venezuela Investment Protection Treaty we have given the Government the required 6 month period to resolve the issues.



Aside from all the delays and uncertainties cast by the various officials attributed comments in the media the investment climate for all resource companies developing projects has really soured. Companies building and developing projects around the globe have faced serious and violent selloffs in their shares. Everyone face challenges.



Regards,



Richard