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The Government of Venezuela may reserve for itself through a decree the right to directly explore and

exploit specific areas or some or all of the minerals within specific areas. Direct exploration and

exploitation may be carried out either by the Government itself through the MIBAM or by a public

entity such as CVG. The effect of such a reservation is to prohibit the granting of mineral concessions

within the reserve area to private parties. If the Government of Venezuela has reserved direct

exploration and exploitation of minerals for itself, the MIBAM or the public entity may enter into

operation agreements with third parties with respect to the exploration and exploitation of the reserved

minerals.

Crystallex‟s interests in the Las Cristinas deposits are derived from:

a Presidential decree pursuant to which the Government of Venezuela reserved for itself, through

the then Ministry of Energy and Mines, the direct exploration and exploitation of the gold

located in the Las Cristinas deposits and granted to the Ministry of Energy and Mines the right to

contract with CVG the activities required to carry out such exploration and exploitation;

an agreement between the Ministry of Energy and Mines and CVG pursuant to which the

Ministry of Energy and Mines granted to CVG the right to explore and exploit the gold mineral

located in the Las Cristinas deposits and to enter into operations agreements with third parties for

such purposes; and

a mine operation agreement between CVG and Crystallex (Appendix A).