VHeadline Venezuela questions for the Canadian Ambassador to Venezuela, Mr. Perry Calderwood re: his visit to Bolivar State

To: vheadline.carson@googlemail.com

Mr. Carson, Please find below the questions and the approved responses. Thank you for giving us the opportunity to present the Canadian side of the issues in which you are interested. I regret that it has taken so long to respond, but as I explained when we spoke, there is a process in place which as officials we are expected to follow.

Thanks again, and best regards.

Vicken Koundakjian

* Mr. Koundakjian is Political Counsellor at the Canadian Embassy in Caracas

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Q1: Ambassador! According to Minister Ricardo Gutierrez of the Venezuela Economic Development Committee the project Las Cristinas has met all requirements to begin mining in Venezuela. The Canadian Embassy, according to previous discussions from Margarita Island were to be highly involved in the foreseeing of this project to completion. What to the best of your knowledge is the status of this project? Are there any delays,besides the timing of permit issuance and if so what are they? If there are still issues regarding the project what is the Canadian Embassy doing to solve the issues? What issues remain?

A1: The Canadian Embassy in Venezuela is very interested in seeing all projects of Canadian mining companies in Venezuela reach completion stage.

Q2: Recently you have traveled to the area of or near Sifontes . When there you talked with Marlene Vargas. Since you represent Canadian business relations, how did this visit go and how are Canadian companies like Crystallex seen from Venezuela's viewpoint ?

A2: While in the State of Bolivar, Embassy colleagues and myself met with the Governor of Bolivar and the President of the Corporación Venezolana de Guayana - CVG (Crystallex's Venezuelan Government partner in Las Cristinas). Both the Governor and the President of CVG were very much aware of Canadian interests in the State. The Governor and the President of CVG spoke highly of Canadian mining companies (including Crystallex) and also were very appreciative of the commitment of Canadian mining companies to Corporate Social Responsibility, including contributing to the social needs of communities located near their operations.

Q3: How are relations currently between Venezuela and Canada?

A3: Canada has had an embassy in Venezuela since the late 1940s. Canadian interests are represented by the Ambassador, supported by the various sections within the embassy dealing with commercial, cultural, academic, and general relations, as well as with consular and visa matters. Currently, Venezuela does not have an Ambassador appointed to Canada, and we look forward to an appointment being made in the very near future. I recently arrived in Venezuela as Ambassador-designate and last night (11 Feb 2008) presented credentials to President Hugo Chavez.

Q4: According to past media a Canadian Ambassador described a huge mining mecca that was to be the mother of all mining towns. I believe they were referring to the Bolivar area where Gold Reserve, Russoro and Crystallex are now currently preparing for large scale mining. With all the talk of Nationalization how are Canadian miners affected? Will Crystallex still be part of this huge operation?

A4: We understand that Venezuela is preparing a "New Mining Law". This New Mining Law and its contents have not been made public nor, to our knowledge, have there been consultations with private entities such as the Venezuelan Mining Chamber or private mining companies with interests in Venezuela.

Q5: Has Crystallex been contacting you as per their project status and if so what have you been doing to free up any delays there are?

A5: Crystallex officials have kindly briefed me and Embassy colleagues on the company's interests in Venezuela. The Canadian Embassy will continue to provide support to Canadian mining companies, including Crystallex, with investments in Venezuela.

Q6: Are there any recent Canadian companies now operating in Venezuela? What are the views of those businesses as far as country risk?

A6: It is not the role of the Embassy to speak on behalf of Canadian companies.

Q7: Aside In regards to Crystallex :Will the Canadian government make inquiry from the Vz government as to why the permit has not been issued?

A7: A new Minister responsible for the mining sector has been appointed. I have requested a meeting to discuss issues of interest to the Canadian mining companies active in this country as well as perspectives for the sector in the context of the new mining law that is in preparation. This will also be a good opportunity for the Embassy to advocate Canada's expertise in the sector as well as in other areas of heavy industries and invite the Minister to participate in the Prospectors' and Developers' Association of Canada conference in Toronto in early March.