Shareholders of Crystallex International Corporation (AMEX: KRY, Bullboard) / (TSX: T.KRY, Bullboard) are undoubtedly chagrined that they bought into Crystallex in the last two years above $2.00 per share based on reports of significant gold reserves at Las Cristinas in Venezuela. At year end 2007, Crystallex reported estimated proven and probable reserves of 16.86 million ounces of gold and estimated measured and indicated resources of 20.76 million ounces.

As recently as February 28, 2008, Gordon Thompson, President and Chief Executive Officer reported to shareholders that during 2007, their partner, the Corporacion Venezolana de Guayana (CVG) was formally notified by the Ministry of the Environment and Natural Resources of Venezuela that all requirements for the issuance of the Las Cristinas Environmental permit had been fulfilled.

On April 30, 2008, Crystallex reported that it became aware that the Director General of the Administrative Office of Permits at the Ministry of the Environment and Natural Resources issued a communication to the CVG, the owner of the Las Cristinas concession that denied the company’s request to carry out exploration activities in the mining area of Las Cristinas. The communication appears to be in conflict with the Las Cristinas EIS approval, and the Construction Compliance Bond Request and Environmental Tax request posted and satisfied by Crystallex as per the request of the Ministry. Upon news of this permit denial, the stock price of Crystallex dropped from $1.68 per share (previous day's closing price) to 91 cents per share on volume of 18,500,000 shares on April 30, 2008.

In issuing the communication, the Director General cites sensitivities surrounding indigenous peoples, the small miners and the environment in the areas generally known as the Imataca Forest Reserve, which contains a number of mining projects, which like those of Crystallex, are seeking permits to continue development and exploration.

Crystallex indicated that it is committed to defending their legal rights in the project

Investors in Crystallex, and would-be investors in gold mining stocks should use the crystal ball that is available to them: the Fraser Institute (www.fraserinstitute.org). The Fraser Institute is an independent non-profit research and educational organization. Since 1997 the institute has conducted annual surveys of metal mining and exploration companies to assess favorable regions of the world for mining by looking at mineral potential and public policy in terms of taxes, regulation and infrastructure that would affect investment in the region.

The 2005/2006 Fraser Institute Annual Survey of Mining Companies ranked Venezuela as the least favorable country for investment. The 2007/2008 Survey which ranked 68 jurisdictions, including states and provinces in the United States, Canada, and Australia, also ranked Venezuela again in the bottom 10 jurisdictions. The bottom 10, ranked from worst to better include Honduras, Zimbabwe, Ecuador, Panama, Bolivia, India, Indonesia, Mongolia, Philippines, and Venezuela, number ten.

Several of these countries have recently enacted unfavorable investment policies, which have had the effect of devaluing the share prices of companies operating in these environments.

Ecuador recently imposed a moratorium on metals mining for 180 days and revoked hundreds of mining concessions until new contracts are negotiated. InsideMetals' gold producer stock Iamgold Corp (NYSE: IAG, Bullboard)/(TSX: T.IMG, Bullboard) was immediately hit with an approximate 15% decline in their stock as shareholders became concerned over the status of its Quimsacocha project which contains a gold resource of approximately 3.5 million ounces of gold.

While Ecuador's President Correa has assured many of the foreign companies mining and exploring in Ecuador that responsible mining will be allowed, he stressed that "communities" will have to become shareholders in the projects. At what cost?

Bolivia is also under going political rumblings that could affect silver producers, Apex Silver Mines Ltd. (AMEX: SIL, Bullboard), Coeur d'Alene Mines Inc. (NYSE: CDE, Bullboard) / (TSX: T.CDM, Bullboard), and Pan American Silver Corp (NASDAQ: PAAS, Bullboard) / (TSX: T.PAA, Bullboard). Bolivia's leftist president, Evo Morales signed a law on February 29, 2008 that made May 4, 2008 the date for a national referendum on a controversial draft constitution. The proposed charter approved in a congress dominated by legislators of Morales’ party seeks to give more power and resources to Bolivia's poor indigenous majority. At the same time, Morales is dealing with another political crisis, as the wealthy Province of Santa Cruz also scheduled a referendum vote on May 4, 2008 for autonomy. The referendum generates a statute that would give Santa Cruz the ability to elect its own legislature, create its own policy force, raise new taxes, and allow the province to negotiate its own royalty agreement with energy and mining companies.

If the Santa Cruz referendum passes it is likely that the same outcome will take place in June in the provinces of Beni, Pando, and Tarija which also have scheduled similar votes to decide whether the country’s wealthiest provinces wish to secede from Morales' Indian majority government.

On Monday, May 5, 2008, the province of Santa Cruz claimed victory as the referendum for autonomy passed. Morales described the referendum as illegitimate, but he left the door open for discussions.

Unrest is also taking place in Zimbabwe as a consequence of the country’s new tax rates that became effective April 1, 2008 and the Economic Empowerment Act which requires 51% indigenous ownership in every public company and business.

The new tax is a 15% variable profit tax on taxable income above 8% and a minimum 25% windfall profit tax. It raised the effective tax rate on miners to 47% from 31%, despite objections that the government is reneging on tax exemption deals signed with foreign investors. Zimbabwe President Robert Mugabe set the date of enforcement of the Act to be April 17, 2008.

So much for investing in companies operating in countries that make up the bottom of the Fraser Institute Mineral Survey.