Crystal Graphite Corporation: Corporate Update.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 9, 2003

Crystal Graphite Corporation (OTCBB:CYTGF). The Company reports that Phase One of the capital expansion is nearing completion, which is expected at the beginning of January 2004. This expansion includes: 1) new feed system with a four hour production storage hopper, 2) new water recycle treatment system, 3) upgrade to the drying system, 4) new product multi-deck screen, 5) plastic and stainless steel replacement to steel tanks and equipment to eliminate rust contamination, and 6) process control improvements.

Also during the month of October 2003 pit development work and extraction of graphitic material occurred at Crystal Graphite Corporation's (CGC) Black Crystal flake graphite deposit at Hoder Creek in the Slocan Valley area near Nelson, British Columbia. A haul truck/trailer turn around area and quarry access to the first two mining benches was completed successfully. During the development of this area, 1150 tonnes of graphitic material at an average fixed carbon grade of 3.75% was released and transported to CGC's processing plant at Koch Creek. With this additional run-of-mine tonnage, CGC now has 9500 tonnes of plant feed available adjacent to its new feed hopper and conveying system. This total tonnage equates to 302 tonnes of high purity recoverable product.

CGC presently has 70 tonnes of various products of which 50 tonnes are either bagged or in concentrate form averaging 96% fixed carbon grade. This inventoried material can either be sold as a lower end product or be upgraded to 99% for high technology applications. CGC's processing plant has now exceeded the 99% grade using mechanical methods with only a diluted hydrochloric acid leach.

Product marketing interest continues in CGC's high purity flake graphite with numerous large samples being shipped in the last quarter to various users including bi-polar plate manufacturers for fuel cells, the battery industry and brake lining manufacturers. The Company continues advanced discussions with several potential strategic customers that manufacture graphite products in the advanced energy sector.

About Crystal Graphite

Crystal Graphite has developed three marketable graphite products ranging in purity from 97% to 99.5% graphitic carbon, all to be produced at the company's processing facility, using graphitic material from the company's extensive holdings near Nelson, British Columbia. This purity of graphite is particularly useful in the development of bi-polar plates for fuel cells.

This release contains "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to prediction, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as "expects", "will", "anticipates", "estimates", "believes", or statements indicating certain actions "may", "could" or "might" occur.

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