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<TITLE>Filed by Filing Services Canada Inc. 403-717-3898</title>
<META NAME="author" CONTENT="Diane Dalmy">
<META NAME="date" CONTENT="06/24/2005">
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<P style="margin:0pt; font-family:Courier New" align=center>U.S. SECURITIES AND EXCHANGE COMMISSION</P>
<P style="margin:0pt; font-family:Courier New" align=center>Washington, D.C. 20549</P>
<P style="margin:0pt; font-family:Courier New" align=center><BR></P>
<P style="margin:0pt; font-family:Courier New" align=center>FORM S-8</P>
<P style="margin:0pt; font-family:Courier New" align=center>REGISTRATION STATEMENT UNDER THE SECURITIES</P>
<P style="margin:0pt; font-family:Courier New" align=center>ACT OF 1933, AS AMENDED</P>
<P style="margin:0pt; font-family:Courier New" align=center><BR></P>
<P style="margin:0pt; font-family:Courier New" align=center>CRYSTAL GRAPHITE CORPORATION</P>
<P style="margin:0pt; font-family:Courier New" align=center>---------------------------------</P>
<P style="margin:0pt; font-family:Courier New" align=center>(Exact name of small business issuer as specified in its charter)</P>
<P style="margin:0pt; font-family:Courier New" align=center><BR></P>
<P style="margin:0pt; font-family:Courier New" align=center>&nbsp;BRITISH COLUMBIA &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
88-0437644</P>
<P style="margin:0pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
------------------------------ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-------------------</P>
<P style="margin:0pt; font-family:Courier New" align=center>(State or other jurisdiction of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I.R.S. Employer</P>
<P style="margin:0pt; font-family:Courier New" align=center>incorporation of organization) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Identification No.)</P>
<P style="margin:0pt; font-family:Courier New" align=center><BR></P>
<P style="margin:0pt; font-family:Courier New" align=center>Suite 1750-999 West Hastings St.</P>
<P style="margin:0pt; font-family:Courier New" align=center>Vancouver, B.C., Canada V6C 2W2 (604) 681-3060</P>
<P style="margin:0pt; font-family:Courier New" align=center><BR></P>
<P style="margin:0pt; font-family:Courier New" align=center>---------------------------------------------------</P>
<P style="margin:0pt; font-family:Courier New" align=center>(Address, including postal code and telephone number,</P>
<P style="margin:0pt; font-family:Courier New" align=center>including area code, of Principal Executive Offices)</P>
<P style="margin:0pt; padding-left:72pt; text-indent:36pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; padding-left:72pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Crystal Graphite Corporation Stock Option Agreement</P>
<P style="margin:0pt; padding-left:72pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
---------------------------------------------------</P>
<P style="margin:0pt; padding-left:72pt; text-indent:36pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(Full Title of the Plan)</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Gordon Sales &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copies of all communications to:</P>
<P style="margin:0pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Crystal Graphite Corporation &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mike Shannon</P>
<P style="margin:0pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Suite 1750-999 W. Hastings St. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Devlin Jensen</P>
<P style="margin:0pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Vancouver, B.C., Canada V6C 2W2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;555 W. Hastings St., Suite 2550</P>
<P style="margin:0pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(604) 681-3060 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vancouver, British Columbia</P>
<P style="margin:0pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(Name, Address and Telephone &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada &nbsp;V6B 4N5</P>
<P style="margin:0pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Number of Agent for Service</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; text-indent:144pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
CALCULATION OF REGISTRATION FEE</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<div align="center">
  <center>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=130.733><P style="margin:0pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=center>Title of securities to be registered</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=114.467><P style="margin:0pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=center>Amount to be registered<SUP>(1)</SUP></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=120.6><P style="margin:0pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=center>Proposed maximum offering price per share <SUP>(2)</SUP></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=130.2><P style="margin:0pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=center>Proposed maximum aggregate offering <SUP>(3)</SUP></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=134.533><P style="margin:0pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=center>Amount of registration fee</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=130.733><P style="margin:0pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=center>Common shares</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=114.467><P style="margin:0pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=center>2,385,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=120.6><P style="margin:0pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=center>$0.21</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=130.2><P style="margin:0pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=center>$500,850</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=134.533><P style="margin:0pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=center>$58.95</P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>Notes:</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:36pt; text-indent:-36pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=justify>(1)</P>
<P style="margin:0pt; padding-left:36pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=justify>The Registrant granted 2,385,000 stock options to eligible persons exercisable as to 1/3<SUP>rd</SUP> at $0.20 USD per share, 1/3<SUP>rd</SUP> at $0.30 USD per share, 1/3<SUP>rd</SUP> at $0.40 USD per share, and increasing in price $0.05 USD each six months, for a three year term until April 27, 2008. The exercise price was determined by the Board of Directors of the Registrant and set contractually.</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:36pt; text-indent:-36pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=justify>(2)</P>
<P style="margin:0pt; padding-left:36pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=justify>Estimated solely for the purpose of computing the registration fee pursuant to Rule 457(c) and (h) under the Securities Act of 1933, as amended. The Proposed Maximum Offering Price Per Share was determined by the Board of Directors using the average of the market price over the last five trading days prior to the date of filing this registration statement, which was $0.21. &nbsp;Pursuant to Rule 457(h)(1), the registration fee was calculated on the basis of these figures.</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:36pt; text-indent:-36pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=justify>(3)</P>
<P style="margin:0pt; padding-left:36pt; line-height:11pt; font-family:Courier New; font-size:9pt" align=justify>This Registration Statement relates to such indeterminate number of additional shares of common stock of the Company (the &#147;Common Stock&#148;) as may be issuable as a result of stock splits, stock dividends or similar transactions.</P>
<P style="margin:0pt; padding-left:36pt; text-indent:-36pt; font-family:Courier New; font-size:9pt" align=justify><BR>
<BR></P>
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<P style="margin:0pt; font-family:Courier New" align=center>TABLE OF CONTENTS</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>Part II:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>Item 3:</P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify>Incorporation of Documents by Reference &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>Item 4:</P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify>Description of Securities &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>Item 5:</P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify>Interests of Names Experts and Counsel &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>Item 6:</P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify>Indemnification of Officers and Directors &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>Item 7:</P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify>Exemption from Registration claimed &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>Item 8:</P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify>Exhibits &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>Item 9:</P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify>Undertakings &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8</P>
<P style="margin:0pt; font-family:Courier New" align=justify>Signatures &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9</P>
<P style="margin:0pt; font-family:Courier New" align=center><BR>
<BR></P>
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<P style="page-break-before:always; margin:0pt; font-family:Courier New" align=center><BR></P>
<P style="margin:0pt; font-family:Courier New" align=center>PART II</P>
<P style="margin:0pt; font-family:Courier New" align=center>INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</P>
<P style="margin:0pt; font-family:Courier New" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Courier New" align=justify>ITEM 3. INCORPORATION OF DOCUMENTS BY REFERENCE.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Courier New" align=justify>The following documents, filed with the Securities and Exchange Commission (the &#147;Commission&#148;) by Crystal Graphite Corporation, a British Columbia company (the &#147;Company&#148;) are incorporated herein by reference:</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; font-family:Courier New" align=justify>(i)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New" align=justify>the Company&#146;s latest Annual Report on Form 20-F filed with the Commission on March 15, 2005, pursuant to Section 13 or 15(d) of the Exchange Act, that contains audited financial statements for the Company&#146;s latest fiscal year for which statements have been filed;</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; font-family:Courier New" align=justify>(ii)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New" align=justify>the description of the Company&#146;s securities contained in its registration statement on Form 20-F referred to in (i) above; and</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; font-family:Courier New" align=justify>(iii)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New" align=justify>all other reports filed by the Company pursuant to Section 13(a) or 15(d) of the Exchange Act since the end of the fiscal year covered by the annual report on Form 20-F referred to in (i) above.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>All documents subsequently filed by the Company pursuant to Section 13(a), 13(c), 14 and 15(d) of the Exchange Act, prior to the filing of a post-effective amendment which either indicates that all securities offered have been sold or deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference in this Registration Statement and to be a part hereof from the date of filing such documents. Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Registration Statement to the extent that a statement contained herein or in any other subsequently filed document which also is incorporated or deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Registration Statement.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
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<P style="page-break-before:always; margin:0pt; font-family:Courier New" align=justify>ITEM 4. DESCRIPTION OF SECURITIES.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>The class of securities to be offered is registered under Section 12 of the Exchange Act.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>ITEM 5. INTERESTS OF NAMED EXPERTS AND COUNSEL.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>None of the experts named in this Registration Statement as having prepared or certified a report, or counsel for the Company named in this Registration Statement as having given an opinion upon the validity of the securities being registered or upon other legal matters in connection with the registration of offering of such securities, have or will receive in connection with the offering a substantial interest, direct or indirect, in the Company or its subsidiary, if any, nor was connected with the Company or its subsidiary, if any, as a promoter, managing underwriter, voting trustee, director, officer or employee.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>The applicable laws of the Province of British Columbia and the Company&#146;s Articles of Association permit indemnification of its directors and officers against certain liabilities, which would include liabilities arising under the Securities Act.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>Under section 159 of the Business Corporations Act (British Columbia)(the &#147;Business Corporations Act&#148;), an &#147;eligible party&#148; in relation to a Company, means an individual who (a) is or was a director or officer of the company, (b) is or was a director or officer of another corporation &nbsp;(i) at a time when the corporation is or was an affiliate of the company, or (ii) at the request of the company, or (c) at the request of the company, is or was, or holds or held a position equivalent to that of, a director or officer of a partnership, trust, joint venture or other unincorporated entity, and includes, except in the definition of &quot;eligible proceeding&quot; and except in sections 163 (1) (c) and (d) and 165, the heirs and personal or other legal representatives of that individual. </P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>Under section 159 of the Business Corporations Act, an &#147;eligible proceeding&#148; means a proceeding in which an eligible party or any of the heirs and personal or other legal representatives of the eligible party, by reason of the eligible party being or having been a director or officer of, or holding or having held a position equivalent to that of a director or officer of, the company or an associated corporation (a) is or may be joined as a party, or (b) is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the proceeding.</P>
<P style="margin:0pt; font-family:Courier New" align=justify>&nbsp;</P>
<P style="margin:0pt; font-family:Courier New" align=justify>Under section 160 of the Business Corporations Act, and subject to section 163 of the Business Corporations Act, a company may do one or both of the following (a) indemnify an eligible party against all eligible penalties to which the eligible party is or may be liable; (b) after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by an eligible party in respect of that proceeding.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>Under section 161 of the Business Corporations Act, and subject to section 163 of the Business Corporations Act, a company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by the eligible party in respect of that proceeding if the eligible party (a) has not been reimbursed for those expenses, and (b) is wholly successful, on the </P>
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<BR></P>
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<P style="page-break-before:always; margin:0pt; font-family:Courier New" align=justify>merits or otherwise, in the outcome of the proceeding or is substantially successful on the merits in the outcome of the proceeding.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>Under section 162 (1) of the Business Corporations Act, and subject to section 163 and section 162 (2) of the Business Corporations Act, a company may pay, as they are incurred in advance of the final disposition of an eligible proceeding, the expenses actually and reasonably incurred by an eligible party in respect of that proceeding. </P>
<P style="margin:0pt; font-family:Courier New" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Courier New" align=justify>Under section 162 (2) of the Business Corporations Act, a company must not make the payments referred to in subsection (1) unless the company first receives from the eligible party a written undertaking that, if it is ultimately determined that the payment of expenses is prohibited by section 163, the eligible party will repay the amounts advanced. </P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>Under section 163 (1) of the Business Corporations Act, a company must not indemnify an eligible party under section 160 (a) or pay the expenses of an eligible party under section 160 (b), 161 or 162 if any of the following circumstances apply (a) if the indemnity or payment is made under an earlier agreement to indemnify or pay expenses and, at the time that the agreement to indemnify or pay expenses was made, the company was prohibited from giving the indemnity or paying the expenses by its memorandum or articles; (b) if the indemnity or payment is made otherwise than under an earlier agreement to indemnify or pay expenses and, at the time that the indemnity or payment is made, the company is prohibited from giving the indemnity or paying the expenses by its memorandum or articles; (c) if, in relation to the subject matter of the eligible proceeding, the eligible party did not act honestly and in good faith with a view to the best interests of the company or the associated corporation, as the case may be; (d) in the case of an eligible proceeding other than a civil proceeding, if the eligible party did not have reasonable grounds for believing that the eligible party's conduct in respect of which the proceeding was brought was lawful.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>Under section 163 (2) of the Business Corporations Act, if an eligible proceeding is brought against an eligible party by or on behalf of the company or by or on behalf of an associated corporation, the company must not do either of the following (a) indemnify the eligible party under section 160 (a) in respect of the proceeding; (b) pay the expenses of the eligible party under section 160 (b), 161 or 162 in respect of the proceeding.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>Under section 164 of the Business Corporations Act, and despite any other provision of Division V of the Business Corporations Act, and whether or not payment of expenses or indemnification has been sought, authorized or declined under Division V of the Business Corporations Act, on the application of a company or an eligible party, the court may do one or more of the following (a) order a company to indemnify an eligible party against any liability incurred by the eligible party in respect of an eligible proceeding; (b) order a company to pay some or all of the expenses incurred by an eligible party in respect of an eligible proceeding; (c) order the enforcement of, or any payment under, an agreement of indemnification entered into by a company; (d) order a company to pay some or all of the expenses actually and reasonably incurred by any person in obtaining an order under this section; (e) make any other order the court considers appropriate.</P>
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<BR></P>
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<P style="page-break-before:always; margin:0pt; font-family:Courier New" align=justify>Under section 165 of the Business Corporations Act, a company may purchase and maintain insurance for the benefit of an eligible party or the heirs and personal or other legal representatives of the eligible party against any liability that may be incurred by reason of the eligible party being or having been a director or officer of, or holding or having held a position equivalent to that of a director or officer of, the company or an associated corporation. </P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>Part 21 of the Company&#146;s Articles of Association also contains provisions providing for the indemnification of directors and officers of the Company as follows:</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>&#147; 21.1</P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify>Definitions: In this Article (1) &#147;eligible penalty&#148; means a judgment, penalty or fine awarded or imposed in, or an amount paid in settlement of, an eligible proceeding; &nbsp;(2) &#147;eligible proceeding&#148; means a legal proceeding or investigative action, whether current, threatened, pending or completed, in which a director, former director or alternate director of the Company (an &#147;eligible party&#148;) or any of the heirs and legal personal representatives of the eligible party, by reason of the eligible party being or having been a director or alternate director of the Company: (a) is or may be joined as a party; or (b) &nbsp;is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the proceeding; (3) &#147;expenses&#148; has the meaning set out in the Business Corporations Act.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>21.2</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>Mandatory Indemnification of Directors and Former Directors. &nbsp;Subject to the <I>Business Corporations Act</I>, the Company must indemnify a director, former director or alternate director of the Company and his or her heirs and legal personal representatives against all eligible penalties to which such person is or may be liable, and the Company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by such person in respect of that proceeding. &nbsp;The company may pay, as they are incurred in advance of the final disposition of an eligible proceeding, the expenses actually and reasonably incurred by an eligible party in respect of that proceeding; provided the company first receives from the eligible party a written undertaking that, if it is ultimately determined that the payment of expenses is prohibited by section 163 of the Act, the eligible party will repay the amounts advanced. &nbsp;Each director and alternate director is deemed to have contracted with the Company on the terms of the indemnity contained in this Article 21.2.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>21.3</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>Indemnification of Other Persons. &nbsp;Subject to any restrictions in the <I>Business Corporations Act</I>, the Company may indemnify any person.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>21.4</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>Non-Compliance with <I>Business Corporations Act</I>. &nbsp;The failure of a director, alternate director or officer of the Company to comply with the <I>Business Corporations Act </I>or these Articles does not invalidate any indemnity to which he or she is entitled under this Part.</P>
<P style="margin:0pt; font-family:Courier New" align=justify>&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>21.5</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>Company May Purchase Insurance. &nbsp;The Company may purchase and maintain insurance for the benefit of any person (or his or her heirs or legal personal representatives) who: (1) is or was a director, alternate director, officer, employee or agent of the Company; (2) is or was a director, alternate director, officer, employee or agent of a corporation at a time when the corporation is or was an affiliate of the Company; (3) at the request of the Company, is or was a director, alternate director, officer, employee or agent of a corporation or of a partnership, trust, joint venture or other unincorporated entity; (4) at the request of the Company, holds or held a position equivalent to that of a director, alternate director or officer of a partnership, trust, joint venture </P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin:0pt; font-family:Courier New" align=justify>or other unincorporated entity; against any liability incurred by him or her as such director, alternate director, officer, employee or agent or person who holds or held such equivalent position.&#148;</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>The Company has no agreements with any of its directors or executive officers providing for indemnification of any such persons with respect to liability arising out of their capacity or status as officers and directors.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>At present, there is no pending litigation or proceeding involving a director or executive officer of the Company as to which indemnification is being sought.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>ITEM 7. EXEMPTION FROM REGISTRATION CLAIMED.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Courier New" align=justify>In the event certain Stock Options issued under the Stock Option Plan are not registered pursuant to this Registration Statement, the shares of Common Stock to be issued pursuant to an exercise of such Stock Options shall be issued in reliance upon the exemption from the registration requirements of the Securities Act contained in Section 4(2) thereof covering transactions not involving any public offering or not involving any &#147;offer&#148; or &#147;sale&#148;, or under Regulation S of the Securities Act as an offshore transaction that was negotiated outside of the United States. </P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>ITEM 8. EXHIBITS.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>The following documents are filed as exhibits to this Registration Statement:</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
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<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=127.2><P style="margin:0pt; font-family:Courier New" align=justify>EXHIBIT</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=496><P style="margin:0pt; font-family:Courier New" align=justify>DESCRIPTION</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=127.2><P style="margin:0pt; font-family:Courier New" align=justify>5.1</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=496><P style="margin:0pt; font-family:Courier New" align=justify>Legal opinion of Devlin Jensen, Barristers &amp; Solicitors, Association of Law Corporations.</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=127.2><P style="margin:0pt; font-family:Courier New" align=justify>23.1</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=496><P style="margin:0pt; font-family:Courier New" align=justify>Consent of Devlin Jensen, Barristers &amp; Solicitors, Association of Law Corporations (included in the opinion filed as Exhibit 5.1 hereto).</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=127.2><P style="margin:0pt; font-family:Courier New" align=justify>23.2</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=496><P style="margin:0pt; font-family:Courier New" align=justify>Consent of Staley, Okada &amp; Partners, Chartered Accountants.</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=127.2><P style="margin:0pt; font-family:Courier New" align=justify>99.1</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=496><P style="margin:0pt; font-family:Courier New" align=justify>Form of the Company&#146;s Stock Option Agreement.</P>
</TD></TR>
</TABLE>
  </center>
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<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
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<P style="page-break-before:always; margin:0pt; font-family:Courier New" align=justify>ITEM 9. UNDERTAKINGS.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>(a) The undersigned Registrant hereby undertakes:</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; font-family:Courier New" align=justify>(1)</P>
<P style="margin:0pt; padding-left:36pt; text-indent:36pt; font-family:Courier New" align=justify>To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement to include any additional or changed material information on the plan of distribution.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; font-family:Courier New" align=justify>(2)</P>
<P style="margin:0pt; padding-left:36pt; text-indent:36pt; font-family:Courier New" align=justify>That for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at the time shall be deemed to be the initial bona fide offering thereof.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; font-family:Courier New" align=justify>(3)</P>
<P style="margin:0pt; padding-left:36pt; text-indent:36pt; font-family:Courier New" align=justify>To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; font-family:Courier New" align=justify>(b)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New" align=justify>The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the Registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plan annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; font-family:Courier New" align=justify>(c)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New" align=justify>Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. &nbsp;In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense or any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New" align=center><BR>
<BR></P>
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<P style="page-break-before:always; margin:0pt; font-family:Courier New" align=center>SIGNATURES</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New">Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing Form S-8 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Vancouver, Province of British Columbia, Canada, on the 21<SUP>st</SUP> day of June, 2005.</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New">CRYSTAL GRAPHITE CORPORATION</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New">By:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Courier New">/s/ Gordon Sales</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:288pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
By:</P>
<P style="margin:0pt; text-indent:324pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
/s/ Bernie Zacharias</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Courier New">-------------------------</P>
<P style="margin:0pt; text-indent:324pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
------------------------</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Courier New">Gordon Sales, President, CEO</P>
<P style="margin:0pt; text-indent:324pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Bernie Zacharias, CFO</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:324pt; text-indent:-288pt; font-family:Courier New">and a Director</P>
<P style="margin:0pt; padding-left:324pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Principal Financial Officer</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New">Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Courier New">/s/ Gordon Sales</P>
<P style="margin:0pt; text-indent:324pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dated: June 21, 2005</P>
<P style="margin:0pt; font-family:Courier New">- ------------------------------------------------</P>
<P style="margin:0pt; font-family:Courier New">Gordon Sales, President, CEO and a Director</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:42pt; text-indent:-6pt; font-family:Courier New">/s/ Bernie Zacharias</P>
<P style="margin:0pt; padding-left:42pt; text-indent:282pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dated: June 21, 2005</P>
<P style="margin:0pt; font-family:Courier New">- ------------------------------------------------</P>
<P style="margin:0pt; font-family:Courier New">Bernie Zacharias, Chief Financial Officer</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; font-family:Courier New">/s/ Richard Ivy</P>
<P style="margin:0pt; padding-left:36pt; text-indent:288pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dated: June 21, 2005</P>
<P style="margin:0pt; font-family:Courier New">- ------------------------------------------------</P>
<P style="margin:0pt; font-family:Courier New">Richard Ivy, Director</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; font-family:Courier New">/s/ Geoffrey Caine</P>
<P style="margin:0pt; padding-left:36pt; text-indent:288pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dated: June 21, 2005</P>
<P style="margin:0pt; font-family:Courier New">- ------------------------------------------------</P>
<P style="margin:0pt; font-family:Courier New">Geoffrey Caine, Director</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; font-family:Courier New">/s/ Brian Wear</P>
<P style="margin:0pt; padding-left:36pt; text-indent:288pt; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dated: June 21, 2005</P>
<P style="margin:0pt; font-family:Courier New">- ------------------------------------------------</P>
<P style="margin:0pt; font-family:Courier New">Brian Wear, Vice-President, COO and a Director</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New" align=center><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin:0pt; font-family:Courier New" align=center>INDEX TO EXHIBITS</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New">EXHIBIT</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:72pt; font-family:Courier New">DESCRIPTION</P>
<P style="margin:0pt; text-indent:432pt; font-family:Courier New">PAGE</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New">-------</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:72pt; font-family:Courier New">-----------</P>
<P style="margin:0pt; text-indent:432pt; font-family:Courier New">----</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:72pt; text-indent:-72pt; font-family:Courier New">5.1</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:72pt; font-family:Courier New">Legal opinion of Devlin Jensen, Barristers &amp; Solicitors,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Association of Law Corporations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
11</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New">&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:72pt; text-indent:-72pt; font-family:Courier New">23.1</P>
<P style="margin:0pt; padding-left:72pt; font-family:Courier New">Consent of Devlin Jensen, Barristers &amp; Solicitors, </P>
<P style="margin:0pt; padding-left:72pt; font-family:Courier New">Association of Law Corporations (included in the </P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:72pt; font-family:Courier New">opinion filed as Exhibit 5.1 hereto).</P>
<P style="margin:0pt; padding-left:72pt; text-indent:360pt; font-family:Courier New">11</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New">23.2</P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New">Consent of Staley, Okada &amp; Partners, Chartered </P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:36pt; font-family:Courier New">Accountants.</P>
<P style="margin:0pt; padding-left:36pt; text-indent:396pt; font-family:Courier New">14</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New">99.1</P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:72pt; font-family:Courier New">Form of the Company&#146;s Stock Option Agreement.</P>
<P style="margin:0pt; text-indent:432pt; font-family:Courier New">15</P>
<P style="margin:0pt; font-family:Courier New"><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin:0pt; font-family:Courier New">Exhibit 5.1</P>
<P style="margin:0pt; font-family:Courier New"><B><BR></B></P>
<P style="margin:0pt; font-family:Courier New" align=center>Devlin Jensen</P>
<P style="margin:0pt; font-family:Courier New" align=center>Barristers &amp; Solicitors</P>
<P style="margin:0pt; font-family:Courier New" align=center>Suite 2550</P>
<P style="margin:0pt; font-family:Courier New" align=center>555 West Hastings Street</P>
<P style="margin:0pt; font-family:Courier New" align=center>Vancouver, British Columbia</P>
<P style="margin:0pt; font-family:Courier New" align=center>Canada &nbsp;V6B 4N5</P>
<P style="margin:0pt; font-family:Courier New" align=center>Telephone (604) 684-2550</P>
<P style="margin:0pt; font-family:Courier New" align=center>Telecopier (604) 684-0916</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New">June 21, 2005</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New">Crystal Graphite Corporation</P>
<P style="margin:0pt; font-family:Courier New">#1750 &#150; 999 W. Hastings Street</P>
<P style="margin:0pt; font-family:Courier New">Vancouver, B.C.</P>
<P style="margin:0pt; font-family:Courier New">Canada &nbsp;V6C 2W2</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New">Gentlemen:</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>As counsel to Crystal Graphite Corporation, a British Columbia corporation (the &#147;Company&#148;), we hereby provide our opinion regarding the issuance by the Company of 2,385,000 shares of the Company&#146;s common stock (the &#147;Shares&#148;). &nbsp;The Shares are being registered for issuance by the provisions of that certain Registration Statement on Form S-8 to be filed by the Company with the Securities and Exchange Commission (the &#147;Commission&#148;) pursuant to the provisions of the Securities Act of 1933, as amended (the &#147;Registration Statement&#148;). &nbsp;For purposes of our legal opinion, we have relied upon information provided by representatives of the Company (the &#147;Information&#148;). &nbsp;</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>In furnishing our opinion specified in this letter, we confirm that we have relied upon our review of the Information, which related to the (i) transactions pursuant to which the Shares are issuable upon the exercise of the issued and outstanding 2,385,000 stock options under the Company&#146;s Stock Option Agreements (each an &#147;Agreement&#148; and collectively, the &#147;Agreements&#148;), and (ii) status of (a) the Company and (b) its common stock.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>We confirm that we have assumed, without investigation, (i) the truthfulness and veracity of the Information; (ii) the genuineness of all signatures to all documents included in the definition of the Information; (iii) the legal capacities of all persons who executed those documents; (iv) the appropriate authorization and valid execution by all parties to those documents; (v) that those documents are free from any form of fraud, misrepresentation, duress, and criminal activity; (vi) the conformity of the originals of those documents to those copies thereof which were submitted to us; and (vii) the appropriate delivery and acceptance of those documents by all parties thereto. &nbsp;As to any material facts relating to the opinion specified in this letter which we did not verify independently, we confirm that we have relied upon representations of representatives of the Company, which are included in the definition of the Information. Solely for purpose of the opinion specified in this letter, you should assume that our investigation has been, and will continue to be, limited exclusively to that information that we believe is necessary to furnish that opinion.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>Based upon the foregoing, and relying solely thereon, and assuming that the Shares will be issued upon the exercise of the issued and outstanding 2,385,000 stock options to acquire shares of the Company&#146;s common stock under the Agreements on the terms and subject to the effectiveness and conditions of the Registration Statement, it is our opinion that: </P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Courier New" align=justify>1.</P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify>The Company is a corporation duly organized and validly existing under the laws of the Province of British Columbia, Canada;</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Courier New" align=justify>2.</P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify>All necessary corporate action has been taken to authorize the entering into of the Agreements and to authorize the issuance of up to 2,385,000 shares of the Company&#146;s Common Stock under the Agreements; and</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:36pt; font-family:Courier New" align=justify>3.</P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify>The up to 2,385,000 shares of the Company&#146;s Common Stock, which are presently issuable upon the exercise of the issued and outstanding 2,385,000 stock options to acquire shares of the Company&#146;s Common Stock under the Agreements, will be, upon issuance by the Company, subject to the effectiveness of the Registration Statement and compliance with applicable laws of British Columbia and the other jurisdictions in which the Shares will be offered and sold, validly issued, fully paid and non-assessable shares of common stock of the Company upon the receipt by the Company of full payment for such stock option shares of common stock in accordance with the terms of the Agreements with the Company.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>We express no opinion as to noncompliance with the laws of any particular jurisdiction in which the Shares may be sold and as to the effect, if any, which non-compliance with such laws might have regarding the transactions contemplated by this letter.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>We expressly disclaim any obligation to inform you of any facts, circumstances, events, or developments which hereafter may be brought to our attention and which may alter, affect, or modify the opinion specified in this letter. &nbsp;The opinion specified in this letter is expressly limited to the matters specified in this letter, and we make no opinion, express or implied, as to any other matters relating to the Company or its securities.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>The opinion specified in this letter is furnished solely for your benefit regarding the transactions specified in this letter and may not be delivered to or relied upon by any other person without our prior written consent. &nbsp;</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>We hereby consent to the filing of a copy of this opinion as an exhibit to the Registration Statement referred to above.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>This opinion (i) is addressed solely to you, (ii) may not be relied upon by any other party, (iii) relates only to matters of British Columbia securities law and nothing in this opinion shall be deemed to imply any opinion related to the laws of any other jurisdiction, and (iv) may not be relied upon for any other purpose whatsoever. &nbsp;Nothing in this letter shall be deemed to relate to or constitute an opinion concerning any matters not specifically set forth in this letter.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>The Company is hereby advised, urged, and encouraged to consult with and, if appropriate, retain securities counsel in each particular jurisdiction outside British Columbia in which the Shares may be offered and sold regarding compliance with the securities laws of such jurisdiction.</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; text-indent:216pt; font-family:Courier New">Very truly yours,</P>
<P style="margin:0pt; text-indent:216pt; font-family:Courier New">DEVLIN JENSEN</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:216pt; font-family:Courier New">Per:</P>
<P style="margin:0pt; text-indent:252pt; font-family:Courier New">/s/ Mike Shannon</P>
<P style="margin:0pt; text-indent:252pt; font-family:Courier New">MIKE SHANNON</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New"><B><BR></B></P>
<P style="margin:0pt; font-family:Courier New"><B><BR>
<BR></B></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin:0pt; font-family:Courier New">Exhibit 23.2</P>
<P style="margin:0pt; font-family:Courier New"><B><BR></B></P>
<P style="margin:0pt; font-family:Courier New"><B><BR></B></P>
<P style="margin:0pt; font-family:Courier New"><B><BR></B></P>
<P style="margin:0pt; font-family:Courier New" align=center>CONSENT OF INDEPENDENT AUDITORS</P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>In connection with the Registration Statement on Form S-8 being filed by Crystal Graphite Corporation (the &#147;Company&#148;) with the Securities and Exchange Commission under the Securities Act of 1933, as amended, relating to the registration of 2,385,000 shares of the Company&#146;s common stock to be offered under the Company&#146;s Stock Option Agreements (each an &#147;Agreement&#148; and collectively, the &#147;Agreements&#148;) we consent to the incorporation by reference in the Registration Statement of our report dated December 8, 2004, in respect to our audits of the financial statements of the Company as at August 31, 2004 and 2003 and for each of the years in the three year period ended August 31, 2004, which report was included in the Company&#146;s Annual Report on Form 20-F as filed with the Securities and Exchange Commission on March 15, 2005.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>We hereby consent to the filing of the copy of this consent as an exhibit to the Registration Statement referred to above.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=right><B><I>/s/ Staley, Okada &amp; Partners</I></B></P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<TABLE style="font-size: 10pt" cellspacing=0 width="980"><TR><TD valign=top width=319><P style="margin:0pt; font-family:Courier New" align=justify>Vancouver, B.C. CANADA</P>
</TD><TD valign=top width=653><P style="margin:0pt; font-family:Courier New" align=right>STALEY, OKADA &amp; PARTNERS</P>
</TD></TR>
<TR><TD valign=top width=319><P style="margin:0pt; font-family:Courier New" align=justify>June 21, 2005</P>
</TD><TD valign=top width=653><P style="margin:0pt; font-family:Courier New" align=right>CHARTERED ACCOUNTANTS</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New"><BR></P>
<P style="margin:0pt; font-family:Courier New"><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin:0pt; font-family:Courier New">Exhibit 99.1</P>
<P style="margin:0pt; font-family:Courier New"><B><BR></B></P>
<P style="margin:0pt; font-family:Courier New" align=center><B>CRYSTAL GRAPHITE CORPORATION</B></P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=center>(the &#147;Company&#148;)</P>
<P style="margin:0pt; text-indent:252pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=center><B>STOCK OPTION</B></P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify><B>THIS AGREEMENT</B> made as of the 27th day of April, 2005.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Courier New" align=justify><B>BETWEEN:</B></P>
<P style="margin:0pt; padding-left:72pt; font-family:Courier New" align=justify><U>___________________</U> of ___________________________________________-</P>
<P style="margin:0pt; padding-left:72pt; font-family:Courier New" align=justify><U>____________________</U></P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify>(hereinafter referred to as the &quot;Optionee&quot;)</P>
<P style="margin:0pt; text-indent:402pt; font-family:Courier New" align=justify><B>OF THE FIRST PART</B></P>
<P style="margin:0pt; font-family:Courier New" align=justify><B>AND</B>:</P>
<P style="margin:0pt; padding-left:72pt; font-family:Courier New" align=justify><U>CRYSTAL GRAPHITE CORPORATION</U>, a company duly incorporated under the laws of the Province of British Columbia and having an office at #1750&#150;999 West Hastings Street, Vancouver, British Columbia, V6C 2W2</P>
<P style="margin:0pt; padding-left:72pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; text-indent:72pt; font-family:Courier New" align=justify>(hereinafter referred to as the &quot;Company&quot;)</P>
<P style="margin:0pt; text-indent:396pt; font-family:Courier New" align=justify><B>OF THE SECOND PART</B></P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify><B>WHEREAS:</B></P>
<P style="margin:0pt; font-family:Courier New" align=justify><B><BR></B></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; font-family:Courier New" align=justify>(A)</P>
<P style="margin:0pt; padding-left:54pt; text-indent:18pt; font-family:Courier New" align=justify>The Optionee is _________________ of the Company and in that capacity is devoting considerable time and effort to the development of the Company;</P>
<P style="margin:0pt; padding-left:72pt; text-indent:-36pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:72pt; text-indent:-36pt; font-family:Courier New" align=justify>(B)</P>
<P style="margin:0pt; padding-left:72pt; font-family:Courier New" align=justify>The Company wishes to encourage the best efforts of the undernoted and wishes to recognize the Optionee&#146;s efforts and risk;</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New" align=justify><B>NOW THEREFORE, </B>in consideration of the aforenoted efforts and service and theses premises and other good and valuable consideration:</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>1.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>Subject to the hereinafter provisions, the Company hereby grants to the Optionee an option to purchase, in whole or in part, as fully paid and non-assessable, ____________ common shares exercisable as to 1/3<SUP>rd</SUP> at $0.20US, 1/3<SUP>rd</SUP> at $0.30US and 1/3<SUP>rd</SUP> at $0.40 US increasing $0.05 each six months and with three year term until April 27, 2008.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>2.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>In the event that the Optionee ceases to serve the Company in the above-mentioned capacity, all the rights granted to the Optionee hereunder as to any of the shares herein optioned, which the Optionee has not theretofore purchased, shall terminate immediately or shall terminate, at the sole discretion of the Company, within thirty (90) days of such event in the event of written notice by the Company granting such indulgence.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>3.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>In the event of the death of the Optionee during the term of the option, this option shall terminate except that the Optionee&#146;s personal representative shall be entitled to exercise all or any part of the option granted herein PROVIDED ALWAYS that payment is tendered within one (1) year after the date of death.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>4.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>If the optionee at any time and from time to time during the option period desires to purchase any of the optioned shares, the Optionee may do so by giving notice to the Company at its Registered Office within the time herein noted for the exercise of the option, subject to the terms and conditions of this option.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>5.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>Payment for any of the optioned shares shall be made by tendering to the Company at its Registered Office the Optionee&#146;s cheque (or other payment approved by the Company) in favour of the Company in the full amount of the purchase price payable hereunder for such number of the shares comprised in the election.</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>6.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>If, at any time during the continued existence of the within option, there shall be any alteration in the capital stock of the Company, which shall affect a subdivision or consolidation of the issued capital, then the outstanding option shall attach to an appropriate unaltered percentage of the number of the shares or securities of the Company which shall have been created by any such alteration, and the price payable on the exercise of the option, shall be adjusted proportionately to the change in the shares resulting from such capital alteration.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>7.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>This option is neither assignable nor transferable.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>8.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>This Agreement shall enure to the benefit of and bind the parties hereto and shall, to the extent hereinbefore provided, enure to the parties&#146; heirs, executors, successors, administrators and assigns.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>9.</P>
<P style="margin:0pt; text-indent:36pt; font-family:Courier New" align=justify>The provisions herein constitute the entire agreement between the parties and supercede all previous understandings and agreements.</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin:0pt; font-family:Courier New" align=justify>IN WITNESS WHEREOF, the Company has hereunto affixed its common seal by the hands of its duly authorized officers in that behalf and the Optionee has hereunto set his hand and seal on the day and year first above written:</P>
<P style="margin:0pt; font-family:Courier New" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify><B>CRYSTAL GRAPHITE CORPORATION</B></P>
<P style="margin:0pt; text-indent:216pt; font-family:Courier New" align=justify>&nbsp;</P>
<P style="margin:0pt; text-indent:216pt; font-family:Courier New" align=justify>&nbsp;</P>
<P style="margin:0pt; padding-left:180pt; text-indent:36pt; font-family:Courier New" align=justify>&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:108pt; font-family:Courier New" align=justify>&nbsp;</P>
<P style="margin:0pt; text-indent:216pt; font-family:Courier New" align=justify>&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>By: &nbsp;Authorized Signatory</P>
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<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>SIGNED, SEALED AND DELIVERED </P>
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<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>by the Optinee, <B>______________</B></P>
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<P style="margin-top:0pt; margin-bottom:-12pt; font-family:Courier New" align=justify>Signature of Optionee</P>
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Filed by Filing Services Canada Inc. 403-717-3898
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933, AS AMENDED
CRYSTAL GRAPHITE CORPORATION
---------------------------------
(Exact name of small business issuer as specified in its charter)
BRITISH COLUMBIA                                         
88-0437644
------------------------------                            -------------------
(State or other jurisdiction of                              (I.R.S. Employer
incorporation of organization)                              Identification No.)
Suite 1750-999 West Hastings St.
Vancouver, B.C., Canada V6C 2W2 (604) 681-3060
---------------------------------------------------
(Address, including postal code and telephone number,
including area code, of Principal Executive Offices)
Crystal Graphite Corporation Stock Option Agreement
---------------------------------------------------
(Full Title of the Plan)
Gordon Sales                         Copies of all communications to:
Crystal Graphite Corporation         Mike Shannon
Suite 1750-999 W. Hastings St.       Devlin Jensen
Vancouver, B.C., Canada V6C 2W2      555 W. Hastings St., Suite 2550
(604) 681-3060                       Vancouver, British Columbia
(Name, Address and Telephone         Canada  V6B 4N5
Number of Agent for Service
CALCULATION OF REGISTRATION FEE
Title of securities to be registered
Amount to be registered
(1)
Proposed maximum offering price per share
(2)
Proposed maximum aggregate offering
(3)
Amount of registration fee
Common shares
2,385,000
$0.21
$500,850
$58.95
Notes:
(1)
The Registrant granted 2,385,000 stock options to eligible persons exercisable as to 1/3
rd
at $0.20 USD per share, 1/3
rd
at $0.30 USD per share, 1/3
rd
at $0.40 USD per share, and increasing in price $0.05 USD each six months, for a three year term until April 27, 2008. The exercise price was determined by the Board of Directors of the Registrant and set contractually.
(2)
Estimated solely for the purpose of computing the registration fee pursuant to Rule 457(c) and (h) under the Securities Act of 1933, as amended. The Proposed Maximum Offering Price Per Share was determined by the Board of Directors using the average of the market price over the last five trading days prior to the date of filing this registration statement, which was $0.21.  Pursuant to Rule 457(h)(1), the registration fee was calculated on the basis of these figures.
(3)
This Registration Statement relates to such indeterminate number of additional shares of common stock of the Company (the "Common Stock") as may be issuable as a result of stock splits, stock dividends or similar transactions.
TABLE OF CONTENTS
Part II:
Item 3:
Incorporation of Documents by Reference                           3
Item 4:
Description of Securities                                         4
Item 5:
Interests of Names Experts and Counsel                            4
Item 6:
Indemnification of Officers and Directors                         4
Item 7:
Exemption from Registration claimed                               6
Item 8:
Exhibits                                                          7
Item 9:
Undertakings                                                      8
Signatures                                                                    9
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
ITEM 3. INCORPORATION OF DOCUMENTS BY REFERENCE.
The following documents, filed with the Securities and Exchange Commission (the "Commission") by Crystal Graphite Corporation, a British Columbia company (the "Company") are incorporated herein by reference:
(i)
the Company's latest Annual Report on Form 20-F filed with the Commission on March 15, 2005, pursuant to Section 13 or 15(d) of the Exchange Act, that contains audited financial statements for the Company's latest fiscal year for which statements have been filed;
(ii)
the description of the Company's securities contained in its registration statement on Form 20-F referred to in (i) above; and
(iii)
all other reports filed by the Company pursuant to Section 13(a) or 15(d) of the Exchange Act since the end of the fiscal year covered by the annual report on Form 20-F referred to in (i) above.
All documents subsequently filed by the Company pursuant to Section 13(a), 13(c), 14 and 15(d) of the Exchange Act, prior to the filing of a post-effective amendment which either indicates that all securities offered have been sold or deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference in this Registration Statement and to be a part hereof from the date of filing such documents. Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Registration Statement to the extent that a statement contained herein or in any other subsequently filed document which also is incorporated or deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Registration Statement.
ITEM 4. DESCRIPTION OF SECURITIES.
The class of securities to be offered is registered under Section 12 of the Exchange Act.
ITEM 5. INTERESTS OF NAMED EXPERTS AND COUNSEL.
None of the experts named in this Registration Statement as having prepared or certified a report, or counsel for the Company named in this Registration Statement as having given an opinion upon the validity of the securities being registered or upon other legal matters in connection with the registration of offering of such securities, have or will receive in connection with the offering a substantial interest, direct or indirect, in the Company or its subsidiary, if any, nor was connected with the Company or its subsidiary, if any, as a promoter, managing underwriter, voting trustee, director, officer or employee.
ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
The applicable laws of the Province of British Columbia and the Company's Articles of Association permit indemnification of its directors and officers against certain liabilities, which would include liabilities arising under the Securities Act.
Under section 159 of the Business Corporations Act (British Columbia)(the "Business Corporations Act"), an "eligible party" in relation to a Company, means an individual who (a) is or was a director or officer of the company, (b) is or was a director or officer of another corporation  (i) at a time when the corporation is or was an affiliate of the company, or (ii) at the request of the company, or (c) at the request of the company, is or was, or holds or held a position equivalent to that of, a director or officer of a partnership, trust, joint venture or other unincorporated entity, and includes, except in the definition of "eligible proceeding" and except in sections 163 (1) (c) and (d) and 165, the heirs and personal or other legal representatives of that individual.
Under section 159 of the Business Corporations Act, an "eligible proceeding" means a proceeding in which an eligible party or any of the heirs and personal or other legal representatives of the eligible party, by reason of the eligible party being or having been a director or officer of, or holding or having held a position equivalent to that of a director or officer of, the company or an associated corporation (a) is or may be joined as a party, or (b) is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the proceeding.
Under section 160 of the Business Corporations Act, and subject to section 163 of the Business Corporations Act, a company may do one or both of the following (a) indemnify an eligible party against all eligible penalties to which the eligible party is or may be liable; (b) after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by an eligible party in respect of that proceeding.
Under section 161 of the Business Corporations Act, and subject to section 163 of the Business Corporations Act, a company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by the eligible party in respect of that proceeding if the eligible party (a) has not been reimbursed for those expenses, and (b) is wholly successful, on the
merits or otherwise, in the outcome of the proceeding or is substantially successful on the merits in the outcome of the proceeding.
Under section 162 (1) of the Business Corporations Act, and subject to section 163 and section 162 (2) of the Business Corporations Act, a company may pay, as they are incurred in advance of the final disposition of an eligible proceeding, the expenses actually and reasonably incurred by an eligible party in respect of that proceeding.
Under section 162 (2) of the Business Corporations Act, a company must not make the payments referred to in subsection (1) unless the company first receives from the eligible party a written undertaking that, if it is ultimately determined that the payment of expenses is prohibited by section 163, the eligible party will repay the amounts advanced.
Under section 163 (1) of the Business Corporations Act, a company must not indemnify an eligible party under section 160 (a) or pay the expenses of an eligible party under section 160 (b), 161 or 162 if any of the following circumstances apply (a) if the indemnity or payment is made under an earlier agreement to indemnify or pay expenses and, at the time that the agreement to indemnify or pay expenses was made, the company was prohibited from giving the indemnity or paying the expenses by its memorandum or articles; (b) if the indemnity or payment is made otherwise than under an earlier agreement to indemnify or pay expenses and, at the time that the indemnity or payment is made, the company is prohibited from giving the indemnity or paying the expenses by its memorandum or articles; (c) if, in relation to the subject matter of the eligible proceeding, the eligible party did not act honestly and in good faith with a view to the best interests of the company or the associated corporation, as the case may be; (d) in the case of an eligible proceeding other than a civil proceeding, if the eligible party did not have reasonable grounds for believing that the eligible party's conduct in respect of which the proceeding was brought was lawful.
Under section 163 (2) of the Business Corporations Act, if an eligible proceeding is brought against an eligible party by or on behalf of the company or by or on behalf of an associated corporation, the company must not do either of the following (a) indemnify the eligible party under section 160 (a) in respect of the proceeding; (b) pay the expenses of the eligible party under section 160 (b), 161 or 162 in respect of the proceeding.
Under section 164 of the Business Corporations Act, and despite any other provision of Division V of the Business Corporations Act, and whether or not payment of expenses or indemnification has been sought, authorized or declined under Division V of the Business Corporations Act, on the application of a company or an eligible party, the court may do one or more of the following (a) order a company to indemnify an eligible party against any liability incurred by the eligible party in respect of an eligible proceeding; (b) order a company to pay some or all of the expenses incurred by an eligible party in respect of an eligible proceeding; (c) order the enforcement of, or any payment under, an agreement of indemnification entered into by a company; (d) order a company to pay some or all of the expenses actually and reasonably incurred by any person in obtaining an order under this section; (e) make any other order the court considers appropriate.
Under section 165 of the Business Corporations Act, a company may purchase and maintain insurance for the benefit of an eligible party or the heirs and personal or other legal representatives of the eligible party against any liability that may be incurred by reason of the eligible party being or having been a director or officer of, or holding or having held a position equivalent to that of a director or officer of, the company or an associated corporation.
Part 21 of the Company's Articles of Association also contains provisions providing for the indemnification of directors and officers of the Company as follows:
" 21.1
Definitions: In this Article (1) "eligible penalty" means a judgment, penalty or fine awarded or imposed in, or an amount paid in settlement of, an eligible proceeding;  (2) "eligible proceeding" means a legal proceeding or investigative action, whether current, threatened, pending or completed, in which a director, former director or alternate director of the Company (an "eligible party") or any of the heirs and legal personal representatives of the eligible party, by reason of the eligible party being or having been a director or alternate director of the Company: (a) is or may be joined as a party; or (b)  is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the proceeding; (3) "expenses" has the meaning set out in the Business Corporations Act.
21.2
Mandatory Indemnification of Directors and Former Directors.  Subject to the
Business Corporations Act
, the Company must indemnify a director, former director or alternate director of the Company and his or her heirs and legal personal representatives against all eligible penalties to which such person is or may be liable, and the Company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by such person in respect of that proceeding.  The company may pay, as they are incurred in advance of the final disposition of an eligible proceeding, the expenses actually and reasonably incurred by an eligible party in respect of that proceeding; provided the company first receives from the eligible party a written undertaking that, if it is ultimately determined that the payment of expenses is prohibited by section 163 of the Act, the eligible party will repay the amounts advanced.  Each director and alternate director is deemed to have contracted with the Company on the terms of the indemnity contained in this Article 21.2.
21.3
Indemnification of Other Persons.  Subject to any restrictions in the
Business Corporations Act
, the Company may indemnify any person.
21.4
Non-Compliance with
Business Corporations Act
.  The failure of a director, alternate director or officer of the Company to comply with the
Business Corporations Act
or these Articles does not invalidate any indemnity to which he or she is entitled under this Part.
21.5
Company May Purchase Insurance.  The Company may purchase and maintain insurance for the benefit of any person (or his or her heirs or legal personal representatives) who: (1) is or was a director, alternate director, officer, employee or agent of the Company; (2) is or was a director, alternate director, officer, employee or agent of a corporation at a time when the corporation is or was an affiliate of the Company; (3) at the request of the Company, is or was a director, alternate director, officer, employee or agent of a corporation or of a partnership, trust, joint venture or other unincorporated entity; (4) at the request of the Company, holds or held a position equivalent to that of a director, alternate director or officer of a partnership, trust, joint venture
or other unincorporated entity; against any liability incurred by him or her as such director, alternate director, officer, employee or agent or person who holds or held such equivalent position."
The Company has no agreements with any of its directors or executive officers providing for indemnification of any such persons with respect to liability arising out of their capacity or status as officers and directors.
At present, there is no pending litigation or proceeding involving a director or executive officer of the Company as to which indemnification is being sought.
ITEM 7. EXEMPTION FROM REGISTRATION CLAIMED.
In the event certain Stock Options issued under the Stock Option Plan are not registered pursuant to this Registration Statement, the shares of Common Stock to be issued pursuant to an exercise of such Stock Options shall be issued in reliance upon the exemption from the registration requirements of the Securities Act contained in Section 4(2) thereof covering transactions not involving any public offering or not involving any "offer" or "sale", or under Regulation S of the Securities Act as an offshore transaction that was negotiated outside of the United States.
ITEM 8. EXHIBITS.
The following documents are filed as exhibits to this Registration Statement:
EXHIBIT
DESCRIPTION
5.1
Legal opinion of Devlin Jensen, Barristers & Solicitors, Association of Law Corporations.
23.1
Consent of Devlin Jensen, Barristers & Solicitors, Association of Law Corporations (included in the opinion filed as Exhibit 5.1 hereto).
23.2
Consent of Staley, Okada & Partners, Chartered Accountants.
99.1
Form of the Company's Stock Option Agreement.
ITEM 9. UNDERTAKINGS.
(a) The undersigned Registrant hereby undertakes:
(1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement to include any additional or changed material information on the plan of distribution.
(2)
That for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at the time shall be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(b)
The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the Registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plan annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c)
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.  In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense or any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing Form S-8 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Vancouver, Province of British Columbia, Canada, on the 21
st
day of June, 2005.
CRYSTAL GRAPHITE CORPORATION
By:
/s/ Gordon Sales
By:
/s/ Bernie Zacharias
-------------------------
------------------------
Gordon Sales, President, CEO
Bernie Zacharias, CFO
and a Director
Principal Financial Officer
Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.
/s/ Gordon Sales
Dated: June 21, 2005
- ------------------------------------------------
Gordon Sales, President, CEO and a Director
/s/ Bernie Zacharias
Dated: June 21, 2005
- ------------------------------------------------
Bernie Zacharias, Chief Financial Officer
/s/ Richard Ivy
Dated: June 21, 2005
- ------------------------------------------------
Richard Ivy, Director
/s/ Geoffrey Caine
Dated: June 21, 2005
- ------------------------------------------------
Geoffrey Caine, Director
/s/ Brian Wear
Dated: June 21, 2005
- ------------------------------------------------
Brian Wear, Vice-President, COO and a Director
INDEX TO EXHIBITS
EXHIBIT
DESCRIPTION
PAGE
-------
-----------
----
5.1
Legal opinion of Devlin Jensen, Barristers & Solicitors,                                                     
Association of Law Corporations.                           
11
23.1
Consent of Devlin Jensen, Barristers & Solicitors,
Association of Law Corporations (included in the
opinion filed as Exhibit 5.1 hereto).
11
23.2
Consent of Staley, Okada & Partners, Chartered
Accountants.
14
99.1
Form of the Company's Stock Option Agreement.
15
Exhibit 5.1
Devlin Jensen
Barristers & Solicitors
Suite 2550
555 West Hastings Street
Vancouver, British Columbia
Canada  V6B 4N5
Telephone (604) 684-2550
Telecopier (604) 684-0916
June 21, 2005
Crystal Graphite Corporation
#1750 – 999 W. Hastings Street
Vancouver, B.C.
Canada  V6C 2W2
Gentlemen:
As counsel to Crystal Graphite Corporation, a British Columbia corporation (the "Company"), we hereby provide our opinion regarding the issuance by the Company of 2,385,000 shares of the Company's common stock (the "Shares").  The Shares are being registered for issuance by the provisions of that certain Registration Statement on Form S-8 to be filed by the Company with the Securities and Exchange Commission (the "Commission") pursuant to the provisions of the Securities Act of 1933, as amended (the "Registration Statement").  For purposes of our legal opinion, we have relied upon information provided by representatives of the Company (the "Information").
In furnishing our opinion specified in this letter, we confirm that we have relied upon our review of the Information, which related to the (i) transactions pursuant to which the Shares are issuable upon the exercise of the issued and outstanding 2,385,000 stock options under the Company's Stock Option Agreements (each an "Agreement" and collectively, the "Agreements"), and (ii) status of (a) the Company and (b) its common stock.
We confirm that we have assumed, without investigation, (i) the truthfulness and veracity of the Information; (ii) the genuineness of all signatures to all documents included in the definition of the Information; (iii) the legal capacities of all persons who executed those documents; (iv) the appropriate authorization and valid execution by all parties to those documents; (v) that those documents are free from any form of fraud, misrepresentation, duress, and criminal activity; (vi) the conformity of the originals of those documents to those copies thereof which were submitted to us; and (vii) the appropriate delivery and acceptance of those documents by all parties thereto.  As to any material facts relating to the opinion specified in this letter which we did not verify independently, we confirm that we have relied upon representations of representatives of the Company, which are included in the definition of the Information. Solely for purpose of the opinion specified in this letter, you should assume that our investigation has been, and will continue to be, limited exclusively to that information that we believe is necessary to furnish that opinion.
Based upon the foregoing, and relying solely thereon, and assuming that the Shares will be issued upon the exercise of the issued and outstanding 2,385,000 stock options to acquire shares of the Company's common stock under the Agreements on the terms and subject to the effectiveness and conditions of the Registration Statement, it is our opinion that:
1.
The Company is a corporation duly organized and validly existing under the laws of the Province of British Columbia, Canada;
2.
All necessary corporate action has been taken to authorize the entering into of the Agreements and to authorize the issuance of up to 2,385,000 shares of the Company's Common Stock under the Agreements; and
3.
The up to 2,385,000 shares of the Company's Common Stock, which are presently issuable upon the exercise of the issued and outstanding 2,385,000 stock options to acquire shares of the Company's Common Stock under the Agreements, will be, upon issuance by the Company, subject to the effectiveness of the Registration Statement and compliance with applicable laws of British Columbia and the other jurisdictions in which the Shares will be offered and sold, validly issued, fully paid and non-assessable shares of common stock of the Company upon the receipt by the Company of full payment for such stock option shares of common stock in accordance with the terms of the Agreements with the Company.
We express no opinion as to noncompliance with the laws of any particular jurisdiction in which the Shares may be sold and as to the effect, if any, which non-compliance with such laws might have regarding the transactions contemplated by this letter.
We expressly disclaim any obligation to inform you of any facts, circumstances, events, or developments which hereafter may be brought to our attention and which may alter, affect, or modify the opinion specified in this letter.  The opinion specified in this letter is expressly limited to the matters specified in this letter, and we make no opinion, express or implied, as to any other matters relating to the Company or its securities.
The opinion specified in this letter is furnished solely for your benefit regarding the transactions specified in this letter and may not be delivered to or relied upon by any other person without our prior written consent.
We hereby consent to the filing of a copy of this opinion as an exhibit to the Registration Statement referred to above.
This opinion (i) is addressed solely to you, (ii) may not be relied upon by any other party, (iii) relates only to matters of British Columbia securities law and nothing in this opinion shall be deemed to imply any opinion related to the laws of any other jurisdiction, and (iv) may not be relied upon for any other purpose whatsoever.  Nothing in this letter shall be deemed to relate to or constitute an opinion concerning any matters not specifically set forth in this letter.
The Company is hereby advised, urged, and encouraged to consult with and, if appropriate, retain securities counsel in each particular jurisdiction outside British Columbia in which the Shares may be offered and sold regarding compliance with the securities laws of such jurisdiction.
Very truly yours,
DEVLIN JENSEN
Per:
/s/ Mike Shannon
MIKE SHANNON
Exhibit 23.2
CONSENT OF INDEPENDENT AUDITORS
In connection with the Registration Statement on Form S-8 being filed by Crystal Graphite Corporation (the "Company") with the Securities and Exchange Commission under the Securities Act of 1933, as amended, relating to the registration of 2,385,000 shares of the Company's common stock to be offered under the Company's Stock Option Agreements (each an "Agreement" and collectively, the "Agreements") we consent to the incorporation by reference in the Registration Statement of our report dated December 8, 2004, in respect to our audits of the financial statements of the Company as at August 31, 2004 and 2003 and for each of the years in the three year period ended August 31, 2004, which report was included in the Company's Annual Report on Form 20-F as filed with the Securities and Exchange Commission on March 15, 2005.
We hereby consent to the filing of the copy of this consent as an exhibit to the Registration Statement referred to above.
/s/ Staley, Okada & Partners
Vancouver, B.C. CANADA
STALEY, OKADA & PARTNERS
June 21, 2005
CHARTERED ACCOUNTANTS
Exhibit 99.1
CRYSTAL GRAPHITE CORPORATION
(the "Company")
STOCK OPTION
THIS AGREEMENT
made as of the 27th day of April, 2005.
BETWEEN:
___________________
of ___________________________________________-
____________________
(hereinafter referred to as the "Optionee")
OF THE FIRST PART
AND
:
CRYSTAL GRAPHITE CORPORATION
, a company duly incorporated under the laws of the Province of British Columbia and having an office at #1750–999 West Hastings Street, Vancouver, British Columbia, V6C 2W2
(hereinafter referred to as the "Company")
OF THE SECOND PART
WHEREAS:
(A)
The Optionee is _________________ of the Company and in that capacity is devoting considerable time and effort to the development of the Company;
(B)
The Company wishes to encourage the best efforts of the undernoted and wishes to recognize the Optionee's efforts and risk;
NOW THEREFORE,
in consideration of the aforenoted efforts and service and theses premises and other good and valuable consideration:
1.
Subject to the hereinafter provisions, the Company hereby grants to the Optionee an option to purchase, in whole or in part, as fully paid and non-assessable, ____________ common shares exercisable as to 1/3
rd
at $0.20US, 1/3
rd
at $0.30US and 1/3
rd
at $0.40 US increasing $0.05 each six months and with three year term until April 27, 2008.
2.
In the event that the Optionee ceases to serve the Company in the above-mentioned capacity, all the rights granted to the Optionee hereunder as to any of the shares herein optioned, which the Optionee has not theretofore purchased, shall terminate immediately or shall terminate, at the sole discretion of the Company, within thirty (90) days of such event in the event of written notice by the Company granting such indulgence.
3.
In the event of the death of the Optionee during the term of the option, this option shall terminate except that the Optionee's personal representative shall be entitled to exercise all or any part of the option granted herein PROVIDED ALWAYS that payment is tendered within one (1) year after the date of death.
4.
If the optionee at any time and from time to time during the option period desires to purchase any of the optioned shares, the Optionee may do so by giving notice to the Company at its Registered Office within the time herein noted for the exercise of the option, subject to the terms and conditions of this option.
5.
Payment for any of the optioned shares shall be made by tendering to the Company at its Registered Office the Optionee's cheque (or other payment approved by the Company) in favour of the Company in the full amount of the purchase price payable hereunder for such number of the shares comprised in the election.
6.
If, at any time during the continued existence of the within option, there shall be any alteration in the capital stock of the Company, which shall affect a subdivision or consolidation of the issued capital, then the outstanding option shall attach to an appropriate unaltered percentage of the number of the shares or securities of the Company which shall have been created by any such alteration, and the price payable on the exercise of the option, shall be adjusted proportionately to the change in the shares resulting from such capital alteration.
7.
This option is neither assignable nor transferable.
8.
This Agreement shall enure to the benefit of and bind the parties hereto and shall, to the extent hereinbefore provided, enure to the parties' heirs, executors, successors, administrators and assigns.
9.
The provisions herein constitute the entire agreement between the parties and supercede all previous understandings and agreements.
IN WITNESS WHEREOF, the Company has hereunto affixed its common seal by the hands of its duly authorized officers in that behalf and the Optionee has hereunto set his hand and seal on the day and year first above written:
CRYSTAL GRAPHITE CORPORATION
By:  Authorized Signatory
SIGNED, SEALED AND DELIVERED
by the Optinee,
______________
Signature of Optionee