Gold Reserve notifies Venezuelan Government of investment dispute

    SPOKANE, WA, April 21 /CNW/ - Gold Reserve Inc. (TSX:GRZ - NYSE-Amex:  GRZ)
announced today that it has notified the Bolivarian Republic of Venezuela of
the existence of a dispute between the Company and the Venezuelan Government
under both: (1) the Agreement between the Government of Canada and the
Government of the Republic of Venezuela for the Promotion and Protection of
Investments ("Canada - Venezuela Treaty") and (2) the Agreement between the
Government of Barbados and the Government of the Republic of Venezuela for the
Promotion and Protection of Investments ("Barbados-Venezuela Treaty").
    This dispute has arisen primarily as a result of the Venezuelan Ministry
of Environment's formal notification in May 2008 revoking the March 2007
permit or Authorization for the Affectation of Natural Resources for the
Construction of Infrastructure and Services Phase of the Brisas Project. The
Company has taken this action as a result of the Venezuelan Government's
failure to reinstate the March 2007 authorization and the lack of any
meaningful dialog to resolve the prolonged obstruction of our rights to the
Brisas Project.
    It is our intent to settle the dispute amicably. However, if the dispute
is not settled amicably, the Company may file for international arbitration at
anytime under the Barbados-Venezuela Treaty or after six months from the date
of notification under the Canada-Venezuela Treaty. In the event the Company is
compelled to file for international arbitration, we would make a claim for the
fair market value of our investment at the time of the revocation which we
believe was in excess of US$5 billion. In May 2008, the time of the
revocation, the price of gold and copper was $880 per ounce and $3.75 per
pound, respectively.

    Gold Reserve Inc. is a Canadian company, which holds the rights to the
Brisas gold/copper project and the Choco 5 gold exploration property in
Bolivar State, Venezuela.


    This release contains forward-looking statements that may state Gold
Reserve's or its management's intentions, hopes, beliefs, expectations or
predictions for the future. In this release, forward-looking statements are
necessarily based upon a number of estimates and assumptions that, while
considered reasonable by management at this time, are inherently subject to
significant business, economic and competitive uncertainties and
    We caution that such forward-looking statements involve known and unknown
risks, uncertainties and other risks that may cause the actual financial
results, performance, or achievements of Gold Reserve to be materially
different from our estimated future results, performance, or achievements
expressed or implied by those forward-looking statements.
    Numerous factors could cause actual results to differ materially from
those in the forward-looking statements, including without limitation: the
outcome of any potential proceedings under the Venezuelan legal system or
before arbitration tribunals as provided in investment treaties entered into
between Venezuela, Canada and Barbados to determine the compensation due to
Gold Reserve in the event that Gold Reserve and the Venezuelan government do
not reach an agreement regarding construction and operation of the Brisas
Project, or the Brisas Project is transferred to the Venezuelan government and
the parties do not reach agreement on compensation; concentration of
operations and assets in Venezuela; corruption and uncertain legal
enforcement; requests for improper payments; competition with companies that
are not subject to or do not follow Canadian and U.S. laws and regulations;
regulatory, political and economic risks associated with Venezuelan operations
(including changes in previously established laws, legal regimes, rules or
processes); the ability to obtain, maintain or re-acquire the necessary
permits or additional funding for the development of the Brisas Project; the
result or outcome of the trial regarding Rusoro Mining Ltd.'s enjoined hostile
takeover bid; significant differences or changes in any key findings or
assumptions previously determined by us or our experts in conjunction with our
2005 bankable feasibility study (as updated or modified from time to time) due
to actual results in our expected construction and production at the Brisas
Project (including capital and operating cost estimates); the method and
manner of our determination of reserves, risk that actual mineral reserves may
vary considerably from estimates presently made; impact of currency, metal
prices and metal production volatility; fluctuations in energy prices; changes
in proposed development plans (including technology used); our dependence upon
the abilities and continued participation of certain key employees; the
prices, production levels and supply of and demand for gold and copper
produced or held by Gold Reserve; the potential volatility of Gold Reserve's
Class A common shares; the price and value of Gold Reserve's notes, including
any conversion of notes into Gold Reserve's Class A common shares; the
prospects for exploration and development of projects by Gold Reserve; and
risks normally incident to the operation and development of mining properties.
    This list is not exhaustive of the factors that may affect any of Gold
Reserve's forward-looking statements. Investors are cautioned not to put undue
reliance on forward-looking statements. All subsequent written and oral
forward-looking statements attributable to Gold Reserve or persons acting on
its behalf are expressly qualified in their entirety by this notice. Gold
Reserve disclaims any intent or obligation to update publicly or otherwise
revise any forward-looking statements or the foregoing list of assumptions or
factors, whether as a result of new information, future events or otherwise,
subject to its disclosure obligations under applicable rules promulgated by
the U.S. Securities and Exchange Commission (the "SEC").
    In addition to being subject to a number of assumptions, forward-looking
statements in this release involve known and unknown risks, uncertainties and
other factors that may cause actual results and developments to be materially
different from those expressed or implied by such forward-looking statements,
including the risks identified under "Important Note for U.S. Investors
Concerning Resource Calculations" as well as the risks identified in the
filings by Gold Reserve with the SEC and Canadian provincial securities
regulatory authorities, including Gold Reserve's annual information form for
the year ended December 31, 2008, dated March 31, 2009, and Gold Reserve's
Annual Report on Form 20-F for the fiscal year ended December 31, 2008 filed
with the SEC on March 31, 2009.

For further information:

For further information: Internet -; Investor
Information: Rubenstein Investor Relations, Tim Clemensen, (212) 843-9337,; Company Contact: A. Douglas Belanger, President,
926 W. Sprague Ave., Suite 200, Spokane, WA, 99201, USA, Tel. (509) 623-1500,
Fax (509) 623-1634

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