Gold Reserve reports on offer from Rusoro Mining Ltd.

    SPOKANE, WA, Aug. 27 /CNW/ - Gold Reserve Inc. (TSX:GRZ - AMEX:  GRZ)
announced that it received an unsolicited non-binding expression of interest
from Rusoro Mining Ltd. ("Rusoro") (CDNX:RML.V) to complete a 100% business
combination by issuing two shares of Rusoro for each share of Gold Reserve.
    The Board of Directors of the Company reviewed the expression of interest
and unanimously determined that it is inadequate and not in the best interests
of the Company's shareholders.
    Doug Belanger, President of Gold Reserve, stated, "This highly
conditional expression of interest attributed a $90 million value to Gold
Reserve's equity, which the Board determined was inadequate and not in the
best interests of shareholders. For example, the expression of interest did
not take into account Gold Reserve's current financial position, and gave
little value for our Company's proven and probable reserves of 10.2 million
ounces of gold and 1.4 billion pounds of copper, the mobile CAT equipment, the
equipment currently being manufactured, the extensive intangibles attached to
the Brisas Project and the value of the Choco 5 exploration property. Our
objective is to enhance shareholder value and in that regard we are always
willing to discuss any potential opportunities to achieve that objective."
    The offer letter and the Company's response are available at
    For the Company's periodic TSX (SEDAR) or SEC (Edgar) filings please
visit our website at under the Investor Relations

    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.

    On Behalf of the Board of Directors
    Gold Reserve Inc.
    A. Douglas Belanger, President

    Certain statements included herein, including those that express
management's expectations or estimates of our future performance concerning
the Brisas Project constitute "forward-looking statements" within the meaning
of the United States Private Securities Litigation Reform Act of 1995.
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 contingencies. 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 Inc. 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,
concentration of operations and assets in Venezuela; corruption and uncertain
legal enforcement; requests for improper payments; regulatory, political and
economic risks associated with Venezuelan operations (including changes in
previously established legal regimes, rules or processes); the ability to
obtain or maintain the necessary permits or additional funding for the
development of the Brisas Project; in the event 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)
significantly differ or change as a result of actual results in our expected
construction and production at the Brisas Project (including capital and
operating cost estimates); 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; 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 the Company'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 the Company or persons acting on its behalf are
expressly qualified in their entirety by this notice. The Company disclaims
any intent or obligation to update publicly these forward-looking statements,
whether as a result of new information, future events or otherwise.

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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Gold Reserve Inc.

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