Less than 3% of Gold Reserve shares tendered into Rusoro's hostile bid

    Urges Shareholders NOT to Tender Their Shares into Rusoro's Inadequate

    SPOKANE, WA, Jan. 20 /CNW/ - Gold Reserve Inc. (NYSE Alternext: GRZ)
(TSX: GRZ) today responded to Rusoro Mining Ltd.'s ("Rusoro") (TSX-V: RML)
extension of its unsolicited offer of December 15, 2008 (the "Offer") to
acquire all of the outstanding shares and equity units of Gold Reserve in
consideration for three shares of Rusoro for each Gold Reserve share tendered
under the Offer.
    Doug Belanger, President of Gold Reserve, said, "Rusoro has publicly
admitted that less than 3% of the outstanding shares have been tendered into
its Offer. We believe that Gold Reserve shareholders are sending a clear
message to Rusoro - that the Offer is opportunistic, financially inadequate
and significantly undervalues Gold Reserve's assets and its overall
contribution to the combined company. Our Board and management team remain
committed to ensuring that Gold Reserve shareholders receive full and fair
value for their investment. We appreciate the support we have received and
encourage all Gold Reserve shareholders not to tender their shares into the
Offer and, for those who have, to withdraw them."
    Shareholders who have questions or require assistance withdrawing their
shares can contact the Company's information agent, Laurel Hill Advisory
Group, at 1-888-295-4655.

    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.

    Certain statements included in this release may constitute
"forward-looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995, as amended, ("PSLRA"), provided that
statements made solely in connection with Rusoro's offer are not subject to
the safe harbor protections provided to forward-looking statements under the
PSLRA. 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 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; 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
other countries 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; requests for improper payments; 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; 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); 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 or Rusoro; the potential volatility of
both Gold Reserve shares and Rusoro shares; the price and value of the Gold
Reserve notes; uncertainty as to the future value of Rusoro, Gold Reserve or
the combined company proposed by the Rusoro offer; the prospects for
exploration and development of projects by Gold Reserve or Rusoro; whether or
not an alternative transaction superior to the Rusoro offer will emerge; 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 forward-looking
statements herein, 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 ("SEC").
    In addition to being subject to a number of assumptions, forward-looking
statements in this press 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, 2007, dated March 31, 2008, and Gold
Reserve's Annual Report on Form 40-F for the fiscal year ended December 31,
2007 filed with the SEC on March 31, 2008.

For further information:

For further information: Gold Reserve Inc., President, A. Douglas
Belanger, (509) 623-1500, Fax: (509) 623-1634, www.goldreserveinc.com; Dan
Katcher, Steve Frankel, Andi Salas, Joele Frank, Wilkinson Brimmer Katcher,
(212) 355-4449

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