Crystallex International

Gold Reserve Notifies Venezuelan Government of Investment Dispute

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SPOKANE, Wash. (Business Wire) -- 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.




FORWARD-LOOKING STATEMENTS




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 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:
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.

© 2009 The Globe and Mail