has communicated its plan to rescind the March 2007 permit for the commencement of the construction phase of the

Brisas Project (the “Authorization to Affect”). MinAmb referenced, among other things, the existence of

environmental degradation and affectation in the area, the presence of small miners as well as the Imataca Forest

Reserve as the basis for their decision.

Doug Belanger, President of Gold Reserve stated, “The Company has not been formally notified of this decision and

is working with various government officials to resolve this matter. Another mining company has cited in a recent

press release the Director General of MinAmb regarding other mining projects impacted in the Imataca Forest

Reserve. Prior to this, at no time during our year-long effort to obtain the administrative Initiation Act, which would

allow us to advance the project, has any environmental issue including the Imataca Forest Reserve been raised by

MinAmb as an impediment to proceeding with our project.”

“There are no small miners on Brisas and any environmental disturbances result from activities prior to the

Company acquiring the property. Such disturbances have been addressed by the Company and are clearly

documented in our operating plan already approved by the Venezuelan Government and are subject to future

reclamation as outlined in our Environmental and Social Impact Study, previously approved by MinAmb.”

Mr. Belanger further stated, “The Km88 area in which Brisas is located has been approved for mining previous to

the Company acquiring Brisas and most recently reaffirmed by Presidential Decree No. 3110 which was published

in the Official Gazette in 2004. Support for mining in the Km88 area is clearly evidenced by the approval of our

Environmental and Social Impact Study (“EISA”) in early 2007, the issuance of the Authorization to Affect by

MinAmb in March 2007 and the fact that the MinAmb and the Ministry for Basic Industries and Mines (“MIBAM”)

since 2004 have issued to the Company and others a number of authorizations and other acts relating to mining

exploration or exploitation in the Imataca.”

“We are committed to invest during the life of the mine over $1 billion to build the largest gold and copper project

in Venezuela and directly create over 1,000 jobs. After years of commitment to Venezuela, nearly $300 million

invested in the development of Brisas which adheres to the Equator Principles, multiple permit approvals including

most recently the Permit to Affect and receipt of, in the third quarter of 2007, accreditation letters of technical

compliance from MIBAM for all of the properties that comprise Brisas, it is unfathomable that the MinAmb

suddenly attacks mining projects in the Imataca - impacting not only our investment and others in the industry, but

the livelihood of those most affected by the project, the local and regional citizens of Venezuela.”

“We are prepared to protect our rights to Brisas through the Venezuelan legal system and, if necessary, other

avenues to protect the interests of our shareholders will be pursued. We have approximately $130 million in cash,

investments and restricted cash, project related equipment with an original cost of over $30 million and convertible

notes payable of approximately $104 million.”

Gold Reserve Inc.

A. Douglas Belanger, President