Brisas Project Update Regarding Construction Permit

SPOKANE, WA, May 8 /CNW/ - Gold Reserve Inc. (TSX:GRZ - AMEX:GRZ)
announced that it has obtained from the Venezuelan Ministry of Environment
(MinAmb) formal notification of the rescission of the March 2007 permit for
the commencement of the construction phase of the Brisas Project (the
"Authorization to Affect").
MinAmb referenced in its formal notice the existence of environmental
degradation and affectation on the Brisas property, the presence of a large
number of miners on the Brisas property and Presidential Decree No. 4633 dated
June 26, 2006, declaring an emergency in certain areas of the state of Bolivar
including within the Imataca Forest Reserve as the primary reasons for their
decision.
<<
Doug Belanger, President of Gold Reserve stated:
- There are no small or illegal miners on the Brisas property.
- There are minor environmental disturbances on the property resulting
from crude mining activities undertaken prior to the Company acquiring
the property in 1992. Those disturbances were neutralized by the
Company and are clearly documented in our operating plan, which the
Ministry of Basic Industries and Mines ("MIBAM") previously approved,
and are subject to future reclamation, as outlined in our
Environmental and Social Impact Study ("ESIA), previously approved by
MinAmb prior to the issuance of the Authorization to Affect.
- The Authorization to Affect was issued March 27, 2007, subsequent to
Presidential Decree No. 4633 dated June 26, 2006, and that decree
expired in June 2007. Since the issuance of Presidential Decree
No. 4633, Brisas has received a number of other exploration permits
from MinAmb as well.
- The Km88 area in which Brisas is located was approved for mining prior
to the Company acquiring Brisas and that approval was reaffirmed in
2004 by Presidential Decree No. 3110.
>>
Doug Belanger noted that, "Venezuelan legal counsel has advised the
Company that the revocation of the Authorization to Affect is groundless and
legally unsupported. The Authorization to Affect was granted to Gold Reserve
by a competent authority following the corresponding legal procedure, and in
accordance with applicable laws and regulations. At the time the Authorization
to Affect was issued, there was no legal norm prohibiting MinAmb from
authorizing performance of mining activities in the area of the Brisas
Project.
We are actively meeting with members of the MIBAM, MinAmb and other
Government officials to solve this issue many of whom support our Brisas
Project. These officials have given us no indication that the Government
intends to create a mining moratorium in the Imataca Forest Reserve. The
notification does not cite any specific criticism of the Brisas Project, does
not indicate that there is any opposition to mining in the Imataca nor does it
revoke the previously approved ESIA or preclude future issuance of
Authorizations to Affect."
Belanger further stated, "The revocation issued by MinAmb not only
conflicts with the rights granted to Gold Reserve under the previously issued
Authorization to Affect, it conflicts with what we believe to be the
Government's desire to diminish and contain, to the extent possible, the
irrational and environmentally damaging mining activities of the small and/or
illegal miners as well as the interests of a community council representing 21
local communities who have publically expressed their full support of the
Brisas Project. We believe that the Brisas Project could be a participant in
crafting the solution to the problems that the local area is faced with. We
have made no secret of our interest to assist the Government in the resolution
of these problems.
Our management continues to actively work with members of Government to
resolve this issue. We are also working with Venezuelan counsel to prepare our
legal response against the revocation, including administrative and court
actions and, if necessary, other avenues to protect the interests of our
shareholders will be pursued."
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 or the Choco 5 Exploration 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: Internet - www.goldreserveinc.com, Company
Contact: A. Douglas Belanger, President, 926 W. Sprague Ave., Suite 200,
Spokane, WA 99201 USA, Tel. (509) 623-1500, Fax (509) 623-1634