As in any negotiation a first offer is a "feeler" to get a response from the other party. Rusoro's offer achieved two things.

1. GRZ confirmed that "Our objective is to enhance shareholder value and in that regard we are always willing to discuss any potential opportunities to achieve that objective.” So GRZ is avaiable.

2. GRZ set conditions for an offer.

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.

So Rusoro knows GRZ will consider an off and will now up the ante based on Doug's response.

I should add a third:

3. Other companies may join the hunt.