Gold Reserve Provides Litigation Update

    SPOKANE, WA, April 1 /CNW/ - Gold Reserve Inc. (TSX:GRZ - AMEX:GRZ)
announced today that Rusoro Mining Ltd. (TSX-V:RML) ("Rusoro") has filed in
the Ontario Superior Court of Justice a "Statement of Defence and
Counterclaim" to an action filed December 16, 2008 by the Company against
Rusoro and Endeavour Financial International Corporation.
    The action filed by the Company in December 2008, sought an injunction
restraining Rusoro and Endeavour from proceeding with Rusoro's unsolicited
offer which was granted by the Courts on February 10, 2009, monetary damages
of Cdn $550 million, and various other items.
    In the Statement of Defence and Counterclaim, Rusoro denies the Company's
claims and counterclaims against the Company for, among other things, damages
of Cdn $102.5 million allegedly arising from the Company's successful motion
for an interlocutory injunction restraining Rusoro from making a hostile
take-over bid for the Company.
    Rusoro further states, "Rusoro has suffered damages as a result of the
interlocutory injunction including, but not limited to, the lost opportunity
to acquire Gold Reserve based on an exchange of three Rusoro shares for each
share of Gold Reserve, and the costs associated with the Rusoro Offer, all of
which have been thrown away as a result of the interlocutory injunction and
for all of which Gold Reserve is liable" and "Rusoro has also suffered damages
as a result of Gold Reserve's failure to restore to its previous state the
land it used to access its Choco 5 property."
    Doug Belanger, President of Gold Reserve, said, "Regarding the
interlocutory injunction, we presented our case and they presented theirs and
the Judge ordered the interlocutory injunction. In respect of their claim for
the lost opportunity to acquire the Company, it is important to note that less
than 3% of our shareholders tendered to their offer."
    Regarding the above noted claims we will take the appropriate legal
actions and defend against these matters.
    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. While certain
statements in this release may be within the meaning of "forward-looking
statements" under Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), the safe harbor provided by Section 21E of the
Exchange Act does not apply to any forward-looking statements made in
connection with the offer by Rusoro to acquire Gold Reserve shares, including
the forward-looking statements contained in this release.
    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; competition with companies
that are not subject to or do not follow Canadian and U.S. laws and
regulations; 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;
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 result or outcome of the leave for appeal for
Rusoro Mining Ltd. ("Rusoro") with respect to the interlocutory injunction
restraining Rusoro from proceeding with any unsolicited takeover bid of the
Company until the conclusion and disposition at trial; 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 shares; the price and value
of the Gold Reserve notes; uncertainty as to the future value of Gold Reserve;
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.