SPOKANE, Wash., Apr 21, 2009 (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.