News from The Globe and Mail

Gold Reserve sues Rusoro and adviser Endeavour

ANDY HOFFMAN

00:00 EST Wednesday, December 17, 2008

Rusoro Mining Ltd.'s ambitions to become a major gold producer in mineral-rich but politically challenging Venezuela hit a potential roadblock yesterday when takeover target Gold Reserve Inc. launched a $550-million lawsuit against Rusoro and its adviser Endeavour Financial International Corp. The statement of claim, filed in Ontario Superior Court, alleges that Rusoro trespassed on Gold Reserve's property in Venezuela to take drill samples and accuses Endeavour of having a conflict of interest because it acted as an adviser to both companies and had access to Gold Reserve's proprietary and confidential information. None of the allegations have been proved in court. Gold Reserve wants the court to grant an injunction preventing Rusoro from proceeding with its three-shares-for-one hostile takeover offer valued at $47-million. GRZ (TSX) rose 1 cent to 74 cents; RML (TSXV) rose 2.5 cents to 28 cents.

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