GOLD RESERVE INC

Introduction

Gold Reserve Inc. has a history in mining dating back to 1956 and was formed for the purpose of acquiring, exploring, and developing mining properties and placing them into production. The Company is incorporated under the laws of the Province of Alberta, Canada and is listed on the TSX Venture Exchange and the OTCQB Markets Exchange. 

In 1992, the Company acquired and began developing what is now known as the Brisas gold and copper project, located in the historic Km 88 mining district of the State of Bolivar in southeastern Venezuela (the 'Brisas Project').  The Brisas deposit, which is one of the largest undeveloped gold/copper deposits in the world, contains ore reserves of 10.2 million ounces of gold and 1.4 billion pounds of copper.  From 1992 to 2009, the Company invested close to US $300 million in acquisition, land exploration, development, equipment, and engineering costs, which the Company believed developed the Brisas Project into a world class mining project.

In April 2008, after the Company successfully developed the Brisas Project to the point of construction, the Bolivarian Republic of Venezuela arbitrarily revoked the previous authorization to proceed with construction of the Brisas Project, eliminating the Company’s ability to exploit the Brisas Project. As a result of this and other acts by or on behalf of Venezuela, on October 21, 2009 the Company filed a Request for Arbitration under the Additional Facility Rules of the International Centre for Settlement of Investment Disputes ('ICSID') of the World Bank, in Washington D.C., against the Bolivarian Republic of Venezuela seeking compensation for the losses caused to the Company  by what the Company believes are Venezuela's violations of 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') in regard to the Company and its investments in Venezuela.

The information regarding the Company's Venezuelan properties contained herein should be considered in context of our October 21, 2009 news release 'Gold Reserve Files International Arbitration Against Venezuelan Government.'

Current Activities

The Company is diligently pursuing its arbitration claim against the Bolivarian Republic of Venezuela while continuing to pursue other opportunities, with the goal of successfully developing proven and probable reserves by making selective property and/or corporate acquisitions. 

Company

About the company

Gold Reserve Inc. has history in mining dating back to 1956 and was formed for the purpose of acquiring, exploring and developing mining properties and placing them into production. Consistent with that strategy, the Company (1) in 1992 acquired and began developing what is now known as the Brisas gold and copper project, located in the historic Km 88 mining district of the State of Bolivar in southeastern Venezuela (the “Brisas Project”).

The Brisas deposit, which is one of the largest undeveloped gold/copper deposits in the world, contains ore reserves of 10.2 million ounces of gold and 1.4 billion pounds of copper. From 1992 to 2009, the Company invested close to US $300 million on among other things acquisition, land exploration, development, equipment, and engineering costs, which the Company believed developed the Brisas Project into a world class mining project.

As a result of the Company's years of substantive effort and compliance with Venezuelan mining laws and regulations and numerous interim approvals by various government ministries, the Venezuelan Ministry of Environment (“MinAmb”) in March 2007 issued the Authorization for the Affectation of Natural Resources for the Construction of Infrastructure and Services Phase of the Brisas Project (the “Authorization to Affect”).

In April 2008, after enjoying years of support from the relevant Venezuelan authorities in developing its mining properties, investing hundreds of millions of dollars for exploration and development, and successfully developing the Brisas Project to the point of construction, in accord with all applicable laws, regulations, licenses and permits, the Bolivarian Republic of Venezuela arbitrarily revoked the Authorization to Affect, eliminating the Company’s ability to exploit the Brisas Project. As a result of this and other acts by or on behalf of Venezuela, on October 21, 2009 the Company filed a Request for Arbitration under the Additional Facility Rules of the International Centre for Settlement of Investment Disputes (“ICSID”) of the World Bank, in Washington D.C., against the Bolivarian Republic of Venezuela seeking compensation for the losses caused to the Company by what the Company believes are Venezuela’s violations of 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”) in regard to the Company and its investments in Venezuela.

The information regarding the Company’s Venezuelan properties contained herein should be considered in context of our October 21, 2009 news release 'Gold Reserve Files International Arbitration Against Venezuelan Government.'

The Company is to diligently pursuing its arbitration claim against the Bolivarian Republic of Venezuela while continuing to pursue our goal of successfully developing proven and probable reserves either by making selective property acquisitions or via corporate transactions. We have an experienced senior management team with considerable operational, financial and administrative experience and we continue to evaluate new opportunities available within the industry outside of Venezuela.

The Company is incorporated under the laws of the Yukon Territory, Canada, maintains its corporate office in Spokane, WA USA, and is listed on the Toronto Venture Exchange (symbol: GRZ.V) and the OTCQB Markets Exchange (symbol: GDRZF). The executive offices of the Company are located at Suite 200, 926 West Sprague Ave., Spokane, Washington 99201. The Company employs 10 people in the United States.

Corporate Values

Social Responsibility

We understand the actions and conduct of every Gold Reserve employee and contractor are the basis on which our stakeholders will evaluate our commitment to achieving the highest standards of social responsibility. Gold Reserve is committed to achieving and maintaining standards that are comparable with best mining practices.
The Company’s social responsibility commitment is supported by the following principles:
Give back to the communities where we operate by providing local employment and purchasing initiatives, sustaining meaningful community development initiatives and supporting local not-for-profit projects;
Train our people and provide the resources to meet our social responsibility objectives and targets;
Respect the social, economic and cultural rights of indigenous people;
Wherever appropriate and feasible, set operating standards that exceed the requirements of the local law;
Assess and compare our actual performance versus our policies and standards;
Demand leadership in social responsibility from all our people;
Seek to share our success by partnering with stakeholders in appropriate community development programs;
Consult stakeholders in matters that affect them;
Strive to communicate our performance in an accurate, transparent and timely manner.
Environmental Protection
At Gold Reserve, we believe that protecting the environment is a crucial element of the success of our business. It is equally important with earning superior returns for our shareholders, our commitment to sustainable development and providing a safe work place for our employees. Gold Reserve is committed to achieving and maintaining standards that are comparable with best mining practices.
We know that through careful planning, continuous monitoring, responsible reclamation, sound operating practices and attentive management, mining and ore processing can be accomplished economically while protecting and even enhancing, the surrounding environment.
Health and Safety
Gold Reserve is committed to an accident free environment. We accomplish this commitment through shared responsibility with our employees supported by sound judgment, comprehensive training, and strict adherence to regulations. Good safety practices extend to our personal lives as well. Family health and safety are paramount to Gold Reserve.