Gold Reserve Inc. Submits $1.928 Billion Arbitration Claim to World Bank′s ICSID

Gold Reserve Inc. (TSX:GRZ)(NYSE-Amex:GRZ) announced today it has
filed its arbitration claim against the Bolivarian Republic of Venezuela
with the World Bank′s International Centre for Settlement of Investment
Disputes ('ICSID?), in accordance with the provisions of the
Canada-Venezuela Bilateral Investment Treaty ('BIT?).

Gold Reserve′s claim alleges violations of three provisions of the
Canada-Venezuela BIT culminating in the effective expropriation of Gold
Reserve′s sizable investments in the world-class Brisas gold/copper
project and the promising Choco 5 gold property.

Gold Reserve believes three breaches of the Canada-Venezuela BIT
occurred: (1) Article II - Failure to provide fair and equitable
treatment and full protection and security, (2)  Article III ? Failure to
guarantee treatment on no less favorable terms than provided to
nationals of any other State, and (3) Article VII ? Protection against
expropriation of investments without due process of law, on a
discriminatory basis, without a legitimate public purpose, and without
proper compensation.

Gold Reserve seeks compensation for all of its losses caused by
Venezuela′s breaches of the BIT, including the full value of its
investments in the Brisas Project and in Choco 5 prior to Venezuela′s
breaches of the BIT, and other related damage. As of September 24, 2010,
Gold Reserve values its damages at a minimum in the amount of $1.928
billion, equivalent to approximately $30 a share.

Doug Belanger, President, stated, 'The filing of the Memorial that
supports the claim is the result of several months of extensive effort
by counsel, technical, legal and financial experts and Company
personnel. The Brisas Project and the promising Choco 5 exploration
property were significant assets to the shareholders of the Company. We
worked extremely hard to maximize the value of these projects for the
shareholders, stakeholders, and local beneficiaries in Venezuela.
Venezuela has obviously decided to take another path regarding the
Brisas Project. As a result of the unfortunate actions taken by
Venezuela in violation of the BIT, we are prepared to vigorously pursue
a decision in this case for our shareholders and stakeholders. We remain
ready, however, to evaluate and possibly enter into an amicable
settlement that would compensate us for our losses and allow the project
or projects to proceed on a fast track basis. Any settlement would be
accepted only if it were beneficial to the shareholders and stakeholders
of the Company.?

Further written submissions are scheduled to be made during 2011 and the
oral hearing in the case is scheduled to commence on December 5, 2011.

Please visit our website at www.goldreserveinc.com
under Investor Relations: SEDAR Filings or SEC Filings.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements that 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
outcomes, financial results, performance, or achievements of Gold
Reserve to be materially different from our estimated outcomes, future
results, performance, or achievements expressed or implied by those
forward-looking statements.

Numerous factors could cause actual results to differ materially from
those in the forward-looking statements, including without limitation:
the outcome of our arbitration under the Additional Facility Rules of
the International Centre for Settlement of Investment Disputes of the
World Bank, in Washington D.C. to determine compensation claimed by us
resulting from our claims against the Venezuelan government and its
agents and agencies; corruption and uncertain legal enforcement;
political and social instability; requests for improper payments;
competition with companies that are not subject to or do not follow
Canadian and U.S. laws and regulations; regulatory, political and
economic risks associated with Venezuela including changes in laws and
legal regimes; the result or outcome of the litigation regarding the
enjoined hostile takeover bid for us; impact of currency, metal prices
and metal production volatility; our dependence upon the abilities and
continued participation of certain key employees; the value of our 5.50%
senior subordinated convertible notes due on June 15, 2022 and potential
volatility of our Class A common shares (also referred to herein as
'Common Shares?), including potential dilution as a result of the
conversion of the convertible notes into our common shares by either us
or the holder; the prospects for exploration and development of
alternative projects by us; and risks normally incident to the
exploration, development and operation 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 those factors outlined in
the 'Cautionary Statement Regarding Forward-Looking Statements' and
'Risks Factors' contained in Gold Reserve's filings with the Canadian
provincial securities regulatory authorities and U.S. Securities and
Exchange Commission, including Gold Reserve′s Annual Information Form
and Annual Report on Form 10-K for the year ended December 31, 2009,
filed with the Canadian provincial securities regulatory authorities and
U.S. Securities and Exchange Commission, respectively.

Gold Reserve Inc.

A. Douglas Belanger, President, 509-623-1500

Fax:
509-623-1634

www.goldreserveinc.com