Gold Reserve Inc. Shareholder Updates

Gold Reserve Inc. (TSX:GRZ)(NYSE-Amex:GRZ) (the 'Company?) is announcing
the following updates to shareholders on the status of its NYSE Amex
continued listing and its ICSID international arbitration against the
Republic of Venezuela:

NYSE Amex Continued Listing

On October 27, 2011, the Company received notice from the staff (the
'Staff?) of the NYSE Amex LLC (the 'Exchange?) that the Staff had
accepted the Company′s plan to regain compliance with the Exchange′s
listing standards (the 'Plan?) by a targeted completion date of December
20, 2012. The Staff′s acceptance of the Plan marks the completion of the
first step in the Company′s process towards compliance with the
Exchange′s listing standards.

The Staff reiterated that the Company is not in compliance with Sections
1002(c) and 1003(c)(i) of the NYSE Amex Company Guide (the 'Company
Guide?) and, with the Exchange′s acceptance of the Plan, the Company′s
listing is being continued pursuant to an extension. The Plan provides
for an 18 month schedule (starting from the initial date of notice of
non-compliance, June 20, 2011) whereby the Company expects to obtain a
working interest in one or more acceptable mineral exploration
properties. The Company will continue to provide the Exchange staff with
updates relative to the initiatives detailed in the Plan, including the
specific milestones to be met by July 31, 2012, and December 20, 2012.

ICSID Arbitration

The Company's international arbitration against the Republic of
Venezuela regarding the expropriation of its Venezuelan investments
remains pending ? with the oral hearing scheduled to take place February
6-17, 2012. In accordance with the procedural calendar in the case, the
Company filed its Reply on July 29, 2011, updating its claim to $2.1
billion to account for interest accrued since its earlier filing. In
response to a request from Venezuela, the Tribunal agreed to amend the
procedural calendar to permit Venezuela to file its Rejoinder on
December 5, 2011. The Rejoinder is the last filing to be made prior to
the oral hearing.

Doug Belanger, President, stated, 'We are pleased with the acceptance of
our plan by NYSE ? Amex and with the progress of the arbitration to
date. The Company continues to pursue an amicable settlement of this
matter, but no assurance can be given at this time that we will be
successful in reaching a settlement.?

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

CAUTIONARY STATEMENT REGARDING 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:
our ability to satisfy the requirements of the plan of compliance
accepted by the staff of the NYSE Amex or other ongoing listing
standards; 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; the potential delisting of our Common Shares
and uncertainty regarding any appeal thereof; 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 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, 2010,
filed with the Canadian provincial securities regulatory authorities and
U.S. Securities and Exchange Commission, respectively.

FOR FURTHER INFORMATION:

Internet ? www.goldreserveinc.com

Gold Reserve Inc.

President

A. Douglas Belanger, 509-623-1500

Fax:
509-623-1634