SPOKANE, WA, Oct. 26 /CNW/ - Gold Reserve Inc. (NYSE-Amex: GRZ) (TSX:

GRZ) reported today that stories in the press relating to the takeover by the

Government of Venezuela of the Brisas Property in southeastern Venezuela are

erroneous. Personnel, apparently from CVG-Minerven, visited the Brisas Camp on

Thursday claiming that they were there to assume control of the Brisas Del

Cuyuni Concession. The individuals who arrived at the camp did not appear to

have any written authorization to conduct such action on behalf of the

Government. Thus, their actions did not appear to be legally supported. In any

event, any action to assume control of the property without recognizing the

status of the underlying hard rock concession, which contains 97% of the

economic value of the mineral deposit, would be inconsistent with Venezuelan

law.

The Company on Wednesday October 21st filed its Request for Arbitration

under the Canada-Venezuela bilateral investment treaty before the

International Centre for the Settlement of Investment Disputes of the World

Bank. This evident retaliation against the Company is a further demonstration

of the Government's wrongful treatment of Gold Reserve and its investments in

Venezuela.

The Company's staff at Brisas advised the persons who arrived on the

property that the Company will respond, in accordance with the applicable

Venezuelan laws, only to a duly authorized written request from the Government

in respect of the property.

Doug Belanger, President of Gold Reserve stated, "We are very

disappointed by this evident retaliatory action and have sent letters to the

relevant authorities in the Government informing them of this wrongful

conduct. Gold Reserve has always respected the laws of Venezuela and has the

right to be treated fairly on the basis of the rule of law."

In the past few weeks there has been an encroachment on the Brisas

property of small illegal miners and the Company has sent numerous formal and

urgent requests to the relevant Government agencies to assist in the removal

of these miners. However, the government response has been limited and the

level of mining activity is increasing daily. The Company is very concerned

about the safety of its employees as well as the safety of these illegal

miners. Sadly, just a few weeks ago several illegal miners were killed on the

Las Cristinas property adjacent to Brisas, when a pit collapsed around them

due to the unsafe conditions in which they work. Also, this type of illegal

mining activity inevitably results in serious environmental degradation. Gold

Reserve will not be held responsible for this kind of illegal activity on the

property when the Government fails to discharge its responsibilities in these

matters.

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 or process of any potential proceedings under the Venezuelan legal

system or before arbitration tribunals as provided in investment treaties

entered into between Venezuela, Canada and/or Barbados to determine

compensation due to Gold Reserve resulting from its claims in arbitration

against the Venezuelan government and its agents and agencies, or if the

Brisas Project is transferred to the Venezuelan government and the parties do

not reach agreement on compensation; concentration of operations and assets in

Venezuela; corruption and uncertain legal enforcement; 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 Venezuelan operations (including changes in previously

established laws, legal regimes, rules or processes); the ability to obtain,

maintain or re-acquire the necessary permits or additional funding for the

development of the Brisas Project; the result or outcome of the trial

regarding the enjoined hostile takeover bid for Gold Reserve; significant

differences or changes in any key findings or assumptions previously

determined by us or our experts in conjunction with our 2005 bankable

feasibility study (as updated or modified from time to time) due to actual

results in our expected construction and production at the Brisas Project

(including capital and operating cost estimates) or our inability to undertake

such construction or production; the method and manner of our determination of

reserves, risk that actual mineral reserves may vary considerably from

estimates presently made; impact of currency, metal prices and metal

production volatility; fluctuations in energy prices; changes in proposed

development plans (including technology used); our dependence upon the

abilities and continued participation of certain key employees; the prices,

production levels and supply of and demand for gold and copper produced or

held by Gold Reserve; the potential volatility of Gold Reserve's Class A

common shares; the price and value of Gold Reserve's notes, including any

conversion of notes into Gold Reserve's Class A common shares; the prospects

for exploration and development of projects by Gold Reserve; and risks

normally incident to the operation and development 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 Notes" 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 20-F for the

year ended December 31, 2008, filed with the Canadian provincial securities

regulatory authorities and U.S. Securities and Exchange Commission,

respectively, on March 31, 2009.

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/For further information: Internet - www.goldreserveinc.com, Company

Contact: A. Douglas Belanger, President, 926 W. Sprague Ave., Suite 200,

Spokane, WA, 99201, USA, Tel. (509) 623-1500, Fax (509) 623-1634/