Gold Reserve Inc. Submits $1.928 Billion Arbitration Claim to World Bank's
ICSIDLast update: 9/28/2010 9:00:04 AMSPOKANE, Wash., Sep 28, 2010 (BUSINESS
WIRE) -- Gold Reserve Inc. (CA: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."