Grz call yesterday seemed to bring some positive news.

1. Venzuela intends to commence the project

2. Venzuela was interested in developing all of km88

3. Venzuela is interested to know exactly how much was done by Gold Reserve, reports man hours etc. - How valuable this information would be to a new company or how much would the new company have to pay.

4. Venzuela has been settling the arbitration cases, I believe 5 were settled out of 13 filed. somewhat in order of filing. Some, however have gone to the decision stage.

Some cons.

1. The Grz settlement seems like it is going to take more time and it seems like Vz is not looking for a piece meal deal.

2. I have asked RM recently if Crystallex or the JV was involved at all with GRZ property and he said no.

3. Equipment is being sold which may delay development of the joint property.