Gold Reserve announces conclusion of oral hearings in ICSID arbitration against Venezuela

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SPOKANE, WA, Feb. 21, 2012 /CNW/ - Gold Reserve Inc. (TSXV:GRZ) (NYSE:
GRZ) (Amex: GRZ) (the "Company") announces that the oral hearings held
at the World Bank in Washington, DC and presided over by a three-member
tribunal in the arbitration conducted under the auspices of the
International Centre for the Settlement of Investment Disputes
concluded, as scheduled, on February 17, 2012.




The hearings focused on the evidentiary record in the case and counsel
for both the Company and the Bolivarian Republic of Venezuela addressed
the issues of jurisdiction, liability and damages. The oral hearings
presented an opportunity for the arbitral tribunal to hear testimony
from fact witnesses and expert witnesses, as well as to address
questions to the parties.




Gold Reserve claims damages arising from violations of three provisions
of the Canada-Venezuela bilateral investment treaty resulting in the
effective expropriation of Gold Reserve's sizable investments in the
world-class Brisas gold/copper project and the promising Choco 5
property.




Gold Reserve seeks compensation corresponding to the restitution, or
fair market value, of the rights to develop the Brisas Project and
Choco 5, as of the date of the Tribunal's decision. Gold Reserve has
presented evidence that the fair market value of those rights as last
updated in its Reply dated July 29, 2011, is approximately $2.1
billion. The Tribunal will assess the evidence presented on this and
other matters in making its final decision.




Doug Belanger, President, stated, "The oral hearings were the
culmination of an extensive undertaking by the Company's counsel,
technical, legal and financial experts, as well as its employees, to
present Gold Reserve's case to the Tribunal. Upon review of the entire
record of evidence, it is clear that Gold Reserve's claims are well
supported."




The Tribunal granted both parties the opportunity to submit a
post-hearing brief, to be filed simultaneously, in order to comment in
conclusion on the full evidentiary record, as is typically permitted in
such arbitrations. Those briefs are due to be filed by March 16,
2012. The Tribunal may issue its decision thereafter. It is typical
for tribunals in this type of arbitration to require six to eighteen
months (the historical average is approximately 1.2 years) to finalize
and issue its decision.




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 to satisfy the continued
listing requirements of the TSX.V 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

Company Contact A. Douglas Belanger, President 926 W. Sprague Ave., Suite 200 Spokane, WA 99201 USA Tel. (509) 623-1500 Fax (509) 623-1634