Gold Reserve issues statement on Shareholder Rights Plan

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Gold Reserve issues statement on Shareholder Rights Plan

posted on Feb 03, 2009 09:14AM

SPOKANE, WA, Feb. 3, 2009 (Canada NewsWire via COMTEX) -- Gold Reserve Inc. (NYSE Alternext: GRZ) (TSX: GRZ) today issued the following statement in connection with Rusoro Mining Ltd.'s (TSX-V: RML) ("Rusoro") announcement that it intends to seek a hearing before the Ontario Securities Commission ("OSC") to cease trade the Gold Reserve Shareholder Rights Plan (the "Rights Plan"). Rusoro made an unsolicited offer on December 15, 2008 (the "Offer") to acquire all of the outstanding shares and equity units of Gold Reserve in consideration for three shares of Rusoro for each Gold Reserve share tendered under the Offer:

    <<
    "In the event that a hearing proceeds before the OSC with respect to the
    Rights Plan, we also intend to raise with the OSC the various significant
    and material deficiencies in the Offer documents and in Rusoro's public
    filings, many of which are set out in our Directors Circular of
    December 30, 2008 and other public statements. Our shareholders have
    indicated overwhelmingly that they do not want the Offer to proceed. We
    are confident that our shareholders will continue to recognize that
    Rusoro's Offer is opportunistic, financially inadequate and significantly
    undervalues Gold Reserve's assets and its overall contribution to the
    proposed combined company. Our Board and management team remain committed
    to ensuring that our shareholders receive full value for their
    investment. "
    >>

Gold Reserve urges its shareholders to REJECT Rusoro's opportunistic Offer and NOT TENDER any Gold Reserve shares into the Rusoro Offer.

If shareholders have already tendered any of their Gold Reserve shares, we urge them to withdraw them immediately. Shareholders who have tendered Gold Reserve shares into the Rusoro Offer and who wish to obtain assistance in withdrawing their Gold Reserve shares are urged to contact their broker or Laurel Hill Advisory Group, the information agent retained by Gold Reserve, at 1-888-295-4655.