On November 9, 2009 our Request for Arbitration under the Additional Facility Rules of the Centre for Settlement of Investment Disputes, against the Bolivarian Republic of Venezuela ("Respondent"), was registered and shortly thereafter the Tribunal was established. We are seeking compensation in the arbitration for all of the loss and damage resulting from what we believe to be Venezuela's wrongful conduct which includes the full market value of the legal rights to develop the Brisas Project. Our current arbitration efforts consist of engaging and assisting technical, legal, and financial experts, preparing for the initial meeting with the Respondent and the three member arbitration tribunal and developing and filing our initial pleadings, the filing of which is expected to occur in 2010.

As a result of the expropriation of the Brisas Project by Venezuela and our loss of control and physical access to the project in October 2009, we recorded a $150.7 million non-cash write-off of the carrying value of the expropriated assets, including Brisas equipment on order of approximately $14.5 million, resulting in a consolidated net loss after extraordinary item for the year ended December 31, 2009 of approximately $165.5 million. Although we have been successful with our efforts to reduce controllable costs as evidenced by the reduction in loss before extraordinary item in 2009 compared to 2008, our efforts have been partially obscured by the non-cash adjustment for the expropriation of the Brisas Project.

Since acquiring the Brisas Concession in 1992, we have spent close to $300 million on the project (including equipment recorded in the Consolidated Balance Sheet and financial, legal and engineering costs incurred in support of our Venezuelan operations and the recent write-down of previously capitalized costs associated with our Venezuelan operations recorded in the Consolidated Statement of Operations).

We ended the year with total financial resources, (cash and cash equivalents, restricted cash and marketable securities), of approximately $81.2 million. Management continues with efforts to dispose of certain Brisas Project assets to mitigate its losses and provide working capital for future activities.

Our primary financial obligation is the 5.50% senior subordinated notes which may be settled in cash or common shares in the event the holder chooses the one-time option to put the notes back to the Company for repurchase on June 15, 2012. Management is evaluating various options to redeem, restructure or otherwise modify the terms of the subordinated notes.

We are actively pursuing alternative mining prospects. The timing and structure of any new investment or transaction is conditional on available funds, the sale of the remaining equipment and availability of potential future financings.

Considering our current cash and investment balances, funds available from potential future Brisas Project asset sales and the terms of the subordinated notes, we believe that the Company has sufficient capital to fund its current activities through 2011. The successful execution of our objectives will be facilitated by the Company's senior management team which has substantial technical, financial and administrative experience.

Gold Reserve will hold a conference call to discuss the Company's financial results for the year ended December 31, 2009 on Wednesday, April 7, 2010 at 4:30 p.m. Eastern daylight time (1:30 p.m. Pacific daylight time). Details will be released shortly.