Gold Reserve Comments on Recent Market Activity

At the request of Market Surveillance, on behalf of the Toronto Stock Exchange, Gold Reserve GRZ is issuing this press release to confirm that it is not aware of any material corporate developments which would account for the recent increase in its stock price and trading volume. The Company's international arbitration against the Republic of Venezuela regarding the illegal expropriation of its Venezuelan properties is proceeding well but there are no material developments with respect to the case at this time. The Company is also pursuing possible settlement of the arbitration but no assurances can be given at this time that it will be successful in reaching a settlement. The time table remains intact with Gold Reserve required to submit its reply on July 15, 2011 to Venezuela's counter memorial. The hearing on the merits is still scheduled for February 6, 2012. The Company is continuing to pursue the sales of equipment that was purchased for the Brisas project. Sales of this equipment will allow us to work with the Company's note holders on a possible restructuring or retirement of the notes. Gold Reserve is also pursuing other new opportunities in the mining industry but has nothing to report at this time.