Gold Reserve Awarded $740 Million by World Bank for Brisas Project

Gold Reserve (TSX:GRZ) has been awarded $740.3 million by the World Bank’s International Center for the Settlement of Investment Disputes after Venezuela expropriated the company’s Brisas project in 2009. The award represents $713 million for the fair market value of the project, $22.3 million for interest on the award and $5 million for reimbursement of legal and technical costs.

The Award represents $713 million for the fair market value of the Brisas Project, $22.3 million for interest on the Award since April 2008 based on the US Treasury Bill rate compounded annually and $5 million for reimbursement of legal and technical costs expended by the Company. Payment of the Award is due and payable immediately with any unpaid amounts accruing interest at Libor plus 2% per annum.

Gold Reserve and its legal counsel are evaluating the substantial text of the Award and expect to have further comments on the Tribunal’s decision in the near future. A copy of the full text of the Award will be posted on the Company’s website in the next few days.

Doug Belanger,President of Gold Reserve, said:

We feel vindicated by the Tribunal’s clear conclusion that the Venezuelan government acted unlawfully in terminating the Brisas Project in direct violation of the BIT. We are gratified to know that all of our hard work prior to the unlawful termination of the project and subsequently in the execution of our claim against the Venezuelan government has been rewarded

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