Rusoro Mining Ltd. has settled all legal proceedings involving Gold Reserve Inc. Under the settlement, an order will be obtained from the Ontario Superior Court of Justice dismissing the legal action brought by Gold Reserve against Rusoro, and the counterclaim brought by Rusoro against Gold Reserve. Rusoro has agreed to pay Gold Reserve $250,000, issue Gold Reserve 2,500,000 common shares at a deemed value of $0.10 per share and issue Gold Reserve a conditional promissory note in the amount of $1 million.

The promissory note will only become due and payable in the event that Rusoro is successful in the litigation it has commenced against the Venezuelan Government seeking compensation for the nationalization of Rusoro’s gold assets in Venezuela. The issuance of the common shares is subject to acceptance for filing by the TSXV.