Business Trends

Gold Reserve Provides Litigation Update

In Uncategorized on April 1, 2009 at 6:24 pm

Gold Reserve Inc. (TSX:GRZ)(NYSE Amex:GRZ) announced today that Rusoro Mining Ltd. (TSX-V:RML) (“Rusoro”) has filed in the Ontario Superior Court of Justice a “Statement of Defence and Counterclaim” to an action filed December 16, 2008 by the Company against Rusoro and Endeavour Financial International Corporation.

The action filed by the Company in December 2008, sought an injunction restraining Rusoro and Endeavour from proceeding with Rusoro’s unsolicited offer which was granted by the Courts on February 10, 2009, monetary damages of Cdn $550 million, and various other items.

In the Statement of Defence and Counterclaim, Rusoro denies the Company’s claims and counterclaims against the Company for, among other things, damages of Cdn $ 102.5 million allegedly arising from the Company’s successful motion for an interlocutory injunction restraining Rusoro from making a hostile take-over bid for the Company.

Rusoro further states, “Rusoro has suffered damages as a result of the interlocutory injunction including, but not limited to, the lost opportunity to acquire Gold Reserve based on an exchange of three Rusoro shares for each share of Gold Reserve, and the costs associated with the Rusoro Offer, all of which have been thrown away as a result of the interlocutory injunction and for all of which Gold Reserve is liable,” and “Rusoro has also suffered damages as a result of Gold Reserve’s failure to restore to its previous state the land it used to access its Choco 5 property.”

Doug Belanger, President of Gold Reserve, said, “Regarding the interlocutory injunction, we presented our case and they presented theirs and the Judge ordered the interlocutory injunction. In respect of their claim for the lost opportunity to acquire the Company, it is important to note that less than 3% of our shareholders tendered to their offer.”

Regarding the above noted claims we will take the appropriate legal actions and defend against these matters.

Gold Reserve Inc. is a Canadian company, which holds the rights to the Brisas gold/copper project and the Choco 5 gold exploration property in Bolivar State, Venezuela.

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