Gold Reserve Announces Cost Reduction Program and Stock Option Grants  

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SPOKANE, Wash. — Gold Reserve Inc. (TSX.V:GRZ) (OTCQB:GDRZF) (“Gold Reserve” or the “Firm“) publicizes that its Board of Administrators has authorized a three-year price discount program to lower money working prices whereas administration continues its efforts to realize the Firm’s aims which embody amassing the remaining quantities owed to the Firm by Venezuela pursuant to the present Settlement Settlement and Arbitral Award and to comprehend most shareholder worth because it pertains to the Firm’s 45% curiosity within the Siembra Minera gold – copper mission because the scenario in Venezuela continues to evolve.

As a part of these measures, the Firm has entered into voluntary agreements with three of its executives (“Senior Administration”), its administrators and sure technical consultants to cut back money compensation. Senior Administration being James Coleman, Chairman; Rockne Timm, CEO; and Doug Belanger, President, have voluntarily agreed to cut back their money compensation for the following 36 months starting from 25% to 50%. As well as, the administrators and sure technical consultants have agreed to cut back compensation till sure circumstances change. The estimated compensation reductions will lead to annual money financial savings of roughly US$1,120,000.

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At the side of the money compensation discount and the dearth of historic inventory possibility grants since 2017 to the Senior Administration, the Board of Administrators intends to grant as much as 2,309,250 inventory choices to officers and administrators and 598,750 inventory choices to consultants. These inventory choices can have a 10-year time period and will likely be issued pursuant to the Firm’s 2012 Fairness Incentive Plan (as amended, the “Possibility Plan“) as soon as approval of the modification as described beneath is acquired.

As well as, the Firm has developed an incentive bonus plan through which Senior Administration will take part. The bonus plan contemplates the fee of a bonus on the achievement of sure particular aims associated to the event of the Firm’s enterprise and prospects in Venezuela on or earlier than December 31, 2023. If an goal shouldn’t be achieved by December 31, 2023 the quantity of the bonus is decreased by 40% if the target is achieved on or earlier than December 31, 2024, with no bonus payable thereafter. For instance, if an goal is achieved by December 31, 2023, the bonus funds would approximate US$3,200,000 primarily based on sure assumptions. The precise bonus funds may very well be considerably much less or extra.

The agreements entered into with Senior Administration additionally make clear funds to be made upon termination of employment in sure circumstances together with retirement and/or after a change of management. Within the occasion of separation of employment by the Firm (aside from “for trigger”), the Firm, on the election of the person, has the flexibility to enter right into a three-year Consulting Settlement to have continued entry to the information and experience of such particular person and permit for an orderly succession course of.

The Firm has amended and restated the Possibility Plan to repair the variety of Class A Frequent Shares which may be issued upon the train of choices granted thereunder to 9,939,500 shares. According to historic observe, such fastened quantity represents lower than 10% of the presently issued and excellent Class A Frequent Shares together with the 4,679,565 presently excellent choices. All different phrases of the plan stay the identical. Approval of this modification is being sought from the TSX Enterprise Alternate (the “TSXV”) and doesn’t require the approval of shareholders.

For a few years the Firm and eligible staff have made money contributions to a 401(okay) Plan for retirement financial savings. For the Firm’s 2020 contribution the Board of Administrators has really helpful and the Trustees of the 401(okay) Plan have determined to make use of the contribution to accumulate extra Class A Frequent Shares for the accounts of the collaborating staff. As well as, Mr. Coleman, as a resident of Canada, who doesn’t take part within the 401(okay) Plan however is entitled to an equal fee, will use his fee to subscribe for extra Class A Frequent Shares. The variety of extra Class A Frequent Shares to be issued with respect to the 401(okay) Plan and Mr. Coleman is de minimus. The Board of Administrators is anticipated to formally approve such non-public placements shortly. This non-public placement is topic to the approval of the TSXV.

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Additional data relating to the Firm could be situated at www.goldreserveinc.com, www.sec.gov, and www.sedar.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This launch incorporates “forward-looking statements” inside the which means of relevant U.S. federal securities legal guidelines and “forward-looking data” inside the which means of relevant Canadian provincial and territorial securities legal guidelines and state Gold Reserve’s and its administration’s intentions, hopes, beliefs, expectations or predictions for the longer term. Ahead-looking statements are essentially primarily based upon plenty of estimates and assumptions that, whereas thought-about cheap by administration right now, are inherently topic to vital enterprise, financial and aggressive uncertainties and contingencies.

We warning that such forward-looking statements contain identified and unknown dangers, uncertainties and different dangers that will trigger the precise outcomes, monetary outcomes, efficiency, or achievements of Gold Reserve to be materially completely different from our estimated outcomes, future outcomes, efficiency, or achievements expressed or implied by these forward-looking statements, together with with out limitation the dangers and uncertainties related to U.S. and Canadian Sanctions towards Venezuela and/or its authorities officers, dangers related to the continued failure by Venezuela to honor its commitments beneath the Settlement Settlement and/or the Award; dangers related to the gathering of the Award and substantial focus of our operations and belongings in Venezuela and dangers that any future Venezuelan administration will fail to respect the agreements of the prior administration. As well as, with respect to the issues disclosed on this information launch there are additionally uncertainties and dangers arising from: our skill to realize anticipated prices reductions or bonus aims, retain our key executives and consultants as staff or consultants or get hold of related regulatory approvals, the place required; and the share worth of the Class A Frequent Shares at varied closing dates and when and if sure occasions affecting the Firm’s enterprise and affairs happen. This checklist shouldn’t be exhaustive of the elements that will have an effect on any of Gold Reserve’s forward-looking statements. For a extra detailed dialogue of the danger elements affecting the Firm’s enterprise, see the Firm’s Annual Info Kind and Administration’s Dialogue & Evaluation for the 12 months ended December 31, 2020 which have been filed on SEDAR and can be found beneath the Firm’s profile at www.sedar.com and which kind a part of the Firm’s Kind 40-F for the 12 months ended December 31, 2020 which have been filed on EDGAR and can be found beneath the Firm’s profile at www.sec.gov/edgar.

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Traders are cautioned to not put undue reliance on forward-looking statements. All subsequent written and oral forward-looking statements attributable to Gold Reserve or individuals appearing on its behalf are expressly certified of their entirety by this discover. Gold Reserve disclaims any intent or obligation to replace publicly or in any other case revise any forward-looking statements or the foregoing checklist of assumptions or elements, whether or not because of new data, future occasions or in any other case, topic to its disclosure obligations beneath relevant guidelines promulgated by the Securities and Alternate Fee and relevant Canadian provincial and territorial securities legal guidelines.

Neither the TSX Enterprise Alternate nor its Regulation Providers Supplier (as that time period is outlined in insurance policies of the TSX Enterprise Alternate) accepts duty for the adequacy or accuracy of this launch.

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Contacts

Gold Reserve Inc. Contact
A. Douglas Belanger, President
999 W. Riverside Ave., Suite 401
Spokane, WA 99201 USA
Tel: (509) 623-1500
Fax: (509) 623-1634