Brisas Reserves Increase to 7.48 Million Ounces of Gold.

Business Editors

SPOKANE, Wash.--(BUSINESS WIRE)--Aug. 5, 2003

Gold Reserve Inc. (Nasdaq:GLDR)(TSX:GLR.A) is very pleased to announce a substantial increase in mineral reserves at its Brisas project to 7.48 million ounces of gold from 6.7 million ounces, and an increase to 1.08 billion pounds of copper from 870 million pounds.

Behre Dolbear & Company, Inc. of Denver, Colorado has completed a reserve analysis using both the traditional smelter and Cominco Engineering Services Ltd. (CESL) processes for treating the copper concentrates. The immediate advantage of the CESL process is increased recovery of copper and gold from the copper concentrates and reduced transportation costs. Two economic pit designs have been developed and the results of the proven and probable mineral reserve estimates are summarized in the following table:

                        Brisas Mineral Reserve

              Reserve     Gold     Gold    Copper   Copper  Strip
               Tonnes    Grade    Ounces   Grade     lbs.   Ratio
             (millions)  (gpt)  (millions)  (%)   (millions)
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    CESL
 Pit Design    328.5     0.708    7.48     0.150    1,083    1.80
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  Smelter
 Pit Design    256.6     0.805     6.64    0.135     764     2.19
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The in-pit reserves have been estimated in accordance with the SME Reporting Guide, CIMM Standards as adopted by CSA National Instrument 43 - 101. Both mineral reserve estimates were based on metal prices of US $325 per ounce for gold and US $0.85 per pound for copper at an internal revenue cutoff of $3.30 per tonne. Previous estimates by the Company of mineral reserves utilized traditional smelter costs and metal prices of US $325 per ounce for gold and a US $0.90 copper price.

Behre Dolbear has concluded that the Brisas mineral reserve estimates are reliable for inclusion in the project's feasibility study, and that there is upside potential for additional mineral reserves at the Brisas project. As a result of Behre Dolbear's work, the Company is evaluating additional drilling down dip along the entire length of the deposit, southwest of the current pit, as well as in the El Remo area.

Rockne J. Timm, President and CEO stated, "We are pleased with the substantial increase in mineral reserves, and we are currently reviewing Behre Dolbear's recommendations. With mineral reserves of 7.48 million ounces of gold and 1.08 billion pounds of copper, Brisas is one of the largest undeveloped gold projects in the world. The Company has 24.3 million shares outstanding with each share backed by 0.3 ounces of gold, resulting in one of the highest leverages to the gold price in the industry. At today's stock price of US $1.79 per share, the market is valuing the reserves at US $4.20 per ounce in the ground. We believe this valuation is too low in relationship to other deposits of this magnitude."

The qualified persons involved in the property evaluation and the resource and reserve estimates are Dr. Qingping Deng, C.P.Geol. of AIPG and Ing. Baltazar Salano Rico of Behre Dolbear. In addition, Brad Yonaka a geological consultant for Gold Reserve was involved in the geologic input.

The Company is also pleased with the recent announcement by Bolivar Gold Corp. regarding the formation of the El Callao Joint Venture with Gold Fields Limited, one of the largest gold producers in the world. On July 8, 2003 the Company and Bolivar Gold agreed to jointly explore the Choco 5 property in the El Callao district in Venezuela. It is anticipated that Bolivar Gold will contribute its Choco 5 joint venture interest to the El Callao Joint Venture with Gold Fields. As a result, we look forward to working with Bolivar Gold and Gold Fields to unlock the tremendous potential of this prolific gold district.

Gold Reserve Inc. is a Canadian company developing the Brisas gold copper project in Southeastern Venezuela. The Company has over US $11 million in cash and investments and no long-term debt.

Certain statements included herein, include those that express management's expectations or estimates of our future performance, constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management are inherently subject to significant business, economic and competitive uncertainties and contingencies. We caution that such forward-looking statements involve known and unknown risks, uncertainties and other risk factors that may cause the actual financial results, performance, or achievements of Gold Reserve to be materially different from our estimated future results, performance, or achievements expressed or implied by those forward looking statements. These are discussed in greater detail in Gold Reserves 20-F as filed with the U.S. Securities and Exchange Commission at www.sec.gov and the Annual Information Form filed with Canadian provincial securities commissions at www.sedar.com. Gold Reserve expressly disclaims any intention or obligation to update or revise any forward looking statement whether as a result of new information, events or otherwise.