Gold Reserve Adjourns Special Shareholder Meeting.

SPOKANE, Wash.--(BUSINESS WIRE)--Dec. 30, 1998--Gold Reserve Corporation (TSE:GLR) (Nasdaq:GLDR) announced today that the shareholders voted to adjourn the special shareholder meeting until January 20, 1999 at 10:00 a.m. to be held at the corporate office in Spokane, Washington.

Gold Reserve is seeking shareholder approval to establish a Canadian parent company in order to expand its access to the Canadian capital markets and elevate the Company's profile among Canadian investors who generally are significant investors in resource companies. Shareholder approval of this proposal requires the affirmative vote of 66 2/3% of all shares outstanding.

Rockne J. Timm, President and CEO stated, "The Company has invested significant management and financial resources in the successful completion of this transaction because we believe it is essential to the Company's long-term success. Approximately 53% of the shareholders have voted to-date, with 97% casting their vote in favor of the transaction. Obviously, the holidays have had an impact on our ability to obtain the required approval of 66 2/3% of all outstanding shares by December 30, 1998. It is unfortunate that this year's tax loss for most of our Canadian shareholders will be deferred until the approval of the transaction."

The terms and conditions of this transaction, described in the Proxy Statement/Joint Prospectus dated November 30, 1998, will remain the same except for the adjournment of the shareholders meeting until January 20, 1999. Regarding the Equity Unit Election, the form of election and share certificate(s) must be received by the Exchange Agent by 5:00 p.m., Spokane, Washington time, on January 19, 1999.

This announcement is neither an offer to sell nor a solicitation of an offer to buy the securities of Gold Reserve Corporation or Gold Reserve Inc. Any such offer will only be made by means of a prospectus.