Gold Reserve reports recent drilling expands Brisas gold/copper deposit.

SPOKANE, Wash.--(BUSINESS WIRE)--May 1, 1997--Gold Reserve Corporation (TSE-GLR; NASDAQ-GLDR) is extremely pleased to report on recent exploration and development drilling on the Brisas property located in southeastern Venezuela. The results of exploration drilling continues to expand the previous delineated Brisas gold/copper mineralized deposit and the results of development drilling has improved the quality of the mineralized deposit. As previously reported, the current Brisas mineralized deposit is comprised of a northern area characterized as a gold/copper deposit and a southern area as a gold deposit (map available upon request.)

EXPLORATION DRILLING

Exploration drilling has been extremely successful, expanding the Brisas mineralization to the west and southwest. Due to this success, the previously announced 25,000 meter drill program has been expanded to 30,000 meters. Previous drill hole results were announced April 3, 1997 which indicated the Brisas mineralization continued to the west of the northern area and to the southeast of the southern area. Drilling recently completed confirms the results of earlier exploration drilling to the west of the northern area and to the south and southwest of the southern area.

WEST OF NORTHERN AREA

Several drill holes west of the northern area have mineralized intercepts greater than 100 meters thick with grades greater than one gram (.032 ounce) gold per tonne. In particular, drill hole No. 542 contained 108 meters of mineralization grading 1.39 grams (.045 ounce) gold per tonne and 0.19% copper. Other drill holes with mineralized intercepts greater than 100 meters and at least one gram of gold per tonne are holes No. 545, No. 555 and No. 565 (see table). Previously reported, drilling in this area encountered massive sulfide Blue Whale type material in three holes No. 546, No. 554 and No. 557. The drilling results in this area confirm a new zone of mineralization with good gold and copper grades. The assay results for hole No. 546 were previously reported and the encouraging results of holes No. 554 and No. 557 are detailed in the following table.

SOUTHWEST OF SOUTHERN AREA

Two drill holes No. 563 and No. 564, drilled farthest to the south and southwest of the southern area indicate that the mineralization is open to the south and southwest of the southern area. Drill hole No. 563 encountered 57 meters of gold mineralization grading 1.20 grams (.038 ounce) gold per tonne and drill hole No. 564 encountered 30 and 60 meter intercepts grading 1.60 grams (.051 ounce) and 1.08 grams (.035 ounce) per tonne, respectively (see table).

DEVELOPMENT DRILLING

The development drilling is being completed within the original 50 by 50 meter grid and the results of this drilling are encouraging as indicated by drill holes No. 567 and No. 572. Both drill holes encountered higher grade gold mineralization than expected. Drill hole No. 567 encountered 72 meters grading 1.18 grams (.038 ounce) gold per tonne and No. 572, a 51 meter intercept grading 1.21 grams (.039 ounce) gold per tonne (see table).

1997 WORK PROGRAM

Four rigs are currently drilling 24 hours a day. Eighty percent of the drilling is exploration and twenty percent is development within the previously delineated 50 by 50 meter drill grid. The revised 30,000 meter drill program including data compilation to be incorporated into the Brisas database should be completed during July and an update of the mineralized deposit is expected to be completed in early August. The Company expects to complete a pre-feasibility study during the latter part of the third quarter of 1997 and the final feasibility study during the first quarter of 1998. Currently, the Company is drilling hole No. 600 and approximately 25,000 meters of the 30,000 meter program has been completed. To date, approximately 120,000 meters have been drilled on the Brisas property.

Upon completion of the current 30,000 meter drill program, development drilling will continue in the northern and southern areas and exploration drilling will continue to the west, southwest, south and southeast of the current delineated mineralized deposit. In addition, exploration drilling will also occur in the El Remo and Mundo Nuevo areas.

Rockne J. Timm, President and CEO stated, "We are extremely pleased with the results of our current drilling program. Although further work is necessary, we can estimate a much larger and deeper mining pit extending to the west. The potential minable ounces could increase but at this time it is difficult to determine because some of the ounces in this area are already included in the mineralized deposit currently estimated to contain 6.4 million ounces of gold and 800 million pounds of copper. In addition, we are extremely pleased that the mineralized deposit appears open to the west and to the south"

Gold Reserve Corporation is exploring and developing the Brisas property in KM 88 in southeast Venezuela. Gold Reserve has cash and investments of approximately U.S. $39 million and no long-term debt. The mineralized deposit, based on the results of 496 drill holes, is estimated to be 6.4 million ounces of gold and 800 million pounds of copper -0-

The matters discussed in this news release include historical information and forward-looking statements. In accordance with the provisions of the Private Securities Litigation Reform Act of 1995, the Company cautions that important factors, as discussed from time to time in the Company's 1996 Form 10-K and other filings with the United States Securities and Exchange Commission, could cause actual results to differ materially from those in the forward-looking statements. -0-

Hole No.    Area                Interval  Intercept     Gold    Copper
                                 Meters    Meters      g/tonne     %

 542     West of Northern         9-18        9         0.92     0.04
          Area                 177-186        9         2.20      N/A
                               198-204        6         2.19     0.20
                               222-231        9         0.52     0.06
                               252-360      108         1.39     0.19
                               402-411        9         0.50     0.10

 545     West of Northern      156-168       12         0.87     0.02
          Area                 231-383      153         1.23     0.08

 554     West of Northern      141-147        6         0.59     0.03
          Area                 162-201       39         1.00     0.02
                               207-225       18         1.24     0.07
                               234-252       18         0.80     0.06
                               261-291       30         0.98     0.54

 555     West of Northern      165-171        6         1.95      N/A
          Area                 225-345      120         1.09     0.15
                               390-396        6         0.54     0.60

 557     West of Northern        54-60        6         4.53      N/A
          Area                 177-189       12         0.98     0.03
                               219-291       72         1.40     0.11
                               315-333       18         1.28     0.96
                               351-357        6         0.51     0.37

 563     Southwest of          216-273       57         1.20     0.02
          Southern Area        279-291        9         0.79      N/A
                               309-318        9         0.99     0.02
                               327-333        6         0.52     0.02
                               339-375       36         0.87      N/A

 564     Southwest of          204-234       30         1.60     0.03
          Southern Area        246-252        6         0.58      N/A
                               261-321       60         1.08      N/A

 565     West of Northern      255-366      111         1.13     0.10
          Area

 567     Northern Area --        81-90        9         0.65     0.21
          Infill               144-153        9         0.76     0.11
                               159-180       21         0.89     0.10
                               201-273       72         1.18     0.18

 568     West of Northern      159-168        9         1.23     0.09
          Area                 198-210       12         0.61     0.08
                               216-285       69         1.04     0.50
                               300-306        6         0.75     0.05

 572     Northern Area --          3-9        6         0.55      N/A
          Infill
         Vertical Hole          81-132       51         1.21     0.04
                               162-180       18         0.65     0.04
                               198-204        6         0.53     0.05

All holes drilled -- 60 degrees E inclination -- unless noted
One ounce of gold = 31.1034 grams
G/tonne = grams per tonne

CONTACT: Gold Reserve Corp., Spokane

A. Douglas Belanger

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