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GOLD RESERVE ANNOUNCES FORMATION OF VENEZUELAN SUBSIDIARY

    GOLD RESERVE ANNOUNCES FORMATION OF VENEZUELAN SUBSIDIARY
    SPOKANE, Wash., Nov. 18 /PRNewswire/ -- Gold Reserve Corp. (NASDAQ: GLDR) announced today that it is forming a Venezuelan subsidiary to mine for diamonds and gold.  The new company is to be known as Compania Minera Unicornio, C.A., or Unicorn Mining Co. ("Unicorn").  Gold Reserve, on behalf of Unicorn, has purchased a Venezuelan company with mining equipment, several buildings and mining rights to 3,707 acres in the Guri-El Merey District, a major diamond and gold producing region of Venezuela.  Diamonds and gold have previously been recovered, using small scale, rudimentary methods, from the property known as the Alfa Concessions.  Unicorn plans to use large scale mining and high technology recovery methods to increase the production from the Alfa Concessions.  Venezuelan government records indicate that the Guri El-Merey District has produced over 1 million carats of gem quality diamonds.
    To finance mining activities in Venezuela, Unicorn plans to raise between $7 and $9 million (US) through the issuance of common shares and convertible, redeemable bonds using the facilities of the Caracas Stock Exchange.  Unicorn expects to finalize an underwriting agreement in the near futures, and upon the completion of the offering in the first quarter of 1992, Unicorn expects to list its shares on the Caracas Stock Exchange.  Gold Reserve intends to maintain a majority interest in Unicorn.
    Rockne J. Timm, president of Gold Reserve and Unicorn stated, "We have been working on the Unicorn project for over a year.  We have analyzed the potential benefits of Venezuela versus other areas, and due to the recent shift in its political and economic climate, Venezuela is one of the most attractive areas in the world to invest. The Alfa Concessions are expected to produce gold as well as diamonds and we have commenced acquisition discussions with holders of concessions contiguous to the Alfa Concessions.  In addition, Unicorn plans to explore for gold and diamond properties in other regions of Venezuela.  We are very excited about the potential for success in Venezuela."
    Venezuela has recently changed a number of its tax, foreign investment and currency laws, making Venezuela more attractive to foreign companies.  Venezuela has long been recognized as a country rich in natural resources and is one of the largest suppliers of oil to the United States.  Venezuela is encouraging foreign investment and one of its objectives is to become a major mining nation.  In addition, the Caracas Stock Exchange is undergoing a major modernization and public relations program to encourage foreign investment.  In a recent political and economic global ranking of 129 countries published by the Wall Street Journal, Venezuela placed 25th in the world, the highest of all Latin American countries.
    -0-       11/18/91
    /CONTACT:  A. Douglas Belanger of Gold Reserve Corp., 509-623-1500/
    (GLDR) CO:  Gold Reserve Corp.; Unicorn Mining Co. ST:  Washington IN:  MNG SU: JH-LM -- SE011 -- 4697 11/18/91 18:13 EST
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Publication:PR Newswire
Date:Nov 18, 1991
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