Mr. Rockne Timm reports

OFAC PUBLISHES GUIDANCE WITH RESPECT TO ITS AUTHORIZATION OF THE PROCESS TO BE USED TO SELL THE SHARES OF CITGO'S HOLDING COMPANY FOR THE POTENTIAL BENEFIT OF CERTAIN CREDITORS OF VENEZUELA INCLUDING GOLD RESERVE

Gold Reserve Inc. has noted that on May 1, 2023, the U.S. Office of Foreign Assets Control (OFAC) published guidance stating that it will not take enforcement action against individuals or entities participating in the previously announced sales process for the shares of PDV Holding Inc. (PDVH), the indirect parent company of CITGO Petroleum Corp.

The sales process of the PDVH shares is being overseen by the United States District Court for the district of Delaware (the Delaware court).

OFAC's guidance confirmed that a licence will be required before any sale of the PDVH shares is executed but it also stated that it intends to implement a favourable licensing policy in connection with any sale and that, in making these licensing determinations, it is "committed to fair and equivalent treatment of potential creditors."

As previously announced by Gold Reserve, the company was granted a conditional writ of attachment fieri facias by the Delaware Court allowing Gold Reserve to be treated the same as certain other creditors (as detailed in the applicable court documents filed with the Delaware court) of the Bolivarian Republic of Venezuela (the Republic of Venezuela). On March 23, 2023, the Delaware court granted the other creditors conditional writs of attachment regarding the shares of PDVH on the basis that Petroleos de Venezuela S.A. (also known as PDVSA), the holding company of PDVH, is the alter ego of the Republic of Venezuela, and therefore its property is subject to attachment and execution by judgment creditors of the Republic of Venezuela.

Based on recent OFAC guidance, writs of attachment may now be filed for without prior OFAC authorization but, as noted herein, any sale transactions in the PDVH shares will continue to require OFAC authorization.

Gold Reserve's writ of attachment provides it with the opportunity to potentially enforce its September, 2014, arbitral award and corresponding November, 2015, United States judgement by participating in proceeds of the potential sale of the PDVH shares.

OFAC's position concerning the sales process was reported (with additional guidance provided by OFAC thereafter) in the previously announced status report that was filed by the special master on April 30, 2023.

As previously announced, the company and the other creditors have been directed by the Delaware court to file a joint status report on May 5, 2023, to include a proposed briefing schedule for including additional judgements, such as the company's, in the existing sales process for the PDVH shares.

PDVSA has filed a notice of appeal in respect of the decision of the Delaware court to grant the company, and the other creditors, the writs of attachment fieri facias. It is expected that the resolution of such appeal will take between six to 18 months, with no assurances as to timing or outcome. PDVSA filed a motion to stay the company's action (and actions of the other creditors) during the pendency of this appeal, but the Delaware court denied that motion. PDVSA has now requested the same relief from the appellate court via an "emergency motion."

Rockne J. Timm, chief executive officer, stated: "With OFAC's guidance on this matter, we look forward to taking the next steps to have our writ of attachment filed and evaluating and entering the sales process to potentially enforce our September, 2014, arbitral award and corresponding November, 2015, U.S. judgement of approximately $994-million (U.S.) (inclusive of interest). Also, the company remains open in compliance with applicable U.S. and Canadian sanctions, to resolving matters outside of our various legal cases with respect to the restoration of Siembra Minera's mining rights, potential new arbitration related thereto and the collection of amounts owed to the company."

Further information on PDVH and CITGO Petroleum Corp.

PDVH is the indirect parent company of CITGO Petroleum. Based on public disclosure, CITGO Petroleum operates three refineries in the U.S., and wholly and/or jointly owns 38 active terminals, six pipelines, and three lubricants blending and packaging plants. CITGO Petroleum ranks itself as the fifth-largest independent refiner in the U.S. with approximately 3,300 employees and a combined crude capacity of approximately 769,000 barrels per day (bpd).