Gold Reserve confirms receipt of Permit to Affect for Choco 5

SPOKANE, WA, July 19 /CNW/ - Gold Reserve Inc. (TSX and AMEX: GRZ)
announced today it has received the Permit to Affect Natural Resources from
the Ministry of Environment and Natural Resources (MARNR) for its Choco 5
property located in Venezuela's El Callao mining district. The Company expects
to soon commence an aggressive exploration program on the property. The
Company will base its exploration effort out of its office in El Callao. The
Company's geologists have already identified some drill targets and are
commencing a geophysics and geochemistry program designed to identify other
targets.
Choco 5 is a 5,000 hectare concession located in the western end of the
El Callao mining district. Choco 5 is contiguous and adjacent to Bolivar Gold
Corp.'s (TSX: BGC) Choco 10 property, which has recently commissioned a new
6,000 tonne per day mill. Bolivar Gold and Gold Fields Limited (NYSE and YSE:
GFI) are also actively exploring other properties in the region and nearby
Hecla Mining Company (NYSE: HL) is developing Mina Isadora, which it expects
to place into production in 2006.
Doug Belanger, President of Gold Reserve, stated, "We are very pleased to
receive the Permit to Affect Natural Resources so soon after the receipt of
the Permit to Occupy the Territory. We are now in a position to move forward
with our exploration of the Choco 5 property. This adds a new element to Gold
Reserve in addition to the development of the Brisas project."
Gold Reserve Inc. is a Canadian company which has the Choco 5 gold
exploration property and the Brisas gold/copper project in southeastern
Venezuela. The Brisas project has 10.1 million ounces of gold and 1.29 billion
pounds of copper in proven and probable ore reserves. Further information on
Brisas tonnage and grades is available at www.goldreserveinc.com. A positive
production decision was made earlier this year on the Brisas project.

Certain statements included herein, including 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 Reserve's filings with the U.S. Securities and
Exchange Commission at www.sec.gov and the Annual Information Form and other
reports 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.