Gold Reserve Ltd. · TSXV:GRZ
Gold Reserve — Merger or Acquisition (December 2008)
22 slides from Gold Reserve's merger presentation, Dec 15, 2008
Slide 1: Premium Bid For and Logical Combination with Gold Reserve Inc.
Gold Reserve Inc. Premium Bid For and Logical Combination with Unlocking One of the World’s Most Prolific Gold Mining Regions December 15, 2008
Slide 2: Additional Information About the Offer
2 Rusoro has filed an offer and circular and related documents (the “Circular”) with Canadian securities regulatory authorities and a registration statement, prospectus, tender offer statement and related documents with the United States Securities and Exchange Commission (the “SEC”) relating to the
Slide 3: Forward-looking statements
3 This presentation contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to as “forward-looking statements”). Forward-looking statements include possible events, statements with respect to possible events, the pr
Slide 4: Cautionary note regarding reserves and resources
4 This presentation and other information released by Rusoro uses the terms “reserves”, “proven reserves”, “probable reserves”, “resources”, “measured resources”, “indicated resources” and “inferred resources”, as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects (“N
Slide 5: The Bid – Key Benefits
5 • 3 Rusoro shares per Gold Reserve share o Implied bid value of Cdn$1.08 per Gold Reserve share, compared to Gold Reserve’s closing price of Cdn$0.45 1 o 209% premium on 30-day volume weighted basis 2 o 140% premium using closing prices December 12, 2008 3 • Rusoro management’s proven ability to o
Slide 6: Further Benefits to Gold Reserve Shareholders
6 E N D E A V O U R F I N A N C I A L 6 • Further benefits of the combination to Gold Reserve Shareholders include: Rusoro’s existing production of +100,000 ounces per annum from two operating mines (Choco 10 & Isidora), with organic growth plan underway Ongoing participation in Brisas through all-s
Slide 7: Complementary asset base with concrete synergies
7 E N D E A V O U R F I N A N C I A L 7 • Complementary asset base with concrete synergies Combined Company Asset Base Choco 10, El Callao (Rusoro) Production and Development Choco 5, El Callao (Gold Reserve) Exploration SREP/Emilia Mill, El Dorado (Rusoro) Development Yuruan, KM88 (Rusoro) Explorat
Slide 8: Post Transaction Ownership
8 E N D E A V O U R F I N A N C I A L 8 Post Transaction Ownership • Rusoro’s premium all stock offer enables Gold Reserve Shareholders to participate in the premier Venezuelan gold company o All share deal provides certain Gold Reserve Shareholders an opportunity to participate in a tax efficient m
Slide 9: Rusoro: junior gold producer in early stages of growth
9 E N D E A V O U R F I N A N C I A L 9 • Rusoro is a junior gold producer in the early stages of its growth profile o Gold resources of 7.10 million ozs M&I and 7.02 million ozs Inferred o Producing in excess of 100,000 attributable ozs in 2008 from twooperating mines (Choco 10 & Isidora) o Third m
Slide 10: Premium offer to Gold Reserve Shareholders
10 E N D E A V O U R F I N A N C I A L 10 Premium offer to Gold Reserve Shareholders 1. Based on the volume-weighted average price of Rusoro and Gold Reserve on the TSXV and TSX, respectively, for the trading days preceding announcement. Premium to Gold Reserve Share Price Premium Value Offer To Gol
Slide 11: Exceptional Bid Value Confirmed Through Historic Context
11 E N D E A V O U R F I N A N C I A L 11 Exceptional Bid Value Confirmed Through Historic Context Both currently and historically the proposed 3 to 1 exchange ratio offers an attractive premium over Gold Reserve’s share price • Consistently strong bid value – now and historically 1. Source: Bloombe
Slide 12: Offer Represents Exceptional Value to Gold Reserve Shareholders
12 E N D E A V O U R F I N A N C I A L 12 Offer Represents Exceptional Value to Gold Reserve Shareholders Rusoro’s C$1.08 per share bid value • Rusoro’s bid represents exceptional value under a range of market based valuations * Gold Reserve’s net cash = cash and restricted cash balances as of Gold
Slide 13: Timing and Bid Mechanics
13 E N D E A V O U R F I N A N C I A L 13 • Offer by way of all-stock takeover bid • Key Conditions o 66 2/3% minimum tender threshold o Approval of Gold Reserve noteholders through the execution of a supplemental indenture o Shareholder Rights Plan being waived, invalidated or cease traded • Mechan
Slide 14: Concluding Comments
14 E N D E A V O U R F I N A N C I A L 14 • Exceptional premium offer • Existing production with excellent production growth profile • Logical combination of neighbouring complimentary assets • Ongoing participation in Brisas development and regional growth • Motivated and effective management with
Slide 15: Appendix A: Technical Disclosure Relating to Assets
15 E N D E A V O U R F I N A N C I A L 15 Appendix A Technical Disclosure Relating to Rusoro’s and Gold Reserve’s Assets
Slide 16: Technical Disclosure: Reserves
16 E N D E A V O U R F I N A N C I A L 16 Technical Disclosure Relating to Rusoro’s and Gold Reserve’s Assets Project Category Tonnage Au Grade Au Cu Grade Cu Million g/t ozs (000's) percent M pounds Las Brisas (a) Proven 238 0.71 5,429 0.12 643 Probable 245 0.61 4,800 0.14 746 Sub total Las Brisas
Slide 17: Measured & Indicated Resources – Inclusive of Reserves
17 E N D E A V O U R F I N A N C I A L 17 Technical Disclosure Relating to Rusoro’s and Gold Reserve’s Assets Measured & Indicated Resources – Inclusive of Reserves Projects Category Tonnage Au Grade Au Cu Grade Cu Million g/t ozs (000's) percent M pounds Las Brisas (a) Measured 256 0.71 5,853 0.12
Slide 18: Inferred Resources
18 E N D E A V O U R F I N A N C I A L 18 Technical Disclosure Relating to Rusoro’s and Gold Reserve’s Assets Projects Tonnage Au Grade Au Cu Grade Cu Mt g/t ozs (000's) percent M pounds Las Brisas (a) 121.1 0.59 2,278 0.12 316 Choco 10 (4) 42.9 2.19 3,017 Increible 6 17.5 1.95 1,100 Isidora (4) 0.1
Slide 19: Notes on resources and reserves
19 E N D E A V O U R F I N A N C I A L 19 NOTES: All Resources reported include Reserves. (a) Resources for Las Brisas are taken from Gold Reserve’s public filings and are reported at a cut-off of 0.4 g/t AuEq where AuEq = Au (gpt) + Cu (%)*1.16. Notes for all Rusoro Resources and Reserves: (1) Rese
Slide 20: Appendix B: Rusoro and Gold Reserve Market Data
20 E N D E A V O U R F I N A N C I A L 20 Appendix B Rusoro and Gold Reserve Market Data
Slide 21: Rusoro & Gold Reserve – Market Data
21 E N D E A V O U R F I N A N C I A L 21 Rusoro & Gold Reserve – Market Data Rusoro – Key Market Data Current Share Price (12 Dec, 08) Cdn$0.36 Issued Shares million 390.8 Market Capitalization US$ million $113.0 Cash (Sept 30, 2008) US$ million $17.0 Long-Term Debt (Sept 30, 2008) US$ million $80.
Slide 22: Questions or Requests for Assistance
22 E N D E A V O U R F I N A N C I A L 22 ANY QUESTIONS OR REQUESTS FOR ASSISTANCE MAY BE DIRECTED TO THE INFORMATION AGENT: 100 University Avenue 11th Floor, South Tower Toronto, Ontario M5J 2Y1 North American Toll Free Number: 1- 888-605-7615 Banks and Brokers Call Collect: 1-212-806-6859 Sharehol