Gold Reserve Ltd. · TSXV:GRZ
Gold Reserve — Investor Presentation (November 2023)
32 slides from Gold Reserve's investor presentation, November 2023
Slide 1: Gold Reserve Inc. Corporate Presentation
TSXV: GRZ A Unique Opportunity to Participate in the Optionality of Gold Reserve Kilometer 88 gold mining district in Venezuela Gold Reserve Inc. Corporate Presentation 999 W. Riverside Ave., Suite 401, Spokane, WA 99201 November 2023 www.goldreserveinc.com
Slide 2: Cautionary Note Regarding Forward Looking Statements
Cautionary Note Regarding Forward Looking Statements This presentation contains certain statements that may be deemed “forward-looking statements”. All statements in this presentation, other than statements of historical fact, that address future operations, resource potential, exploration drilling,
Slide 3: Table of Contents
Table of Contents 1 Investment Highlights 2 Company Overview 3 Asset Overview 4 Overview of Venezuela A Appendix: Defined Terms 3
Slide 4: Investment Highlights
Investment Highlights © Gold Reserve Inc.
Slide 5: Investment Highlights
Investment Highlights Substantial Assets One of the Largest Undeveloped Gold Projects ▪ Brisas Arbitral Award outstanding of ~US$1,035 million ▪ Mixed Company’s Mining Rights revoked in March 2022 (including interest of ~$309 million which is currently accruing ▪ With 52.2 million ounces of gold and
Slide 6: Corporate Objectives
Corporate Objectives Gold Reserve Inc.’s (“Gold Reserve” or the “Company”) corporate objectives are to enhance the value of the Company’s existing and contingent assets and unlock opportunities with the Las Cristinas-Brisas property (now called Siembra Minera) in the Bolivarian Republic of Venezuela
Slide 7: Comparable Companies Analysis
Comparable Companies Analysis EV/Resource Trading Multiples ($/oz AuEq.)(1) ▪ Gold Reserve is trading at ~$7.36 per oz AuEq. versus early-stage peers at ~$4.26 per oz AuEq. and more advanced peers at ~$59 per oz AuEq.(2) implying a potential share price of C$2.15 (US$1.56) and C$22.91 (US$16.57), re
Slide 8: Company Overview
[2] Company Overview © Gold Reserve Inc.
Slide 9: Gold Reserve Overview and Company History
Company Overview Gold Reserve Overview and Company History ▪ The Company trades on the TSX-V under the symbol GRZ and is quoted on the OTCQX under the symbol GDRZF ▪ Gold Reserve’s core assets relate to its business in Venezuela, namely: a) collection of the balance of the Brisas Arbitral Award; b)
Slide 10: Company Overview (Cont'd): Brisas Project History
Company Overview (Cont’d) Brisas Project History Direct Area of Influence of Siembra Minera ▪ Between 1992 and 2008, Gold Reserve explored and permitted its 70,000 TPD gold-copper Brisas Project into an advanced development stage, in accordance to the Equator Principles having earned its social lice
Slide 11: The Settlement Agreement and Siembra Minera Organization Structure
Company Overview (Cont’d) The Settlement Agreement Siembra Minera Project Organization Structure As a result of the actions undertaken by Gold Reserve, the Company entered into a Settlement Agreement with Venezuela in July 2016 whereby Venezuela agreed to: Republica ▪ Pay the Company $792 million to
Slide 12: Brisas Enforcement Actions Taken and Award Judgments
Company Overview (Cont’d) Brisas Enforcement Actions Taken and Award Judgments ▪ Gold Reserve has successfully instituted proceedings in multiple jurisdictions to obtain recognition and enforcement of the Brisas Arbitral Award United States ▪ In November 2015, the Company obtained an order confirmin
Slide 13: Brisas Enforcement Actions (Cont'd)
Company Overview (Cont’d) Brisas Enforcement Actions Taken and Award Judgments (Cont’d) England ▪ The Company obtained an ex parte order from the High Court of Justice in May 2015 declaring the Brisas Arbitral Award enforceable in England. By judgment in February 2016, the High Court denied Venezuel
Slide 14: Mixed Company Overview
Company Overview (Cont’d) Mixed Company Overview In October 2016, Gold Reserve and the Government of Venezuela established Empresa Mixta Ecosocialista Siembra Minera, S.A., a jointly-owned company to develop the Las Cristinas-Brisas deposit, now called Siembra Minera The Mixed Company is beneficiall
Slide 15: Mixed Company Overview (Cont'd)
Company Overview (Cont’d) Mixed Company Overview (Cont’d) ▪ In March 2022, the Ministry of Mines of Venezuela issued a Resolution (as defined herein) that purports to revoke the Mining Rights transferred to the Mixed Company for alleged non-compliance with certain Venezuelan mining regulations ▪ The
Slide 16: Siembra Minera Mining Data
Company Overview (Cont’d) Siembra Minera Mining Data ▪ The Siembra Minera Mining Data consists mainly of drilling data, engineering and drawings, feasibility studies, procurement analysis and equipment bids, including Canadian NI 43-101 proven mineral resources and reserves reports executed in the S
Slide 17: LMS Gold Project
Company Overview (Cont’d) LMS Gold Project LMS Gold Project Map ▪ Gold Reserve owns a 100% stake in the LMS Gold Project, an early-stage exploration asset located in the Goodpaster Mining District of Alaska ▪ NI 43-101 technical report released in February 2016 indicates inferred resources of 267koz
Slide 18: Management & Advisors
Management & Advisors Mr. Timm has been a Director of the Company and the Chief Executive Officer of the Company and its predecessor Gold Reserve Corporation for over 30 years. Rockne J. Timm Mr. Timm was involved in the major aspects of the Brisas Project such as, acquisition of the Brisas concessi
Slide 19: Directors
Directors Mr. Coleman has been the Executive Chairman of the Company since 2016 and prior thereto was the non-Executive Chairman since 2004. He has also been a director of the Company and its predecessor Gold Reserve Corporation since 1994. He has extensive international industry and public company
Slide 20: Asset Overview
© Gold Reserve Inc.
Slide 21: Gold Development Projects
Gold Development Projects Largest Undeveloped Gold Projects Globally ▪ Siembra Minera is the largest South American and fourth largest gold project globally and, assuming recovery of its Mining Rights by the Mixed Company, is the largest gold project not controlled by a major mining company or publi
Slide 22: Siembra Minera Project Overview
Siembra Minera Project Overview Project Overview Project Area Map ▪ Siembra Minera is expected to be a large scale, open pit gold-copper project located in the Kilometer 88 mining district of Bolivar State in southeast Venezuela ▪ Siembra Minera combines the former Las Cristinas and Brisas deposits
Slide 23: Indicative Project Economics Summary
Siembra Minera Project Overview (Cont’d) Indicative Project Economics Summary (1) Item Unit Value Item Unit Value Payable Metal Pre-tax Free Cash Flow $M $28,164.2 Au Moz 37.6 After-tax Free Cash Flow $M $20,222.7 Ag Moz 16.6 Pre-tax NPV@10% $M $5,534.5 Cu Mlb 3,197.6 After-tax NPV@10% $M $3,930.1 T
Slide 24: Siembra Minera Project Economics
Siembra Minera Project Economics Pre-Tax Sensitivity Analysis (1) Metal Price NPV@10% IRR Capital Costs NPV@10% IRR Factor Change ($/oz Au) ($ M) (%) Factor Change ($ M) ($ M) (%) 0.8 $1,040 $3,166.4 27.2% 0.85 $4,222 $5,812.0 41.1% 0.9 $1,170 $4,350.4 32.2% 0.93 $4,385 $5,673.2 38.8% 1.0 $1,300 $5,
Slide 25: Key Development Activities Completed
Siembra Minera Project Overview (Cont’d) Key Development Activities Completed The following key development activities were completed and funded by Gold Reserve at Siembra Minera between the time of the formation of the Mixed Company in 2016 and 2020 (Venezuela was obliged to advance $110M as a port
Slide 26: Community Overview
Siembra Minera Project Overview (Cont’d) Community Overview ▪ There are 23 Creole and Indigenous communities settled along the corridor of highway Troncal-10 from El Dorado to Km 88 representing the direct area of influence of Siembra Minera ▪ These communities maintain their trust in Gold Reserve a
Slide 27: Overview of Venezuela
| a Overview of Venezuela © Gold Reserve Inc.
Slide 28: Political, Economic and Social Overview
Overview of Venezuela Political, Economic and Social Overview ▪ Venezuela continues to experience substantial political, economic and social turmoil. The country’s foreign currency earnings continue to fall due to reduced oil exports caused by declining production at PDVSA, the state-owned oil compa
Slide 29: U.S. and Canadian Sanctions
Overview of Venezuela (Cont’d) U.S. and Canadian Sanctions ▪ The U.S. government sanctions generally prevent any dealings with the Venezuelan government or state-owned or controlled entities and properties and prohibit directors, management and employees of the Company who are U.S. Persons from deal
Slide 30: Appendix: Defined Terms
a Appendix: Defined Terms © Gold Reserve Inc. 30
Slide 31: Defined Terms
Defined Terms Brisas Arbitral Award US$740.3 million award granted by the World Bank’s International Center for the Settlement of Investment Disputes in September 2014 as a result of the Brisas Arbitration. Siembra Minera Mining Data retained by Gold Reserve Inc. as security for the payment of the I
Slide 32: Defined Terms (Cont'd)
Defined Terms (Cont’d) Ministry of Mines Venezuelan Ministry of the People’s Power for Ecological Mining Development Mixed Company Empresa Mixta Ecosocialista Siembra Minera, S.A. A Venezuelan entity beneficially owned 55% by Corporacion Venezolana de Mineria, S.A., a Venezuelan government corporati