Gold Reserve Inc. & Venezuela Empresa Mixta Eco-Socialista - PowerPoint PPT Presentation

Gold Reserve Inc. & Venezuela Empresa Mixta Eco-Socialista “Siembra Minera”, S.A. Siembra Minera Brisas Cristinas Mining Project 1

Empresa Mixta Eco-Socialista “Siembra Minera”, S.A. Mixed Company Arrangement & Plan JV Structure : • • Venezuela 55% • Gold Reserve 45% • Combine Brisas and Cristinas Properties • Develop and Build Mine, Process Plant and Project Infrastructure • Mining & Processing of 140,000 tpd of hard rock ore (plus up to 20,000 tpd saprolite ore) 2

E mpresa Mixta E co-S ocialista “S iembra Minera”, S .A. Organization S tructure R epublica Bolivariana de Gold R eserve Inc. V enezuela C orporación V enezolana GR M ining Inc. de M inería (C VM ) (Barbados) 55% 45% E mpresa M ixta E co-S ocialista “S iembra M inera”, S .A. (P ublicadaenG .O . No. 41.002 de fecha4/ 10/ 2016) GR E ngineering Inc. Operating (Barbados) Agreement E ngineering, P rocurement, C onstruction & Operation

Brisas – Cristinas Project Kilometer 88 Mining District Municipality of Sifontes Pueblo of Las Claritas Bolívar State Paved highway 3 km from site Major Power Substation 3 km from plant site

Project Economic Zone 18,950 Ha N Comprises former concessions: Brisas Las Cristinas Oro 1 (blocks 1 & 2) Albino Carabobo Morauana Barbara Zuleima El Pauji Esperanza 5

Empresa Mixta Eco-Socialista “Siembra Minera”, S.A. Business Plan Utilize Original GR’s Brisas Mine, Process Plant & Infrastructure Design Double Size of Process Plant with Mirror Image Design Optimize facilities layout Solid Basis for Final Design to Update Capital & Production Costs (Detailed Engineering & Design 85% Complete – Procurement 68% Complete) 6

Brisas-Cristinas Project Rationale • Brisas– Cristinas is one continuous orebody • Development reduces environmental impact • Most rational way to exploit the deposit (art. 5 Mining Law) • Produces the highest rate of return • Excellent Potential to increase reserves • Allows reclamation of entire mining district devastated by years of illegal mining 7

Proj ect Area S atellite Photo Early 2017 8

Brisas-Cristinas Project Recent Addition to Plan • Add separate Oxide Saprolite Process Plant • Considering Gravity Gold only vs. Cyanidation Plant • Provides Au production in 18 to 24 months vs. 4 years for large scale plant • Provides Earlier Revenue Stream 9

Siembra Minera GR Engineering (Barbados) Inc. Current Activity Working on design & cost on two separate and concurrent processing plant scenarios. 1. An oxide saprolite ore processing plant that would provide an early phase production and cash flow. A smaller plant that could be constructed in a two year time frame. 2. The large scale processing plant for the sulfide saprolite and hard rock ores which would take approximately four years to put into production.

Siembra Minera Project Schedule Year 1 Year 2 Year 3 Year 4 Year 5 Oxide saprolite Process Plant • Preliminary design • Permitting, detail design • Procurement • Construction • Production Hard Rock & Sulfide Saprolite Process Plant • NI 43-101 & PEA • Preliminary design • Feasibility Study • Permitting, IESIA & VEIS • Detail design • Procurement • Construction • Mill Start -up • Production

Engineering Stages of a Project Current Plan Preliminary Detailed Design Pre-feasibility Economic Feasibility Project Construction Assessment Study Commissioning Study Financing Establish Viability Comprehensive Define the Project of a Project Study Serves as a Mineral Reserves Mineral Resources Basis for Financial Evaluation of Outline one Institutions to alternatives Assess Project opportunity for proj ect Financing development Mineral Reserves Identify risks and Increased level of opportunities detail and Develop scope for definition in order next proj ect to increase the phases confidence level of capital and operating costs

Siembra Minera GR Engineering (Barbados) Inc. Consultants & Their Current Activities  RPA started on a NI 43-101 report and (PEA) Preliminary Economic Assessment  Includes updated resource estimates and cost estimates  Samuel Engineering providing support to RPA on large scale process plant  Includes design and capital cost estimates  Samuel Engineering also providing preliminary design and cost estimates on an oxide saprolite processing plant  Tierra Group International, LTD providing support to RPA on large scale process plant tailings dam  Includes design and capital cost estimates  Tierra Group International, LTD also providing preliminary design and cost estimates on an early stage oxide saprolite processing plant tailings dam facility

Siembra Minera GR Engineering (Barbados) Inc. Consultants & Their Current Activities  Ingenieria Caura, S.A. working on Early Works (earthwork, timber clearing and road building) permitting  Also preparing Venezuela Environmental Impact Statement (VEIS)  and permitting of both large and small process plants  AATA International Inc. working on an International Environmental and Social Impact Assessment (IESIA)  A document required for Financing from International Bank and other financial Institutions  Prizma LLC providing input and assistance to Ingenieria Caura and AATA International for the social aspects of the VEIS and IESIA  Global Resource Engineering providing input and assistance to Ingenieria Caura and AATA International for the geo chemistry and water quality aspects of the VEIS and IESIA

Siembra Minera GR Engineering (Barbados) Inc. Consultants & Their Current Activities  Inespro, C.A. (Ingeniero Rafael Borges y Asociados) prepared the Quarry Concession Application.  Also will be working to update the Feasibility Study for the quarry concession to obtain the Exploitation Certificates  CVG-TECMIN, C.A. prepared application for Permit to Occupy the Land (AOT).  Also prepared a preliminary report on current Social & Environmental situation at the project site area  It will also be working on an Environmental & Social Audit before breaking ground.  An engineering & environmental state owned company located in Bolivar State that will provide support along the early phases of project development.

16 Design Updates

Alternatives for Improvement/Cost Savings 1. More efficient site layout • Reduce deforestation and earthwork requirements • Improve operability • Makes room available for Oxide Saprolite plant 2. Location of the Oxide Saprolite processing plant next to Main Project Plant will benefit from: — Sharing certain processing facilities (Gold Elution & Refining) — Avoids having to build a second tailings dam facility — Reducing size of powerline corridors — A single production center: more efficient and secure operation — Eliminating duplicate infrastructure — Topo survey and geotech work already complete

Alternatives for Improvement/Cost Savings 3. Larger equipment sizes based on availability of recently developed equipment • One larger crusher (current 2 crushers – 1.524 m x 2.261 m) Current – 4 SAG mills (11.58 x 6.7 m, 20 MW), 8 ball mills (6.7 • m x 11.125 m, 9,325 kW) Potential – 2 SAG mills (12.2 x 8.8 m, 28 MW), 4 ball mills (7.9 • m x 10.1 m, 10,500 kW) Larger leach tanks to reduce the overall footprint • Larger flotation cells (current rougher flotation 8 banks of 6 • each for 48 - 160 m 3 cells; > 630 m 3 cells now available and would only need 2 banks of 6) Optimize carbon handling and refinery •

Project Facilities 19

Empresa Mixta Eco-Socialista “Siembra Minera”, S.A. Aerial View of Proposed Plan 20

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24 Permitting

Permitting Phases for Siembra Minera Project From a permitting stand point, the project will be developed into four (4) major phases: Phase 1: Early or Preliminary Works Phase 2: Construction and Operation of the Saprolite Mill with Recovery of Mercury Phase 3: Construction of Water Diversion Channels, Water Treatment Plants and other facilities Phase 4: Construction and Operation of the Mine, Mill and related Infrastructure for the processing and production of Gold and Copper. 25

Siembra Minera Project Permitting Agenda The following studies and documents need to be submitted: To Ministerio de Ecosocialismo y Aguas (MINEA): 1. Descriptive Memoir to obtain Permit to Occupy Land (AOT) 2. Terms of Reference (TDR) 3. Environmental and Socio-Cultural Impact Study (EIA-SC) to be delivered by Phases (1 thru 4) to obtain several Permits to Affect (AARN) over the first 2 years 4. Environmental Audit (EA) To Instituto Autónomo Minas Bolívar (IAMIB): 1. An Exploration concession application for a Quarry 2. A Feasibility Study to obtain the Explotation Certificates 3. An Environmental and Socio-Cultural Impact Study (EIA-SC)