Gold Reserve Provides Update on CITGO Sale Process Schedule

Gold Reserve Ltd. has responded to Venezuela's request to delay the Sale Hearing regarding the purchase of shares of PDV Holding, Inc. (PDVH), the indirect parent company of CITGO Petroleum Corp. Gold Reserve agreed to a shorter extension of three weeks, moving the hearing to the week of August 11, 2025, rather than the six weeks requested by Venezuela. Gold Reserve's Delaware subsidiary, Dalinar Energy Corporation, submitted a topping bid to be selected as final bidder on June 3, 2025, with a deadline for further bids set for June 18, 2025 and the Special Master's final recommendation due by June 27, 2025.

Analysis

Gold Reserve Ltd. has responded to a request from the Venezuela Parties to delay the Sale Hearing for PDV Holding, Inc. (PDVH), the indirect parent of CITGO Petroleum Corp. The company, supported by Koch Minerals Sarl and Koch Nitrogen International Sarl, has agreed to a shorter, three-week extension, proposing the week of August 11, 2025, for the hearing, instead of the six-week postponement sought by Venezuela. This U.S. District Court for the District of Delaware hearing is pivotal as it will consider the Final Recommended Bid for PDVH shares. Gold Reserve's Delaware subsidiary, Dalinar Energy Corporation, submitted a topping bid for these shares on June 3, 2025. The deadline for other topping bids is June 18, 2025, with the Special Master appointed by the Court scheduled to make a Final Recommendation by June 27, 2025. The company's announcement includes a significant cautionary statement on forward-looking information, underscoring numerous substantial business, economic, and competitive uncertainties. These risks encompass the potential rejection of Dalinar Energy's bid, challenges in securing necessary financing or regulatory approvals (including from OFAC, CFIUS, and the FTC), possible business disruptions, and the risk that proceeds from the sale might not fully satisfy Gold Reserve's existing arbitral award against Venezuela. The situation, marked by ongoing legal proceedings and complex M&A dynamics, carries a neutral sentiment (-0.15 overall, -0.2 for tickers GRZ/GDRZF), reflecting these considerable uncertainties.

Key Decisions for Investors

• Investors should closely monitor the upcoming deadlines in the PDVH sale process, particularly the June 18, 2025 topping bid deadline and the Special Master's final recommendation by June 27, 2025, as these are critical near-term catalysts for Gold Reserve.
• Given the extensive list of risks and uncertainties detailed in the company's forward-looking statements, including those related to bid acceptance, financing, regulatory approvals, and the ultimate sufficiency of sale proceeds, a cautious approach is warranted, carefully considering the high-stakes nature of this legal and M&A situation.
• The outcome of the Sale Hearing, now proposed for the week of August 11, 2025, and any developments regarding competing creditor claims or potential settlements involving Venezuela, will be crucial in determining the potential impact on Gold Reserve's asset recovery efforts and should be carefully evaluated.