Gold Reserve Provides Update in CITGO Sale Process: Gold Reserve Files Statement in Support of Stay Pending Appeal

The most recent news, dated 2025-12-09, states that Gold Reserve Ltd. (GRZ) has filed a statement in support of a motion to stay pending appeal in the U.S. Court of Appeals for the Third Circuit. This action is part of the ongoing legal process related to the sale of PDV Holding Inc. (PDVH) shares (the indirect parent company of CITGO Petroleum Corporation). Gold Reserve argues that the sale process, which led to the approval of a bid from Elliott/Amber Energy, was procedurally and substantively defective. This filing follows a series of recent negative developments for Gold Reserve, including the U.S. District Court for the District of Delaware entering a final sale order to Elliott/Amber Energy on 2025-12-01 and the court's decision on 2025-11-25 to adopt the Special Master's recommendation of Elliott/Amber Energy's $5.9 billion bid over Gold Reserve's higher $7.9 billion bid.

The latest news is a procedural step within a highly material, ongoing legal dispute. While the act of filing a statement itself is routine, it reinforces the company's commitment to contesting the unfavorable outcome of the CITGO sale process. The impact is negative as it confirms the continued legal battle, associated costs, and prolonged uncertainty following the court's decision to accept a lower bid for PDVH shares from Elliott/Amber Energy ($5.9B) over Gold Reserve's superior bid ($7.9B). This means the potential recovery for Gold Reserve from its $1.1 billion arbitration award remains in limbo and faces a significant haircut if the current sale order stands.

Looking at the progression: * July 2025: Gold Reserve's subsidiary Dalinar Energy Corp. was named the final recommended bidder for PDVH with a $7.382 billion bid. This was a significant positive development, reflected in a substantial stock price increase (from ~$3.00 to over $5.00). * August 2025: An unsolicited, lower bid ($5.859B) from Amber Energy (Elliott/Amber) emerged, and despite Gold Reserve improving its bid to $7.9 billion, the Special Master recommended the lower Elliott/Amber bid. This was a critical negative turning point, leading to a sharp decline in stock price. * October 2025: Gold Reserve filed motions to disqualify the Special Master, advisors, and even the District Court Judge, citing conflicts of interest, indicating deep dissatisfaction with the process. This was a highly material "Game Changer" as it challenged the integrity of the entire sale. * November 2025: The U.S. Court of Appeals denied Gold Reserve's Mandamus Petition (a setback to its disqualification efforts). Most critically, the District Court adopted the Special Master's recommendation for Elliott/Amber Energy's $5.9 billion bid, rejecting Gold Reserve's higher $7.9 billion bid. This was a "Material - Negative" event, directly impacting Gold Reserve's potential recovery. A smaller positive was a favorable ICC arbitration award for $28.9M against BANDES, but this is minor compared to the CITGO stake. * December 2025: The Delaware District Court entered the final sale order to Elliott/Amber. The latest news is Gold Reserve filing in support of a stay pending appeal of this order.

The market has reacted negatively to the court's decision to favor a lower bid. The latest news confirms that Gold Reserve is challenging this decision, which is expected but adds to legal costs and prolongs the uncertainty. It does not introduce new positive information to counteract the significant negative news from November/early December.

Gold Reserve Ltd. is primarily engaged in the enforcement and collection of a $1.1 billion international arbitration award against the Bolivarian Republic of Venezuela. This award stems from Venezuela's expropriation of the company's Las Brisas gold-copper project (now known as Siembra Minera). The company also holds a 45% equity interest in Empresa Mixta Ecosocialista Siembra Minera, S.A. ("Siembra Minera"), which is pursuing remedies for the revocation of its mining rights by the Venezuelan Ministry of Mines.

Currently, Gold Reserve's main focus is on realizing value from this arbitration award, primarily through its participation in the U.S. District Court for the District of Delaware's court-supervised sale process of shares of PDV Holding Inc. (PDVH), the indirect parent company of CITGO Petroleum Corporation. Its wholly-owned U.S. acquisition subsidiary, Dalinar Energy Corp., has actively engaged in this bidding process. The company is also pursuing other enforcement avenues, including in Portugal, where a court has recognized the arbitration award and allowed for execution against attached Venezuelan bank accounts. In March 2025, GR Mining (Barbados) Inc., a subsidiary, filed a new request for arbitration against Venezuela regarding the Siembra Minera project, claiming over $7 billion in losses.