Gabriel Resources Ltd.: Annual Results and Fourth Quarter Report

Gabriel Resources Ltd. (TSX:GBU) ("Gabriel" or the "Company") announces the
publication of its Annual Results and Fourth Quarter Management's Discussion and
Analysis Report for the period ended December 31, 2013.


Summary of recent events 

Capitalised terms used in this summary section are defined in "Further
Information" below.




--  During 2013, the public profile of the Project rose significantly within
    the political and public arenas in Romania following its inclusion in a
    national strategic plan of the Government in July and also with the
    subsequent introduction of several legislative proposals related to, or
    impacting upon, the Project, all of which were widely covered in
    television debates, on the internet and in print media. 
    
--  This Parliamentary and legislative action, high profile and related NGO
    opposition served to intensify the focus on the actions of Government
    and politicians in respect of the Project and, ultimately, no progress
    or clarity of process has been forthcoming in Q4 2013 regarding the
    Government's review of the environmental permitting for the Project. 
    
--  Whilst, on the whole, 2013 saw a period of increased political stability
    in Romania, a renewed sense of political uncertainty has emerged post-
    period end with the collapse of the ruling 'USL' Government coalition in
    February 2014 and the formation of a new Government alliance in March. 
    
--  On March 5, 2014, a new coalition Government, including UDMR, a
    political alliance representing the ethnic Hungarians of Romania, was
    sworn in. The UDMR has been allocated certain ministerial and state
    secretarial offices, including, of particular relevance to the Project,
    the Ministries of Environment and Culture, positions it most recently
    held when in Government in 2012. Each new UDMR minister has recently
    stated that they do not believe the next steps to the permitting of
    Rosia Montana fall under their responsibility. 
    
--  The renewed political instability and recently effected ministerial
    changes, together with the failed legislative initiatives of 2013, have
    resulted in a lack of transparency in the foreseeable process for
    permitting the Project. Until such time as the Company can initiate
    additional, meaningful dialogue with the Government regarding the
    completion of various permitting processes of the Project including the
    EIA, Gabriel cannot provide any assurances or estimates of the likely
    time required to address and resolve matters currently preventing the
    advancement of the Project. 
    
--  In light of the repeated delays of the Government to properly address
    the assessment and permitting of the Project, as of March 1, 2014, RMGC
    has initiated legal procedures for the retrenchment of approximately 400
    employees, equivalent to approximately 80 per cent of the workforce. If
    there is no progress in the advancement of the Project, the affected
    contracts may be terminated as of May 1, 2014. 



Q4 Summary



--  The Government has made no progress with issuing the decision required
    on the environmental permitting of the Project, having deferred it until
    after the conclusion of the Parliamentary Review and the recommendation
    of the Ministry of Environment. The Company is unable to provide
    guidance on the related timeframes to a final decision from the TAC, MoE
    or the Government. Ultimately, the EP must be approved by a Cabinet
    decision of the Government prior to its issuance. 
    
--  In January 2014, the Suceava Tribunal admitted a request for the
    temporary suspension of the ADC for the Carnic open pit which was issued
    in July 2011. The ruling is not irrevocable and is the subject of an
    appeal by RMGC. The ADC remains valid while suspended. 
    
--  During Q4 2013, the Company increased communications and legal activity
    levels in response to the Parliamentary Review. These activities lead to
    increased expenditure in the latter part of 2013, with the cash impact
    also affecting expenditure in Q1 2014. 
    
--  $42.1 million of cash and cash equivalents was held as at December 31,
    2013. 



Jonathan Henry, Gabriel's President and Chief Executive Officer, stated:

"Romania has the potential to be a leading gold producer in Europe through the
development of Rosia Montana. This would be Romania's first modern mine, built
to the exacting environmental standards that international companies are used to
operating under in today's world. 


We still remain fully committed to constructing and operating a mine at Rosia
Montana but we need to see a similar commitment from Romania. With no
environmental permitting progress forthcoming, and following expenditure in
Romania of $550 million over a fifteen year period, the Company has recently had
to give almost 400 Romanian employees notice of redundancy. All of these jobs
and more will be lost unless we see a real and transparent process from the new
Government in the coming weeks and months to proceed with the Project, which has
the potential to create over 3,600 jobs." 


Further information and commentary on the operations and results in the fourth
quarter of 2013 and full financial year, together with events anticipated in the
short term, is given below. The Company has filed its Annual Consolidated
Financial Statements and Management's Discussion & Analysis on SEDAR at
www.sedar.com and each is available for review on the Company's website at
www.gabrielresources.com.


Further Information

Financial Performance



--  The net loss for the fourth quarter of 2013 was $0.5 million, and for
    the year ended December 31, 2013 was $2.5 million, or $0.01 per share. 



Liquidity and Capital Resources



--  Cash and cash equivalents at December 31, 2013 amounted to $42.1
    million. 
    
--  During the year ended December 31, 2013 the Company issued 3.5 million
    common shares on the exercise of stock options for aggregate gross
    proceeds of approximately $5.4 million. 
    
--  Excluding the impact of funds received by the Company through the
    exercise of stock options, tax refunds and realized foreign exchange
    translation differences, the Company's average monthly net cash usage
    throughout 2013 was $3.9 million (2012: $4.9 million; 2011: $5.5
    million). 
    
--  During 2013 the Company has continued with its underlying cost
    containment, following implementation of cost reduction measures
    initiated in mid-2012, to preserve capital until such time as the
    Government moves ahead with Project permitting. During Q4 2013, the
    Company increased communications and legal activity levels in response
    to the Parliamentary Review (defined below). These activities led to
    increased expenditure in the latter part of 2013, with the cash impact
    also affecting expenditure in Q1 2014. 



Capital Cost



--  Including interest, financing and corporate costs, the Company estimates
    the capital required to bring the Project into production and to a
    position of positive cash flow is approximately US$1.5 billion. 



Political Environment 



--  Whilst, on the whole, 2013 saw a period of increased political stability
    in Romania, a renewed sense of political uncertainty has emerged with
    the collapse of the ruling Romanian Government ("Government") coalition
    in early 2014 and the formation of a new Government alliance in March,
    as described below. 

--  From the parliamentary elections held on December 9, 2012 until late
    February 2014, the 'USL" alliance of the Social Democrat ("PSD"),
    National Liberal ("PNL"), the Conservative Party ("PC") and the National
    Union for the Progress of Romania ("UNPR"), led by Social Democrat
    leader and Prime Minister Victor Ponta, held a two-thirds majority in
    parliament, a position enabling it to control both the Chamber of
    Deputies and the Senate of the Romanian Parliament ("Parliament"). 

--  On February 25, 2014, the PNL adopted a resolution for its withdrawal
    from the Government, and also called for the resignation of Prime
    Minister Ponta and the legal dissolution of the USL. Accordingly, the
    PNL ministers, state secretaries and other political appointees resigned
    from the Government on February 26, 2014. This schism in the coalition
    was the culmination of a series of recent disputes between the USL
    coalition partners- principally owing to rivalry in the lead up to the
    presidential elections, which are to be held in November 2014 and, most
    recently, ministerial appointments. 

--  On March 3, 2014, it was announced that the PSD, PC and the UNPR, had
    reached a political agreement of the terms on which the Democratic Union
    of Hungarians in Romania ("UDMR"), a political alliance representing the
    ethnic Hungarians of Romania, was to join the Government. This agreement
    follows UDMR being in a position of political opposition for almost two
    years. Pursuant to such agreement, UDMR has been allocated certain
    ministerial and state secretarial offices, including, of particular
    relevance to the Project, the Ministries of Environment and Culture,
    positions it most recently held when in government in 2012. 

--  On March 4, 2014, a vote in both chambers of the Romanian Parliament
    approved the composition of the new governing alliance of the PSD, PC,
    UNPR and UDMR, and the new Government was sworn in on March 5, 2014. The
    new Government will hold approximately 54% of the seats in the Senate
    and 62% of the seats in the Chamber of Deputies. 



National Plan for Strategic Investment and Job Creation 



--  In the first half of 2013 the USL Government added definition to its
    strategic agenda for its four-year term, which manifested itself in an
    announcement by Prime Minister Ponta on July 11, 2013 of a 'National
    Plan for Strategic Investment and Job Creation' ("Strategic Plan").
    Seven projects within the Romanian mineral resources sector were
    identified in the Strategic Plan, of which one was the Project. 

--  Throughout 2013, the Company, through RMGC, sought to engage with the
    Government and various ministries on the numerous matters pertaining to
    the Project including negotiations relating to a proposed increase of
    the State's equity interest in the Project and the royalty rate
    applicable to the Project's future gold and silver production, the
    Company's long-term commitments on environmental and cultural heritage
    initiatives, and the implementation of a defined route to successful
    permitting of the Project.  



Special Draft Law in respect of the Project



--  In order to achieve certain of the objectives assumed by the Government
    through the Strategic Plan, the Government approved and issued a draft
    law "on certain measures related to the exploitation of the gold-silver
    deposits from Rosia Montana and stimulation and facilitation of mining
    development in Romania" ("Special Draft Law") on August 27, 2013, which
    was subsequently submitted to the Romanian Parliament for debate
    ("Parliamentary Review"). 

--  The Government's announcement of the Special Draft Law and the
    associated Parliamentary Review gave rise to significant discourse
    within the political and public arenas in Romania. On September 17,
    2013, Parliament established a Special Joint Committee of the Senate and
    of the Chamber of Deputies ("Special Committee") to analyse the Special
    Draft Law. The Special Committee was given an objective of (a) examining
    the Special Draft Law, as initiated by the Government together with any
    amendments submitted by the Government, deputies and senators; (b)
    preparing a report on the Special Draft Law for discussion in each
    chamber of the Parliament; and (c) facilitating a decision on the
    adoption of the Special Draft Law in a plenary session of each Chamber. 



Report of the Special Committee



--  On November 11, 2013 the Special Committee published its report on the
    Special Draft Law ("Report"), and voted in favour of a recommendation
    for the rejection of the Special Draft Law by seventeen votes "for" and
    with two abstentions. 

--  Notwithstanding the recommended rejection of the legislation initiated
    by the Government specific to Rosia Montana, the conclusions of the
    Report also recommended that a general legislative framework be drafted
    for the mining industry, and gold and silver mining projects as a whole.
    The Report did not propose acceptance or rejection of the Project by the
    Parliament. 

--  The Special Committee was primarily empowered by the Parliament to
    review the Special Draft Law and to issue a recommendation thereon for
    further debate in the plenary of the Parliament. However, given the
    interest of Romanian society in the Project, the Special Committee
    considered it necessary to undertake a wider debate and analysis of the
    Project and, accordingly, issued numerous and wide-ranging conclusions
    and recommendations in the Report, as reported in the Company's MD&A for
    the third quarter of 2013, including a request that various ministries
    and institutions involved in the assessment of the Project examine and,
    where appropriate, investigate certain issues identified during the
    hearings of the Special Committee. 

--  A number of the recommendations presented by the Special Committee in
    response to concerns raised by interested parties during the Special
    Committee hearings, particularly relating to the preservation of
    cultural heritage, the risks of cyanide use, the utilisation of
    alternative technologies for gold and silver recover and the safety of
    the tailings management facility, have already been addressed
    extensively by the competent authorities or institutions charged with
    assessing the Project, such as the Technical Assessment Committee of the
    Environment Ministry ("TAC").  



Rejection of the Special Draft Law



--  On November 19, 2013 the Special Draft Law and Special Committee
    recommendation were debated in the plenary of the Senate. The Senate
    rejected the Special Draft Law adopting the Report drawn-up by the
    Special Commission. 

--  The Report and Special Draft Law were subsequently transmitted to the
    Chamber of Deputies, as the decision-making body of Parliament charged
    with voting on its adoption. No vote has taken place to date although
    the Company fully expects the Special Draft Law to be rejected by the
    Chamber of Deputies when it is presented.  



Further Attempts to Reform the Mining Law



--  In September 2013, the Government commenced a separate legislative
    initiative ("Draft Amended Mining Law") in Parliament to amend the
    existing mining law, Law No. 85/2003, which was intended to facilitate
    the general development of all mining activities across Romania. This
    bill was neither specific to the Project nor incorporated any agreement
    between the Company or RMGC and the State. 

--  It is understood that further analysis and amendment of the original
    terms of the Draft Amended Mining Law was undertaken by the Government
    in the following months, some of which arose from the Special Committee
    review and others arising from consultation with Transparency
    International Romania, a non-governmental organization that monitors and
    publicises corporate and political anti-corruption initiatives for
    international development. 

--  On December 2, 2013, the Draft Amended Mining Law was debated and voted
    on by the plenary of the Senate where it failed to receive the requisite
    majority for its approval despite 85 of the 94 senators present voting
    in favour of its approval. 

--  On December 10, 2013, the Draft Amended Mining Law was debated and voted
    on in the Chamber of Deputies where it again failed to garner the
    minimum number of votes required for its adoption - notwithstanding that
    a majority of the deputies present voted in favour of its adoption (160
    votes in favour, 105 against, 22 abstentions). 



Impact on the Project



--  Whilst some of the conclusions and recommendations of the Special
    Committee may be positive for the development of the Project, certain
    conclusions and recommendations, if acted upon, may cause unspecified
    delay in the permitting process and/or necessitate changes to the terms
    of the License and/or the existing joint venture arrangements between
    Gabriel and Minvest Rosia Montana ("Minvest RM"), the Romania state
    partner in the Project. 

--  The political instability and ministerial changes recently effected,
    together with the failed legislative initiatives of 2013, have resulted
    in a lack of transparency in the foreseeable process for permitting the
    Project. Until such time as the Company can initiate additional,
    meaningful dialogue with the relevant ministries of the Government
    regarding the completion of environmental permitting and any proposals
    for further legislative processes through parliament which may affect
    the Project, Gabriel cannot provide any assurances or estimates of the
    likely time required to address and resolve matters such as those raised
    in the Report of the Special Committee or as to the impact of recent
    events upon the permitting progress of the Project. 

--  In light of the repeated delays of the Government to properly address
    the assessment and permitting procedures for the Project, as of March 1,
    2014 RMGC has initiated legal procedures for the retrenchment of
    approximately 400 employees, equivalent to approximately 80 per cent of
    the workforce. The employment contracts of such employees are
    temporarily suspended pending consultation regarding retrenchment
    compensation. If there is no progress in the advancement of the Project,
    the affected contracts will be terminated as of May 1, 2014. 





--  Additionally, a thorough review of all activities associated with the
    development of the Project is ongoing, with a goal of further reducing
    expenditures to ensure the Company remains financially strong, while
    maintaining, as far as possible, all existing licenses and permits in
    good standing. 



Project Ownership and Royalty Rates



--  In accordance with the terms of a reorganization of Minvest's business
    approved by the Government on April 30, 2013, Minvest transferred its
    entire direct 19.31% shareholding in RMGC to Minvest RM, a wholly-owned
    state entity. On November 1, 2013 the shareholders of RMGC formally
    approved the transfer of the shareholding in RMGC from Minvest to
    Minvest RM. 
    
--  In line with one recommendation of the Special Committee, on November
    14, 2013, the Government issued an emergency ordinance to amend the
    Fiscal Code and, in particular, to provide for a new set of royalties
    applicable to mineral resources to be applied from 2014 upon either (i)
    the conclusion of a license or (ii) the issuance of a mining permit
    ("GEO 102/2013"). For noble metals, including gold, a royalty of 6% of
    the mining production value is to be applied under GEO 102/2013. Whilst
    the Senate has approved GEO 102/2013, it is now to be debated and voted
    on by the Chamber of Deputies, the decisional body, who could
    potentially modify the applicable royalty rates. Until such time as an
    addendum to the exploitation license for the Project ("RM License") is
    agreed by RMGC, it is the Company's understanding that the royalty rate
    of 4% established in the RM License will continue to apply to the
    Project. 



Environmental/Permitting



--  The Company's previous understanding was that only Government approval
    of the environmental permit ("EP") was pivotal to the permitting
    progress of the Project and furthermore, a key factor in the Government
    decision was the recommendation of the TAC, originally charged with the
    detailed assessment of the environmental impact and compliance of the
    Project. The Company remains confident that it will comply with, and in
    certain aspects exceed, its obligations under European Union and
    Romanian laws for environmental protection and guarantees. 

--  To date the outcome of the Parliamentary Review has been a rejection in
    the Senate and debate is yet to be concluded in the Chamber of Deputies,
    where the Company expects the Special Draft Law to be rejected. The
    Draft Amended Mining Law garnered an insufficient number of supporting
    votes to see the legislation carried for its adoption. The outlook
    regarding any re-submission to Parliament of legislation related to the
    amending the existing mining law is uncertain at this time and, as such,
    the Company remains unable to provide guidance on the timeframes to a
    final decision on environmental permitting of the Project from the TAC,
    Ministry of Environment ("MoE") or the Government. Ultimately, and in
    accordance with current legislation, the EP must be approved by a
    Cabinet decision of the Government prior to its issuance. 

--  The Company's amended industrial zonal urbanism plan ("Industrial Area
    PUZ") remains at an advanced stage, and currently there are 19 valid
    endorsements of the 23 required for its approval. In addition, 10 out of
    the total of 13 endorsements necessary for the final approval of the
    zonal urbanism plan for the Rosia Montana historical protected area
    ("Historical Area PUZ") had been obtained at the end of Q4 2013. 

--  While the Company understands there is no formal link between the
    receipt of remaining endorsements for the Industrial Area PUZ, the
    Historical Area PUZ and the EIA review process, it believes that these
    respective remaining endorsements are likely to be obtained on, or
    after, the issuance of the EP. 



Archaeology and Preservation of Cultural Heritage



--  An archaeological review of the historical mining activity at Rosia
    Montana is a critical step in the granting of the construction permits
    to build the Project. A number of archaeological discharge certificates
    are required for various parts of the proposed Project footprint. In
    order to obtain such discharge certificates, the Company has conducted
    an extensive program of exploratory and preventative archaeology in
    order to ensure that valuable historical relics in the area are
    uncovered and preserved. 
    
--  In July 2011, the Alba County Directorate for Culture and National
    Patrimony issued a new ADC to RMGC for the Carnic open-pit, which
    complemented those it already held for the Cetate and Jig open-pits. In
    January 2014, the Suceava Tribunal admitted a request for the temporary
    suspension of the ADC for the Carnic open pit. The ruling is not
    irrevocable and is being appealed. The ADC remains valid while
    suspended. 
    
--  The Company continues to commit resources to preserve the important
    archeological areas that it has previously opened and restored. However,
    further restoration work has been put on hold until such time as the
    Government moves ahead with Project permitting. 



Litigation



--  Over the years, certain foreign and domestically-funded non-governmental
    organizations ("NGOs") have initiated a multitude of legal challenges
    against licenses, permits, authorizations and approvals obtained for the
    exploration and development of the Project. While a small number of
    these actions over many years have been successful, the vast majority
    have been, and continue to be, proved to be without merit in the
    Romanian courts. 
    
--  The publicly stated objective of the NGOs in initiating and maintaining
    these legal challenges is to use the Romanian court system not only to
    delay as much as possible, but ultimately to stop the development of the
    Project. Often an action will be taken by the NGOs on a particular issue
    in several different regional court jurisdictions, and such legal
    objection may be raised in separate cases seeking a suspension or
    cancellation of a particular license, permit or approval. 
    
--  Key developments that have occurred in legal proceedings concerning the
    Project since the end of the third quarter of 2013 and certain upcoming
    court hearings in the first quarter of 2014 are as follows: 
    
    --  RMGC submitted several applications to the High Court of Cassation
        and Justice ("Supreme Court"), and the Cluj Court of Appeal, seeking
        the relocation of certain legal claims relating to the Project from
        the Cluj Tribunal to alternative forums. These applications were
        submitted on the grounds of the association of certain members of
        the judiciary of the Cluj Tribunal with opponents of the Project and
        that such Tribunal was an unsuitable forum for hearing such claims
        given the fervent and negative social and political environment in
        the Cluj area vis-a-vis the Project. Pursuant to these applications,
        each of the relevant claims have been relocated to alternative
        Tribunals, as described further below. 
        
    --  On October 25, 2013 a claim initiated by two NGOs seeking the
        suspension of the strategic environmental assessment ("SEA")
        endorsement for the Industrial Area PUZ was relocated from the Cluj
        Tribunal to the Bacau Tribunal. At a hearing on March 12, 2014, RMGC
        submitted a motion for the dismissal of the case, a decision on
        which is expected on March 14, 2014. 
        
    --  On October 31, 2013 an action filed by three NGOs requesting the
        suspension of the Archaelogical Discharge Certificate ("ADC") for
        the Carnic open-pit was relocated from the Cluj Tribunal to the
        Suceava Tribunal. On 30 January 2014, the Suceava Tribunal admitted
        the request for the temporary suspension of such ADC. The ruling is
        not irrevocable and has been appealed by RMGC, which it currently
        anticipates will be heard by a Court of Appeal in the coming months.
        
    --  On November 5, 2013 a claim brought by the same three NGOs seeking
        the cancellation of the ADC for the Carnic open-pit was relocated
        from the Cluj Tribunal to the Buzau Tribunal, and the next hearing
        of that claim is scheduled for March 18, 2014. 
        
    --  On November 6, 2013 a claim initiated by two NGOs seeking the
        cancellation of the SEA endorsement was relocated from the Cluj
        Tribunal to the Covasna Tribunal, and the next hearing date for this
        claim has been scheduled for March 14, 2014. 
        
    --  On February 14, 2014 a claim registered by three NGOs seeking the
        cancellation of UC-47 was relocated to the Bistrita Tribunal. The
        first hearing date of this claim before the Bistrita Tribunal has
        been scheduled for March 14, 2014. 
        
    --  As previously reported, on April 1, 2013 the Bucharest Tribunal
        rejected a claim brought by an NGO which sought the disclosure of
        certain documents pertaining to the RM License. On October 2, 2013,
        the complainant NGO submitted an appeal against this decision to the
        Bucharest Court of Appeal and the first appeal hearing has been
        scheduled for April 25, 2014. 
        
--  Due to the inherent uncertainties of the judicial process, the Company
    is unable to predict the ultimate outcome or impact, if any, with
    respect to matters challenged in the Romanian courts. In all
    circumstances, the Company and/or RMGC will vigorously maintain its
    legal rights and will continue to work with local, county and federal
    authorities to ensure the Project receives a fair and timely evaluation
    in accordance with Romanian and EU laws. However, there can be no
    assurance that any claims will be resolved in favor of the Company, RMGC
    or the Project. The implications of a negative court ruling will only be
    known once such a decision is issued formally by the relevant Court and
    the position of the Government is assessed, and may have a material
    adverse effect on the timing and/or outcome of the permitting process
    for the Project and the Company's financial condition. 



Other Legal Proceedings



--  On November 12, 2013, RMGC initiated a defamation suit against the
    former director general of the Romanian Institute of Geology (IGR), Mr.
    Stefan Marincea, in response to the completely ungrounded accusations
    made by Mr. Marincea before the Special Committee concerning the
    falsification of certain maps relating to the Corna Valley basin. No
    hearing date has yet been scheduled for this claim. 
    
--  In November 2013, RMGC was informed of an investigation by the Ploiesti
    Public Prosecutor's Office ("PPPO") into alleged tax evasion and money
    laundering on the part of the principals/key shareholder(s) of a group
    of companies including Kadok Interprest LLC ("Kadok Group"). The PPPO
    has extended its investigation of the Kadok Group to at least 100 other
    companies, including RMGC, that had entered into commercial business
    relationships with the Kadok Group. RMGC is challenging the legality of
    a restriction order on $0.3 million held in one of RMGC's Romanian bank
    accounts pending the outcome of the investigation. The restricted amount
    represents the value of the goods procured by RMGC from the Kadok Group
    during 2012, all of which were received and paid for in full by RMGC,
    including related sales tax. RMGC no longer has any business
    relationship with Kadok Group. RMGC is continuing to provide evidence to
    the PPPO of its legitimate business dealings with the Kadok Group, as
    well as cooperating fully with the PPPO. 



Outlook



--  The Company's key objectives in the short term include to: 
    
    --  Engagement with the new Government; 
        
    --  Continue to highlight the key economic, environmental, social and
        cultural benefits brought to Romania by the Project in order to
        highlight the merits of the Project to all stakeholders; 
        
    --  Understand and progress to finalization and completion the measures
        required to obtain approval of the EP; 
        
    --  Continue appropriate stewardship of cash resources; and 
        
    --  Maximize shareholder value, while optimizing benefits of the Project
        to all stakeholders. 



About Gabriel

Gabriel is a Canadian TSX-listed resource company focused on permitting and
developing its world-class Rosia Montana gold and silver project. The
exploitation license for the Project, the largest undeveloped gold deposit in
Europe, is held exclusively by Rosia Montana Gold Corporation, a Romanian
company in which Gabriel currently owns an 80.69 percent equity interest, with
the 19.31 percent balance held by Minvest Rosia Montana S.A., a Romanian
state-owned mining enterprise. Gabriel and RMGC are committed to responsible
mining and sustainable development in the communities in which they operate. The
Project is anticipated to bring over US$24 billion (at US$1,200/oz gold) to
Romania as potential direct and indirect contribution to GDP. The Project will
generate thousands of employment opportunities. Gabriel intends to build a
state-of-the-art mine using best available techniques and implementing the
highest environmental standards whilst preserving local and national cultural
heritage in Romania. 


For more information please visit the Company's website at www.gabrielresources.com.

Forward-looking Statements

This press release contains "forward-looking information" (also referred to as
"forward-looking statements") within the meaning of applicable Canadian
securities legislation. Forward-looking statements are provided for the purpose
of providing information about management's current expectations and plans and
allowing investors and others to get a better understanding of Gabriel's
operating environment. 


These forward-looking statements may include statements with respect to the
future financial or operating performance of the Company and its subsidiaries,
the perceived merit of properties, exploration results and budgets, mineral
reserves and mineral resources estimates, work programs, capital expenditures,
operating costs, cash flow estimates, production estimates and similar
statements relating to the economic viability of a project, timelines, strategic
plans, including the Company's plans and expectations relating to the Project,
the anticipated outcomes of the application processes for permits, endorsements
and licenses, including but not limited to the ongoing review of the
environmental impact assessment, required for the Project, or other statements
that are not statements of fact.


Any statements that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future
events or performance (often, but not always, identified by words or phrases
such as "expects", "is expected", "anticipates", "believes", "plans",
"projects", "estimates", "assumes", "intends", "strategy", "goals",
"objectives", "potential", "possible" or variations thereof or stating that
certain actions, events, conditions or results "may", "could", "would",
"should", "might" or "will" be taken, occur or be achieved, or the negative of
any of these terms and similar expressions) are not statements of fact and may
be forward-looking statements.


Forward-looking statements are based upon certain assumptions and other
important factors regarding present and future business strategies and the
environment in which the Company will operate in the future, which could prove
to be significantly incorrect.


Forward-looking statements are inherently subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of the Company and/or its subsidiaries to
be materially different from those expressed or implied by such forward-looking
statements. These risks, uncertainties and other factors include, without
limitation, the political and economic risks of operating in Romania, including
those related to controls, regulations, political or economic developments and
government instability in Romania; uncertainty of estimates of capital costs,
sustaining capital costs, operating costs, production and economic returns;
permitting risks, including the risk that permits and governmental approvals
necessary to develop and operate the Project will not be available on a timely
basis or at all, risks of maintaining the validity and enforceability of
necessary permits and risks of replacing expired/cancelled permits and
approvals; uncertainties relating to the assumptions underlying the Company's
mineral resource and mineral reserve estimates, such as metal pricing,
metallurgy, mineability, marketability and operating and capital costs; risk
related to the acquisition of all necessary surface rights for the development
of the Project, including the risk that the Company may not acquire all such
rights, or acquire such rights at acceptable prices; risks related to the
Company's ability to commence production and generate material revenues or
obtain adequate financing for its planned exploration and development
activities; risks of defective title to mineral property, including the risk of
successful legal challenges to the validity of the Company's exploitation
license; risks related to the Company's ability to finance the development of
the Project through external financing, strategic alliances, or otherwise;
litigation risks, including the uncertainties inherent in current and future
legal challenges relating to the Project;

risks related to the availability of infrastructure, water, energy and other
inputs; uncertainty inherent in litigation including the effects of discovery of
new evidence or advancement of new legal theories, the difficulty of predicting
decisions of judges and the possibility that decisions may be reversed on
appeal; uncertainties relating to prices for energy inputs, labour, material
costs, supplies and services (including, but not limited to, labour, cement,
steel, capital equipment, reagents and fuel); risks related to changes in law
and regulatory requirements, including environmental regulation; risks related
to the subjectivity of estimating mineral resources and mineral reserves and the
reliance on available data and assumptions and judgments used in interpretation
of such data; risks related to currency fluctuations, particularly in the value
of the United States dollar and/or the Canadian dollar relative to each other
and to the Euro and the Romanian leu; risks related to the future market prices
of gold and silver and other mineral and commodity price fluctuations, and
volatility in metal prices; risks related to the need for reclamation activities
on the Company's properties and uncertainty of cost estimates related thereto;
risks associated with maintaining substantial levels of indebtedness, including
potential financial constraints on operations; dependence on cooperation of
state-owned joint venture partner in the development of the Project; risks
related to the loss of key employees and the Company's ability to attract and
retain qualified management and technical personnel; risks related to market
events and volatility of global and local economic climate; taxation, including
change in tax laws and interpretations of tax laws; mining and development
risks, including risks related to infrastructure, accidents, equipment
breakdowns, labour disputes or other unanticipated difficulties with or
interruptions in development, construction or production; risks related to
opposition to the Project from non-governmental organizations or civil society;
share capital dilution and share price volatility; and increased competition in
the mining industry.


Forward-looking information contained herein is made as of the date of this
press release. There can be no assurance that forward-looking information or
statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information or statements.
Accordingly, for the reasons set forth above, readers should not place undue
reliance on forward-looking statements. The Company does not undertake to update
any forward-looking statements, except in accordance with applicable securities
laws.






FOR FURTHER INFORMATION PLEASE CONTACT: 
Jonathan Henry
President and Chief Executive Officer
Mobile: [phone]
[e-mail]


Max Vaughan
Chief Financial Officer
Mobile: [phone]
[e-mail]


Bobby Morse
Buchanan
Mobile: [phone]
[e-mail]