Gabriel Resources Ltd.: First Quarter Report

Gabriel Resources Ltd. ("Gabriel" or the "Company") (TSX:GBU) announces the
publication of its First Quarter Financial Statements and Management's
Discussion and Analysis Report for the period ended March 31, 2014. 


Summary of recent events 

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




--  On March 5, 2014, a new coalition Romanian Government was sworn in.
    Government approval of the environmental permit is pivotal to the future
    progress of the Project and a key factor in this decision is the
    recommendation of the TAC. Despite a further TAC meeting in April 2014,
    and given the continued political instability in Romania, and recent
    ministerial changes, the outlook regarding approval of the environmental
    permit remains uncertain at this time. 
--  Political activities in Romania are currently focused on the European
    Parliamentary elections which take place at the end of May, and the run
    up to presidential elections that are to be held in November 2014. 
--  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 procedures for the Project, a thorough
    review of all activities associated with development of the Project has
    been undertaken and it was concluded that approximately 80 per cent of
    the employment contracts of the affected RMGC employees are to be
    terminated during the second quarter of 2014. 
--  $31.2 million of cash and cash equivalents was held as at March 31,
    2014. 



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. Although we still remain fully committed to
constructing and operating a mine at Rosia Montana we have seen no real or
transparent process from the new Government in recent months evidencing a will
to proceed with the Project. The Company has recently had to make almost 400
Romanian employees redundant as a result. 


"The Company believes that it has delivered comprehensive and compelling answers
to all technical assessment questions raised on the Project and that the
permitting process for the Project can be successfully completed in the short
term." 


Further information and commentary on the operations and results in the first
quarter of 2014, together with events anticipated in the short term, is given
below. The Company has filed its Unaudited Condensed Interim 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 first quarter of 2014 was $3.5 million, or $0.01
    per share. 



Liquidity and Capital Resources



--  Cash and cash equivalents at March 31, 2014 amounted to $31.2 million. 

--  During the period ended March 31, 2014, proceeds received by the Company
    from the exercise of stock options were nil (Q1 2013: not material).
    Excluding the impact of funds received through the exercise of stock
    options, tax refunds and realized foreign exchange translation
    differences, the Company's average monthly net cash usage during Q1 2014
    was $3.6 million (2013 full year average was $3.9 million, 2012: $4.9
    million). Aggregate cash usage in Q1 2014 includes a reduction in trade
    and other payables of $2.2 million since the end of Q4 2013. 

--  In 2014 to date the Company has continued with its underlying cost
    containment to preserve capital until such time as the Government moves
    ahead with Project permitting. The most significant recent element of
    this has been the decision to terminate the employment contracts of
    approximately 400 employees at Rosia Montana Gold Corporaton ("RMGC"),
    effective Q2 2014. There will be related, one-time severance payments
    during the course of 2014 totaling approximately $2.6 million. 



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 



--  Political activities in Romania are currently focused on the European
    Parliamentary elections which take place at the end of May. The outcome
    of these elections will be important to assess where the Romanian
    public's allegiance to political parties lies in the run up to
    presidential elections that are to be held in November 2014. 

--  The coalition parties within the Government of Romania ("Government")
    separated in late February 2014. The alliance of the Social Democrat
    ("PSD"), National Liberal ("PNL"), the Conservative Party ("PC") and the
    National Union for the Progress of Romania ("UNPR") (together the
    "USL"), was led by Social Democrat leader and Prime Minister Victor
    Ponta, and held a two-thirds majority in parliament since the
    parliamentary elections of December 9, 2012, a position that enabled it
    to control both the Chamber of Deputies and the Senate. 

--  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. 

--  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. The new
    Government was sworn in on March 5, 2014. 

--  Of particular relevance to the Project, UDMR has been allocated the
    Ministries of Environment and Culture, positions it most recently held
    when in government in 2012, following which it has been in a position of
    political opposition for almost two years. 



Special Draft Law in respect of the Project



--  In order to achieve certain of the objectives assumed by the then
    Government in its strategic agenda for its four year term, the
    Government approved and issued a draft law "on certain measures related
    to the exploitation of the gold-silver deposits from Ro ia MontanA and
    stimulation and facilitation of mining development in Romania" ("Special
    Draft Law").  

--  On November 11, 2013 the Special Joint Committee of the Senate and of
    the Chamber of Deputies ("Special Committee") published its report
    ("Report"), and voted in favour of a recommendation therein for the
    rejection of the Special Draft Law. The Report did not propose
    acceptance or rejection of the Project by the Parliament,
    notwithstanding that numerous and wide-ranging conclusions and
    recommendations were included in the Report. 

--  On November 19, 2013 the plenary of the Senate rejected the Special
    Draft Law, adopting the Report drawn-up by the Special Committee. No
    vote has taken place to date by the Chamber of Deputies, as the
    decision-making body of Parliament charged with voting on adoption of
    the Special Draft Law, although the Company fully expects it to be
    rejected when it is presented.  



Impact on the Project



--  The political instability and ministerial changes recently effected,
    together with the failed legislative initiatives of late 2013, have
    resulted in a lack of transparency in the foreseeable process for
    permitting the Project. 

--  A number of the recommendations in the Report were presented by the
    Special Committee in response to concerns raised by interested parties
    during the Special Committee hearings. The Company believes that these
    issues 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"),
    but remain topics for suggestion that further studies need to be
    initiated or permitting delay should ensure, neither of which has been
    discussed directly with, or made clear to, the Company at this time.  

--  Until such time as the Company can initiate additional, meaningful
    dialogue with the relevant ministries of the Government and the TAC
    regarding the completion of environmental permitting and any proposals
    for further legislative processes through the Romanian 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 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, a thorough
    review of all activities associated with the development of the Project
    has been undertaken, 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.
    Following such review and consultation with the local trade union and
    concerned authorities regarding retrenchment compensation, it was
    concluded that approximately 80 per cent of the employment contracts of
    the affected RMGC employees are to be terminated during the second
    quarter of 2014. 

--  In the immediate future, the Company will continue to pursue a strategy
    of engagement with all stakeholders to explain the critical importance
    of the Project as part of the sustained economic development for Romania
    and the Company's commitment to adhere to the highest standards on
    engineering, environmental, cultural and social matters, which will
    allow the Project to become a showcase for further investment into
    Romania and a sustainable legacy for the Romanian people. 



Project Ownership and Royalty Rates



--  On November 1, 2013 the shareholders of RMGC formally approved the
    transfer of the entire direct 19.31% shareholding in RMGC from Minvest
    to Minvest Rosia Montana ("Minvest RM") a wholly-owned state entity. 

--  In December 2013, the Group was required to recapitalize RMGC in order
    to comply with Romanian minimum capitalization company law requirements.
    The subscription to RMGC share capital by the Company was effected
    through a conversion of existing intercompany debt. In January 2014,
    following discussions with the Ministry of Economy, the Group agreed to
    transfer to Minvest RM, for nil consideration, a proportion of the
    shares subscribed to in December 2013, with a face value of $20.4
    million, in order to preserve the respective shareholdings in RMGC. 

--  As previously reported, on November 14, 2013 the Government issued an
    emergency ordinance to provide for a new set of royalties applicable to
    mineral resources, including gold at a royalty of 6% of the mining
    production value. The ordinance has yet to be debated and voted on by
    the Chamber of Deputies, the decisional body which 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 Permit



--  During 2013, there were four meetings of the TAC to review of the
    Environmental Impact Assessment ("EIA"), with the last meeting held on
    July 26, 2013. It was the Company's understanding that, at that meeting,
    the TAC had completed all technical review aspects of the EIA process
    and was close to being in a position to issue a recommendation on the
    issuance of the environmental permit for the Project ("EP"). However,
    the subsequent activities of the Special Committee and its Report appear
    to have introduced further delay to the TAC process. 

--  A further meeting of the TAC was convened on April 2, 2014, primarily as
    an opportunity to consider the environmental aspects raised in the
    Report. The Company noted its observations at that meeting and
    subsequently in writing to the Environment Ministry that all material
    environmental issues arising in the Report had previously been
    considered, at length, by the TAC. No formal conclusions or follow up
    actions were requested at the meeting and the Company now awaits formal
    feedback and guidance from the Government, the Ministry of Environment
    ("MoE") and the TAC as to whether further meetings or documentation will
    be requested. 

--  Government approval of the EP is pivotal to the future construction and
    operational permitting progress of the Project. A key factor in the
    Government decision is the recommendation of the TAC, however, in light
    of the continued political focus upon the Project as described above,
    the TAC process appears to have been stalled and the outlook regarding
    approval of the EP or any possible re-submission to Parliament of
    legislation related to amending the existing mining law is uncertain at
    this time. As a result, the Company remains unable to provide guidance
    on the timeframes to a final decision on environmental permitting of the
    Project from the TAC, MoE or the Government. The Company remains
    confident that it will comply with, and in some aspects exceed, its
    obligations under EU and Romanian laws for environmental protection and
    guarantees. 



Other Permitting



--  Since 2002, when the local council of Ro ia MontanA passed resolutions
    approving a zonal urbanism plan designating an industrial zone under the
    footprint of the proposed new mine at Ro ia MontanA ("2002 PUZ"), the
    Company has updated the design of the proposed mine, reduced the size of
    the footprint, expanded the protected zones and incorporated a number of
    additional changes to the proposed mine, all arising as a result of
    public consultation. Accordingly, in 2006, an amended PUZ for the
    industrial development area of the Project was initiated, and such PUZ
    was further updated in 2010 ("Industrial Area PUZ"). It is currently
    proposed that, subject to the receipt of the relevant approvals, the
    Industrial Area PUZ will replace the 2002 PUZ which is due to expire in
    July 2014. 

--  The Industrial Area PUZ is at an advanced stage, as at March 31, 2014,
    RMGC had obtained 19 out of the total number of 23 endorsements
    necessary for its approval. However, in April 2014, pursuant to a legal
    challenge launched by non-governmental organisations ("NGOs") opposing
    the Project, one of the 19 endorsements was cancelled by court order.
    The Company, together with the relevant authorities, has submitted an
    appeal against this decision. After obtaining all the necessary
    endorsements, the final approval for the Industrial Area PUZ will be
    required to be given by the local councils of Ro ia MontanA, Abrud and
    Bucium. The court order does not affect the current standing of the 2002
    PUZ which remains in force and effect. 

--  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 Q1 2014. 

--  Although an extension to the validity of the existing Industrial Area
    PUZ has been obtained until July 2014 and a process has been commenced
    to obtain certain new PUZs, the final approval of the PUZs follows after
    a series of endorsements and approvals from various authorities. There
    can be no assurance that the outstanding endorsements will be obtained
    in a timely fashion, that additional endorsements and approvals will not
    be required or that existing endorsements will not be the subject of
    legal challenge in the Romanian courts. 

--  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 Ro ia
    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 Archaeological Discharge Certificate ("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 and in April 2014, as noted below, a ruling of the
    Suceava Court of Appeal rejected an appeal against the January 2014
    decision. The ruling is irrevocable. 

--  The Company continues to commit limited 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 in the first quarter of 2014 and certain upcoming court hearings
    in the second quarter of 2014 are as follows: 
    --  On 30 January 2014, the Suceava Tribunal admitted a request for the
        suspension of the ADC pursuant to an action filed by three NGOs.
        RMGC and others submitted an appeal against this decision to the
        Suceava Court of Appeal, but this appeal was rejected on April 15,
        2014. The decision cannot be appealed further. The effect of the
        suspension of the ADC is temporary, pending the irrevocable
        conclusion of a separate legal action launched by NGOs seeking the
        annulment of the ADC, the next hearing of which is scheduled to be
        heard by the Buzau Tribunal on May 20, 2014. An irrevocable decision
        on the merits of this case may not be issued for several months and
        possibly into 2015. 
    --  On April 15, 2014, the Covasna Tribunal admitted a request filed by
        two NGOs for the annulment of the Strategic Environmental Assessment
        ("SEA") endorsement, which was issued by the Regional Agency for
        Environmental Protection of Sibiu in March 2011 in respect of the
        Industrial Area PUZ. The ruling is not irrevocable and is the
        subject of an appeal by RMGC and others. The hearing date of the
        appeal has yet to be scheduled. 
    --  On April 16, 2014, the Bacau Tribunal postponed the hearing of a
        claim initiated by two NGOs seeking the suspension of the SEA
        following the submission by the claimants' lawyers of the decision
        of the Covasna Tribunal on April 15, 2014 (see above). The next
        hearing of this suspension claim is scheduled for June 18, 2014. 
    --  The first substantive hearing of a claim by three NGOs seeking the
        annulment of the current urbanism certificate, UC-47, is scheduled
        to be heard the Bistrita Tribunal on June 5, 2014. 
    --  As previously reported, on April 1, 2013 the Bucharest Tribunal
        rejected an NGO claim which sought the disclosure of certain
        documents pertaining to the mining license. On October 2, 2013, the
        complainant NGO submitted an appeal against this decision to the
        Bucharest Court of Appeal and the next hearing of this appeal has
        been scheduled for June 6, 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 favour 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. The
    next hearing date of this case has been scheduled for May 21, 2014. 

--  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 procured goods 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 cooperate fully
    with the PPPO and to provide evidence to the PPPO of its legitimate
    business dealings with the Kadok Group. 



Outlook



--  The Company's key objectives in the short term include to: 
    
    --  Continue 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
        demonstrate 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: 
Gabriel Resources Ltd.
Jonathan Henry
President and Chief Executive Officer
Mobile: [phone]
[e-mail]


Gabriel Resources Ltd.
Max Vaughan
Chief Financial Officer
Mobile: [phone]
[e-mail]
www.gabrielresources.com


Buchanan
Bobby Morse
[phone]
[e-mail]