Gabriel Resources Ltd.

Gabriel Resources Ltd.

July 06, 2009 12:22 ET

Gabriel Provides Clarification on Bucharest Court of Appeal Ruling in Environmental Impact Assessment Case

TORONTO, ONTARIO--(Marketwire - July 6, 2009) - Gabriel Resources Ltd. (TSX:GBU) would like to provide further background information to the press release issued on July 2, 2009 regarding the decision rendered of the Bucharest Court of Appeal regarding the Environmental Impact Assessment (EIA) for the Rosia Montana Project.

In September 2007, the Ministry of Environment suspended the technical analysis committee's (TAC) review of the EIA, citing the need for a valid urbanism certificate (UC). Gabriel's Romanian subsidiary, Rosia Montana Gold Corporation S.A. (RMGC) did have a valid UC in September 2007, and provided a copy of such certificate to the Ministry of Environment; however, the Ministry of Environment nevertheless decided to suspend the TAC process.

Following the suspension of the TAC process in September of 2007, Gabriel filed an administrative complaint with the Ministry of Environment in October 2007. When the Ministry of Environment rejected the administrative complaint and refused to restart the TAC process, RMGC commenced legal action in the Bucharest Court of Appeal against the Ministry of Environment, the then Minister of Environment and the then Secretary of State (collectively the "Defendants") in November of 2007. Gabriel's legal action asked the court to answer the simple question as to whether an urbanism certificate is required to continue the TAC review of the EIA.

On July 1, 2009, the Bucharest Court of Appeal ruled on a procedural motion of the Defendants unrelated to the principal issue of Gabriel's legal challenge, and as a result dismissed Gabriel's legal action without considering the merits of or providing an answer to the simple question posed by RMGC to the court.

Romanian Courts are required to provide reasons for their decisions within 30 days of the date of the decision, however this time period is often exceeded. Upon receipt of the reasons for judgment, Gabriel will decide whether or not it intends to appeal the case to the Bucharest Supreme Court of Justice.

According to our European Union and Romanian legal advisors, there is no legal basis in European Union environmental law or Romanian environmental law (which is the same as EU environmental law) for suspending an EIA review process. The Bucharest Court of Appeal has ruled in a previous case that there is no legal basis to suspend an EIA review process. In addition, no legal provision is found in EU or Romanian environmental law requiring the existence of an UC in order to undertake the assessment phase of an EIA review (which is the TAC review process in Romania).

Gabriel / RMGC is ready to restart the TAC process as soon as the Ministry of Environment gives the green light and is prepared to provide any documentation requested by the officials. Gabriel has and will always continue to comply with all Romanian legal provisions relating to the development of the Project. The Company's primary objective is to receive an open and transparent review of its Rosia Montana Gold project that will bring significant benefits to all of its stakeholders.

The Company continues its Romanian stakeholder outreach efforts and has now implemented a pro active public relations campaign, including advertising, to educate the public and decision makers in Romania on the benefits of the Project.

About Gabriel / Rosia Montana Gold Corporation

Gabriel is a Canadian-based resource company committed to responsible mining and sustainable development in the communities in which it operates. Gabriel is currently engaged in the exploration and development of its 80%- owned Rosia Montana gold project. The Company is committed to making Rosia Montana a model mine. To that end, the Company has pursued many third party reviews touching on several aspects of the Project including, economics, the environment and cultural. In some cases these reviews have returned some constructive feedback but overall the conclusions have been that the project is well developed and at a minimum the project complies with the strict EU legislation governing mining.

To date, Gabriel Resources has already invested over $350 million through Rosia Montana Gold Corporation in the development of the Rosia Montana mining project.

Forward-Looking Statements: This press release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding Company's plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release and the information contained herein.

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