SOURCE: Gabriel Resources Ltd

April 05, 2012 15:32 ET

Corporate Update

TORONTO--(Marketwire - Apr 5, 2012) -



April 5, 2012

                      Gabriel Resources Ltd

                       Corporate Update

Gabriel Resources Ltd. ("Gabriel" or the "Company")would like to
provide a corporate update regarding today's resignation of the
Romanian Minister of Environment, Laszlo Borbely, and today's ruling of
the Alba Iulia Court of Appeal to annul the Rosia Montana
Commune'sLocal Council Decision 1/2009.

Environment Minister Resignation

Minister of Environment, Laszlo Borbely, resigned today as it was
announced he is under investigation on corruption related allegations
completely unrelated to the Rosia Montana Project (Project). The
Ministry of Environment is responsible for the environmental permitting
process for the Project. The Romanian Prime Minister, Mihai-Razvan
Ungureanu, has taken on the position of Minister of Environment on a
temporary basis. A new Minister is likely to be appointed in the short
term. Throughout this time Gabriel remains engaged with the government
with regard to the permitting of the Project.

Alba Iulia Court of Appeal

The Company and its subsidiary, Rosia Montana Gold Corporation (RMGC),
confirms that the Alba Iulia Court of Appeal has irrevocably admitted a
petition submitted by three NGOs to cancel the 2009 decision made by
the Local Council of the commune of Rosia Montana which validated the
voting procedure on the general urbanism plan of the Rosia Montana
commune (PUG) and the zonal urbanism plan of the Rosia Montana
industrial development area (PUZ), which were adopted in 2002. The
ruling of the Alba Iulia Court of Appeal does not apply to the
decisions of the Local Council of the Rosia Montana commune to adopt
the town-planning documentation PUG and PUZ in 2002, which,we are
advised,are still valid and legal. Gabriel will consider the
implications of the court decision in due course once the reasons are
released.The Company confirms that the existing permitting procedures,
which are well advanced, will continue in accordance with the legal
provisions. Moreover, the new draft urbanism documentation for the
Project is at an advanced stage with 19 out of 22 endorsements received
to date. The final endorsements will result in a new PUZ being issued.
The local communities affected by the Project also initiated the
procedures for a new PUG for the respective localities.

Jonathan Henry, President and CEO Gabriel Resources, stated: "We are
monitoring the situation closely within Romania and once more
detail becomes available we will update the market accordingly. For
now the permitting process for the Project continues. In Romania the
majority of people recognize the benefits of the Project for the
Romanian economy and the fact that a responsible mining project can
only be implemented in full compliance with the Romanian and European
legislation, using the best available practices."

For further information on this press release, please contact:

Jonathan Henry
President and Chief Executive Officer

Mobile: +44 7798 801783 

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 Project, the largest undeveloped gold deposit in Europe, is
owned through Rosia Montana Gold Corporation ("RMGC"), a Romanian
company in which Gabriel holds an 80.69% stake with the 19.31% balance
held by CNCAF Minvest S.A., a Romanian state-owned mining enterprise.
Gabriel and RMGC are committed to responsible mining and sustainable
development in the communities in which theyoperate. The Project is
anticipatedto bring US$19 billion to Romania as potential direct and
indirect contribution to GDPaccording to 2010 estimates from UK-based
Oxford Policy Management (using a gold price of US$900/oz). The
Projectwill generate thousands of employment opportunities. Gabriel
intends to build a state-of-the-artmine using best available techniques
and implementing the highest environmental standards whilst
preservinglocal and national cultural heritage in Romania.For more
information please visit the Company's website at .

Forward-looking statements

This press release contains forward-looking information as defined in
applicable securities laws relating to the Company and/or the Project
(referred to herein as "forward-looking statements") that are based on
management's current expectations, estimates and projections.
Specifically, this press release contains forward-looking statements
regarding the returns to Romania of a change in equity and royalty
rates applicable to the Project. All statements other than statements
of historical facts included herein, including without limitation,
those incorporated by reference, those which may refer to the Company's
financial position, business strategy, plans, objectives of management
for future operations (including development plans and objectives
relating to the Company's business) the economic impact, job creation,
costs estimates, patrimony plans, future ability of the Company to
finance the Project, Project delivery and estimates regarding the
timing of completion of various aspects of the Projects' development or
of future performance are forward-looking statements.

The words "believe", "expect", "anticipate", "contemplate", "target",
"plan", "intends", "continue", "budget", "estimate", "projects",
"may", "will", "schedule", and similar expressions identify forward-looking
statements. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that are inherently subject to
significant business, economic and competitive uncertainties and

Forward-looking statements are not guarantees of future performance and
are subject to known and unknown risks, uncertainties and other factors
which are difficult, or may be beyond Gabriel's ability, to predict or
control and that may cause the actual outcomes, level of activity,
financial results, performance or achievements to differ materially
from those expressed or implied by the forward-looking statements,
These risks, uncertainties and other factors include, without
limitation, changes in the worldwide price of precious metals;
fluctuations in exchange rates; legislative, political or economic
developments including changes to mining and other relevant legislation
in Romania; geopolitical uncertainty, uncertain legal enforcement;
changes in, and the effects of, the government policies affecting the
Company's operations; uncertainties related to timelines for awaited
approvals; changes in general economic conditions, and the financial
markets; operating or technical difficulties in connection with
exploration, development or mining; environmental risks; the risks of
diminishing quantities or grades of reserves; and the Company's
requirements for substantial additional funding.

Accordingly, readers should not place undue reliance on forward-looking
statements. Gabriel undertakes no obligation to update publicly or
otherwise revise any forward-looking statements contained herein
whether as a result of new information or future events or otherwise,
except as may be required by law.

                    This information is provided by RNS
          The company news service from the London Stock Exchange


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