Gabriel Resources Ltd.

Gabriel Resources Ltd.

March 16, 2005 16:06 ET

Gabriel Resources Ltd.: Cdn$25 Million Public Offering Of Units


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GABRIEL RESOURCES LTD.

TSX SYMBOL: GBU

MARCH 16, 2005 - 16:06 ET

Gabriel Resources Ltd.: Cdn$25 Million Public Offering
Of Units

TORONTO, ONTARIO--(CCNMatthews - March 16, 2005) - Gabriel Resources
Ltd. (TSX:GBU) ("Gabriel") is pleased to announce that it has entered
into an agreement with a syndicate of underwriters co-led by Sprott
Securities Inc., and BMO Nesbitt Burns Inc., (the "Underwriters"),
pursuant to which the Underwriters will purchase, on a "bought deal"
basis, 12,500,000 units of Gabriel (the "Offering") at a price of
Cdn$2.00 per unit (the "Offering Price"), for aggregate gross proceeds
to Gabriel of Cdn$25,000,000. Each unit will consist of one common share
of Gabriel and one-half of one common share purchase warrant. Each whole
warrant will entitle the holder to acquire one common share of Gabriel
at a price of Cdn$2.75 at any time on or before March 31, 2007. The
Underwriters will also have the option to purchase up to an additional
2,500,000 units at the Offering Price on or before 48 hours prior to the
closing of the Offering, for additional gross proceeds to Gabriel of
Cdn$5,000,000.

Gabriel will file a short form prospectus with the securities regulatory
authorities in all Provinces of Canada to qualify the common shares and
warrants comprising the units for distribution. The Offering is expected
to close on or about March 31, 2005 and is subject to certain conditions
including, but not limited to, the receipt of all necessary regulatory
and Toronto Stock Exchange approvals.

The securities offered have not and will not be registered under and may
not be offered or sold in the United States unless registered under the
United States Securities Act of 1933 (the "1933 Act"), as amended,
unless registered under the 1933 Act or an exemption from such
registration requirements is available.

The net proceeds of the Offering will be used to finance the continued
development of Gabriel's 80% owned Rosia Montana gold project in Romania
and for general corporate purposes.

Gabriel is a Canadian based resource company engaged in the exploration
and development of mineral properties in Romania and is presently
continuing the development of its Rosia Montana gold silver project in
Romania.

On Behalf of the Board:

Signed by "Oyvind Hushovd"

OYVIND HUSHOVD

CHAIRMAN AND CHIEF EXECUTIVE OFFICER

NOT FOR DISTRUBUTION TO UNITED STATES NEWS OR WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES

This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Gabriel Resources Ltd.
    (416) 955-9200
    (416) 955-4661 (FAX)
    info@gabrielresources.com
    www.gabrielresources.com
    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.