SOURCE: Gabriel Resources Ltd

July 12, 2013 08:34 ET

Gabriel Resources Ltd.: Corporate Update

TORONTO--(Marketwired - Jul 12, 2013) - Gabriel Resources Ltd. (TSX: GBU)


FOR IMMEDIATE RELEASE                           TSX Trading Symbol: GBU

July 12, 2013

Corporate Update

Gabriel Resources Ltd. ("Gabriel" or the "Company") notes the reported
statements made by Romania's Prime Minister, Victor Ponta, regarding
the inclusion of the Rosia Montana Project ("Project") in the National
Plan for Strategic Investment and Job Creation ("Plan"), and subsequent
media coverage.

In the Plan Mr. Ponta set out key targets for 2013 to obtain
commitments of investment into Romania of EUR10 billion and the creation
of over 50,000 jobs in five strategic investment fields - energy,
infrastructure, agriculture, industry and mineral resources. Seven
projects within the mineral resources field have been identified for
focus by the Romanian Government in order to achieve those targets, of
which one is the Project.

Mr. Ponta has recently been quoted as stating that any Government
decision to proceed with the Project would be subject to a Romanian
Parliament vote, and a new law relating to the Project will be drafted
for debate in the Parliament in September 2013.

The Company is highly encouraged by the inclusion of the Project in the
Plan but remains in advanced discussions with the Romanian Government
on a level of Romanian State equity participation in the Project (the
Romanian State currently owns 19.31 percent with the Company owning
80.69 percent) and a royalty rate for gold and silver sales (currently
a 4 percent gross revenue royalty is payable to the Romanian State).

Gabriel can confirm that it remains hopeful of a near term conclusion
to the continuing negotiations which include areas such as
environmental guarantees, an extension to the mining licence, and other
long-term legal and fiscal conditions that the Company wishes to see in
place. The benefits for Romania quoted in the Plan as up to 78% of
what the Project generates represent estimated direct and indirect
operational expenditure with contractors and suppliers across Romania,
together with taxes (corporate, payroll and withholding), duties and
distribution of profits to the Romanian State and are based on certain
long-term technical, financial, economic and other assumptions,
including those for commodity prices (such as US$1,200 per ounce gold)
and foreign exchange rates. The quoted benefits also assume an increase
in the Romanian State's equity interest in the Project to a maximum of
25 percent and royalties at a rate of 6 percent of revenues, fixed for
the life of the mine. Both these assumptions are currently under
negotiation with the Romanian Government.

Gabriel can also confirm that in late May and mid-June 2013 further
meetings of the Technical Analysis Committee ("TAC") were held to
provide clarification and resolution of the remaining issues in respect
of the Environmental Impact Assessment ("EIA"). Although Gabriel now
believes that all matters have been finalized in this regard, the
Company has yet to receive formal correspondence indicating the status
of the TAC process.

Given the situation as outlined above, Gabriel remains unable to
comment at this time on the likelihood of successful permitting
progress of the Project and still remains unable to provide guidance on
the the time that it might take the TAC to review and vote on the EIA
or to release its recommendation to the Government.

As matters progress the Company will update the market accordingly.

Jonathan Henry, Gabriel's President and Chief Executive Officer,
stated:"We welcome Rosia Montana's inclusion in the Romanian Government's
national plan and we look forward to a positive outcome to ongoing
discussions with the Government and parliamentary endorsement of the
Project later this year. This will allow completion of the
environmental permitting process which will be a major step to building
Romania's first modern mine and what will be Europe's largest gold

For further information on this press release, please contact:

Jonathan Henry
President and Chief Executive Officer
Mobile: +44 7798 801783 

Bobby Morse
Mobile: +44 7802 875227 

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 owns an 80.69 percent
equity interest, with the 19.31 percent 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 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 .

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 from the Project and in respect of
future permitting processes. 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 Project's 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", "potential", "proposed" 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, legislative,
political and competitive uncertainties and contingencies.

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
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