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Press release from Marketwire

Gabriel Resources Ltd.: Corporate Update

Friday, July 12, 2013

Gabriel Resources Ltd.: Corporate Update

08:36 EDT Friday, July 12, 2013

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

PRESS RELEASEFOR IMMEDIATE RELEASE TSX Trading Symbol: GBUJuly 12, 2013Corporate UpdateGabriel Resources Ltd. ("Gabriel" or the "Company") notes the reportedstatements made by Romania's Prime Minister, Victor Ponta, regardingthe inclusion of the Rosia Montana Project ("Project") in the NationalPlan for Strategic Investment and Job Creation ("Plan"), and subsequentmedia coverage.In the Plan Mr. Ponta set out key targets for 2013 to obtaincommitments of investment into Romania of EUR10 billion and the creationof over 50,000 jobs in five strategic investment fields - energy,infrastructure, agriculture, industry and mineral resources. Sevenprojects within the mineral resources field have been identified forfocus by the Romanian Government in order to achieve those targets, ofwhich one is the Project.Mr. Ponta has recently been quoted as stating that any Governmentdecision to proceed with the Project would be subject to a RomanianParliament vote, and a new law relating to the Project will be draftedfor debate in the Parliament in September 2013.The Company is highly encouraged by the inclusion of the Project in thePlan but remains in advanced discussions with the Romanian Governmenton a level of Romanian State equity participation in the Project (theRomanian State currently owns 19.31 percent with the Company owning80.69 percent) and a royalty rate for gold and silver sales (currentlya 4 percent gross revenue royalty is payable to the Romanian State).Gabriel can confirm that it remains hopeful of a near term conclusionto the continuing negotiations which include areas such asenvironmental guarantees, an extension to the mining licence, and otherlong-term legal and fiscal conditions that the Company wishes to see inplace. The benefits for Romania quoted in the Plan as up to 78% ofwhat the Project generates represent estimated direct and indirectoperational expenditure with contractors and suppliers across Romania,together with taxes (corporate, payroll and withholding), duties anddistribution of profits to the Romanian State and are based on certainlong-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 increasein the Romanian State's equity interest in the Project to a maximum of25 percent and royalties at a rate of 6 percent of revenues, fixed forthe life of the mine. Both these assumptions are currently undernegotiation with the Romanian Government.Gabriel can also confirm that in late May and mid-June 2013 furthermeetings of the Technical Analysis Committee ("TAC") were held toprovide clarification and resolution of the remaining issues in respectof the Environmental Impact Assessment ("EIA"). Although Gabriel nowbelieves that all matters have been finalized in this regard, theCompany has yet to receive formal correspondence indicating the statusof the TAC process.Given the situation as outlined above, Gabriel remains unable tocomment at this time on the likelihood of successful permittingprogress of the Project and still remains unable to provide guidance onthe the time that it might take the TAC to review and vote on the EIAor 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'snational plan and we look forward to a positive outcome to ongoingdiscussions with the Government and parliamentary endorsement of theProject later this year. This will allow completion of theenvironmental permitting process which will be a major step to buildingRomania's first modern mine and what will be Europe's largest goldmine."For further information on this press release, please contact:Jonathan HenryPresident and Chief Executive OfficerMobile: +44 7798 801783jh@gabrielresources.comBobby MorseBuchananMobile: +44 7802 GabrielGabriel is a Canadian TSX-listed resource company focused on permittingand developing its world-class Rosia Montana gold and silver project.The exploitation license for the Project, the largest undeveloped golddeposit in Europe, is held exclusively by Rosia Montana GoldCorporation, a Romanian company in which Gabriel owns an 80.69 percentequity interest, with the 19.31 percent balance held by CNCAF MinvestS.A., a Romanian state-owned mining enterprise. Gabriel and RMGC arecommitted to responsible mining and sustainable development in thecommunities in which they operate. The Project is anticipated to bringover US$24 billion (at US$1,200/oz gold) to Romania as potential directand indirect contribution to GDP. The Project will generate thousandsof employment opportunities. Gabriel intends to build astate-of-the-art mine using best available techniques and implementingthe highest environmental standards whilst preserving local andnational cultural heritage in Romania.For more information please visit the Company's website StatementsThis press release contains forward-looking information as defined inapplicable securities laws relating to the Company and/or the Project(referred to herein as "forward-looking statements") that are based onmanagement's current expectations, estimates and projections.Specifically, this press release contains forward-looking statementsregarding the returns to Romania from the Project and in respect offuture permitting processes. All statements other than statements ofhistorical facts included herein, including without limitation, thoseincorporated by reference, those which may refer to the Company'sfinancial position, business strategy, plans, objectives of managementfor future operations (including development plans and objectivesrelating to the Company's business) the economic impact, job creation,costs estimates, patrimony plans, future ability of the Company tofinance the Project, Project delivery and estimates regarding thetiming of completion of various aspects of the Project's development orof 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 expressionsidentify forward-looking statements. Forward-looking statements arenecessarily based upon a number of estimates and assumptions that areinherently subject to significant business, economic, legislative,political and competitive uncertainties and contingencies.Forward-looking statements are not guarantees of future performance andare subject to known and unknown risks, uncertainties and other factorswhich are difficult, or may be beyond Gabriel's ability, to predict orcontrol and that may cause the actual outcomes, level of activity,financial results, performance or achievements to differ materiallyfrom those expressed or implied by the forward-looking statements.These risks, uncertainties and other factors include, withoutlimitation, changes in the worldwide price of precious metals;fluctuations in exchange rates; legislative, political or economicdevelopments including changes to mining and other relevant legislationin Romania; geopolitical uncertainty, uncertain legal enforcement;changes in, and the effects of, the government policies affecting theCompany's operations; uncertainties related to timelines for awaitedapprovals; changes in general economic conditions, and the financialmarkets; operating or technical difficulties in connection withexploration, development or mining; environmental risks; the risks ofdiminishing quantities or grades of reserves; and the Company'srequirements for substantial additional funding.Accordingly, readers should not place undue reliance on forward-lookingstatements. Gabriel undertakes no obligation to update publicly orotherwise revise any forward-looking statements contained hereinwhether as a result of new information or future events or otherwise,except as may be required by law.ENDS This information is provided by RNS The company news service from the London Stock ExchangeEND


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