Gabriel Resources Ltd.: Court Decision Not Expected to Impact Permitting Schedule of Rosia Montana Project

Gabriel Resources Ltd.: Court Decision Not Expected to Impact Permitting Schedule of Rosia Montana Project

Further to the Company’s Press Release of December 9, 2008 regarding the Romanian Supreme Court’s decision to annul Archaeological Discharge Certificate No. 4/2004 (ADC 4), the Company is providing further background information regarding this matter.

The effect of the cancellation of ADC 4 on the balance of the Company’s permitting activities for the Rosia Montana project requires further clarification. The cancellation of ADC 4 does not suspend, terminate or delay any permitting processes that are currently running in parallel. Nor does cancellation of ADC 4 affect, cancel or terminate any rights the Company currently holds, or has previously acquired, with respect to the Rosia Montana project. The Company will require a new ADC 4 in order to apply for a construction permit for the Rosia Montana project, however, sufficient time has been budgeted in its development schedule to apply and receive a new ADC 4 prior to applying for a construction permit.

The Company will require a number of permits and approvals in order to construct and operate the Rosia Montana project and applications have already been filed by the Company for the majority of these permits and approvals. The permitting process for each of the material permits required by the Company will continue in parallel and independently of one another.

As previously disclosed by the Company on a number of occasions, ADC 4 has been the subject of a series of court challenges to its validity since 2004. The Romanian Supreme Court was the court of final appeal, and its decision in this matter is final and not appealable.

While the Romanian Supreme Court has rendered its decision in this matter, it has not provided the reasons for its decision. Generally, reasons for judgment are rendered within approximately thirty (30) days. However, there can be no assurance the reasons for judgment will in fact be issued within this time period.

The Company will apply for a new ADC 4 once it has received the reasons for judgment. Given that the reasons provided by previous lower court rulings were of an administrative, as opposed to a substantive nature, the Company does not anticipate any difficulty in incorporating any deficiencies identified by the courts, into its application for a new ADC 4.

As was stated in the Company’s release of December 9, 2008, the field work that was conducted, and the technical documentation that was prepared for ADC 4, was undertaken by a team of more than 80 internationally known archaeological specialists, from more than 23 organizations from three countries, and working together between 2001 and 2004. The Romanian National Archaeological Commission, a body of 21 Romanian archaeological experts, reviewed the Company’s application for ADC 4 and recommended the issuance of ADC 4 to the Minister of Culture.

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