Gabriel Resources Ltd.: Annual Results and Fourth Quarter Report

TORONTO -- (Marketwire) -- 03/15/12 --

PRESS RELEASE

FOR IMMEDIATE RELEASE TSX Trading Symbol: GBU

March 15, 2012

Annual Results and Fourth Quarter Report

Gabriel Resources Ltd. ("Gabriel" or the "Company") announces the
publication of its Annual Results and Fourth Quarter Management's
Discussion and Analysis Report for the period ended December 31, 2011.

Highlights

* Permitting for the Rosia Montana gold and silver mining project
("Project") remains the core focus of the business. The following
recent progress has been made in the quarter:

* ongoing engagement with the Technical Analysis Committee ("TAC")
through its review of the Environmental Impact Assessment ("EIA"),
including, in October 2011, a site visit to the Project by the majority
of the members of the TAC.

* a TAC meeting of November 29, 2011 completed the analysis of all EIA
chapters and concluded that all technical aspects have been clarified.
However, the Company is awaiting formal feedback from the TAC as to
whether further meetings or documentation will be required.

* Austerity measures gradually eroded the public support for the
activity of the Romanian Government ("Government") in 2011 and led to
public protests in January 2012. The opposition party alliance withdrew
from parliamentary decision making and voting, and the Prime Minister
Emil Boc announced his resignation together with that of his entire
Cabinet in early February 2012. Mihai Razvan Ungureanu, a former
Minister of Foreign Affairs, was sworn in as Prime Minister and formed
a new Cabinet. The same individuals hold the positions of Minister of
Environment and the Minister of Culture as held in the past. The next
local elections are scheduled for June 2012, with parliamentary
elections currently scheduled for late November 2012.

* Discussions with relevant ministries of the Government have been
ongoing on the potential for a revised ownership interest in the
Project, royalty rates and the route to successful permitting of the
Project. The Company awaits a response from the Government on its
latest proposal and clarification on whether the proposed adoption of
an increased royalty rate payable for precious metals production, which
has yet to be passed to law, applies to the Project.

* $135.5 million of cash and cash equivalents held at December 31,
2011.

Jonathan Henry, Gabriel's President and Chief Executive Officer,
stated:"We continue to work closely with the Romanian Government to permit
and build Romania's first modern mine. Our campaign to highlight the
substantial economic, social and environmental benefits of the Rosia
Montana project continues and it is pleasing to see recent polls in
Romania showing a significant majority in favour of the development of
mining in Rosia Montana. We look forward to the TAC recommendation in
the coming months."

Further commentary on operations and results in the fourth quarter of
2011 and full financial year, together with events anticipated in the
short term, is given below. The Company has filed its Conslidated
Financial Statements and Management's Discussion & Analysis on SEDAR at
www.sedar.com.

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 they operate. The Project is
anticipated to bring US$19 billion to Romania as potential direct and
indirect contribution to GDP according to 2010 estimates from UK-based
Oxford Policy Management (using a gold price of US$900/oz). 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 www.gabrielresources.com.

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
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.

Further information

Financial Performance

* The net loss for the fourth quarter was $8.4 million, and for
the year ended December 31, 2011 was $16.7 million, or $0.05 per share.
The net loss for the year primarily reflects stock based compensation
and corporate costs of $18.7 million (of which fourth quarter was $5.0
million) offset by foreign exchange gains and interest income totalling
$2.2 million (fourth quarter loss of $3.1 million).

* A total of $61.0 million was spent on Project development
activities during the year and $21.3 million during the fourth quarter.

Liquidity and Capital Resources

* Cash and cash equivalents at December 31, 2011 totaled $135.5
million.

* In light of recent Euro instability, the Company is following a
strategy of reducing Euro balances through operational expenditure in
preference to US and Canadian dollar holdings. At December 31, 2011,
Euro holdings accounted for 30% of total cash and cash equivalents.

* The Company is in the process of updating the capital and
operating cost estimates to complete the development of the Project and
expects to provide a new NI 43-101 compliant technical report
incorporating revised estimates concurrently with the conclusion of
discussions with the Government on Project ownership and royalties (see
section below).

Political Environment

* The Project remains a high profile issue in Romania, with wide
coverage in television debates, on the internet and in print media, as
well as being the subject of comment from leaders of all major
political parties in Romania.

* Throughout 2011, the Government, with support from the
President, continued to apply a general economic policy in line with
the strategy agreed with the International Monetary Fund. These
austerity measures gradually eroded the public support for the activity
of the Government and led to public protests in January 2012. The
opposition PSD and PNL party alliance ("USL") then announced its
withdrawal from parliamentary decision making and voting, for all usual
activity. On February 6, 2012, the lack of public support led to Prime
Minister Emil Boc announcing his resignation together with that of his
entire Cabinet. Shortly thereafter President Basescu asked Mihai Razvan
Ungureanu, the Head of Foreign Intelligence Service and former Minister
of Foreign Affairs, to form a new Government which was sworn in on
February 9, 2012 pursuant to a confidence vote in Parliament.

* Prime Minister Ungureanu is politically independent but his
Cabinet is backed by the existing ruling coalition parties including
the Liberal Democratic Party ("PDL"), the Hungarian-ethnic UDM

R
alliance, plus independent and minority bloc parliamentarians. While
PDL appointed new ministers, its political partners decided to preserve
the same individuals and positions held in the past ministerial
structure under the former Prime Minister Boc, including the Minister
of Environment and the Minister of Culture. The next local elections
are scheduled for June 2012, with Parliamentary elections currently
scheduled for late November 2012.

* Given the critical importance of sustained economic development
for Romania, in addition to its commitment to adhere to the highest
standards on engineering, environmental, cultural and social matters,
the Company continues to draw public and political attention to the
significant economic and employment opportunities offered by the
Project.

Project Ownership and Royalty Rates

* Further to the announcement made by Gabriel on December 29,
Gabriel has been involved in subsequent dialogue with a number of
ministries of the Romanian Government in respect of questions raised on
the potential for a revised ownership interest in the Project, royalty
rates for gold and silver production and the route to successful
permitting of the Project.

* The adoption of an increased royalty rate for all mineral
resources regulated by the Mining Law in Romania, and specifically a
proposed increase in the royalty payable to the Romanian state for
precious metals production, has yet to be passed to law and therefore
Gabriel awaits a formal clarification from the Government on if, or
how, the published statement would apply to the Project.

* The Company continues to work together with the Romanian
Government in respect of potentially amending the ownership of the
Project and royalty rates payable by it, in the context of the overall
expected returns to Romania as well as to Gabriel shareholders from the
Project. In late 2011, a proposal on these matters was submitted to
the Government for consideration and a revised proposal was made by
Gabriel in late January 2012. Whilst there has been a subsequent change
in Government, the discussions with relevant ministries remain
ongoing. The Company awaits a response from the Romanian Government on
its latest proposaland will provide further updates as and when matters
are concluded.

Environmental/Permitting

* In October 2011, the majority of the members of the TAC
undertook a site visit to the Project. This was followed by a further
TAC meeting on November 29, 2011 where the analysis of all EIA chapters
was completed. It is the Company's understanding that the TAC concluded
that all technical aspects have been clarified. The Company is awaiting
formal feedback from the TAC as to whether further meetings or
documentation will be requested.

* The Company is unable to provide guidance on the time that it
might take the TAC to vote on the EIA or to release its recommendation
to Government. Ultimately, the environmental permit must be approved by
a Cabinet decision of the Government prior to its issuance, which could
take a period of sixty days or more from the TAC recommendation to
Government.

* There has been limited recent progress in respect of other
permitting activities. RMGC holds 19 out of 22 endorsements necessary
for the approval of the amended zonal urbanism plan for the industrial
area of the Project and 10 endorsements out of 13 endorsements
necessary for the final approval of the zonal urbanism plan for the
protected area of the historical centre of Rosia Montana have been
obtained. Whilst the Company understands there is no formal link
between the receipt of remaining endorsements and the EIA review
process, it believes that these respective remaining endorsements are
likely to be obtained on or after the issue of an environmental
permit.

Archaeology and Preservation of Cultural Heritage

* Significant progress was made in July 2011 with the issue of an
archeological discharge certificate for the Carnic open pit ("ADC"). In
order to end the protective archaeological regime covering the proposed
site of the Carnic pit, RMGC now awaits formal confirmation that the
Carnic massif has been removed from the List of Historical Monuments by
the National Monuments Committee and the Minister of Culture.

* The Company has continued maintenance work on 160 houses located
in the historical center of the village of Rosia Montana which will not
be directly affected by mining operations ("Protected Area"), with the
aim of preventing their deterioration. This emergency conservation work
will continue through a multi-year program, which will run in parallel
with the construction and the operation phases of the Project.

* The Company has initiated the design work to prioritize the
restoration of more than 100 houses located within the Protected Area,
which will bring these back into functional use. To date, the design
work for the first phase of more than 50 houses has been completed with
a view to obtaining the necessary permits and starting construction
activities in Q2 2012, and the second phase of design work is in
progress.

* RMGC, in partnership with the local council of Rosia Montana, is
progressing the restoration of two iconic buildings (the old school
house and former town hall) in the Protected Area, along with the
rehabilitation of a number of houses, which will be used for tourism
initiatives.

* RMGC has commenced further detailed archaeological work in the
old underground mining galleries that lie under the Protected Area.
This work has focused on opening up previously unexplored Roman
galleries and the commencement of archaeological rehabilitation work on
underground development adits and old mining areas that have never been
restored for public interest. These areas will be restored by RMGC with
a view to opening them as a permanent museum, a visible testimony to
the 2,000 year mining history at Rosia Montana and an accessible
example of historical mining activities for parties with interests in
the regional mining sector. One such example is the Catalina Monulesti
underground mining gallery which is in the process of being
successfully restored and reopened.

Employment and Economic Benefits for Romania

* Given the critical importance of sustained economic development
for Romania, the Company continues to draw public and political
attention to the significant employment and economic opportunities the
Project brings, while at the same time aiming to conform to the highest
standards on engineering, environmental, cultural and social matters.

* The Company's communication efforts are fact-based, focusing on
the critically-needed employment and economic advantages the Project
will bring to Romania as well as the benefits to an area that has
endured significant damage to its cultural heritage and environment
through many years of mining activities and neglect.

* RMGC currently employs approximately 480 peopledirectly and
numerous others indirectly, with approximately 85% hired from the local
Rosia Montana community, and the Company is investing in training and
skills assessments for the construction phase of the Project.

Corporate and Social Responsibility (CSR)

* Gabriel takes pride in its commitment to achieving the highest
levels of sustainability from workplace safety to community and
environmental responsibility. It has a clear goal of attaining
business performance through a dynamic process of continuous
improvement in all aspects of its business and respecting all
stakeholders. The Company invests significant resources into its CSR
programs, which in Romania is a multi-dimensional commitment managed by
RMGC covering employee training and safety, local communities, living
traditions, direct and indirect social impacts, educational programs,
environmental protection, community sponsorship and heritage aspects.

* In the second quarter of 2011, the Company commenced the
construction of a church at the Recea resettlement site. This project
is progressing well and is forecast to be substantially complete in the
first half of 2012. During the fourth quarter of 2011, the Company
commenced the construction of six new houses at the Recea site. Both
initiatives stands as a visible testimony to the determination of the
Company to deliver on its promises to the people of Rosia Montana.

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

END

Contacts:

RNS

Customer

Services

0044-207797-4400
Email Contact
http://www.rns.com


For further information on this press release, please contact:


Jonathan Henry

President and Chief Executive Officer

Mobile: +44 7798 801783
Email Contact


Bobby Morse

Buchanan

Tel: +44 207 466 5000

Mobile: +44 7802 875227
Email Contact


Max Vaughan

Chief Financial Officer

Mobile: +44 7823 885503
Email Contact