Gabriel Resources Limited: Corporate Update

TORONTO -- 04/05/12 -- Gabriel Resources Ltd. ("Gabriel" or the "Company") would like to provide a corporate update regarding today's resignation of the Romanian Minister of Environment, Laszlo Borbely, and today's ruling of the Alba Iulia Court of Appeal to annul the Rosia Montana Commune'sLocal Council Decision 1/2009.


Environment Minister Resignation

Minister of Environment, Laszlo Borbely, resigned today as it was announced he is under investigation on corruption related allegations completely unrelated to the Rosia Montana Project (Project). The Ministry of Environment is responsible for the environmental permitting process for the Project. The Romanian Prime Minister, Mihai-Razvan Ungureanu, has taken on the position of Minister of Environment on a temporary basis. A new Minister is likely to be appointed in the short term. Throughout this time Gabriel remains engaged with the government with regard to the permitting of the Project.


Alba Iulia Court of Appeal

The Company and its subsidiary, Rosia Montana Gold Corporation (RMGC), confirms that the Alba Iulia Court of Appeal has irrevocably admitted a petition submitted by three NGOs to cancel the 2009 decision made by the Local Council of the commune of Rosia Montana which validated the voting procedure on the general urbanism plan of the Rosia Montana commune (PUG) and the zonal urbanism plan of the Rosia Montana industrial development area (PUZ), which were adopted in 2002. The ruling of the Alba Iulia Court of Appeal does not apply to the decisions of the Local Council of the Rosia Montana commune to adopt the town-planning documentation PUG and PUZ in 2002, which,we are advised,are still valid and legal. Gabriel will consider the implications of the court decision in due course once the reasons are released.The Company confirms that the existing permitting procedures, which are well advanced, will continue in accordance with the legal provisions. Moreover, the new draft urbanism documentation for the Project is at an advanced stage with 19 out of 22 endorsements received to date. The final endorsements will result in a new PUZ being issued. The local communities affected by the Project also initiated the procedures for a new PUG for the respective localities.

Jonathan Henry, President and CEO Gabriel Resources, stated: "We are monitoring the situation closely within Romania and once more detail becomes available we will update the market accordingly. For now the permitting process for the Project continues. In Romania the majority of people recognize the benefits of the Project for the Romanian economy and the fact that a responsible mining project can only be implemented in full compliance with the Romanian and European legislation, using the best available practices."


For further information on this press release, please contact:

Jonathan Henry
President and Chief Executive Officer

Mobile: +44 7798 801783
jh@gabrielresources.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 theyoperate. The Project is
anticipatedto bring US$19 billion to Romania as potential direct and
indirect contribution to GDPaccording to 2010 estimates from UK-based
Oxford Policy Management (using a gold price of US$900/oz). The
Projectwill generate thousands of employment opportunities. Gabriel
intends to build a state-of-the-artmine using best available techniques
and implementing the highest environmental standards whilst
preservinglocal 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 inapplicable 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.


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