Gabriel Resources Ltd. Corporate Update

LONDON, UK / ACCESSWIRE / April 4, 2024 / Gabriel Resources Ltd. (TSXV:GBU) ("Gabriel" or the "Company") announced on March 8, 2024 that the Company's ICSID arbitration claims against the Romanian Government were dismissed by a two to one majority of the tribunal members ("Tribunal"), who also awarded Romania approximately US$10 million in legal fees and expenses ("Cost Order"). The Cost Order incurs simple interest from the date of the award at the 3-month US Treasury rate.

Following further analysis of the Tribunal's decision with its professional advisers, the Company continues to believe that the Tribunal's decision is deeply flawed. Accordingly, the Company is evaluating the possibility of challenging the decision through the annulment process prescribed by the ICSID Convention. Any annulment application must be filed within 120 days of the date of the Tribunal's decision.

The Government of Romania has requested the Company and its co-claimant in the ICSID arbitration, Gabriel Resources (Jersey) Ltd., ("Gabriel Jersey") to settle the Costs Order and noted that they will take action to enforce the same. In this regard, from public records, it appears that the Romanian State has sought precautionary measures in Romania to impose restrictions on the sale or transfer of the shares held by Gabriel Jersey in its Romanian subsidiary, Rosia Montana Gold Corporation S.A., pending settlement of the Cost Order. The Company believes that these actions are premature and suffer from procedural infirmities. Gabriel will vigorously defend its rights and interest in Romania and elsewhere.

The Company currently has available funds of approximately C$2.0 million (US$1.5 million) and would expect such balance to be exhausted in the normal course of business by the end of May 2024. Gabriel continues to manage its cash resources and its current and future financial obligations carefully. The Company is in discussions with existing investors and other interested parties to source additional funds to finance its future strategic objectives (which may include, as appropriate, costs of any potential annulment proceedings) and for general working capital purposes. There is a significant risk that sufficient additional financing may not be available to the Company on acceptable terms, or at all. The failure to raise funds as and when needed would have a negative impact on the Company's financial condition and its ability to continue as a going concern.