Mr. Dragos Tanase reports

PROPOSED NET EXERCISE RIGHT FOR WARRANT HOLDERS

Gabriel Resources Ltd. intends to provide holders of all outstanding common share purchase warrants with the right to exercise such warrants, if they so choose, on a net exercise basis (as such term is defined in Policy 4.4 of the TSX Venture Exchange corporate finance manual).

The proposal will allow each warrantholder, in lieu of exercising the warrants by means of payment of cash to the company, to receive only the number of common shares of the company that is equal to the quotient obtained by dividing:

1. The product of the number of warrants being exercised multiplied by the difference between the volume-weighted average trading price of the underlying shares on the TSX Venture Exchange and the exercise price;
2. By the VWAP.

The VWAP is calculated by dividing the total value by the total volume of the shares traded for the five trading days immediately preceding the exercise of the warrants.

If the net exercise right is employed, then the potential proceeds to the company will be diminished but the equity dilution suffered by all shareholders from the exercise of the warrants could be significantly reduced.

The company has the following warrants outstanding:

• 12,663,486 warrants, which are exercisable at a price of 39 cents and expire between Dec. 18 and Dec. 23, 2023;
• 106,425,847 warrants, which are exercisable at a price of 49 cents and expire between Dec. 21, 2023, and Jan. 15, 2024;
• 81,730,233 warrants, which are exercisable at a price of 64.5 cents and expire between Aug. 23 and Sept. 13, 2024.

About Gabriel Resources Ltd.

Gabriel is a Canadian resource company listed on the TSX Venture Exchange. The company's principal business had been the exploration and development of the Rosia Montana gold and silver project in Romania. The Rosia Montana project, one of the largest undeveloped gold deposits in Europe, is situated in the South Apuseni Mountains of Transylvania, Romania, a historic and prolific mining district that since pre-Roman times has been mined intermittently for over 2,000 years. The exploitation licence for the Rosia Montana project is held by Rosia Montana Gold Corporation SA, a Romanian company in which Gabriel owns an 80.69-per-cent equity interest, with the 19.31-per-cent balance held by Minvest Rosia Montana SA, a Romanian-state-owned mining company.

Upon obtaining the licence in June, 1999, the group focused substantially all of its management and financial resources on the exploration, feasibility and subsequent development of the Rosia Montana project. Despite the company's fulfilment of its legal obligations and its development of the Rosia Montana project as a high-quality, sustainable and environmentally responsible mining project, using best available techniques, Romania has unlawfully blocked and prevented implementation of the Rosia Montana project without due process and without compensation. Accordingly, the company's current core focus is the International Centre for Settlement of Investment Disputes arbitration.

We seek Safe Harbor.