Mr. Dragos Tanase reports

UPDATE ON ICSID ARBITRATION - TRIBUNAL DECISION

The World Bank's International Centre for Settlement of Investment Disputes has issued a decision dismissing, by a two to one majority, Gabriel Resources Ltd.'s arbitration claims filed against the Romanian government relating to its investments in the Rosia Montana gold and silver mining project.

In addition, the tribunal awarded Romania approximately $10-million (U.S.) in legal fees and expenses incurred in connection with its defence of the arbitration. The award is binding on the parties.

Gabriel initiated the arbitration before ICSID in July, 2015, under the Canada-Romania and United Kingdom-Romania bilateral investment treaties following the Romanian government's refusal to act on the permitting of the Rosia Montana project.

The company strongly disagrees with the majority's decision, which is entirely inconsistent with any objective assessment of the evidence presented in this case, as demonstrated by the compelling dissenting opinion of one of the arbitrators.

The company is analyzing the tribunal's decision with its legal advisers to evaluate its options, including to challenge the decision through the annulment process prescribed by the ICSID convention.

Anna El-Erian, chair of Gabriel, said: "We consider the decision of the majority to be deeply flawed. As recognized by the dissenting arbitrator, the Romanian government's sustained political interference with Gabriel's contractual rights prevented the development of a flagship mining project owned in partnership with the state. We will take time to evaluate our options, but hasten to record our sincere appreciation to our shareholders for their unwavering support and patience throughout this prolonged process. We would also like to express our gratitude to our earnest and hard-working management and team of employees, in Romania and abroad, who have devoted a significant part of their careers to the development of the project in the sincere belief that it was in the country's best interests."

Dragos Tanase, chief executive officer of Gabriel, said: "Gabriel's shareholders invested hundreds of millions of dollars to deliver a transformational mining project that would have brought very significant social and financial benefits to the Romanian people, not only in Rosia Montana, but across Romania. We regret that Romania, its economy and its citizens have missed the opportunity to benefit from this mining project. We will be studying the tribunal's decision in detail before evaluating our next steps."

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.

Following issuance of the exploitation 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. Gabriel invested over $760-million (U.S.) to develop the Rosia Montana project and to define two promising gold, silver and porphyry copper-gold mineral deposits in the Bucium concession area located in the vicinity of Rosia Montana.

The Rosia Montana project had the potential to be a flagship development project in Romania presenting opportunities to:

• Boost the Romanian economy through direct and indirect contributions to gross domestic product;
• Create several thousand of much needed direct and indirect jobs in an area that has record unemployment, thus ensuring Rosia Montana's sustainable economic development;
• Make Romania the leading producer of gold and silver in the European Union;
• Remediate, through significant investment in infrastructure and environmental rehabilitation, the severe environmental degradation that besieges Rosia Montana's landscape today as a consequence of unregulated historical state mining operations;
• Add further significant investments to the preservation and restoration of Rosia Montana's important cultural heritage (beyond the significant investments already made by Gabriel).

About the ICSID arbitration

The company, together with its wholly owned subsidiary, Gabriel Resources (Jersey) Ltd., initiated arbitration proceedings in July, 2015, before the World Bank's International Centre for Settlement of Investment Disputes against the Romanian state, seeking compensation for the violation by Romania of the terms of the bilateral investment protection treaties which it has entered into with each of the government of Canada and the government of the United Kingdom of Great Britain and Northern Ireland for the promotion and reciprocal protection of investments (ICSID case No. ARB/15/31).

The original arbitral tribunal was constituted on June 21, 2016. The current members of the tribunal are Prof. Pierre Tercier (Switzerland), Horacio Grigera Naon (Argentina) and Prof. Zachary Douglas (Australia and Switzerland).

Following over eight years of procedural steps and legal argument, including the submission of extensive written submissions and evidence, hearings of witnesses and experts, observations from non-disputing parties, and questions from the tribunal, the tribunal rendered its final award today.

In its award, the tribunal by majority rejected Gabriel's claims that Romania breached its obligations under the treaties. Grigera Naon disagreed with the decision and rationale, and issued a dissenting opinion.

A summary of the procedural steps in the arbitration, together with copies of the parties' principal submissions and orders of the tribunal, is available on the ICSID website. A copy of the award will be published on the ICSID website following the completion of redaction process in accordance with a procedure and time frame agreed by the parties and the tribunal.

The ICSID convention includes a review process through which an award can be annulled in part or in its entirety. Such review must be conducted by a new panel of ICSID arbitrators.

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