Mr. Dragos Tanase reports

CORPORATE UPDATE

Gabriel Resources Ltd. has provided the following corporate update:

Mineral Tenure Rights

• In March 2024, Rosia Montana Gold Corporation ("RMGC") submitted an application to the Romanian National Agency for Mineral Resources ("NAMR"). together with the requisite supporting documentation, requesting an extension of the term of the exploitation license for the Rosia Montana Project ("License") for an additional five years, as provided by Romanian law ("LicenseExtension Application").
• On June 20, 2024, RMGC was notified that the NAMR has rejected the License Extension Application.
• The company and RMGC strongly disagree with the NAMR's decision and intends to vigorously pursue all legal avenues to reinstate its rights. The decision of the NAMR shows a flagrant disregard for the rule of law and established investment rights and, in the company's view, is a politically motivated decision to deny RMGC's rights to develop the Rosia Montana Project arbitrarily, without due process, and without compensation.
• NAMR has sought to justify this decision by alleging, amongst other things, that the documentation submitted in support of the License Extension Application does not satisfy the legal requirements despite being entirely consistent with, and in greater detail than, the extension application filed in 2019 that was approved by the NAMR.
• The company strongly believes that the justifications provided by NAMR are pretextual and is evaluating the decision with its professional advisers. The timing of this decision, coming less than three months following the conclusion of the company's arbitration claim against Romania, is dubious. As noted above, Gabriel and RMGC will pursue all options to defend and reinstate its legal rights.
• RMGC also has consistently urged NAMR to issue the exploitation licenses for the two Bucium Projects in accordance with the applications made in 2007 ("Bucium Applications"). Throughout the ICSID arbitration claims filed against the Romanian State ("ICSID Arbitration"), the Romanian State consistently maintained a position, relied upon by the majority in the Arbitral Decision (defined below), that the Bucium Applications remain pending before the NAMR. There remains no response from NAMR in this regard.

ICSID arbitration

• On March 8, 2024, the presiding tribunal ("Tribunal") issued a final decision ("Arbitral Decision") dismissing, by a two to one majority, the ICSID Arbitration claims and awarded Romania approximately US$10 million to reimburse legal fees and expenses it had incurred ("Costs Order").
• The company strongly disagrees with the Tribunal majority's decision, which it believes is deeply flawed, at odds with the opinion of the dissenting arbitrator and is inconsistent with any objective assessment of the evidence presented. Accordingly, the company intends to challenge the Arbitral Decision through the annulment process prescribed by the ICSID Convention. The annulment application ("Application") will be filed on or before July 7, 2024.
• An annulment is not an appeal of the merits of the Arbitral Decision, but a procedure which would, if successful, set aside such Arbitral Decision and extinguish the Costs Order. The annulment process could take 12-24 months to conclude post submission of the Application.

Liquidity and Capital Resources

• On April 26, 2024, Gabriel announced a fundraising of up to US$5.575 million (the "2024 Private Placement") and on May 17, 2024, the company announced closing of an initial tranche of that fundraising with proceeds received of US$3.25 million. On May 29, 2024, the company noted that the remainder of the 2024 Private Placement was anticipated to close on or before July 3, 2024, or such later date as may be determined by the company, subject to satisfaction or waiver by the relevant party of the conditions of closing and any applicable approvals (including that of the Exchange).
• Of the US$3.25 million received from the funding, US$1.5 million has been set aside for utilization in the annulment proceedings.
• Gabriel continues to manage its cash resources and its current and future financial obligations carefully. As at June 20, 2024, the company held approximately $2.5 million of cash net of the amounts set aside described above.
• There is no assurance that the company will be successful in closing the remainder of the 2024 Private Placement, in which case the company believes that, excluding the Costs Order, it has sufficient cash to enable the Group to fund general working capital requirements together with the material estimated costs associated with the company advancing the ICSID Arbitration through to August 2024 and it will seek alternative sources of additional financing.

About Gabriel

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, an historic and prolific mining district that since pre-Roman times has been mined intermittently for over 2,000 years. The exploitation license for the Rosia Montana Project is held by Rosia Montana Gold Corporation S.A., a Romanian company in which Gabriel owns an 80.69% equity interest, with the 19.31%e balance held by Minvest Rosia Montana S.A., a Romanian state-owned mining company.

Upon obtaining the License in June 1999, the Group focused substantially all of their 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 ICSID Arbitration. For more information please visit the company's website at www.gabrielresources.com.

We seek Safe Harbor.