Annual Results and Fourth Quarter Report

PRESS RELEASE

FOR IMMEDIATE RELEASE TSX Trading Symbol: GBU

March 15, 2012

Annual Results and Fourth Quarter Report

Gabriel Resources Ltd. (“Gabriel” or the “Company”) announces the publication of its Annual Results and Fourth Quarter Management’s Discussion and Analysis Report for the period ended December 31, 2011.

Highlights

• Permitting for the Rosia Montana gold and silver mining project (“Project”) remains the core focus of the business. The following recent progress has been made in the quarter:

o ongoing engagement with the Technical Analysis Committee (“TAC”) through its review of the Environmental Impact Assessment (“EIA”), including, in October 2011, a site visit to the Project by the majority of the members of the TAC.

o a TAC meeting of November 29, 2011 completed the analysis of all EIA chapters and concluded that all technical aspects have been clarified. However, the Company is awaiting formal feedback from the TAC as to whether further meetings or documentation will be required.

• Austerity measures gradually eroded the public support for the activity of the Romanian Government (“Government”) in 2011 and led to public protests in January 2012. The opposition party alliance withdrew from parliamentary decision making and voting, and the Prime Minister Emil Boc announced his resignation together with that of his entire Cabinet in early February 2012. Mihai Razvan Ungureanu, a former Minister of Foreign Affairs, was sworn in as Prime Minister and formed a new Cabinet. The same individuals hold the positions of Minister of Environment and the Minister of Culture as held in the past. The next local elections are scheduled for June 2012, with parliamentary elections currently scheduled for late November 2012.
• Discussions with relevant ministries of the Government have been ongoing on the potential for a revised ownership interest in the Project, royalty rates and the route to successful permitting of the Project. The Company awaits a response from the Government on its latest proposal and clarification on whether the proposed adoption of an increased royalty rate payable for precious metals production, which has yet to be passed to law, applies to the Project.
• $135.5 million of cash and cash equivalents held at December 31, 2011.

Jonathan Henry, Gabriel’s President and Chief Executive Officer, stated:

“We continue to work closely with the Romanian Government to permit and build Romania’s first modern mine. Our campaign to highlight the substantial economic, social and environmental benefits of the Rosia Montana project continues and it is pleasing to see recent polls in Romania showing a significant majority in favour of the development of mining in Rosia Montana. We look forward to the TAC recommendation in the coming months.”

Further commentary on operations and results in the fourth quarter of 2011 and full financial year, together with events anticipated in the short term, is given below. The Company has filed its Conslidated Financial Statements and Management’s Discussion & Analysis on SEDAR at www.sedar.com.

For further information on this press release, please contact:

Jonathan Henry Bobby Morse President and Chief Executive Officer Buchanan Mobile: +44 7798 801783 Tel: +44 207 466 5000 [email protected] Mobile: +44 7802 875227 [email protected] Max Vaughan Chief Financial Officer Mobile: +44 7823 885503 [email protected]

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 they operate. The Project is anticipated to bring US$19 billion to Romania as potential direct and indirect contribution to GDP according to 2010 estimates from UK-based Oxford Policy Management (using a gold price of US$900/oz). The Project will generate thousands of employment opportunities. Gabriel intends to build a state-of-the-art mine using best available techniques and implementing the highest environmental standards whilst preserving local 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 in applicable 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 forwardlooking 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.

Further information Financial Performance

• The net loss for the fourth quarter was $8.4 million, and for the year ended December 31, 2011 was $16.7 million, or $0.05 per share. The net loss for the year primarily reflects stock based compensation and corporate costs of $18.7 million (of which fourth quarter was $5.0 million) offset by foreign exchange gains and interest income totalling $2.2 million (fourth quarter loss of $3.1 million).
• A total of $61.0 million was spent on Project development activities during the year and $21.3 million during the fourth quarter.

Liquidity and Capital Resources

• Cash and cash equivalents at December 31, 2011 totaled $135.5 million.
• In light of recent Euro instability, the Company is following a strategy of reducing Euro balances through operational expenditure in preference to US and Canadian dollar holdings. At December 31, 2011, Euro holdings accounted for 30% of total cash and cash equivalents.
• The Company is in the process of updating the capital and operating cost estimates to complete the development of the Project and expects to provide a new NI 43-101 compliant technical report incorporating revised estimates concurrently with the conclusion of discussions with the Government on Project ownership and royalties (see section below).

Political Environment

• The Project remains a high profile issue in Romania, with wide coverage in television debates, on the internet and in print media, as well as being the subject of comment from leaders of all major political parties in Romania.
• Throughout 2011, the Government, with support from the President, continued to apply a general economic policy in line with the strategy agreed with the International Monetary Fund. These austerity measures gradually eroded the public support for the activity of the Government and led to public protests in January 2012. The opposition PSD and PNL party alliance (“USL”) then announced its withdrawal from parliamentary decision making and voting, for all usual activity. On February 6, 2012, the lack of public support led to Prime Minister Emil Boc announcing his resignation together with that of his entire Cabinet. Shortly thereafter President Basescu asked Mihai Razvan Ungureanu, the Head of Foreign Intelligence Service and former Minister of Foreign Affairs, to form a new Government which was sworn in on February 9, 2012 pursuant to a confidence vote in Parliament.
• Prime Minister Ungureanu is politically independent but his Cabinet is backed by the existing ruling coalition parties including the Liberal Democratic Party (“PDL”), the Hungarian-ethnic UDMR alliance, plus independent and minority bloc parliamentarians. While PDL appointed new ministers, its political partners decided to preserve the same individuals and positions held in the past ministerial structure under the former Prime Minister Boc, including the Minister of Environment and the Minister of Culture. The next local elections are scheduled for June 2012, with Parliamentary elections currently scheduled for late November 2012.
• Given the critical importance of sustained economic development for Romania, in addition to its commitment to adhere to the highest standards on engineering, environmental, cultural and social matters, the Company continues to draw public and political attention to the significant economic and employment opportunities offered by the Project.

Project Ownership and Royalty Rates

• Further to the announcement made by Gabriel on December 29, Gabriel has been involved in subsequent dialogue with a number of ministries of the Romanian Government in respect of questions raised on the potential for a revised ownership interest in the Project, royalty rates for gold and silver production and the route to successful permitting of the Project.
• The adoption of an increased royalty rate for all mineral resources regulated by the Mining Law in Romania, and specifically a proposed increase in the royalty payable to the Romanian state for precious metals production, has yet to be passed to law and therefore Gabriel awaits a formal clarification from the Government on if, or how, the published statement would apply to the Project.
• The Company continues to work together with the Romanian Government in respect of potentially amending the ownership of the Project and royalty rates payable by it, in the context of the overall expected returns to Romania as well as to Gabriel shareholders from the Project. In late 2011, a proposal on these matters was submitted to the Government for consideration and a revised proposal was made by Gabriel in late January 2012. Whilst there has been a subsequent change in Government, the discussions with relevant ministries remain ongoing. The Company awaits a response from the Romanian Government on its latest proposal and will provide further updates as and when matters are concluded.

Environmental/Permitting

• In October 2011, the majority of the members of the TAC undertook a site visit to the Project. This was followed by a further TAC meeting on November 29, 2011 where the analysis of all EIA chapters was completed. It is the Company’s understanding that the TAC concluded that all technical aspects have been clarified. The Company is awaiting formal feedback from the TAC as to whether further meetings or documentation will be requested.
• The Company is unable to provide guidance on the time that it might take the TAC to vote on the EIA or to release its recommendation to Government. Ultimately, the environmental permit must be approved by a Cabinet decision of the Government prior to its issuance, which could take a period of sixty days or more from the TAC recommendation to Government.
• There has been limited recent progress in respect of other permitting activities. RMGC holds 19 out of 22 endorsements necessary for the approval of the amended zonal urbanism plan for the industrial area of the Project and 10 endorsements out of 13 endorsements necessary for the final approval of the zonal urbanism plan for the protected area of the historical centre of Rosia Montana have been obtained. Whilst the Company understands there is no formal link between the receipt of remaining endorsements and the EIA review process, it believes that these respective remaining endorsements are likely to be obtained on or after the issue of an environmental permit.

Archaeology and Preservation of Cultural Heritage

• Significant progress was made in July 2011 with the issue of an archeological discharge certificate for the Carnic open pit (“ADC”). In order to end the protective archaeological regime covering the proposed site of the Carnic pit, RMGC now awaits formal confirmation that the Carnic massif has been removed from the List of Historical Monuments by the National Monuments Committee and the Minister of Culture.
• The Company has continued maintenance work on 160 houses located in the historical center of the village of Rosia Montana which will not be directly affected by mining operations (“Protected Area”), with the aim of preventing their deterioration. This emergency conservation work will continue through a multi-year program, which will run in parallel with the construction and the operation phases of the Project.
• The Company has initiated the design work to prioritize the restoration of more than 100 houses located within the Protected Area, which will bring these back into functional use. To date, the design work for the first phase of more than 50 houses has been completed with a view to obtaining the necessary permits and starting construction activities in Q2 2012, and the second phase of design work is in progress.
• RMGC, in partnership with the local council of Rosia Montana, is progressing the restoration of two iconic buildings (the old school house and former town hall) in the Protected Area, along with the rehabilitation of a number of houses, which will be used for tourism initiatives.
• RMGC has commenced further detailed archaeological work in the old underground mining galleries that lie under the Protected Area. This work has focused on opening up previously unexplored Roman galleries and the commencement of archaeological rehabilitation work on underground development adits and old mining areas that have never been restored for public interest. These areas will be restored by RMGC with a view to opening them as a permanent museum, a visible testimony to the 2,000 year mining history at Rosia Montana and an accessible example of historical mining activities for parties with interests in the regional mining sector. One such example is the Catalina Monulesti underground mining gallery which is in the process of being successfully restored and reopened.

Employment and Economic Benefits for Romania

• Given the critical importance of sustained economic development for Romania, the Company continues to draw public and political attention to the significant employment and economic opportunities the Project brings, while at the same time aiming to conform to the highest standards on engineering, environmental, cultural and social matters.
• The Company’s communication efforts are fact-based, focusing on the critically-needed employment and economic advantages the Project will bring to Romania as well as the benefits to an area that has endured significant damage to its cultural heritage and environment through many years of mining activities and neglect.
• RMGC currently employs approximately 480 people directly and numerous others indirectly, with approximately 85% hired from the local Rosia Montana community, and the Company is investing in training and skills assessments for the construction phase of the Project.

Corporate and Social Responsibility (CSR)

• Gabriel takes pride in its commitment to achieving the highest levels of sustainability from workplace safety to community and environmental responsibility. It has a clear goal of attaining business performance through a dynamic process of continuous improvement in all aspects of its business and respecting all stakeholders. The Company invests significant resources into its CSR programs, which in Romania is a multi-dimensional commitment managed by RMGC covering employee training and safety, local communities, living traditions, direct and indirect social impacts, educational programs, environmental protection, community sponsorship and heritage aspects.
• In the second quarter of 2011, the Company commenced the construction of a church at the Recea resettlement site. This project is progressing well and is forecast to be substantially complete in the first half of 2012. During the fourth quarter of 2011, the Company commenced the construction of six new houses at the Recea site. Both initiatives stands as a visible testimony to the determination of the Company to deliver on its promises to the people of Rosia Montana.