Arbitration Update – Publication of Rejoinder
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PRESS RELEASE
FOR IMMEDIATE RELEASE TSXV Trading Symbol: GBU
October 11, 2019
Arbitration Update – Publication of Rejoinder
Gabriel Resources Ltd. (“Gabriel” or the “Company”) previously reported that Romania filed its rejoinder (the
“Rejoinder”) on May 24, 2019 in response to the Company’s arbitration claim against Romania under the rules
of the International Centre for Settle ment of Investment Disputes (“ICSID”) part of the World Bank (the “ICSID
Arbitration”).
The Rejoinder is Romania’s final substantive submission ahead of the oral hearing on the merits of the claim
(the “Hearing”) scheduled to be held in Washington D.C. from December 2 to 13, 2019.
Following a process prescribed by certain procedural orders of the tribunal appointed to adjudicate the ICSID
Arbitration, a redacted version of the Rejoinder has now been published on the ICSID website.
Gabriel, together with its counsel, is currently preparing for the Hearing.
For information on this press release, please contact:
Dragos Tanase
President & CEO
Phone: +1 425 414 9256
Richard Brown
Chief Financial Officer
Phone: +44 7748 760276
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Further Information
About Gabriel
Gabriel is a Canadian resource company listed on the TSX Venture Exchange . The Company’s principal focus has been the exploration and
development of the Roșia Montană gold and silver pr oject in Romania (“Roşia Montană Project”). The Roşia Montană Project, one of the largest
undeveloped gold deposits in Europe, is situated in the South Apuseni Mountains of Transylvania, Romania, an historic and pro lific mining district
that since pre-Roman times has been mined intermittently for over 2,000 years. The exploitation license (“License”) for the Roşia Montană Project is
held by Roșia Montană Gold Corporation S.A., a Romanian company in which Gabriel owns an 80.69% equity interest, with the 19. 31% balance
held by Minvest Roșia Montană S.A., a Romanian state-owned mining company.
Upon obtaining the License in June 1999, the Group (as defined below) focused substantially all of their management and financial resources on the
exploration, feasibility and subsequent development of the Roşia Montană Project. Despite the Company’s fulfilment of its legal obligations and its
development of the Roşia Montană Project as a high -quality, sustainable and environmentally -responsible mining project, using best available
techniques, Romania has blocked and prevented implementation of the Roşia Montană Project without due process and without compensation .
Accordingly, the Company’s current core focu s is the ICSID Arbitration. For more information please visit the Company’s website at
www.gabrielresources.com.
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Forward-looking Statements
This press release contains “forward -looking information” (also referred to as “forward -looking statements”) within the meaning of applicable
Canadian securities legislation. Forward -looking statements are provided for the purpose of providing information about management’s current
expectations and plans and allowing investors and others to get a better understanding of the Company’s operating environment . All statements,
other than statements of historical fact, are forward-looking statements.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company
at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies that may cause the Company’s
actual financial results, performance, or achievements to be materially different from those expressed or implied herein. Some of the material factors
or assumptions used to develop forward -looking statements include, without limitation, the uncertaint ies associated with: the ICSID Arbitration,
actions by the Romanian Government, conditions or events impacting the Company’s ability to fund its operations (including but not limited to the
completion of further funding noted above) or service its debt, exploration, development and operation of mining properties and the overall impact of
misjudgments made in good faith in the course of preparing forward-looking information.
Forward-looking statements involve risks, uncertainties, assumptions, and other factors including those set out below, that may never materialize,
prove incorrect or materialize other than as currently contemplated which could cause the Company’s results to differ materially from those expressed
or implied by such forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as “expects”,
“is expected”, “is of the view”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”,
“potential”, “possible” or variations thereof or stating that certain actions, events, conditions or re sults “may”, “could”, “would”, “should”, “might” or
“will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of fact and may be forward-
looking statements.
Numerous factors could cause actual results to differ materially from those in the forward-looking statements, including without limitation:
• delay or extension to the duration of the ICSID Arbitration;
• required disclosure, costs, process and outcome of the ICSID Arbitration against Romania;
• changes in the liquidity and capital resources of Gabriel, and the group of companies of which it is directly or indirectly parent (“Group”);
• access to funding to support the Group’s continued ICSID Arbitration and/or operating activities in the future;
• equity dilution resulting from the conversion or exercise of new or existing securities in part or in whole to Common Shares;
• the ability of the Company to maintain a continued listing on the TSX Venture Exchange or any regulated public market for trading securities;
• the impact on business strategy and its implementation in Romania of: unforeseen historic acts of corruption, uncertain fiscal investigations;
uncertain legal enforcement both for and against the Group and political and social instability;
• regulatory, political and economic risks associated with operating in a foreign jurisdiction including changes in laws, governme nts and legal
regimes and interpretation of existing and future fiscal and other legislation;
• volatility of currency exchange rates, metal prices and metal production;
• the availability and continued participation in operational or other matters pertaining to the Group of certain key employees and consultants;
and
• risks normally incident to the exploration, development and operation of mining properties.
This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements.
Investors are cautioned not to put undue reliance on forward-looking statements, and investors should not infer that there has been no change in the
Company’s affairs since the date of this press release that would warrant any modification of any forward-looking statement made in this document,
other documents periodically filed with or furnished to the relevant securities regulators or documents presented on the Comp any’s website. All
subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their
entirety by this notice. The Company disclaims any intent or obligation to update publicly or otherwise revise any forward-looking statements or the
foregoing list of assumptions o r factors, whether as a result of new information, future events or otherwise, subject to the Company’s disclosure
obligations under applicable Canadian securities regulations. Investors are urged to read the Company’s filings with Canadian securities regulatory
agencies which can be viewed online at www.sedar.com.
ENDS