ICSID Annulment Update
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PRESS RELEASE
FOR IMMEDIATE RELEASE
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
March 10, 2025
ICSID Annulment Update
Gabriel Resources Ltd. (TSXV: GBU - “Gabriel” or the “Company”) announces that the ad hoc committee (the
“Committee”) appointed to adjudicate its application for annulment (the “Annulment Application”) of the March
8, 2024 ICSID award (“Award”) has ruled that the provisional stay of enforcement of the Award will continue
only if Gabriel provides a guarantee from a bank or a third party with proven solvency for the amount of the cost
award.
The Annulment Application requested, amongst other things, that the ICSID Secretary-General provisionally
stay the enforcement of the Award (including the cost order against Gabriel and its subsidiary, Gabriel
Resources (Jersey) Limited, of approximately US$10 million (the “Cost Award”) until the Committee had ruled
on such request. ICSID granted a provisional stay on July 12, 2024 (the “Provisional Stay”).
Gabriel subsequently requested the Committee to continue the Provisional Stay until the completion of the
annulment proceedings. The Committee maintained the Provisional Stay pending review of the parties’ written
submissions on the matter. Subsequently, and as announced on February 19, 2025, the Committee confirmed
it would be prepared to maintain the Provisional Stay, contingent upon Gabriel providing security. The
Committee directed the parties to agree on the form and timing of this security. In response, Gabriel presented
multiple good-faith proposals for security to both Romania and the Committee.
However, in a decision dated March 7, 2025, the Committee rejected Gabriel's proposed security arrangements.
The Committee has now directed Gabriel to provide, within 30 days, a guarantee from a bank or demonstrably
solvent third party, covering the Cost Award and accrued interest. Failure to provide a satisfactory guarantee
within this timeframe will result in the automatic revocation of the Provisional Stay. The provision of the
guarantee is solely related to the continuation of the Provisional Stay and is not a condition for pursuing the
Annulment Application.
The Company is reviewing this decision with its legal advisors.
Regarding the requirement to provide a guarantee from a bank or a demonstrably solvent third party , Gabriel
has already communicated to the Committee that it does not have cash or collateral sufficient to obtain such a
guarantee. Notwithstanding the initial closing of the proposed private placement of up to US$4 million
announced on March 6, 2025 (the “ Private Placement ”), Gabriel’s financial situation remains critical,
necessitating the timely closing of the remainder of the Private Placement and securing additional funding in
the short-term to maintain its essential activities and to pursue the Annulment Application.
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For information on this press release, please contact:
Dragos Tanase
President & CEO
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 business has been the
exploration and development of the Roșia Montană gold and silver project in Romania, one of the largest undeveloped gold deposits
in Eu rope. 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 Roşia Montană Project. An extension of the exploitation
license for the Roşia Montană Project (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)
was rejected by the competent authority in late June 2024.
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.
In this press release, 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
uncertainties associated with: the annulment challenge to the March 8, 2024 decision of the ICSID tribunal (the “Arbitral Decision”);
future actions taken by the Romanian Government, including in relation to the enforcement of the costs order granted under the
Arbitral Decision (the “Costs Order”); conditions or events impacting the Company’s ability to fund its operations (including but not
limited to the completion of the potential financing referred above); and the overall impact of misjudgments made in good fai th 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”, “ob jectives”,
“potential”, “possible” or variations thereof or stating that certain actions, events, conditions or results “may”, “could”, “would”,
“should”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) ar e 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:
• the revocation of the provisional stay of enforcement of the Award;
• the ability of the Company to close the previously announced private placement offering and to access additional funding to
support the Group’s strategic objectives;
• the impact on the Company’s financial condition and operations of any actions taken by Romania to enforce the Costs Order
against the Group’s assets;
• the duration, costs, process and outcome of the ICSID annulment proceedings;
• the impact on the Company’s financial condition and operations of the rejection of the extension of the Rosia Montana
exploitation license;
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• the impact on financial condition, business strategy and its implementation in Romania of: any allegations of historic acts o f
corruption, uncertain fiscal investigations, uncertain legal enforcement both for and against the Group, unpredictable
regulatory or agency actions and political and social instability;
• changes in the Group’s liquidity and capital resources;
• 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 Exchange or any regulated public market for trading securities;
• Romania’s actions following inscription of the “Roşia Montană Mining Landscape” as a UNESCO World Heritage site;
• regulatory, political and economic risks associated with operating in a foreign jurisdiction including changes in laws,
governments and legal and fiscal regimes;
• global economic and financial market conditions, including inflation risk;
• the geo-political situation and the resulting economic developments arising from the unfolding conflict and humanitarian crisis
as a consequence of conflicts such as the Russia-Ukraine war;
• volatility of currency exchange rates; and
• the availability and continued participation in operational or other matters pertaining to the Group of certain key employees
and consultants.
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 o r
documents presented on the Company’s website. All subsequent written and oral forward -looking statements attributable to t he
Company or persons acting on its behalf are expressly qualified in their entirety by this notice. The Company disclaims any i ntent
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 regu latory agencies
which can be viewed online at www.sedarplus.ca.
ENDS