Rosia Montana - Prospect AGA Gabriel Resources Ltd. Canada din 20.06.2013 - GBU_AGM_Pres_June2013

7/29/2019 Rosia Montana - Prospect AGA Gabriel Resources Ltd. Canada din 20.06.2013 - GBU_AGM_Pres_June2013

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The Rosia Montana Gold & Silver Project:

A Project for Romania

Annual General Meeting June 20, 2013


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Legal Notice

The summary information contained herein has been provided by Gabriel Resources Limited (the Company) in respect of its interest in the Rosia Montana Gold and SilverProject (the Rosia Montana Project or Project). The Project is wholly owned by the Companys subsidiary Rosia Montana Gold Corporation S.A. (RMGC) in which theCompany owns an 80.69% equity interest.

No representation or warranty, express or implied, as to the accuracy, completeness or fairness of the information or opinions contained herein is made or given by theCompany, its subsidiary companies, including RMGC or their respective officers, directors or employees and no responsibility or liability is accepted by any person for suchinformation or opinions. In all cases, recipients should conduct their own investigation and analysis of the Company and its interest in the Project. The contents of this

presentation are not to be construed as investment, legal, financial or tax advice.

In furnishing this presentation, the Company does not undertake or agree to any obligation to provide you with access to any additional information or to update you or thispresentation or to correct any inaccuracies in, or omissions from, this presentation that may become apparent. Except as otherwise indicated, the information contained hereinis as of June 2013.

The information is neither an offer to sell nor a solicitation of an offer to buy any securities nor shall it or any part of it form the basis of or be relied on in connection with, or actas an inducement to enter into, any contract or commitment whatsoever. The contents of this presentation are being provided to you solely for your information and must not becopied, published, reproduced, distributed in whole or in part to others at any time by recipients. Any failure to comply with this restriction may constitute a violation of securitieslaws.

The information contained herein contains forward-looking statements relating to the Company and/or the Project that are based on managements current expectations,estimates and projections. Such statements may reference timelines, economic impact, job creation, costs estimates, future ability to finance the Project, patrimony plans,technical specification and Project delivery and other statements that express management's expectations or estimates regarding the timing of completion of various aspects of

the Projects development or of future performance.

The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", projects, "may", "will", "schedule", potential, and similarexpressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while consideredreasonable by management, are inherently subject to significant procedural, legal, business, economic and competitive uncertainties and contingencies.

This presentation includes many such forward-looking statements which are subject to known and unknown risks, uncertainties and other factors which are difficult to predictand 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, which are not guarantees of future performance.

These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of precious metals; fluctuations in exchange rates; legislative, politicalor economic developments including changes to mining and other relevant legislation in Romania; geopolitical uncertainty, uncertain legal enforcement; changes in, and theeffects of, the government policies affecting the Company's and/orRMGCs operations; uncertainties related to timelines for awaited approvals; changes in general economicconditions, 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 Companys requirements for substantial additional funding.

Certain scientific and technical information contained in this presentation is extracted or derived from the CompanysTechnical Report on the Rosia Montana Gold and SilverProject Transylvania, Romania with an effective date of October 1, 2012 (the 2012 Technical Report), which is filed under the Companys SEDAR profile. SRK Consulting(UK) Ltd (SRK), the author of the 2012 Technical Report, considers the Mineral Reserve and Mineral Resource statements made in the 2012 Technical Report to be inaccordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines (CIMStandards).

All forward-looking and other statements made in respect of this presentation are expressly qualified in their entirety by this cautionary statement.


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Contents

Gabriel Resources Overview

The Rosia Montana Project Deposit and Mine Plan

Additional Properties Organic Growth Opportunities

Political & Permitting Overview

The Project Impact in Romania

Summary


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Investment Highlights

World class asset:

One of the most significant gold deposits outside theownership of a major mining company;

Measured & Indicated Resource 17.1M oz Au (+1.4MInferred), 81.1M oz Ag1 (Using cut off grade of 0.4g/t Au)

Proven & Probable Reserve - 10.1M oz Au, 47.6M oz Ag1

(Using US$400/oz Au pit shells)

Will be one of Europes largest gold mines; permittingprocess to be completedLowest quartile cash cost anticipated

Potential for Growth:

No resource definition drilling since 2005Additional exploration properties at Bucium Rodu Frasin(Au-Ag) and Bucium Tarnita (Cu-Au)Potential to expand a major mining district

No debt, cash in bank:

$67.1 million in cash as at March 31, 2013Monthly cash burn $2-4 million per month

(1) Taken from the 2012 Technical Report


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Corporate Structure1,2

Gabriel Resources Romanian Government

Rosia Montana Gold Corporation (RMGC)

Rosia Montana Project

(1) Corporate structure shown excludes intermediate companies(2) The shareholding structure of RMGC has been under discussion with Romanian Government together with the 4% state royalty

Gabriel owns the Rosia Montana Project through its subsidiary, Rosia Montana Gold Corporation S.A. (RMGC),a Romanian Company in which Gabriel holds an 80.69% stake. The balance is held by CNCAF Minvest S.A., aRomanian state-owned mining enterprise

Gabriel is working with the Romanian Government to permit and build one of the most modern mines in Europe

80.69% 19.31%

100%


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Capitalization1

Key information

Share Price $1.36

52 Week High/Low $2.94 / $1.21

Average Daily Trading Vol. (3 months) ~840,000 shares

Ticker GBU.TO

Market TSX

Market Cap $524 million

Shares Outstanding 384 million

Options (incl. DSUs & RSUs) 27 million

Filly Diluted Shares Outstanding 411 million

Cash (as at March 31, 2013) $67.1 millionDebt $0

Paulson & Co 16%

Electrum Global Holdings 16%

BSG Capital 16%

Newmont 13%

Baupost Group 13%

Free-float 26%

Major shareholders

Share price evolution 12 months

(1) Information provided as at June 14, 2013 unless stated otherwise, and provided in Canadian Dollars


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Consolidated Statement of Financial Position


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2011/2012 Financial Statements Summary Cash Flow

0

20

40

60

80

100

120

140

160

Cash-Jan1,

2011

Opera

tingactivities

Explore

anddevelop

O

therinvesting

Warrantproceeds

Stockop

tionproceeds

Fore

ignexchange

Cash-

Dec31,

2011

Opera

tingactivities

Explore

anddevelop

O

therinvesting

Stockop

tionproceeds

Cash-

Dec31,

2012


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Contents






Summary


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Rosia Montana Project Resources and Reserves1

ResourcesTonnes

(Mt)

Au

(g/t)

Ag

(g/t)

Contained Au

M oz

Contained Ag

M oz

Measured 171.5 1.32 8 7.26 43.16

Indicated 341.2 0.90 3 9.89 37.96

Measured & Indicated 512.7 1.04 5 17.14 81.12

Inferred 44.8 0.98 3 1.42 4.10

Resources at 0.4g/t Au cut-offReserves at US$735/oz Au

US$10.5/oz Ag

Reserves Tonnes(Mt)

Au(g/t)

Ag(g/t)

Contained AuM oz

Contained AgM oz

Proven 112.5 1.63 9.01 5.9 32.6

Probable 102.5 1.27 4.55 4.2 15.0

TOTAL 214.9 1.46 6.88 10.1 47.6

(1) Taken from the 2012 Technical Report, Reserves contained within Resources


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Carnic Cetate

Orlea

Jig

Rosia Montana Project Reserve Model

Average content ofreserves block (g/t)


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Rosia Montana Project Perspective

Carnic Pit

Cetate Pit

Jig Pit

Orlea Pit

Plant Site

Carnic Waste Dump

Rosia MontanaProtected Area

LGS

Tailings Dam


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Rosia Montana Project Mine Layout

The Project consists of 4

open pits, one TMF, twowaste stockpile areas, aprocessing plant andother associated facilities

Compact and efficientdesign to minimizeenvironmental impact

Total surface area 1,257ha, approximately 7km inlength

P j K F


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Project Key Facts

Open pit truck and shovel mining process 1.2:1 waste:ore strip ratio

Conventional CIL processing (closed circuit) 14Mtpa design

16 year operating mine life

Old mining district; good infrastructure and access to educated mining talent

Access to grid power supplied fromexisting 110kV transmission line

currently passing through the Projectsite

Readily available water supply fromlocal river

Direct road and nearby rail access

Royalty currently 4%

Corporate tax rate 16%


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Commissioned to reflect current CapEx and OpEx status of the Project

Undertaken by SRK Consulting (UK) Limited

Mineral Resource updated using a cut off grade of 0.4g/t; 2009 Resource was stated

using 0.6g/t cut off grade

No changes to the scope or scale of Project: no change to Mineral Reserve, still using

US$400/oz Au pit shell

Conservative input price assumptions for key consumables

Base case metal price assumptions:

US$1,200/oz Au US$20/oz Ag

2012 NI 43-101 Highlights of the Update

E ti t d P d ti P fil 1


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Estimated Production Profile1

Cetate 25%

Carnic 52%

Jig 3%

Orlea 20%

Production by Pit

Productionozs

(in

000s)

Year Pit Mined

1-4 Cetate, Carnic

5-6 Carnic

7-8 Carnic, Orlea

9 Cetate, Carnic, Orlea, Jig

10-11 Cetate, Orlea, Jig

12 Cetate, Orlea

13+ Cetate

Year of Mine Life

Annual Gold Production

Annual Silver Production

Product

ionozs(in

000s)

Year of Mine Life

(1) Taken from the 2012 Technical Report

0

100

200

300

400

500

600

700

Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 Yr16

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 Yr16

C t St t E ti t 1


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Cost Structure Estimates1

Initial Capital + Sustaining Capital = Total Capital

US$1.40billion US$571 million US$1.97 billion

(1) Taken from the 2012 Technical Report. Operating costs have been estimated in accordance with standard industry practices and are valid as at the third quarter of 2012(2) All figures in US Dollars and royalty based on 4%

Capital Costs:

Mining $102

Processing $263

G&A $52

Freight/Refining $3

Royalty $51Silver Credit ($72)

LOM Cash

Costs2 ofUS$399/oz

Mining$3.67

Processing$9.48

G&A$1.87

Other$1.95

Total Cost2 per Tonne ofUS$16.97

Operating Costs:

Project Economics


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Project Economics

Description Units 2012 2009

Gold price (US$/oz) 1,200 750

Silver price (US$/oz) 20 10.5

Life of Mine Cash cost (US$/oz) 399 335

Pre-production capital (US$m) 1,400 876

Sustaining capital (US$m) 571 366

Closure cost (US$m) 146 128

Undiscounted cashflow after tax (US$m) 3,606 1,662

NPV after tax (5% discount rate1) (US$m) 1,836 997

IRR after tax % 19.6 20.4

Payback Years 3.3 3.5

(1)A 5% discount rate was used in the March 2009 43-101 Technical Report. The Base Case discount rate used in the 2012 Technical Report is 10%.

G b i l B h ki


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Gabriel Benchmarking

3.9 3.4 2.8 1.6

80.1

28.720.6 19.8 16.4

13.19.0 8.9 8.4 8.2 7.2 7.1 6.6 5.4 5.4 5.1 4.8 4.6

0

15.0

30.0

45.0

60.0

75.0

90.0

Seabridg

e

Novago

ld

Int.Tower

Hill

Chesapeak

e

Gabriel

Pretium

Carpathia

n

Guyan

a

RainyRiv

er

Premier

BeloSu

n

Mida

s

Sabin

a

Torex

Continental

Orezon

e

Romarc

o

Asank

o

Lydia

n

Papillo

n

Rubico

n

Aureu

s

Moz

3.5 2.8 2.6 2.2 2.0 0.8 0.84.04.1

7.3

8.118.519.7

44.7

0

10.0

20.0

30.0

40.0

50.0

Seabridge

Novagold

Chesapeake

Gabriel

Pretium

Torex

RainyRiver

Guyana

BeloSun

Asanko

Lydian

Romarco

Carpathian

Aureus

Moz

(1) Reserves include total Proven and Probable inventory of Au(2) Resources are inclusive of Reserves(3) Represents Brucejack High Grade Resources only

Developers Attributable Total Resources(2)

Developers Attributable Reserves(1)

g/t Au 0.62 1.18 0.50 1.46 12.01 2.61 1.08 2.74 1.48 1.13 0.75 2.06 1.24 3.27

g/t Au 0.59 0.96 0.54 0.49 1.05 13.40 0.61 2.94 1.04 2.67 1.76 1.65 6.42 2.62 9.84 1.08 1.65 1.73 1.00 2.37 0.59 0.96

(3)

Source: Company filings and RBC Capital Markets, June 14, 2013

(3)

10 Y I d t A C h C t G ld P i 1


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10 Year Industry Average Cash Costs vs Gold Price1

180 224253 271 317

395467 478

557643 738

5553

60 6884

99118 139

166

166190

235277

313 339401

494

585617

723

809

928

-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

US$/oz

Operating Cash Cost Depreciation and Amortization Avg. Annual Gold Price

Average 2012Production Margin$740/oz

Rosia MontanaLOM Cash Cost:$399/oz

(1) Source RBC Capital Markets

4 Year Ind str A erage All In S staining Costs s Gold Price1


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4 Year Industry Average All-In Sustaining Costs vs Gold Price1

462537

611699

1620

32

39

239

300

400

473

717

857

1,043

1,211

-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2009 2010 2011 2012

US$/oz

Mine Site Cash Cost Smelting, Refining, Royalties

D&A, Corp. G&A, Int. Exp., Sust. Capex Avg. Annual Gold Price

Average 2012All-In Margin:$457/oz

Rosia Montana LOMAverage All-In Cash Cost$653/oz

Rosia MontanaLOM Cash Cost:$399/oz

(1) Source RBC Capital Markets

Contents


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Contents






Summary

Rosia Montana A Mining District


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Rosia Montana A Mining District

Rosia Poieni: A state owned working mineRosia Montana: Historical workings atthe Cetate pit

Organic Growth Opportunities Additional Properties


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Organic Growth Opportunities Additional Properties

Rosia Montana

Rosia Poieni

Bucium Rodu-Frasin

Bucium Tarnita

Bucium Rodu Frasin Resource Estimate

CategoryTonnage

(Mt)

GradeAu

(g/t)

GradeAg

(g/t)

ContainedAu (oz)

ContainedAg (oz)

Indicated 7.9 1.92 5 491,000 1,385,000

Inferred 35.4 1.16 3 1,320,000 3,271,000

Bucium Rodu-Frasin1:

Gold and silver low sulphidation epithermal system

Dominantly disseminated with associated stockworks andbreccias, veins

Block size 40mE x 40mN x 10mRL Ordinary Kriging 0.6 g/t Au cut off

Bucium Tarnita:A copper/gold porphyry deposit covering a surface areaof 700m x 700m

Potential to host large tonnage deposit - Untested at

depth

Resource estimate not yet published by the Company

(1) Certain scientific and technical information contained in this slide is extracted or derived from the RSG Global report dated November 2004 (Bucium Technical Report), which is ffiled under the Companys SEDAR profile. The Mineral Resource Estimates reported therein have been estimated by Julian Verbeek, MAusIMM, of RSG Global in accordance withthe Canadian Institute of Mining, Metallurgy and Petroleums standards and definitions and are dated as of November 2004.

Contents


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Contents






Summary

Romania Rosia Montana


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Romania Rosia Montana

2,000 years of mining history with reports of upto 50 million ounces of gold produced, togetherwith significant silver and copper

In the 5 years leading to EU accession in 2007,in excess of 500 mines were closed, with over200,000 jobs lost

Romania is in the European Union;governed by EU rules and regulations

Coalition Government(PSD/PNL) returned to power in

December 2012 GeneralElection

With the current GDP percapita among the lowest inthe EU, the Romaniangovernment may look toharness the potential of itsnatural resources

Educated and skilledworkforce

Located in a highly prospective mining district

Rosia Montana has been mined for 2,000 yearsand most recently by the state until 2006

Unemployment in the Rosia Montana region isapproximately 65% - RMGC employment hasbrought this number down from over 90%

The Project will assist in the clean-up of pollutionfrom years of unregulated mining in the RosiaMontana region

Designed to comply with

Romanian laws and EUdirectives

Key infrastructure already inplace

Long-lead time equipmentalready purchased andstored in warehouses

SAG mill

2 x Ball mills

Crusher

Romanian Parliament structure 412 deputies 176 senators


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Romanian Parliament structure 412 deputies, 176 senators

PSD leading Parliamentary party has a total of 223 seats. The USL coalition, plus Minorities have 417 seats.

The Opposition has 153 seats.

64

50

8

23 20

9

1 1

0

10

20

30

40

50

60

70

PSD PNL PC PD-L PP-DD UDMR Independents Vacancy

Senators mandates

PSD PNL PC PD-L PP-DD UDMR Independents Vacancy

159

101

17 18

4934

18 13

10

20

40

60

80

100

120

140

160

PSD PNL PC Ethnic

Minorities

PD-L PP-DD UDMR Independents Vacancy

Deputies mandates

PSD PNL PC Ethnic Minorities PD-L PP-DD UDMR Independents Vacancy

Romanian Government structure and Ministries


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Permitting Process


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e tt g ocessThe Rosia Montana Project with annual production of >5M tonnes is deemed a project of national interest and as such has

to be permitted at the National level

Progress:

Q3 2010 resumption of the Technical Analysis Committee (TAC) review of the Environmental Impact Assessment (EIA)

2011 received Environmental Approval of the PUZ for the Industrial Project and Archaeological Discharge Certificate forCarnic (ADC #4)

2011 TAC visits Project, TAC concludes all technical matters completed; await process confirmation

X 2012 austerity protests; changes to Government; local council elections; presidential impeachment; general elections

Q4 2012 Local referendum held: Do you agree with the resumption of mining in the Apuseni Mountain region andspecifically at the Rosia Montana Project? - 62.5% voted in favour

Q4 2012 National elections held; landslide victory for USL providing a stable platform for government not seen in years

Engagement with USL government to finalize permitting process; further TAC Meetings May 10th and 31st, 2013

Next Steps:

Completion of TAC cabinet approval of EIA issuance of Environmental Permit ratification by Parliament

Completion of PUZ for the Industrial Project Area and Historical Area

Once the Environmental Permit is obtained from the Romanian Government, and the PUZ are approved, in the absenceof any other extraordinary events (legal or otherwise) it would take approximately one year to:

Complete the majority of outstanding surface rights acquisitions Receive the majority of other permits and approvals, including initial construction permits Finalise the project build details and advance financing for the project

Following this, construction is estimated to take approximately 30 months

Romanian Political Overview


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2007 - 2009 2010 2011 2012 2013 2014 2015 2016

Electoral years Non-electoral years

May 07Presidential

impeachment

Jun 08

Local Elections

Nov 08

National ElectionsRomanian Parliament

Dec 09Presidential

Elections

Dec 12National Elections

Romanian Parliament

End 16National Elections

Romanian Parliame

End 14Presidential

Elections

Jun 12Local Elections

Mid 16Local Election

USL Government Recent Media Statements


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Minister Delegate of Large Projects, Dan Sova:All what I can say now is that a political decision will be taken within the next two or three months, if it (the Project) would be

implemented, or not1

Prime Minister, Victor Ponta:If all environmental standards are complied with, if the Romanian state gets a much higher interest and if we collect royalties at

European level, if the Romanian Parliament will decide, not only about that case, but also in the case of all mining exploitations,reopening of mines, creation of jobs, investments in the environment and so on, revenues to the budget, I think I will keep my promise

to the people we create jobs, we preserve the environment and we obtain more moneythis is what I want to do.2

Minister of Environment, Rovana Plumb:Anyauthorization of an investment requires an integrated environmental approval from the environment authorities. An integrated

environmental approval cannot be approved, cannot be adopted without political debates. The Government will work transparently, but I

repeat, in the form I took it over last year, the Project cannot be sustained. If the additional guarantees related to the environmental

risks are observed, if the requirements regarding the benefits for Romania are met and if a new sustainable project is proposed, then

we will discuss. Until then, the Government has made no decision.3

Minister of Culture, Daniel Barbu:Lookingat the whole political-technical debate on cyanides, jobs, and I look at the monuments... What do I see? That, in a locality of

300 houses, half have been restored on the money paid by the company...The underground; I have seen restored Roman galleries,

including wooden devices recovered from the times of the Romans. The Romanian State has never had the necessary money to

restore these. I say that from what I read on paper, I repeat; in addition I also read the opinions of both sides. I have seen a team of

archaeologists led by a French woman who I understand is an authority in the field who preserved these galleries, some can be

even visited, there is a museum with mining equipment used throughout time. What I see on paper does not seem discouraging in

terms of heritage valorization.4

Government of Romania:The Official Gazette Reported: The establishment of the new company is motivated by the Government by claiming that the projectoperating in Rosia Montana can generate operating revenues and direct contributions for the state budget estimated at several billion

dollars, and can also be a major contributor to the recovery of the mining industry Romania and the creation of a significant number of

jobs in an area, an area concerned by major unemployment.5

(1)Antena 3, March 16, 2013 (2)Antena 3, May 7, 2013 (3)Antena 3, May 18, 2013 (4) Interview, May 13, 2013 (5) Official Gazette, May 29, 2013

Surface Rights Status


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60% of totalsurfacealreadysecured

To date RMGC has secured 757ha ofland, amounting to 60% the totalsurface area required for Projectconstruction this includes 78% of thenumber of homes in the Project footprint

g

61%belongs toresidentialowners

39% areinstitutionalproperties

Of the total remaining surface to beacquired, 39% (196ha) are institutionalproperties

The remaining 304ha (61%) of the totalsurface to be acquired belongs toprivate owners

A total of 155 households located

under the Project footprint are still to berelocated

Once the Environmental Permit is granted the Company will resume the surface rights acquisition process; the acquisitionprogramme ceased soon after the 2007 permitting process was put on hold

ProjectObjective:

Secure 100% of

the surface rightsand hand over tothe constructionteam

40% of totalsurface stillto be secured

Resettlement to Date:

125 families opted for resettlement in the Recea neighbourhood at Alba Iulia alocation chosen by the community and built by RMGC

Construction began in 2006 and was completed in 2010

Resettlement and community support is an ongoing commitment of theCompany

Land is available and in possession for expansion of up to 80 additional housesfor those opting for resettlement

Contents


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Summary

Rosia Montana Project Benefits: Summary


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Today The vision

EconomyHigh unemployment / poverty rateLack of opportunities for businessesHarsh macroeconomic conditions

>3,000 in direct jobs over the Projects lifetimeOpportunities for local businesses>$24 billion(1) in total contribution to Romanias GDP

Environment

Current pollutionAcid waters; heavy metalcontamination in local water system

Abandoned open pitsSoil contamination

Acid waters are cleaned by operationPits are closed and planted or transformed into lakesPilot water treatment plant currently operatingEstablishment of a $146 million financial guarantee forclosure, environmental restoration and post-closuremonitoring

Patrimony

Most Roman galleries not accessibleLimited historical monuments exhibitedCultural heritage houses inadvanced degradation, no governmentmoney to preserve

Allocation of significant expenditure for the

conservation of heritageMany Roman galleries restored and open for visitorsRestoration of historical town center; most historicalhouses renovated and used for sustainabledevelopment programs

CommunityYoung leaving the area in search of abetter life

Poverty affects social cohesion

Community life and traditions are restoredSustainable development strategies ( professionalreconversions, business plans for post mining

activities)

OVERALLImpoverished community with no real

alternative

SOLUTION - Prosperity, growth, clean environment,tourist destination, cultural heritage rehabilitated.

A long term future for Rosia Montana

(1) At a gold price of USD $1,200/oz

Rosia Montana 80 years ago A Mining District


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A booming economy fuelled by 2000 years of mining

Rosia Montana - Environment


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Abandoned pits from previous unregulated mining remain open generating acid rock drainage discharging over 3m litres oftoxic effluent into the local water system every day

The area is highly polluted due to lack of investment and soil contamination is a concern

The estimated cost of cleaning up the legacy of over 2000 years of mining at Rosia Montana and regionally is multiplebillions of dollars

If the Project is not developed the Romanian Government will be left responsible for cleaning up the environmental pollutionlegacies at a substantial cost to the state

The Project Impact Environment


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The Company has already begun investing in environmental reclamation in the local area through the implementation of a pilotwater treatment plant, that began operations in October 2011, as well as community clean-up efforts. The Project will bringmany additional environmental benefits to the area including:

An ecological reclamation project to restore water systems and remediate the damage done to the landscape by priormining practices

The open abandoned pits will be closed and planted or transformed into lakes; acid rock drainage will no longer occurProtection of biodiversity through the planting of four trees for every one to be cut down and all before cutting down the firsttree; the construction of ecological corridors to facilitate natural migration of animals due to industrial work; and the plantingof a tree line between the industrial and residential areas to mitigate the impact

Establishment of a $146 million financial guarantee for closure, environmental restoration and post-closure monitoring

Rosia Montana Culture


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Roman Galleries (Catalina Monulesti):

Most Roman galleries not accessibleHistoric Roman workings backfilled withold mine tailings

Acid drainage destroying ancient relics

Community Houses:

Derelict houses occupy the town centerLocals and government have limitedfunds to rehabilitate

Historical Center:

The iconic town center known for itsunique architecture is mostly in ruinsLimited historical monuments preservedor exhibited

Iconic Houses:Cultural heritage houses in advanceddegradation; no government money topreserve

Former Town Hall

Former School House

There is limited hope forrehabilitation and

preservation of the

ancient remnants ofheritage and miningculture

The Project Impact Culture


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Roman Galleries (Catalina Monulesti):

Restoration work in the Catalina RomanGalleries under the historic town center hasbeen ongoing to allow for public viewing

Iconic Houses:Former Town Hall; restoration began in 2010 andfinished in 2012 - proposed to be used as a hotel tosupport future tourism

Former School House/Library; a proposal topartner with the Local Council for conversion into afacility to support local tourism

Community Houses:Over 110 houses in the historic towncenter's Protected Area have been or areplanned to be restored/rehabilitatedThe Company has already invested inrestoring 20 of houses in the historicalcenter

Historical Center:

RMGC owns 233 out of 327 houses in thecentre of Rosia Montana. 35 of them arehistorical monuments which will be restored.The first building restored by the Companyin 2010 was the new Mining Museum

The Companyhas already spent $17million to undertake

rescue archaeology thathas saved and preservedmany artifacts and relics

and has committedan additional$100 million

Rosia Montana Today Community


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The Project Impact Community


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The State and RMGC will put a strong focus on fostering the sustainable economic, environmental and culturaldevelopment of the Rosia Montana community; community life and traditions are restoredRMGC has already demonstrated its commitment to continually help restore this mining community by hosting andsupporting social activities and awareness programs

Sustainable development strategies (professional reconversions, business plans for post mining activities)

An undertaking by RMGC to create an average number of 2,300 direct jobs (in RMGC and direct sub-contractors)during the Project construction stage and an average of 900 jobs during its operational stage out of which we expectthat the vast majority will be offered to the local workforce, who will benefit from skills training and education

An undertaking by RMGC for sustainable development initiatives that will include the creation of new businesses forthe local communities while funding the restoration of infrastructure in Rosia Montana including roads, bridges,sewerage, water, electricity, communication networks, to ensure significantly enhanced benefits to the local community

The Company is also committed to responsible community development in the resettlement site it built, Recea, thatwas inaugurated in May 2009 - Offering to the affected community modern living conditions and ongoing community

support and employment in the resettlement site is one ofthe Companys key principles

Contents


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The Rosia Montana Project Impact in Romania

Summary

Summary


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Bringing one of the worlds largest

undeveloped gold projects to production

Rosia Montana will become one ofEuropes largest gold mines

Production profile of c.500,0001 oz Au perannum at lowest quartile cash costs

Project economics robust at currentgold/silver prices - >US$0.5 billion free

cash flow generated per annum with asubstantial reinvestment into theRomanian economy

>US$24 billion2 direct and indirectpotential impact from the Project on theRomanian economy at current gold prices

Continual efforts to rehabilitate the

historical center of Rosia Montana

Local community support remains strong

Romanian public support through

December 9, 2012 positive referendumvote

Working with new RomanianGovernment to bring the first modernmine to the Romanian people

Environmental permitting process to be

completedTSX listing with strong supportive globalshareholder base

Permitting Europes largest gold mineGabriel Resources, Romania and Rosia Montana

(1) Taken from the 2012 Technical Report(2) At a gold price of USD $1,200/oz


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ANNEXES

Analyst Coverage1


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Institution Analyst Contact Information

BMO Capital Markets John Hayes (416) [email protected]

CIBC World Markets Cosmos Chiu(416) 594-7106

[email protected]

Cormark Securities Inc. Mike Kozak(416) 943-6749

[email protected]

Cowen Securities Adam Graf (646) [email protected]

RBC Capital Markets Stephen Walker(416) 842-4120

[email protected]

Scotia Capital Inc. Trevor Turnbull(416) 863-7427

[email protected]

(1) Gabriel is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Gabriel's performance made by these (or any other) analysts are theirsalone and do not represent the opinions, forecasts or predictions of Gabriel or its directors or officers. Gabriel does not b y its reference above or distribution imply its endorsement of, orconcurrence with, such information, conclusions or recommendations

Largest Shareholder Ownership History


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Source: Bloomberg, as of June 2013

CurrentShareholders >10%

31-Dec-04 31-Dec-05 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 Latest

millions % of total millions % of total millions % of total millions % of total millions % of total millions % of total millions % of total millions % of total millions % of total

Paulson & Co. - - - - - - - - 46.0 18.0% 61.4 18.1% 61.4 17.6% 61.4 16.2% 61.4 16.0%

Electrum StrategicHoldings - - - - - - - - 50.8 19.9% 61.4 18.1% 61.4 17.6% 61.4 16.2% 60.4 15.7%

BSG Capital Markets - - - - - - - - - - 30.0 8.8% 30.0 8.6% 60.0 15.8% 60.0 15.6%

Newmont Canada 15.0 10.2% 33.4 18.9% 33.4 15.9% 46.8 18.4% 50.3 19.7% 50.3 14.8% 50.3 14.4% 50.3 13.2% 50.3 13.1%

The Baupost Group - - - - - - - - - - - - - - 48.6 12.8% 48.6 12.7%

Total 15.0 10.2% 33.4 18.9% 33.4 15.9% 46.8 18.4% 147.1 57.6% 203.1 59.9% 203.1 58.3% 281.7 74.2% 281.7 73.1%

Romania's Golden Quadrilateral


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Copper +/- gold deposits

Gold and silver deposits

Exploitation licenses

Exploration licenses

Exploitation license pending

Gabriel Resources license

Border of Golden Quadrilateral

There are around 64 ore deposits andprospects, some of them having beenmined in the past

3 active exploitation licenses:Rosia PoieniRosia MontanaCertej

5 exploration licensesVoiaCainelRovinaMagura Tebii

Caraci-Birtin

Within the Golden Quadrilateral:

Project Geology


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Project Geology Cetate and Carnic Cross Section


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Marine SedimentsDacite

Tuffaceous

Vent Breccia

Andesite

Black

Breccia

WE

CirnicCetate

Polymictic breccia

Project Geology Bucium Properties


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Immediately SE of Rosia Montana

NNW structural corridor

Andesite and dacitic intrusions and lavas

Volcanic centres aligned NNW

Epithermal deposits: Rodu Frasin Contu Arama Argint Vipere Valcoi Corabia Izbicioara - Botes

Porphyry Copper - Gold: Bucium Tarnita

Rosia Montana and Bucium Rodu-Frasinsimilar

2 proposed exploitation licensesBucium Rodu-FrasinBucium Tarnita

Legend

Dacite

Andesite lava flow

Andesite lava flow

Mixed Brecia

Vent Breccia reworked

Sediment

Alterations

Structural trend

Porphyry Copper

The Proposed Mining Process An illustration of the most modern mining project in Romania


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g p j

Process tailings

Processing

Pit

Pit setup BlastingOre loading

and transportCrushing

Grinding

Leaching

Gold recoverywith active

carbon Electrolysis

MeltingCN

neutralisation

Clear water Settled tailings Final dam

Secondary dam

Primary damRunoff recirculated

ProposedRosia Montana Project

CONCRETE PLATFORM lined with high density polyethylene

The ore is extracted in pits and crushed before entering the grinding circuit

The Technological Process in the Pits


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2. Blasting

3. Loading and transport

4. Crushing

1. Pit setup

Zone I distances over 300mZone II distances below 300mSpecial technology for each sub-zone

Trucks with a capacity of 146 t will be used70,000 tons of rock will be transported every day (waste and ore)The travel distance is maximum 6km. The maximum driving speed 30 km/hThe travel duration is 20 minutes, including the rock loading and unloading timeThe minimum number of trucks necessary is 8-9, the average no. of trucks 14

The extracted ore is crushed before entering the grinding circuit

4 pits will be set up: Carnic, Cetate, Jig and OrleaThe 4 pits will be exploited in 2 phases: Cetate and Carnic in the first 9 years, while Orleaand Jig will be opened as of year 9, with the continuation of the mining operations in CetateThe closing of the pits and of the stockpiles will be done progressively, the stockpile of

Cetate starting with year 5, the stockpile and pit of Carnic as of year 9, and the pits of Orleaand Jig in the years 12-14

5 Grinding

The Technological Flow in the Processing Plant


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Wet grinding of the crushed ore in 2 ball crushers and one semi-autogenous mill;

Leaching of the ore in a CN solution, in closed tanks; the CN solution dissolves the gold

and silver from the ore.

Gold and silver recovery from the pores of the activated charcoal, by acid washing: CNbound to silver and gold settles in the pores of the activated charcoal, which floats in thesolution from the leaching tanks. The coal is recovered by backwash pumping, and thegold and silver sludge is washed out from the pores with a HCl solution.

Gold and silver recovery from the gold-bearing sludge by electrolysis; the gold-bearingsludge is purified/enriched through electrolysis.

Gold/silver melting/casting in ingots the gold alloy is cast in ingots in an electric furnace.

CN neutralization from the process tail ings before leaving the plant, using the INCOprocedure slurry oxidation in the presence of sodium metabisulfite and copper sulfate.The CN concentration is reduced as a result of the oxidation process.

5. Grinding

6. Leaching

7. Gold and silverrecovery on activatedcharcoal

8. Electrolysis

9. Melting

10. CN neutralization

Tailings Management FacilityItinerar


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13 sites were reviewed initially

Corna Valley is the only site which fulfils all requirements:

Storage capacity;

Favorable geology;

Easy to exploit;

Low environmental impact almost non-existentphreatic layer

Designed capacity 250 million tonnes

Necessary storage capacity 215 million tonnes

Designed to resist earthquakes of 8 degrees Richter

Designed to resist two consecutive rainfall events, whichcan occur once every 10,000 years

Slopes generally 1.75H:1V to 2H:1V (RMGC 3H:1V)

Final height 185 m + 20 m under the valley floor

Length 1,182 m

Secondary catchment dam 22 m

NGI Report: The Norwegian Geotechnical Instituteconducted a risk assessment in order to assess the safetyof the tailings dam of the Rosia Montana Project. Theassessments took into account critical scenarios,including all possible ways in which the Corna dam couldfail in extreme situations, such as an unusually largeearthquake, which appears extremely rarely, and anextreme 24-hour rainfall. The conclusion formulated bythe report published in April 2009 was clear: as it wasdesigned, the dam will be among the safest in the world.

Rosia Montana Post Closure


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Referendum December 2012- Positive

Referendum Highlights:


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Referendum Highlights:

Local referendum requested October 1, 2012by 35 Mayors representing the ApuseniMountains region of Alba County, location of

Rosia MontanaVoting ballot question: Do you agree with the

resumption of mining in the Apuseni Mountain

region and specifically at the Rosia Montana

Project?

Voting to took place on December 9, 2012 thesame day as the Romanian General Elections

Eligible voters- approximately 80,000

Positive Outcome:

62.5% voted in favour of mining

Voting participation for the referendum wasgreater than the General Election turnout

Although not legally binding, this positiveoutcome of the referendum can provide theCompany with a catalyst for further permittingof the Project

Alba County

Apuseni Mountains

Bucharest

Key People at Gabriel Resources

Keith R Hulley Jonathan Henry Dr. Alfred Gusenbauer


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Non-Executive Chairman

Keith Hulley is the current Chairman of the Board ofGabriel, is the former Interim CEO of Gabriel and hasbeen a member of the Gabriel Board since 2006.Previously, Mr Hulley served seven years successively

as President, Chief Executive Officer and ExecutiveChairman of Apex Silver Mines before retiring in 2009.Mr. Hulley has more than 48 years experience in themining business which, in addition to the above,includes Board and senior executive experience atWestern Mining Holdings Ltd. and independentdirectorships with Red Tiger Inc. and Ecometals Ltd.,and is Chairman of the Board of Luna Gold Corp. Mr.Hulley is not independent within the meaning of NI 58-101. Mr. Hulley is the Chairman of the Board ofDirectors and a member of the Technical Committee.

y

President and Chief Executive Officer

Jonathan Henry has been the President and ChiefExecutive Officer of Gabriel since June 2010. Mr.Henry has 18 years experience in the mining industrysuccessfully executing on exploration, development,

operational and M&A activities. Formerly, Mr. Henrywas the CEO of Avocet Mining, a London listed goldmining company with assets in West Africa from 2006until he joined Gabriel. Prior to that he was AvocetsFinance Director for four years. Mr. Henry is notindependent within the meaning of NI 58-101.

Non-Executive Director

Alfred Gusenbauer is the former Federal Chancellor ofAustria and was a member of the European Council.Dr. Gusenbauer holds a PhD in political science fromthe University of Vienna. In addition to a long career in

politics in Austria and Europe, he also works inacademia as a Professor-at-Large at Brown Universityand is a Visiting Professor at the Institute for GlobalLaw and Policy at Harvard University. Dr. Gusenbaueris currently the CEO of Gusenbauer Projektentwicklungand Beteiligung GmbH and Chairman of STRABAGSE, Signa Prime Selection AG and Cudos Capital AG.Dr. Gusenbauer is independent within the meaning ofNI 58-101. Dr. Gusenbauer is a member of theCorporate Governance Committee.


Wayne Kirk has over 35 years of experience as acorporate attorney, including nine years experience asVice President, General Counsel and CorporateSecretary of Homestake Mining Company. Mr. Kirkcurrently holds directorships and is the Chairman ofNominating and Corporate Governance committees atNorthern Dynasty Minerals Ltd. and Taseko MinesLimited. He is also a director of Luna Gold Corp., adirector and Chairman of the Corporate Governance

and Nominating Committee and CompensationCommittee of Electrum Ltd., and a director andChairman of the Compensation and NominatingCommittee of Sunshine Silver Mines Corporation. Mr.Kirk is independent within the meaning of NI 58-101.Mr. Kirk is the Chairman of the Corporate GovernanceCommittee and a member of the Audit Committee.

Wayne KirkNon-Executive Director

Igor Levental is President of the Electrum Group, aprivately-owned company involved in identifying andnegotiating opportunities in exploration and miningventures. With more than 30 years of experience in themining industry internationally, Mr. Levental has heldsenior positions with mining companies includingHomestake Mining Company and International CoronaCorp. Mr. Levental holds a BSc in ChemicalEngineering and an MBA from the University of

Alberta, Canada. Mr. Levental is a director ofNovaGold Resources Inc., NovaCopper Inc., SunwardResources Inc. and Taung Gold Limited. Mr. Leventalis independent within the meaning of NI 58-101. Mr.Levental is a member of the Corporate Governanceand Finance Committees.

Igor Levental

Key People at Gabriel Resources

David Peat Dag Cramer Walter Segsworth


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David Peat has over 25 years of experience in financialleadership in support of mining companies. He is adirector and Chairman of the Audit Committee of BrigusGold and a director and Chairman of the AuditCommittee of Sunshine Silver Mines Corporation. Mr.

Peat was Vice President and Chief Financial Officer ofFontera Copper Corporation from 2006 to 2009, VicePresident and Global Controller of Newmont MiningCorporation from 2002 to 2004, and Vice President ofFinance and CFI of Homestake Mining Company from1999 to 2002. Mr. Peat received a Bachelor ofCommerce, Honors in Business Administration from theUniversity of Windsor in 1976 and a Bachelor of Arts,Economics from the University of Western Ontario in1975. Mr. Peat is independent within the meaning of NI58-101. Mr. Peat is the Chairman of the Audit Committeeand a member of the Compensation Committee.


Dag Cramer is the CEO of Onyx Financial Advisors UK.Prior to joining Onyx in 2003, he worked for Anglo

American PLC as a management trainee in 1989followed by three years as executive assistant to theDeputy Chairman and CFO. His subsequent senior roles

within that group included responsibility for the groupstreasury operations as well as its investment activitiesand the groups risk management activities after itslisting in London. Mr. Cramer is currently a director of anumber of private and unlisted public companiesincluding Onyx, Vale BSGR Guinea, BSG CapitalMarkets, BSG Resources, DB Petroleum, Siboney PLC,Lubel Coal, BSG Med and Koidu Holdings. He is aSwedish citizen. Mr. Cramer is not independent withinthe meaning of NI 58-101. Mr. Cramer is a member ofthe Finance Committee.


Walter Segsworth is a director of HeatherdaleResources, Pan American Silver, NovaCopper Inc.,

Alterra Power Corp., and Roxgold Inc. Mr. Segsworthhas 40 years of experience in mining in Canada andoverseas and has served as a senior officer of several

mining companies including Westmin Resources, wherehe was President and CEO, and Homestake MiningCompany, where he was President and COO. Mr.Segsworth is currently lead independent director of

Alterra Power Corp. and Pan American Silver. Mr.Segsworth is past Chairman of both the Mining

Associations of British Columbia (BC) and Canada andwas named BCs Mining Person of the year in 1996. Mr.Segsworth is independent within the meaning of NI 58-101. Mr. Segsworth is the Chairman of theCompensation Committee and a member of theTechnical Committee.

Chief Commercial Officer

Richard Brown is the Chief Commercial Officer andCorporate Secretary of Gabriel with responsibility forthe commercial operations and business compliance.Mr. Brown joined Gabriel in March 2011 and bringsbusiness, regulatory and equity markets expertisegained over 18 years in corporate advisory positions,notably at the London Stock Exchange, KPMG andmore recently the mining focused investment bank,Ambrian Partners Limited, where he was Head of

Corporate Finance for four years and latterly the ChiefOperating Officer.

Richard BrownChief Financial Officer

Max Vaughan joined Gabriel as Chief Financial Officerin March 2011. Mr. Vaughan has spent 13 years infinancial advisory and investment banking focusedexclusively on the mining and metals sector. Prior tojoining Gabriel, Mr. Vaughan was Managing Director ofOgmore Capital from 2009, a mining and metalsfinancial advisory business, and prior to this wasManaging Director at RBS Global Banking & Marketsspecialising in structured finance for several years. Mr.

Vaughan is a member of the Institute of CharteredAccountants in England and Wales and holds an MBAfrom London Business School.

Max Vaughan

Key People at RMGC

Dragos Tanase Nicolae Suciu Horea Avram


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General Manager RMGC

Mr. Tnase joined RMGC in February 2008, comingfrom the largest cable communications operator in

Romania, UPC. Within UPC, Mr. Tnase coordinatedthe merger of two large cable operators, UPC andAstral, which combined employed a workforce of3,600 people and held the position of CFO for 7years. Previously, Mr. Tnase - an expert in financialmanagement - worked in financial and businessconsultancy, first at the Ministry of Finance and thenwith Arthur Andersen.

Senior Vice-President Governmental Affairsand Community Relations

Mr. Suciu began working for RMGC in 2006, initiallyas a Legal Manager, then as a Legal Director, and

subsequently as a Legal Vice-President. In June2009, Mr. Suciu became Senior Vice-President incharge of coordinating the Legal and CommunityRelations Departments, as well as the team managingthe dialogue with the governmental institutionsresponsible for assessing the mining project.

Vice-President Environment

Mr. Avram has been Vice-President of Environment atRMGC since January 2007, and was previouslyEnvironmental Monitoring Officer (2003-2006) andthen Environment Director (2006-2007) of RMGC. Hismain responsibilities include coordinating the projectpermitting process in terms of environmentalprotection and drafting RMGC's environmentalstrategy and policy. Between 1996 and 2003, Mr.

Avram occupied various positions in the governmentalsector, being responsible for environmental matters.

Vice-President Patrimony and SustainableDevelopment

Mr. Gligor has been working for RMGC since 2002 inthe Patrimony department, which he has been runningsince 2005. He has also been in charge of thesustainability strategy since 2008. Mr. Gligor isresponsible for identifying the best solutions for thepreservation and valorisation of the cultural heritagefrom Rosia Montana, within the context of the miningproject. Mr. Gligor graduated from "1 decembrie 1918"

University of Alba Iulia, specialising in history-archaeology. Mr. Gligor is now completing his PhDwithin the same University.

Adrian GligorVice-President Communication

Mrs. Plesa joined RMGC in June 2008 to develop andcoordinate RMGC's internal and externalcommunication strategy, and transform RMGC into acommunicative company, open for dialogue with allrelevant stakeholders. Mrs. Plesa has 15 years ofexperience in marketing, communication andlobbying, and her professional achievements includethe creation and consolidation of UPC Romania's

reputation, from the third position of the cablecommunication market to market leadership.

Andreea PlesaVice-President Human Resources

Mr. Mtuan joined RMGC in September 2010 andcoordinates RMGC's HR and Social Responsibility(CSR) activities. With 20 years of experience inhuman resources management, Mr. Mtuan held forthe last ten years the position of Human Resourcesand Public Relations Director of Lafarge Romania, aworld leader in building materials industry. Mr.Mtuan is a graduate of the Commerce Faculty

within the Academy of Economic Studies in Bucharestand holds a PhD degree in sociology from theUniversity of Bucharest.

Gabriel Muan

Rosia Montana - Prospect AGA Gabriel Resources Ltd. Canada din 20.06.2013 - GBU_AGM_Pres_June2013

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