Gabriel Resources Ltd. Faces Legal and Financial Challenges Amid ICSID Dispute with Romania

Gabriel Resources Ltd. announced on March 8, 2024, that its arbitration claims against the Romanian Government were dismissed by an ICSID tribunal, ordering the company to pay approximately US$10 million in legal fees to Romania. This decision has sparked considerations within Gabriel to potentially challenge the ruling through an annulment process allowed by the ICSID Convention. The cost order will accrue interest at the 3-month US Treasury rate from the date of the award.

The Romanian Government has initiated measures to enforce the cost order by restricting the sale or transfer of shares owned by Gabriel's subsidiary in Rosia Montana Gold Corporation S.A. Gabriel criticizes these steps as premature and flawed and vows to defend its interests vigorously.

Financially, Gabriel is managing existing resources with caution, holding approximately C$2.0 million, expected to cover operations until the end of May 2024. The company is exploring funding options to meet future strategic needs, including any annulment proceedings, but acknowledges the significant risk of not obtaining sufficient financing. The outcome of these efforts is crucial for Gabriel's ongoing viability as a going concern.