Gabriel Resources Ltd. - Corporate and project update

TSX Trading Symbol: GBU 

TORONTO, July 5 /CNW/ - Gabriel Resources Ltd. ("Gabriel") is pleased to
provide an update with respect to the development of its 80% owned Rosia
Montana project located in Western Romania.

Highlights
----------

  -  Restructuring of project development activities

  -  Establishment of corporate office in Bucharest to facilitate
     Permitting, Development and Operations

  -  Alignment of Gabriel and Rosia Montana Gold Corporation S. A.'s
     activities

  -  Archaeological Discharge Certificate appeal filed

  -  Concentration of development activities on completion of EIA

Corporate Developments
----------------------

     Restructuring of Project Development Activities

Gabriel has restructured and refocused its project development activities
for the Rosia Montana project by opening a corporate office in Bucharest.
Gabriel's expanded presence in Bucharest will enable it to more effectively
communicate with the Romanian Government, the regulatory authorities, as well
as its consultants and suppliers during the permitting, construction and
operational phases of the development of the Rosia Montana project.
Gabriel has closed its existing office in Alba Iulia, eliminated a number
of staff positions not immediately relevant to its permitting and other
development efforts, and relocated all remaining staff to either Bucharest or
the project site in Rosia Montana. Once the permitting phase of development is
substantially complete, Gabriel will begin expanding its work force in Romania
to prepare for final engineering, construction and operations.

     Alignment and Coordination of Gabriel's and RMGC's Activities

In order to more effectively advance the development of the Rosia Montana
project, Gabriel has redirected the activities of its 80% owned Romanian
subsidiary Rosia Montana Gold Corporation S.A. ("RMGC") to coordinate with its
own activities. As part of this redirection, Mr. Alan R. Hill, Gabriel's
President and Chief Executive Officer, has assumed the role of Chief Executive
Officer of RMGC and additional members of Gabriel's senior executive
management group have been appointed to the Board of Directors of RMGC to
assist in the redirection and coordination of RMGC's activities.

     Appointment of Additional Executive Management

As previously announced, Mr. Yani Roditis has been appointed Gabriel's
Vice President - Projects and will be based in Gabriel's Bucharest office to
assist in the development of the environmental impact assessment for the Rosia
Montana project, as well as to direct the engineering and construction of the
new mine. Additional technical and legal personnel required to support
Gabriel's permitting, engineering and construction efforts will be engaged and
based in Bucharest.

     Development of Communications Program

Gabriel is currently developing a communications program designed to
outline Gabriel's plans for building a world class project at Rosia Montana,
confirm Gabriel's commitment to international standards of corporate, social,
environmental and cultural responsibility and address current misconceptions
regarding the project.

     Archaeological Discharge Certificate

On June 20, 2005 the Alba Iulia Court of Appeal (the "Court") granted
Alburnus Maior's (a Romanian NGO opposing the development of a new mine at
Rosia Montana) petition against the Romanian Ministry of Culture (the
"Ministry") for the annulment of archaeological discharge certificate no. 4
for the Carnic massif, issued by the Ministry on January 15, 2004 pursuant to
RMGC's application. RMGC has appealed the decision of the Court and is
awaiting the establishment of a date for the appeal to be heard. Irrespective
of its appeal, Gabriel can reapply for a new archaeological discharge
certificate at any time either before or after its appeal of the Court's
decision is heard.

Rosia Montana Project Development
---------------------------------

     Finalization of the Environmental Impact Assessment

On May 30, 2005, the Romanian Ministry of Environment issued the terms of
reference (the "TOR") for the environmental impact assessment ("EIA") for the
Rosia Montana project. The TOR provides an outline of the matters that must be
addressed in the EIA and, after an initial review, are as expected. Gabriel's
experienced team of Romanian, European Union and international environmental
consulting firms will now proceed to finalize the EIA in compliance with
requirements specified in the TOR, relevant Romanian laws and regulations,
both current and draft European Union directives as well as the Equator
Principles.

On Behalf of the Board:

Signed by "Alan R. Hill"

-----------------------------------
ALAN R. HILL
PRESIDENT & CHIEF EXECUTIVE OFFICER


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