• Third quarter net loss was $7.1 million, or $0.02 per share. Year-to-date loss was $15.8 million, or $0.06 per share.
• A total of $13.5 million, including $4.8 million of long-lead-time equipment purchases, was spent on our development projects during the third quarter increasing the year-to-date amount to $48.4 million.

• Cash, cash equivalents and short term investments at September 30, 2009 totaled $117.9 million.
• The remaining budget for the Rosia Montana Project for 2009 is estimated at $18 million, primarily for long-lead equipment payments, Romanian project costs, final costs related to completion of Recea resettlement site and initial road construction for the new resettlement site in Piatra Alba.
• With EIA approval, the activity level will increase, including the acquisition of remaining surface rights, completion of a control estimate, payment of land use taxes and other payments required to obtain construction permits and mobilization for construction.
• These additional activities are expected to cost at least US$70 million over and above the equity raised in the second quarter. These activities can only commence once additional financing is raised.

• Management began the process of executing on its financing plan during the first quarter 2009. Based on the initial feedback, management believes that the financing plan is achievable. However, management can not advance financing discussions any further until the permitting process recommences.
• The estimated cost to complete the development of the Rosia Montana Project (updated in March 2009) -- including interest, financing and corporate costs -- is US$1 billion, consisting of capital costs of US$876 million and interest, financing and corporate costs of US$124 million. The estimate excludes a provision for a cost overrun facility, reclamation bond, hedging and initial working capital, which could add US$200 million to the financing plan.
• Once completed, the Project is expected to produce approximately 626,000 ounces of gold annually at an average total cash cost of approximately $272/ounce over first five years.

• On October 1, 2009 Romania's governing coalition of the Democrat-Liberal Party ("PDL") and Social Democrat Party ("PSD") collapsed after the withdrawal of the PSD members from the coalition government and all of its cabinet members from their respective Ministries.
• The Prime Minister established an Interim Government on October 9, 2009 however on October 13, 2009, the Interim Government fell after passage of a no-confidence motion introduced in parliament by the National Liberal Party ("PNL"), the Democratic Union of Hungarians ("UDMR") and the PSD.
• It is unlikely a new government will achieve the confidence of parliament until the Presidential election results are known on December 6, 2009, and the successful candidate names a new Prime Minister. In the interim, those Ministers that did not resign, remain in office as caretakers.
• The government anti-crisis measures - specifically Romania's ability to comply with IMF guidelines - remains a visible policy issue. The Company continues to draw public and political attention to the significant economic opportunity its project represents, while conforming to the highest standards on environment, patrimony and social matters.
• In mid July there were two separate, official government visits made to Rosia Montana, one by the President of Romania and the other by the Minister of Culture. Both went on their own agendas, but with a common theme of gathering information. Though no formal public statements were made, we are encouraged by their interest in and comments on the Project.
• Throughout 2009 management has focused on meeting with stakeholders to understand their issues and concerns and explain the benefits and impacts of the Project. The strong local and regional support among politicians is a direct result of our outreach. To further strengthen our communications efforts, the Company retained an internationally recognized public relations firm to assist with our ongoing communications program. Our communication efforts have been fact based, focusing on the critically-needed economic benefits the Project will bring to Romania at a time when the country faces the impact of the global financial crisis. Through these initiatives, the Company is receiving more favourable media coverage.
• Since the beginning of the year the Project has received strong support from members of the local and regional political leadership of both parties in the former coalition government. This support has been manifested through, among other things, a series of open letters to various government ministries. These open letters have all requested that the government restart the EIA review process immediately.

• Since the fall of 2007, review of the Project's Environmental Impact Assessment (the "EIA") has been suspended as a result of a decision taken by the former Minister of Environment. Since that time, management has worked diligently to advocate in favour of a restart of the EIA review process and advance the permitting process for the Project.
• The Company is moving forward with the amended industrial zonal urbanistic plan ("Amended PUZ"), having completed four public participation meetings and prepared responses to the questions received from these public consultations including questions received from Hungary pursuant to the Espoo Convention.
• The Regional Environmental Protection Agency from Sibiu is currently analyzing the SEA (Strategic Environmental Assessment) environmental report provided by Gabriel, in order to take the final decision on this part of the permitting process related to the Amended PUZ.
• In addition, the Local Council has initiated the process for the zonal urbanistic plan for the protected area.

• Once the EIA for the Project is approved by the Romanian Government, in the absence of any other extraordinary events, legal or otherwise, management and its advisory team anticipates that it would take at least 6 months to:
  • Complete the purchase of the outstanding properties;
  • Receive all other permits and approvals, including initial construction permits; and
  • Complete the control estimate and complete the financing.
  Throughout 2009 management has been focused on initiating and maintaining dialogue with the various ministries in the new government with respect to the EIA review process, but can not predict when the process will restart.
• The estimated time line could be extended due to the global financial crisis, as the Company may pursue certain activities sequentially that had previously been planned to run in parallel.
• Once construction of the mine begins, it is expected to take approximately 24 months to complete. Ultimately, the Romanian Government determines the timing of issuance of the EIA approval and all other permits and approvals required for the Rosia Montana Project, subject to the Romanian courts dealing with litigation from NGOs in a timely manner.

• As a result of the suspension of the EIA review process in September 2007, the home purchase program was suspended indefinitely in February 2008.
• The Company owns 77 percent of the homes in the industrial zone, protected area and the buffer zone.
• Once we complete the agreements for institutional properties, our ownership will rise to approximately 85 percent of the industrial zone of the Project, further demonstrating strong local support for the Project.

• Construction of the Alba Iulia resettlement site, known as Recea, began in summer 2007.
• To date, all of the 125 homes have been completed with 115 homes handed over to their respective owners. The rectification and repair work from the extreme heavy rainfall in the middle of the year is expected to be completed by year end.
• The Company is also working to obtain permits for the construction of Piatra Alba. In the second quarter, the Company was hoping to begin construction towards the end of 2009. Delays in the permitting process have changed the expected time to obtaining the construction permit to the second quarter of 2010.

• The Supreme Court annulled archaeological discharge certificate number 4 ("ADC 4") in December 2008.
• The Company has reviewed the Court's written reasons for this decision and intends to apply for a new ADC 4 through a revised application that it believes will address all deficiencies identified by the Court. The Company anticipates applying for a new ADC 4 once the Company sees some positive momentum in the permitting process.
• An initial NGO claim seeking the suspension of archaeological discharge certificate number 5 ("ADC 5") has been irrevocably rejected by the Romanian Courts, however an annulment claim remains outstanding.
• The Company commissioned two independent audits (from highly regarded UK based firms), one on archaeology and the other on architecture in the third quarter of 2008. The overall conclusions of the reports were positive and at the same time returned some constructive comments which are currently being acted on and incorporated into the Company's ongoing program.

• On March 23, 2009 Alan R. Hill retired as President & CEO of Gabriel. The Board appointed Keith Hulley, who has served on the Board and as Chairman of the Technical Committee for the past three years, as interim CEO until a permanent replacement is found. The Company has formed a selection committee and an executive search firm has been engaged to assist the Company in identifying a CEO.

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