Technical Report on the Rosia Montana Gold and Silver Project, Transylvania, Romania

TECHNICAL REPORT ON THE ROSIA MONTANA GOLD AND SILVER PROJECT, TRANSYLVANIA, ROMANIA. REPORT PREPARED IN ACCORDANCE WITH THE GUIDELINES OF NATIONAL INSTRUMENT 43-101 AND ACCOMPANYING DOCUMENTS 43-101.F1 AND 43-101.CP. Prepared For Gabriel Resources Ltd. Report Prepared by SRK Consulting (UK) Limited UK4627 Effective Date: 1st October 2012 Report Author: Dr Mike Armitage C.Eng C.Geol SRK Consulting Rosia Montana – Table of Contents Main Report Table of Contents 1 SUMMARY .......................................................................................................... 1 1.1 Introduction .............................................................................................................................. 1 1.2 Mineral Resource Statement ................................................................................................... 3 1.3 Mineral Reserve Statement ..................................................................................................... 5 1.4 Operational, Environmental and Permitting Considerations .................................................... 5 1.5 Economic Analysis ................................................................................................................... 7 2 INTRODUCTION ................................................................................................. 8 3 RELIANCE ON OTHER EXPERTS ................................................................... 10 4 PROPERTY DESCRIPTION AND LOCATION ................................................. 10 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .............................................................................................. 12 6 HISTORY ........................................................................................................... 15 6.1 Mining Activity ........................................................................................................................ 15 6.2 Exploration Activity ................................................................................................................ 15 6.3 Previous Studies .................................................................................................................... 16 7 GEOLOGICAL SETTING AND MINERALISATION .......................................... 17 7.1 Regional Geology .................................................................................................................. 17 7.2 Local Geology ........................................................................................................................ 18 7.3 Mineralisation ......................................................................................................................... 19 8 DEPOSIT TYPE ................................................................................................. 20 9 EXPLORATION ................................................................................................. 21 10 DRILLING .......................................................................................................... 22 11 SAMPLE PREPARATION, ANALYSES & SECURITY ..................................... 23 12 DATA VERIFICATION ....................................................................................... 24 13 MINERAL PROCESSING AND METALLURGICAL TESTING ......................... 25 14 MINERAL RESOURCE ESTIMATES ................................................................ 25 14.1 Introduction ............................................................................................................................ 25 14.2 Geological Modelling ............................................................................................................. 25 14.3 Statistical Analysis ................................................................................................................. 28 14.3.1 Introduction .................................................................................................................. 28 14.3.2 Gold ............................................................................................................................. 28 14.3.3 Silver ............................................................................................................................ 31 14.3.4 Sulphur ........................................................................................................................ 32 14.4 Geostatistical Analyses .......................................................................................................... 33 14.5 Grade Interpolation ................................................................................................................ 35 14.6 Density Analysis .................................................................................................................... 36 14.7 Mineral Resource Classification ............................................................................................ 36 UK04627 Rosia Montana 43-101_Standalone Report Final.docx October 2012 Page i of v SRK Consulting Rosia Montana – Table of Contents Main Report 14.8 SRK Audited Mineral Resource Statement ........................................................................... 37 14.9 Exploration Potential .............................................................................................................. 38 15 MINERAL RESERVE ESTIMATES ................................................................... 39 16 MINING METHODS ........................................................................................... 39 16.1 Introduction ............................................................................................................................ 39 16.2 Geotechnical Design Criteria ................................................................................................. 39 16.2.1 Geotechnical Data and Evaluation .............................................................................. 39 16.2.2 Current Slope Design Criteria ..................................................................................... 40 16.2.3 SRK Revised Mine Design Criteria ............................................................................. 40 16.2.4 Qualitative Assessment of Impact of the Revised Slope Angles on Ore Reserves .... 42 16.2.5 Other Geotechnical Considerations ............................................................................ 43 16.2.6 Recommendations for Further Drilling......................................................................... 43 16.3 Pit Designs ............................................................................................................................. 43 16.4 Production Schedule .............................................................................................................. 44 16.5 Waste Rock Management ..................................................................................................... 46 16.6 Mine Equipment Requirements ............................................................................................. 46 16.7 Mining Operations/Production Assumptions .......................................................................... 47 17 RECOVERY METHODS .................................................................................... 47 17.1 Introduction ............................................................................................................................ 47 17.2 Investigations Undertaken and Development of the Plant Design ........................................ 48 17.2.1 Minproc Detailed Feasibility Study .............................................................................. 48 17.2.2 Basic Design by SNC and Bechtel .............................................................................. 49 17.2.3 Additional Investigations by Newmont and Others ...................................................... 49 17.2.4 Further Development by SNC and RMGC .................................................................. 50 17.3 Summary of Mineralogy and Metallurgy Investigations and Findings ................................... 50 17.3.1 Mineralogy, Ore Types and Anticipated Plant Feed .................................................... 50 17.3.2 Summary of Metallurgical Testwork Findings ............................................................. 51 17.3.3 Flowsheet and Process Development ......................................................................... 51 17.4 Process Plant Flowsheet and Design .................................................................................... 51 17.5 Plant Throughput and Metallurgical Recoveries .................................................................... 54 18 PROJECT INFRASTRUCTURE ........................................................................ 54 18.1 Access ................................................................................................................................... 54 18.2 Tailings Management ............................................................................................................ 55 18.3 Water Management ............................................................................................................... 55 18.3.1 Water Supply and Water Balance ............................................................................... 55 18.3.2 Acid Rock Drainage Treatment ..................................................................................

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