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 ..................................................................................