Over-allotment option exercised for $20.3 million increasing total gross proceeds to $156.3 million


    TSX Trading Symbol: GBU

    TORONTO, March 29 /CNW/ - Gabriel Resources Ltd. ("Gabriel" or the
"Company") (TSX - "GBU") is pleased to announce that the syndicate of
underwriters for the recently completed public offering have exercised their
over-allotment option (the "Option") to purchase an additional 3,750,000
common shares of the Company at a price of $4.35 per share, for aggregate
gross proceeds of Cdn $16,312,500. As previously indicated, Newmont Canada
Limited, a subsidiary of Newmont Mining Corporation, has elected to exercise
its right to participate in up to 20% of the Option, which will result in the
issuance of a further 937,500 common shares of the Company, for aggregate
gross proceeds of Cdn $4,078,125.
    The syndicate of underwriters that closed the public offering of common
shares of the Company at a price of $4.35 per share on March 22, 2007 (the
"Offering") was comprised of RBC Capital Markets and Sprott Securities Inc. as
joint bookrunners, and included BMO Nesbitt Burns Inc., Canaccord Capital
Corporation, Merrill Lynch Canada Inc., Orion Securities Inc., Paradigm
Capital Inc. and Raymond James Ltd..
    "We anticipate that this completes the equity financing we need to
advance our Rosia Montana project," said Alan R. Hill, President and CEO. "We
are pleased with the results of this offering and the strong signal it sends
regarding the strength of our Company."
    Gross proceeds from the exercise of the Option, together with the gross
proceeds from the Offering, total $156,328,125. Gabriel intends to use the
total net proceeds to advance the development of the Rosia Montana gold
deposit in Romania, including completing the acquisition of surface rights,
advancing detailed engineering, ordering long lead-time equipment and
commencing construction of the new village of Piatra Alba.
    The common shares being issued pursuant to the exercise of the Option
have not been, nor will be, registered under the United States Securities Act
of 1933, as amended, or any state securities laws and may not be offered or
sold in the United States absent registration or applicable exemption from the
registration requirement of such Act and applicable state securities laws.
This press release shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to qualification under the securities laws of any such jurisdiction. Any
public offering of securities to be made in the United States would, if made,
be made by means of a prospectus that could be obtained from the Company that
would contain detailed information about the Company and management as well as
financial statements.

    About Gabriel

    Gabriel is a Canadian based resource company committed to responsible
mining and sustainable development in the communities in which it operates.
Gabriel is currently engaged in the exploration and development of mineral
properties in Romania and is presently engaged in the development of its 80%
owned Rosia Montana gold project.

    Forward-Looking Statements: This press release contains forward-looking
statements that are based on the Company's current expectations and estimates.
Forward-looking statements are frequently characterized by words such as
"plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and
other similar words or statements that certain events or conditions "may" or
"will" occur, and include, without limitation, statements regarding the
closing of the Offering and the Company's plans with respect to the
exploration and development of its projects. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors that could
cause actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such forward-looking
statements. Any forward-looking statement speaks only as of the date on which
it is made and, except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or results or
otherwise. Forward-looking statements are not guarantees of future performance
and accordingly undue reliance should not be put on such statements due to the
inherent uncertainty therein.

For further information:

For further information: GABRIEL RESOURCES LTD., 1501 - 110 Yonge
Street, Toronto, Ontario, M5C 1T4, Canada, T: (416) 955-9200, F: (416)
955-4661, E: info@gabrielresources.com, www.gabrielresources.com

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