HispanicBusiness

Local Referendum

--  During October 2012, a proposal was put before the Alba County Council    for the organization of an advisory referendum in respect of the    recommencement of mining in the Apuseni region and specifically at Rosia    Montana, the location of the Project. The Referendum was organized for    December 9, 2012, to coincide with the date for the parliamentary    elections.--  The Referendum, which was conducted in adverse weather conditions, saw    62.5 percent of the participants vote in favor of the resolution to    resume mining in the Apuseni Mountains and, specifically, mining at the    Project. Furthermore, over 78 percent of the eligible voters registered    in the community of Rosia Montana voted in favor of the resolution.    While the Referendum turn-out was below the threshold of 50 percent of    eligible voters required to validate the result, the overwhelming    conclusion is a clear demonstration of the groundswell of public support    for the Project and job creation, economic regeneration as well as    responsible mining in the Apuseni Mountain region.

--  The Company has held discussions with a number of ministries of previous    Governments on the potential for a revised ownership interest in the    Project, royalty rates for gold and silver production and the route to    successful permitting of the Project.--  Since the USL Government came to power in 2012, the Company has had    limited discussions with it in respect of Project ownership or royalty    rates. However, in 2013 the Prime Minister has reportedly reiterated his    view that progress on the permitting status of the Project needs to be    aligned with an increase in the State's participation in the Project,    through both ownership interest and royalty.

--  As a consequence of the recent political changes, the Company awaits    further clarification from the USL Government and the TAC as to the next    steps in its environmental review process. While the Minister of    Environment has reportedly noted that the TAC review will be re-    initiated when matters such as technical guidelines for the    implementation of environmental financial guarantees and environmental    liabilities enforcement consistent with EU legislation have been adopted    into law by Romania, the Company awaits formal clarification from the    USL Government and the TAC as to the next steps in its review process.    Gabriel remains unable to provide guidance on the time that it might    take the TAC to vote on the EIA or to release its recommendation to the    Government. Ultimately, the EP must be approved by a Cabinet decision of    the Government prior to its issuance.--  The permitting progress of the Project relies heavily on Government    approval of the EP and the issuance, in accordance with due process and    Romanian law, of various permits and approvals at local, county and    federal levels of government. The USL Government has stated it will re-    analyze the Project in a transparent manner, based on an open and    democratic dialogue, so that the decisions are in accordance with the    national interest, environmental protection and European legislation.    The Company is looking forward to having an open dialogue with the    Government to understand and discuss any and all issues and concerns in    relation to the Project.--  As result of the ongoing delays to the permitting process, two of the 19    endorsements to the Company's amended industrial zonal urbanism plan    ("Industrial Area PUZ"), which designates an industrial zone under the    footprint of the proposed new mine at Rosia Montana, expired during    2012. For one, the Company has obtained a new valid endorsement and, for    the second, the Company is in dialogue with the relevant authority on    the renewal process. Moreover, as a result of recent modifications to    the law governing urbanism plans an additional endorsement has to be    obtained, increasing the total number of required endorsements to 23.    One equivalent endorsement for the zonal urbanism plan for the Rosia    Montana historical protected area ("Historical Area PUZ") which expired    in 2012 has now been replaced and consequently 10 out of the total of 13    endorsements necessary for its final approval have been obtained.--  In February 2013, the Romanian Parliament approved certain amendments,    originally proposed in 2011, to the legislation concerning the approval    of zonal urbanism plans, such as the Industrial Area PUZ. These    amendments will come into effect after promulgation by the President of    Romania and subsequent publication in the official gazette, the timing    for which is unknown. These legislative amendments include the    introduction of a new approach concerning the previous approval timeline    for certain PUZs and set out a new basis for the construction of    industrial facilities based on a General Urbanism Plan ("PUG")    containing appropriate urbanism provisions. However, some uncertainties    remain regarding the application of the new law in respect of the PUZ    approval process. Pending clarification, the process for the approval of    the Industrial Area PUZ may be amended and/or delayed further.--  The validity of the existing PUGs for Rosia Montana and Abrud has been    extended, pursuant to local council decisions, through to July 2014.    Furthermore, RMGC has obtained an extension to the validity of its    urbanism certificate, UC-87, through to April 2013. On February 1, 2013,    RMGC submitted documentation to Alba County Council for a new urbanism    certificate.