Q3 2025 Financial Statements and MD&A

The November 28, 2025, news release discloses Gabriel Resources' Q3 2025 financial results. Key highlights include: - A net loss of $3.1 million for the quarter. - Cash and cash equivalents stood at $1.7 million as of September 30, 2025. - A working capital deficiency of $17.1 million. - Cash used in operating activities was $5.4 million for the nine months ended September 30, 2025. - Cash from financing activities was $6.1 million, reflecting the private placement that closed in two tranches in September and November 2025, raising gross proceeds of approximately $3.9 million. - The company granted 38.6 million stock options to directors and officers with a five-year term and an exercise price of $0.075. - The company received an adverse judgment for a property damage claim in Romania, resulting in a liability of approximately €150,000, with enforcement suspended until mid-2026. - The hearing for the company's application to annul the ICSID arbitral award is scheduled for January 22-23, 2026.

The Q3 2025 financial results are materially negative. While the completion of the recent financing provides some short-term liquidity, the fundamental financial position of the company remains precarious.

• High Cash Burn and Imminent Need for Capital: The company ended the quarter with only $1.7 million in cash. The cash used in operations for the first nine months was $5.4 million, indicating a burn rate of approximately $600k per month. At this rate, the current cash balance provides a runway of less than three months, making another dilutive financing highly probable before or shortly after the January 2026 annulment hearing.
• Overwhelming Liabilities: The working capital deficiency of $17.1 million is staggering. The largest component of this is the ~$15.6 million Arbitral Costs Order owed to Romania from the lost ICSID case. As confirmed in the May 20, 2025 release, the stay of enforcement on this award was lifted, meaning Romania can attempt to seize company assets at any time. This creates an existential threat.
• Significant Shareholder Dilution: The company's survival strategy has been a continuous cycle of dilutive financings. The most recent financing added 37.4 million shares and 37.4 million warrants. Furthermore, the grant of 38.6 million options at $0.075—a price below the recent financing price of $0.105—is highly dilutive and represents a significant transfer of potential value to insiders at the expense of common shareholders.
• Confirmation of Negative Trajectory: The news does not offer any improvement to the company's situation. It reinforces the narrative established over the past year: the company is a legal shell with no operating assets, burning cash to fund a high-stakes legal battle with a low probability of success, all while its liabilities mount and shareholder equity is eroded through dilution. The new, albeit small, property damage liability is another negative data point.

In summary, the Q3 results confirm that the company is on life support, entirely dependent on the speculative outcome of its legal case and the willingness of its key shareholders to continue funding a high-burn operation.

Gabriel Resources Ltd. is a Canadian resource company. Its primary asset is its majority ownership in the Roșia Montană gold and silver project in Romania. The project has been stalled for years due to a lack of permits from the Romanian government. After losing an ICSID arbitration claim against Romania in March 2024, the company's sole focus has shifted to pursuing an annulment of that decision. The Roșia Montană project itself is on care and maintenance, and its exploitation license extension was rejected by Romanian authorities in June 2024. The company has no revenue-generating operations and its existence depends on the outcome of its legal proceedings.