OPEN LETTER

I write to call to your attention the factual falsehoods on your website concerning the Rosia Montana Project – errors that must in fact be known to your organization, as they differ from the project’s EIA report, which (as is evident from citations on various pages of your website) you claim to have studied and analyzed.

As the false statements are too numerous to list in this letter, suffice it to say by way of example that the “case study” appearing on your website contains 10 errors in just 5 paragraphs.

In Soros Foundation shorthand, the Rosia Montana project is defined by “dynamiting four mountains,” “destroying 958 households” and “demolishing the town.”

None are true.

Dynamiting four mountains…

Fact: if the reference is to the four proposed mining pits comprising our project, your web-visitors should know that not one of the sites is pristine – indeed, all four sites bear the ravages of past mining, and one is in fact an abandoned crater, heavily polluted by poor mining practice, which our modern mining practices will clean up. Modern “mining for closure” practices – documented in our EIA – will ensure that when the mine is closed, lands will be reclaimed, revegetated and returned to use by man and wildlife. And in the case of Rosia Montana, our mine will in fact leave the area cleaner than we found it.

Destroying 958 households…

Fact: according to World Bank standards, homes are being purchased on a “willing buyer/willing seller” model, at generous prices unavailable in the natural “real estate market” in impoverished rural Romania – which is why 98% of all local residents have had their properties surveyed by the company. 12 of the 16 sub-commune of Rosia Montana are not affected by the project – and for those families who seek to live nearby, a new village Piatra Alba is being built at company expense, the collaboration of a Romanian and Colorado/USA design team that has developed U.S. resort communities.

Demolishing the town…

Fact: Far from demolishing Rosia Montana, all 41 currently-designated historic structures in the village are preserved under our mining plan, whether they are located in the Protected Zone or outside of it. Two churches must be moved under the mine plan; depending on the congregations’ wishes, the churches will either be moved or rebuilt to the congregation’s specifications. Perhaps this is why the Special Rapporteur from the Council of Europe termed our patrimony programme at Rosia Montana “an exemplary model of responsible development.”

…Although that’s a fact not fit for the posting on the Soros Foundation site.

All of these facts are present in our EIA, whose contents are legally binding on us.

Perhaps you have just copied your case against us from the statements of partner organizations who are opposed to our project, reporting their falsehoods as your own. Indeed, many of the “facts” on your site look to come, cut-and-paste style, directly from statements made by Alburnus Maior and the Hungarian Government.

But we should give credit where credit is due -- and acknowledge falsehoods that appear to be your own organization’s invention.

For instance, your site claims that the Rosia Montana “project violates also the Berlin Convention (10 October 2001), which stipulates the interdiction of the cyanide use in the mining exploitations on the territory of the European Union.”

Of course the Berlin Convention, as you are doubtlessly aware, has no force of law in the EU. Indeed, cyanide use in gold extraction is legal within the EU (and is currently used in a majority of operating EU gold mines), and is subject to even stronger standards as a result of the EU’s 2006 Mining Waste Directive – with which our project complies from Day One. In fact, at the most recent G-8 gathering in Germany, the G-8 nations made a joint statement explicitly endorsing the International Cyanide Management Code (ICMC) -- promulgated under the auspices of the United Nations Environmental Programme, outlines strict Standards of Practice governing cyanide use in mining.

Is the G-8 wrong about cyanide?

Are the heads of the world’s foremost democracies violators of the law?

Is the UN a co-conspirator in the lawless use of cyanide?

Or is it the case that the Soros website simply chooses to mislead its visitors, in hopes that they will remain ignorant of the facts?

The Soros Foundation cannot in good conscience post such false statements on its site if it is sincere in its wish to have an honest and open discussion on projects such as ours.

The volume of such statements on your website suggests not random error but rather a concerted campaign -- a suppression of any and all fact-based evidence recognizing that the Rosia Montana Project conforms to the highest international standards. Beyond your web-based campaign, we also call on you to clarify your role in the leaking of the IGIE Report (the so-called “ad hoc report”) in March 2007, whereby fed negative news stories in Romania on what was in fact a positive report. Finally, given community support for our project and your claimed commitment to accountability, we urge you to explain how your anti-mining stance squares with your mission statement “to promote patterns for the advancement of a society based on freedom, accountability and respect for diversity.”

Perhaps we are destined to differ. Still, it is the case that people are entitled to their own opinions, but not to their own facts.

As a publicly-traded company, Gabriel Resources is required by law as well as the regulatory rules that govern security exchanges to conduct itself in an open and transparent manner. The same cannot be said about your “open society” organization. We urge you to remove the false statements from your website immediately, and desist from misleading the interested public about our project.

Sincerely

Alan Hill

President & CEO

Gabriel Resources & Rosia Montana Gold Corporation

August 20th, Bucharest

Persoana de contact

Cristina Merrill

Communication and Corporate Social Responsibility Coordinator,

Corporate Affairs Department

Gabriel Rosia Montana

14 Uruguay Street, 1st District, Bucharest, ROMANIA

Tel: (+4) 021 223 1358

Fax: (+4) 021 223 1408

Mobile: (+4) 0729 399 175

Email: cristina.merrill@rmgc.ro

(MEDIAFAX News Agency provides the press release issued by Gabriel Resources & Rosia Montana Gold Corporation. MEDIAFAX News Agency takes no responsibility for the content of the press releases, and only offers the technical support for their transmission.)