Company Information for Serabi Mining Plc

AIM-SRB

www.serabimining.com

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AIM; SRB

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Company Statement

Serabi Mining plc is a gold mining company focused on the Tapajos geological region of Northern Brazil. The Tapajos is a major, under-explored mineral province that extends over an area about the size of Belgium. Artisanal miners (‘garimpeiros’) are thought to have extracted up to 30 million ounces of gold from mostly alluvial and surface weathered bedrock deposits since the early 1970s. The company has production from its 100% owned Palito Gold Mine, the first and only modern mining operation established in the region, with the opportunity to expand resources and production from its existing project portfolio that totals over 273,000 hectares. Serabi was listed on the AIM market of the London Stock Exchange (ticker symbol SRB) in May 2005. The company has a strong balance sheet with no debt, no hedging, an experienced management team and an attractive mix of production and exploration projects.

At Palito, mining is based on a series of steeply dipping, high-grade, gold-copper mineralised veins. The Palito mine achieved commercial production in October 2006 and in 2007 produced 34,000 gold equivalent ounces. For 2008, production is forecast to be at similar levels, but with production improvements expected in the second half of the year, output is expected to increase in 2009 to more than 40,000 gold equivalent ounces. The Company is targeting a number of potential satellite mines. Dependent on exploration outcomes, Serabi anticipates that development of these opportunities could result in production increasing to around 80,000 to 100,000 gold equivalent ounces by 2011.
Serabi’s portfolio of exploration properties includes a number of advanced projects across the Jardim do Ouro (‘Garden of Gold’) district located adjacent to the Palito Gold Mine. The company has further projects elsewhere in the Tapajos region, which are at an earlier stage of assessment. Serabi has access to an extensive exploration database based on work previously undertaken by Rio Tinto plc (‘Rio Tinto’), which covers a significant portion of the Tapajos region.

Current Operations

Palito Gold Mine
Palito is an underground mine, extracting high-grade gold and copper sulphide ore from steeply dipping veins located along the Palito Main Zone (PMZ). The mine and a number of nearby areas had been previously worked by garimpeiros for several years but became technically unviable for them as the near-surface, oxide ores became depleted.

The Palito Mine has to date been centred on three main vein structures. During 2008, developments to the east and west of these structures will give access to a further five structures in the Chico da Santa area and the Palito West area. The opening up of these new areas gives significant opportunities to develop multiple mine faces. This will assist mining rates and ore grades that can be delivered to the plant providing a variety of options for the optimization of daily mining schedules.
Over the course of 2008, with the introduction of the new mining fleet, Serabi hopes to increase mine output to some 700 tonnes of ore per day. Improvements in the plant are expected to raise throughput to some 600 tonnes per day with the lowest mined grades being stockpiled.

One of the main aims of 2008 is to establish (for the first time) a mineable reserve at Palito, supported by an updated geological resource in and around Palito. The results and the accompanying independent report are expected to be completed in the early part of July 2008.

Exploration
The exploration programme is divided into 3 distinct areas: (i) Palito Mine itself (ii) the Jardim do Ouro District Exploration and (iii) Tapajos Regional Exploration.

Palito Exploration
The early months of 2007 were geared towards preliminary evaluation of properties adjacent to the main mine deposit at Palito, the Palito Main Zone (“PMZ”). The presence of mineralisation to the north-east of the PMZ had already been established at Chico da Santa and an area to the south-west, known as Palito West. Limited drilling of both these prospects had previously been undertaken, indicating that these prospects had potential to become small satellite mining operations but were thought to be of limited tonnage. There were also sufficient indications of the potential within the environs of Palito, referred to as Jardim do Ouro, to demonstrate that a series of mineralised structures parallel to the PMZ might exist over a much wider area.

Pursuing this and following up on a strong gold-in-soil geochemical anomaly, the exploration team identified an area of weathered mineralisation (gossan) outcropping adjacent to the south-west end of the Palito airstrip. A trenching programme followed over what is referred to as Ruari’s Ridge, which identified the presence of a high-grade mineralised structure extending over 600 metres strike at surface. The discovery of this surface outcropping mineralisation is significant as it demonstrated for the first time the potential for new prospects not previously exploited by the garimpeiros. Follow-up drilling confirmed the existence of three or four sub-parallel zones of gold-copper mineralization, with an inferred strike extension of some 950 meters along strike and 300 metres vertically.

At the same time a drill programme was initiated on the Chico da Santa area, to the north-east of the PMZ. This successfully identified two additional vein structures in the area, bringing the total number of newly discovered mineralised structures to five.

At the start of 2007 a ground-based, Electro-magnetic (“EM”) geophysical survey was undertaken over selected parts of the Palito property. EM operates on the principal of identifying zones of electrical conductivity and in the Palito area the gold occurs mainly as part of sulphide mineralised structures that possess greater conductivity than the surrounding granite host rock. The 2007 survey was a follow-up to an earlier similar programme undertaken in 2005, the results of which could now be correlated with the occurrence of drill identified zones of mineralisation. The method was therefore shown to be an excellent target generator in locating potential gold bearing mineralised structures of the Palito style, though it should be stressed that the presence of sulphides does not necessarily mean the presence of gold in commercially viable concentrations.

Based on the strong correlation of the 2005 survey results, the 2007 EM survey was centred around the Chico da Santa area, and across the southern extension of the PMZ. From the results, it was apparent that around the Chico da Santa area there existed a number of additional, potentially mineralised conductors, leading to a major revision of the geology and drill targets in the area. Further drill programmes were undertaken culminating in the announcement in January 2008 that a further three highly mineralised structures had been discovered between the PMZ and the previously identified Chico da Santa structures. Results from this exploration programme were sufficiently encouraging for the decision to be taken to commence underground development of a cross-cut from the existing PMZ mine workings to intersect these new veins and commence development, enabling further detailed evaluation of these structures from underground. The location of these new veins in such close proximity to the PMZ mine has accelerated the opportunity to introduce these new ore sources into future mine plans. Mine development of the principle vein (Jatoba) is already underway, with good results. Furthermore, this work has reduced the initial cost of developing the wider Chico da Santa area, which Serabi had previously considered would require independent access from the surface.

In light of the initial success at Ruari’s Ridge, attention turned to the nearby Palito West prospect. In considering the future exploitation of Ruari’s Ridge, it was considered that a separate decline access would be required that could also serve the Palito West orebody. As a result, a drill programme was initiated at Palito West, targeting a potential 200 metres along strike and 150 metres depth. Positive results followed and the drill programme was extended. Serabi now considers that the Palito West mineralisation is of sufficient size and quality in its own right that a ramped cross–cut is now planned from the PMZ that will intersect the Palito West ore zone at a depth of approximately 70 metres below surface. This will allow development and mining concurrently of the mine levels both above and below the intersection with the ramp. Again, this would also increase the number of mining faces available, providing the best opportunity to maximise ore grades delivered to the plant. The access ramp to Palito West is currently scheduled for completion in Q4 of 2008, with initial ore development of the Palito West deposit to commence immediately thereafter.

This change in priorities has resulted in further evaluation of the Ruari’s Ridge prospect being deferred. However, an assessment of the near-surface oxide resource at this prospect is being undertaken, and a mine plan for this ore will be completed shortly, with mining anticipated to commence during Q2 of 2008. Further work on the sulphide resource at Ruari’s Ridge will be undertaken during the course of 2008.

The exploration success during 2007 has been driven particularly by the positive results from the ground-based EM surveys, combined with down-hole EM, which applies the same technique using equipment that is placed down existing drill holes. With orebodies such as those at Palito, which are narrow and of fluctuating shape, drilling needs to be particularly well targeted to maximise the value of each hole, especially when drilling the more expensive and time consuming deep holes. The use of down-hole EM assists in this matter.

It is the view of Serabi’s geologists that Palito and the area around it, comprises regular occurrences of near vertical, narrow, high-grade gold-copper vein structures, associated with the sulphides of pyrite and chalcopyrite. It is the presence of these sulphides that has made the application of the EM technique so successful. With this in mind, Serabi intends to realise the full potential of the Palito and Jardim do Ouro mineral district through an expanded exploration and evaluation programme which is now underway.

Jardim do Ouro District Exploration

The Jardim do Ouro District is the area within five kilometres of the Palito Gold Mine. Within this area Serabi has nine targets which could develop into satellite ore bodies of the Palito Main Zone.

Over the course of 2008 Serabi anticipates undertaking at least 25,000 metres of drilling. Whilst some of this is already planned and underway, a significant portion will be directed towards new targets generated by the heli-EM survey.

The Company’s objective is that by mid-2009, it should (taking the PMZ, Palito West and Chico da Santa style deposits highlighted by the heli-EM) be well on its way to identifying sufficient geological resources from which sufficient mineral reserves can be defined in order to embark on a feasibility study for the construction of an 80,000 to 100,000 gold equivalent ounce per year process plant. Construction and commissioning would be anticipated during 2010 with the build-up to full production being undertaken during 2010-2011.

Individual Operations:
Within this area Serabi has nine targets which could develop into satellite ore bodies of the Palito Main Zone.

Palito West
Palito West is a high grade mineralised structure thought to be similar to those found at the nearby Palito Main Zone mining operation, situated approximately 250 metres to the south-west of the Palito mine in close proximity to the Ruari's Ridge prospect.

- Drilling is underway to establish the extent of the mineralisation, which remains open at depth and along strike to the south-east.

Chico da Santa
Situated some 300 metres north-east of the current Palito Main Zone based mine, early exploration identified three mineralised structures running parallel to the Palito Main Zone associated with old garimpeiro workings.

- Significantly two (2) additional potentially mineralised structures have been defined using the survey, bringing the total to five (5). Early drill results indicate the presence of high-grade, gold-copper veins which extend to within just 100 metres of the existing underground mining operation at Palito.
- Detailed evaluation of this prospect is continuing with the objective of possibly commencing production from this satellite deposit during 2008.

Bill’s Pipe
This prospect located approximately 500 metres north of the Palito Main Zone.

- Bill’s Pipe has been the focus of an eleven hole, shallow reverse circulation drill programme to test a major gold geochemical anomaly and encouraging trench sample results.
- The mineralisation has been difficult to correlate between drill holes and may be related to supergene enrichment and dispersion within the saprolite profile surrounding very high grade but narrow zones of vein hosted mineralisation.

Ruari’s Ridge
- Preliminary drilling identified sub-parallel zones of gold and copper mineralisation extending over 600 metres strike and 200 metres down dip. Follow-up drilling and trenching has confirmed the presence of at least three or four sub-parallel zones of gold-copper mineralisation, extending the total inferred strike extension of gold-copper mineralisation to 950 metres along strike and 300 metres vertically.
- The results from diamond drilling also indicate high-grade mineralisation persists to 300 metres vertically beneath the central mineralised trench intercepts, compared with 200 metres previously. This drilling shows that parallel zones of mineralisation also exists in the central part of the strike, with up to three additional zones identified parallel to the main zone.

Detailed evaluation of this prospect is continuing with additional drilling and trenching, combined with an exploration drive along the main mineralised feauture in the second half of 2007. If successful, the intention is to commence production from this satelllite deposit during 2008.

Rio Novo South
Located 5 kilometres to the south-east of Palito and directly along the strike of the Palito Main Zone.

- Extensive evidence of historical artisanal mining, including 29 shafts over a strike length of 300 metres.
- Geochemical work and drilling will be carried out in order to investigate the nature of the anomalies indentified in the 2006 survey.

Tatu
Tatu is located approximately 2.5 km north-east of the Palito mine site and contains extensive garimpeiro workings over an area of approximately 800 metres by 100 metres.

- The mineralisation is associated with a linear shaped valley, corresponding to locally dominant east-west structures.
- Both shear related and stockwork mineralisation has been identified at this location.
- Sampling taken from a garimpeiro stockpile at Tatu has returned values up to 193 g/t gold from rock chips and 16 g/t gold from tailings.
- A detailed 16.5 time line kilometre ground magnetometer survey has been carried out, identifying a significant magnetic anomaly coincident with gold-in soil geochemistry anomalies and areas of past mining activity.
- A scout drill programme is planned.

Antonio’s Gossan
Located approximately 600 metres to the north-west and along strike from the last section of the Palito Main Zone, Antonio’s Gossan is believed to be the strike extension of the Palito Main Zone.

- The area has been the subject of auger sampling and subsequent trenching.
- Initial sampling of the Gossan was by hand dug trench, resulting in rock chip samples of up to 17.0 g/t gold. Results have indicated the presence of three distinct veins over a total width of 15 metres.
- Assays of the channel sample from these veins yielded gold values of 0.32 g/t gold and 18.0 g/t silver.

Copper Hill
Copper Hill is located approximately 800 metres west-north of the Palito mine site and marks the location of a major copper and peripheral gold soil anomaly, coincident with a large magnetic and induced polarisation (IP) anomaly (approximately 1 kilometre in diameter).

- Limited drilling in this area intersected a strong magnetite bearing, coarse-grained granodiorite, associated with extensive disseminated sulphides (pyrite and chalcopyrite) and a number of narrow veins of quartz with sulphides.
- Results indicate sub-economic grades, but demonstrate the existence of a large mineralised system which requires further work.

Pele
Located in the same area as Tatu, this is a strong gold geochemical anomaly correlated with a major regional structure

Tapajos Regional Exploration

The Tapajos Region of Brazil covers an area of 100,000 km2 (approximately equivalent to the area of Belgium). Within this Region, Serabi has concessions totaling approximately 273,000 hectares in eight prospective exploration targets.

Pombo
- Loacted in the Southern Tapajos in Mato Grosso State. Extensive work had already been undertaken at Pombo prior to it's acquisition by Serabi.

- Serabi's drilling results confirm extensive gold-copper mineralisation across the central section, which included gold values of 0.98m @ 13.99 g/t and 0.62m @ 9.83 g/t. Further drilling east and west of the central mineralised section indicates strong alteration, with associated sulphide mineralisation a further 100-150m along strike.

Jutai
- Jutai was originally identified as a bulk, low-grade system previously assessed by Rio Tinto.

- Rio Tinto defined a preliminary oxide resource of 4.4 million tonnes grading 0.60 g/t gold containing approximately 85,000 ounces, mostly within the near-surface saprolite zone and over a strike length of approximately 1,600 metres.

- Further work has focused on the historic resource area and includes preliminary metallurgical test work and a more detailed assessment of the nature of the mineralisation.

Castanheira
- While the area and its surroundings have extensive garimpeiro workings on a well-defined linear trend, there has been no systematic exploration of the area.

- Surface garimpeiro workings extend over 1 kilometre along the strike and can now be identified as a number of flooded pits; management believes these features are likely to represent a mineralised vein system.

- Serabi believes the exploration potential for Castanheira to be high.

Sucuba
- Work has focused on the area around existing garimpeiro workings.
- Serabi has completed a 14 kilometre geochemsitry programme, which identified a number of gold and copper anomalies including a central, east-west feature some 800 metres long.
- A further geochemistry programme indicates a continuation of the central anamoly for a further kilometre. A limited drill programme during 2006 confirmed the presence in hard rock of gold, lead, zinc and silver mineralisation. A further drill programme is planned.

Pizon
- Serabi has recently completed a programme of reconnaissance geochemistry, field mapping and grid-augur drilling, together with stream sediment sampling. Initial results have defined two gold-in-soil anomalies corresponding to mapped intrusive acid porphry bodies emplaced in an acid volcanic terrain.

-The company has recently increased its land-holdings significantly around this prospect.

Igarape Salustiano and Ornifel-Sucuba
- These exploration projects are situated directly along the strike of the Palito mine , and are situated within the regional Tocantinzinho structural trend.

- Management believes these significant areas of unexplored land provide good exploration potential.

Modelo
- Located close to the Transamazonica Highway, this prospect has significant garimpo workings but no modern exploration has taken place.

- Serabi has significantly increased its land holdings around this prospect.

Geographical Spread

The Tapajos Gold Region, which encompasses an area of about 100,000 km2 (350 km by 300 km) in southwest Pará State of Brazil, is approximately 1,300 km southwest from the state capital, Belem.

Board of Directors and Key Management

Graham Roberts	Chairman
Michael Hodgson	Chief Executive
Bill Clough	Director of Business Development
Clive Line	Finance Director
Richard Robinson	Non-executive Director
Roger Davey	Non-executive Director

Company Address

2nd Floor
30-32 Ludgate Hill
London, United Kingdom EC4M 7DR


Telephone:	+44 (0) 20 7246 6830
Facsimile:	+44 (0) 20 7246 6831
Email:	contact[at]serabimining.com
Website:	http://www.serabimining.com

Additional Address/Key Contact

Registered Office
66 Lincoln's Inn Fields
London WC2A 3LH

Capital

140.1 million basic
153.4 million fully diluted

Annual General Meeting

June

Year End

31 December

Nominated Brokers

Numis Securities
10 Paternoster Square
London EC4M 7LT

Nominated Advisors