For immediate release

7 March 2022

Serabi Gold plc
(“Serabi” or the “Company”)

Serabi Gold Reports Mineral Reserves and Resources at its Palito Complex as at 31 December 2021

Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, today reported its updated Mineral Reserves and Resources estimate at Palito and Sao Chico as of 31 December 2021.

Highlights

• Total Measured and Indicated Resources of 252,494 ounces and Inferred Resources of 221,929 ounces.
• Total resources maintained at 2020 levels net of mine depletion demonstrating continued success in reserve and resource replenishment.
• Total Proven and Probable Reserves increased to 67,344 ounces from the 2020 level of 61,720 ounces.
• Accelerated mine development and exploration programmes ongoing and is expected to support further resource growth.

Mike Hodgson, CEO of Serabi, commented:

“The Palito Complex has a long history of reserve and resource replenishment and it is pleasing to demonstrate this once again, through this positive reserves and resource update. Our global mineral resources have remained relatively stable and our global mineral reserve has increased by 9% despite mine depletion. To do this against the backdrop of supply chain issues on essential equipment during 2021 post pandemic is commendable.

“2022 promises to be another year of further consolidation as the ongoing supply chain issues diminish. We will be expecting to accelerate our exploration and development activities and further grow the resources throughout the year. The Palito and Sao Chico orebodies remain open along strike, laterally and at depth. We look forward to updating the market with our exploration results throughout the year and are confident these will lead to a growth in both our reserves and resources and demonstrate that the Palito and Sao Chico deposits remain long-life assets.”

Updated Reserves and Resources

Table 1 below sets out the updated Mineral Reserve and Resources Estimate for Palito and Sao Chico as at 31 December 2021 (“December 2021 MRE”).

A comparison with the previously reported Mineral Reserve and Resource Estimate as at 31 December 2020 published on 29 March 2021 (the “December 2020 MRE”) is set out in the Appendix. The Mineral Reserve and Resources Estimate for Coringa has not been updated.

Table 1: Mineral Reserves and Resources, Palito and Sao Chico as at 31 December 2021

Total Reserves and Resources for the Palito and Sao Chico Mines, Para, Brazil (effective 31 December 2021)
	Palito			Sao Chico			Combined
	Tonnes	Grade (g/t Au)	Contained ounces	Tonnes	Grade (g/t Au)	Contained ounces	Tonnes	Grade (g/t Au)	Contained ounces
Reserves
Proven Reserves	43,123	6.03	8,360	12,505	6.44	2,590	55,628	6.12	10,950
Probable Reserves	208,411	7.43	49,796	35,204	5.83	6,598	243,614	7.20	56,393
Total Reserves	251,534	7.19	58,156	47,709	5.99	9,188	299,243	7.00	67,344
Resources
Measured Resources	39,203	6.63	8,360	9,620	8.38	2,590	48,822	6.98	10,950
Indicated Resources	1,093,178	5.22	183,594	360,513	5.00	57,950	1,453,690	5.17	241,544
Measured & Indicated Resources	1,132,380	5.27	191,954	370,132	5.09	60,540	1,502,512	5.23	252,494
Inferred Resources	882,083	5.00	141,798	547,581	4.55	80,131	1,429,665	4.83	221,929

Notes to the Mineral Reserves and Mineral Resources:

• The scientific and technical information contained in this news release pertaining to the Palito and Sao Chico gold deposits has been reviewed and approved by Michael Hodgson BSc, MSc FIMMM, who is a qualified person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and who has acted as the qualified person under the AIM Rules (“Qualified Person”):
  
  

The Qualified Person has verified the information disclosed herein, including the sampling, preparation, security and analytical procedures underlying the information or opinions contained in this announcement in accordance with standards appropriate to their qualifications.

• The Company estimates and discloses mineral reserves and resources using the definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum, and in accordance with NI 43-101. Further details are available at www.cim.org.
• Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
• Mineral Resources are inclusive of Mineral Reserves.
• Proven underground Mineral Reserves are reported within the Measured classification domain, and Probable underground Mineral Reserves are reported within the Indicated classification domain. Proven and Probable underground Mineral Reserves are inclusive of external mining dilution and mining loss and are reported at a cut-off grade of 3.70 g/t gold assuming an underground extraction scenario and metallurgical recovery of 91% for the Palito Mine and at a cut-off grade of 3.45 g/t gold assuming an underground extraction scenario and metallurgical recovery of 95% for the Sao Chico Mine, a gold price of US$1,500/oz and a 5.0:1 Brazilian Real to U.S. Dollar exchange rate.
• Mineral Resources are reported within classification domains inclusive of in situ dilution at cut-off grade of 3.10 g/t gold and metallurgical recovery of 91% for the Palito Mine and at cut-off off grade of 2.85 g/t gold and metallurgical recovery of 95% for the Sao Chico Mine assuming an underground extraction scenario, a gold price of US$1,500/oz and a 5.0:1 Brazilian Real to U.S. Dollar exchange rate.
• Polygonal techniques were used for Resources estimates.
• Figures are rounded to reflect the relative accuracy of the estimates.
• Serabi is the operator and owns 100% of the Palito and Sao Chico Mines such that gross and net attributable mineral reserves and resources are the same.
• The effective date of the Resource estimate is 31 December 2021.
  
  

Mineral Reserves

Proven and Probable Mineral Reserves at the Palito Complex total 67,344 ounces of gold as at 31 December 2021, an increase on the December 2020 MRE of 5,623 ounces. The majority of the Reserves were defined at the Palito orebody with 58,156 ounces with the balance of 9,188 ounces being defined at Sao Chico. As part of the Company’s strategy to mitigate the risks and impacts of the COVID-19 pandemic, exploration and development activity was curtailed for much of 2020. Supply chain issues then hampered exploration and development during 2021. This had a direct impact on the replenishment of Reserves which are delineated by surface and underground drilling and most importantly by underground development. With these issues generally resolved, it is anticipated that the reserves at both Palito and Sao Chico orebodies will be further replenished during 2022.

Mineral Resources

Serabi’s Measured and Indicated Resources of 252,494 ounces remained broadly in line with the December 2020 MRE of 262,956 ounces, with the decrease reflecting mine depletion.

Measured Resources of 10,950 ounces at both Palito and Sao Chico were broadly in line with the previously reported December 2020 MRE of 12,731 ounces. Indicated Resources were also broadly in line at 241,544 ounces compared with 250,225 ounces in the December 2020 MRE. These modest declines were net of mine depletion.

The total Inferred Resources at the Palito Complex at 221,929 ounces remained broadly in line with the December 2020 MRE of 211,821. Inferred Resources at Palito increased slightly to 141,798 ounces at 5.00g/t Au from 117,819 ounces at 3.74g/t Au whereas Sao Chico saw a decrease in the Inferred Resource to 80,131 ounces at 4.55 g/t Au from 94,002 ounces at 4.81g/t Au.

The Palito and Sao Chico orebodies remain open along strike, laterally and at depth and the Company anticipates being able to continue to add to the resource inventory and demonstrate continued resource and reserve replenishment. In 2005, when the mine began operating, the global resource was 49koz of Indicated and 344koz of Inferred Resources. Since then, the Company has mined over 380koz and retains a Measured and Indicated Resource of 252koz and an Inferred Resource of 222koz, demonstrating strong resource replenishment.

The updated Mineral Reserve and Resource Estimates in respect of the Palito and Sao Chico deposits, have been prepared by the Company and are effective as of 31 December 2021.

Qualified Persons and Quality Control

The scientific and technical information contained in this news release pertaining to the Palito and Sao Chico gold deposits has been reviewed and approved by Michael Hodgson BSc, MSc FIMMM, who is a qualified person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and who has acted as the qualified person under the AIM Rules (“Qualified Person”).

The Qualified Person has verified the information disclosed herein, including the sampling, preparation, security and analytical procedures underlying the information or opinions contained in this announcement in accordance with standards appropriate to their qualifications.

Mineral Reserves and Resources

The Company estimates and discloses mineral reserves and resources using the definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum, and in accordance with NI 43-101. Further details are available at www.cim.org. See the “Glossary of Geological and Mining Terms” for complete definitions of mineral reserves and mineral resources.

About Mineral Resources

Mineral resources are not mineral reserves and do not have demonstrated economic viability but do have reasonable prospect for economic extraction. They fall into three categories: measured, indicated, and inferred. The reported mineral resources are stated inclusive of mineral reserves. Measured and indicated mineral resources are sufficiently well-defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the mineral resource. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them. There is no certainty that mineral resources of any category will be upgraded to mineral reserves.

Important Information about Mineral Reserve and Resource Estimates

Whilst the Company takes all reasonable care in the preparation and verification of the mineral reserve and resource figures. the figures are estimates based in part on forward-looking information.

Estimates are based on management’s knowledge, mining experience, analysis of drilling results, the quality of available data and management’s best judgment. They are, however, imprecise by nature, may change over time, and include many variables and assumptions including geological interpretation, commodity prices and currency exchange rates, recovery rates, and operating and capital costs.

There is no assurance that the indicated levels of metal will be produced, and the Company may have to re-estimate the mineral reserves based on actual production experience. Changes in the metal price, production costs or recovery rates could make it unprofitable to operate or develop a particular deposit for a period of time.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged for the release of this announcement on behalf of the Company was Clive Line, Director.

Enquiries:

Serabi Gold plc
Michael Hodgson	Tel: +44 (0)20 7246 6830
Chief Executive	Mobile: +44 (0)7799 473621
Clive Line	Tel: +44 (0)20 7246 6830
Finance Director	Mobile: +44 (0)7710 151692
Email: [email protected]
Website: www.serabigold.com
Beaumont Cornish Limited Nominated Adviser and Financial Adviser
Roland Cornish / Michael Cornish	Tel: +44 (0)20 7628 3396
Peel Hunt LLP Joint UK Broker
Ross Allister / Alexander Allen	Tel: +44 (0)20 7418 9000
Tamesis Partners LLP Joint UK Broker
Charlie Bendon / Richard Greenfield	Tel: +44 (0)20 3882 2868
Camarco         Financial PR
Gordon Poole / Emily Hall	Tel: +44(0) 20 3757 4980

Copies of this announcement are available from the Company's website at www.serabigold.com.

Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this announcement.

See www.serabigold.com for more information and follow us on twitter @Serabi_Gold

APPENDIX

A comparison of the updated Mineral Reserve and Resource Estimate as at 31 December 2021 with the previously reported Mineral Reserve and Resource Estimate as at 31 December 2020 published on 29 March 2021 is set out below.

Comparison of Mineral Reserves and Resources for the Palito Mine, Para, Brazil (effective 31 December 2021)
	December 2020 MRE			December 2021 MRE
	Tonnes 000’s	Grade (g/t Au)	Contained ounces 000’s	Tonnes 000’s	Grade (g/t Au)	Contained ounces 000’s
Reserves
Proven Reserves	49	6.83	11	43	6.03	8
Probable Reserves	191	6.89	42	208	7.43	50
Total Reserves	240	6.88	53	252	7.19	58
Resources
Measured Resources	44	7.52	11	39	6.63	8
Indicated Resources	1,080	4.88	169	1,093	5.22	184
Measured & Indicated Resources	1,124	4.98	180	1,132	5.27	192
Inferred Resources	981	3.74	118	882	5.00	142

Comparison of Mineral Reserves and Resources for the Sao Chico Mine, Para, Brazil (effective 31 December 2021)
	December 2020 MRE			December 2021 MRE
	Tonnes 000’s	Grade (g/t Au)	Contained ounces 000’s	Tonnes 000’s	Grade (g/t Au)	Contained ounces 000’s
Reserves
Proven Reserves	11	5.41	2	13	6.44	3
Probable Reserves	33	6.35	7	35	5.83	7
Total Reserves	44	6.12	9	48	5.99	9
Resources
Measured Resources	8	7.04	2	10	8.38	3
Indicated Resources	471	5.34	81	361	5.00	58
Measured & Indicated Resources	479	5.37	83	370	5.09	61
Inferred Resources	608	4.81	94	548	4.55	80

GLOSSARY OF TERMS

The following is a glossary of technical terms:

“Ag”	means silver.
“Au”	means gold.
“assay”	in economic geology, means to analyse the proportions of metal in a rock or overburden sample; to test an ore or mineral for composition, purity, weight or other properties of commercial interest.
“CIM”	means the Canadian Institute of Mining, Metallurgy and Petroleum.
“chalcopyrite”	is a sulphide of copper and iron.
“Cu”	means copper.
“cut-off grade”	the lowest grade of mineralised material that qualifies as ore in a given deposit; rock of the lowest assay included in an ore estimate.
“dacite porphyry intrusive”	a silica-rich igneous rock with larger phenocrysts (crystals) within a fine-grained matrix
“deposit”	is a mineralised body which has been physically delineated by sufficient drilling, trenching, and/or underground work, and found to contain a sufficient average grade of metal or metals to warrant further exploration and/or development expenditures; such a deposit does not qualify as a commercially mineable ore body or as containing ore reserves, until final legal, technical, and economic factors have been resolved.
“electromagnetics”	is a geophysical technique tool measuring the magnetic field generated by subjecting the sub-surface to electrical currents.
“garimpo”	is a local artisanal mining operation
“garimpeiro”	is a local artisanal miner.
“geochemical”	refers to geological information using measurements derived from chemical analysis.
“geophysical”	refers to geological information using measurements derived from the use of magnetic and electrical readings.
“geophysical techniques”	include the exploration of an area by exploiting differences in physical properties of different rock types. Geophysical methods include seismic, magnetic, gravity, induced polarisation and other techniques; geophysical surveys can be undertaken from the ground or from the air.
“gossan”	is an iron-bearing weathered product that overlies a sulphide deposit.
“grade”	is the concentration of mineral within the host rock typically quoted as grams per tonne (g/t), parts per million (ppm) or parts per billion (ppb).
“g/t”	means grams per tonne.
“granodiorite”	is an igneous intrusive rock similar to granite.
“hectare” or a “ha”	is a unit of measurement equal to 10,000 square metres.
“igneous”	is a rock that has solidified from molten material or magma.
“IP”	refers to induced polarisation, a geophysical technique whereby an electric current is induced into the sub-surface and the conductivity of the sub-surface is recorded.
“intrusive”	is a body of rock that invades older rocks.
"Indicated Mineral Resource	is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
"Inferred Mineral Resource”	is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
“Inferred Mineral Resource”	‟ is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
“mineralisation”	the concentration of metals and their chemical compounds within a body of rock.
“mineralised”	refers to rock which contains minerals e.g. iron, copper, gold.
"Mineral Resource”	is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.
“Mineral Reserve”	is the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral Reserve includes diluting materials and allowances for losses that may occur when the material is mine
“Mo-Bi-As-Te-W-Sn”	Molybdenum-Bismuth-Arsenic-Tellurium-Tungsten-Tin
“monzogranite”	a biotite rich granite, often part of the later-stage emplacement of a larger granite body.
“mt”	means million tonnes.
“ore”	means a metal or mineral or a combination of these of sufficient value as to quality and quantity to enable it to be mined at a profit.
“oxides”	are near surface bed-rock which has been weathered and oxidised by long term exposure to the effects of water and air.
“ppm”	means parts per million.
“Probable Mineral Reserve”	is the economically mineable part of an Indicated and, in some circumstances, a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.
“Proven Mineral Reserve”	is the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors
“saprolite”	is a weathered or decomposed clay-rich rock.
“sulphide”	refers to minerals consisting of a chemical combination of sulphur with a metal.
“vein”	is a generic term to describe an occurrence of mineralised rock within an area of non-mineralised rock.
“VTEM”	refers to versa time domain electromagnetic, a particular variant of time-domain electromagnetic geophysical survey to prospect for conductive bodies below surface.

Qualified Persons Statement
The scientific and technical information contained within this announcement has been reviewed and approved by Michael Hodgson, a Director of the Company. Mr Hodgson is an Economic Geologist by training with over 26 years' experience in the mining industry. He holds a BSc (Hons) Geology, University of London, a MSc Mining Geology, University of Leicester and is a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer of the Engineering Council of UK, recognising him as both a Qualified Person for the purposes of Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

Forward Looking Statements
Certain statements in this announcement are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ‘‘believe’’, ‘‘could’’, “should” ‘‘envisage’’, ‘‘estimate’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘will’’ or the negative of those, variations, or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

ENDS